1)The influence of family members in family business firm. Explain?

Different from non-family firms, family firms combine “family” and “firm”;
their most distinctive feature is that family members are involved in corporate
governance.
Amon them socioeconomic wealth has been essential feature of family
involvement which creates a series of non economic goals for the firm.such as
(a) enhancing and perpetuating family image and reputation.
(b) maintaining family control of ownership and management, and
(c) sustaining the family’s dynastic aspirations and ensuring that the business
remains viable across future generations.
family involvement can give firms a long-term strategic motivation, create a
positive environment, and bring reliable and unique resources, thereby
promoting firm innovation.
In family firms, family members are usually involved not only in ownership but
also in management. Family involvement in ownership refers to the proportion
of equity possessed by family members.
Family involvement in management reflects family participation in strategic
decision making, which is usually measured by the proportion of family
members in the top management team, the proportion of family employees,
and whether family members are senior managers.
Family involvement provides the family with the ability and power to influence
the firm’s innovation decisions by shaping firm goals, strategies, and
behaviours. Specifically, a greater degree of family ownership enables the
family to exercise more unrestricted discretion due to its status as a business
owner and to impose significant influence over strategic and tactical options
presented to the top management team by virtue of their voting power.
The greater the family’s involvement is, the more positive the firm’s attitude
toward innovation will be. Further, high ownership concentration can diversify
the risks of family firms by implementing innovative strategies and exploring
new business areas, which lead to a positive motivation for innovation. Family
involvement in management also determines the emotional identification of
family members with the business. Family members regard the business as a
family asset and have a strong desire to inherit the family business.
family involvement can form a positive environment for innovation. As the
degree of family involvement increases, family members’ sense of ownership
and emotional attachment to the firm also increase, which contributes to the
formation of a stewardship culture. The stewardship culture is conducive to
family members’ adjusting their preferences, focusing on long-term
competitiveness, using corporate resources efficiently for family interests, and
being more courageous in the face of the potential risks associated with
innovation. At the same time, family power in the business continues to
increase with the degree of family involvement.
Firms with a high degree of family involvement, especially in management, can
create a family culture atmosphere, which naturally urges family members to
form a strong commitment to the firm. This commitment encourages family
managers to associate personal interests with corporate interests, greatly
reducing the agency cost between shareholders and managers and allowing
family firms to invest in innovation activities. On the other hand, families are
likely to simultaneously participate in both business and family relationships in
their personal and professional lives. 
According to the above analysis, as the degree of family involvement increases,
the active motivation, positive environment, and intangible resources of
innovation in the firm increase, which are beneficial to the development of
firm innovation.
2)Roles and responsibilities of board of directors? ( in notes)
3) Succession planning and transfer of power in family
business.
 Succession planning:- Succession Planning in an ongoing process, which
needs careful planning and preparation for smooth transition of ownership,
leadership and management of the family business and family assets to the
future successive generation.
 A strong successful continuity plan can foresee the challenges faced by the
siblings, cousins, and large groups of business owners, shareholders.
Structures are put in place to ensure strong leadership, effective decision
making, for protecting family wealth and the family relationships. Without a
succession plan, the business can have a high structural risk and the family
relationships could be at stake.

 Need for succession planning

Choosing an efficient leadership is so crucial and vital for the future of the
organisation. a prince is trained so hard in all the aspects of the administration
of the kingdom so that the kingdoms future and welfare of the people is
safeguarded likewise that is how important an efficient leader for the future is
for an organisation
As an owner, you have the right to determine whether to transfer your family
business to the next generation. With that right comes the burden of many
complex and difficult decisions. What do you want to do with the assets you
worked so hard to build? How do you let go? What roles should the next
generation play? Are their relationships strong enough to work through
decisions together?

 Family business succession process:

1. Develop a very well formulated and effective family business
succession plan
2. Ensure timely succession in the family business
3. Create smooth transition between the retirees and successors

 Transfer of power
The transfer of power has long been seen as one of most emotionally
fascinating challenges faced by family businesses. The transfer of power is
suggested to be in phases letting the new leader/leadership team adopt to the
organisational sensitivities and culture. The power transferred need to be
productive to the organization rather being personnel.

 Major challenge in succession planning

At some point, the founder faces a critical choice – whether to pass

down the business to the children, thereby transforming the
enterprise from a founder-led company to a family business. Or, to
use the shorthand of ‘2G’ for the next generation.

 Essentials of idle succession planning

To make a good transition, you need a continuity plan that maps out the path
from the current generation of ownership to the next. Picture each generation
on opposite sides of a canyon. If you just keep going along as you were, you
will go right off the cliff. You need to build a bridge across. That bridge consists
of three main elements: transferring assets, shifting roles, and developing
capabilities.

1. Assets: as you make your asset transfer plans, you need to revisit your family
business type, align ownership with each person’s interests, and make
effective use of tax-planning tools.

2. Roles: a brilliant asset transfer plan is worth little if you don’t carefully
manage the handoff of roles from one generation to the next. A good
succession is often described as the passing of the baton in a relay race. This
helpful metaphor points to three aspects of the process – preparing the person
currently holding the baton, selecting who will take it, and orchestrating the
handoff.

3. Capabilities: avoid the temptation to focus solely on who gets to take over
running the company. In a family business, there are many possible and
important leadership roles for the next generation to assume. For your
business to thrive, you will need to become a family talent development
machine which means educating family members about ownership,
constructing pathways to leadership roles, and creating opportunities for
collaboration among members of the next generation.

4.Explain factors that influence success of CRM?

 What is CRM
Customer relationship management (CRM) is a technology for managing all
your company's relationships and interactions with customers and potential
customers. The goal is simple: Improve business relationships to grow your
business.

 eight main factors responsible for the success of CRM.

The factors are: 1. Top Management Commitment and Support
2. Define and Communicate CRM Strategy
3. Culture Change
4. Inter-Departmental Integration
5. Skilful Staff
6. Key Information on Customers
7. Manage IT Structure
8. Customer Involvement.

Factor # 1. Top Management Commitment and Support:

Top management involvement in the CRM implementation plan has been
identified in almost all success factors studies as a crucial factor that ensure
the successful implementation of CRM. Considering the scope of CRM
implementation as an enterprise-wide strategy requires a full support by the
top level of the organizational structure. The role of board level is essential in
backing the CRM implementation process and securing required amount of
financing for putting CRM projects into action.

Factor # 2. Define and Communicate CRM Strategy:

A clear definition of the CRM strategy and alignment of this strategy to the
company’s strategy would facilitate the transition of changing work structure
and environment toward customer-centric approach. The absence of a clear
CRM strategy or the lack of developing such a plan could cause the failure of
CRM implementation. Additionally, publishing the strategy to the staff is
required to raise their awareness of the CRM objectives, implications, and
benefits.

Factor # 3. Culture Change:

In order for CRM to succeed in realizing its objectives, organization should
develop a culture where all staff are encouraged to share and learn from new
work structure and information that is based on customers. Expected
resistance of new ways of conducting work tasks within the organization’s
culture should be addressed and minimized.

Factor # 4. Inter-Departmental Integration:

From s strategic perspective CRM implementation has an organization-wide
influence. Different functions and departments of the organization should be
integrated and connected with a structure that support the flow of
information.

Although all aspects of the organization should be integrated, a special

consideration should be devoted to functions that have direct interaction with
customers such marketing, sales, and services. Such integration is required to
deliver a unified view of the organizations and its products to the customers.

Factor # 5. Skilful Staff:

Employees play a key role in the success of CRM projects. Issues of the nature
of learning new work systems, training programs, change resistance,
willingness to share information, and motivating staff should be taken to
consideration.
Factor # 6. Key Information on Customers:
Acquiring and analysing the right quantity and quality of information on
customers helps to meet customer’s needs. The right information is the base
for designing customized products and services.

Factor # 7. Manage IT Structure:

Considering CRM as only a technological solution is a vital misconception that
resulted in increasing failure of CRM projects. Nevertheless, IT is an enabler for
acquiring and managing valuable data on customers. Technological aspects
such as data warehouse capabilities and software configuration in addition to
the influence of the internet are crucial for CRM successful implementation

Factor # 8. Customer Involvement:

Direct and indirect Involvement of customers in CRM designing is a tool for
strengthening practical CRM. Such an involvement helps the organization to
analyse the customer relationship life cycle and consequently find the areas of
problems that can be managed by CRM. Furthermore, customers’ acceptance
and interaction with CRM systems could be enhanced by involving those
customers in building CRM systems

 Benefits of successful crm

1. Better knowledge of customers.

2. Better segmentation.
3. Better customer retention.
4. Better anticipation of needs.
5. Better and speedier communication.
6. Better protection of data privacy.
5.explain leadership skills in managing fbm?

Qualities
A family business leader needs to have the following qualities:
1. The leader should ideally follow a delegating, empowering, and participative
leadership style. As the organization and the family grow, the biggest challenge
that the family
2. Similarly, he should learn to curb his ego and be brave enough to accept the
help of others. Many family leaders walk around feeling they should be super-
people, totally competent, perfect. Asking for help is considered an admission
of helplessness. We were never meant to struggle alone. Asking for help is a
gift that we give to our close people.
3. He should be visionary since he must always think about sustainable growth
over a very long-time horizon. He needs to secure the legacy and ensure the
continuity of the productive life of the business for generations to come.
4. While dealing with the conflicts between business and family, he should
usually have a business-first approach. For example, it is natural for parents to
want to provide stable and lucrative employment for their children. However,
when this desire is superimposed upon the business, the owner may hire a
family member with limited talents for working in a customer-driven
environment. The result can be damaging to the company’s reputation and
efficiency and may compromise the long-term survival of the family firm. The
task of the leader is to find an alternative employment opportunity for the
child matching with his or her talent and competence.
5. As mentioned earlier, given the highly complex world of family businesses,
he must have the ability to deal with ambiguity and should switch over fast
into various roles as boss, father, husband, son etc. Family provides stability.
Business provides value to a customer whose needs and tastes keep on
changing. Strong family business leaders need to understand this dichotomy.
Profits generated by a business can provide the family with financial stability.
On the other hand, profits can only be generated by flexible and change-
oriented thinking behaviours. Meeting these conflicting demands require the
highest level of intelligence, commitment, resilience, and sacrifice.
6. He should be fair and consistent in his behaviour with all family members.
He must focus not only in being fair and consistent but should also be
perceived as such by the family members. He must signal to people the fact
that he has gone through what's considered a legitimate process in a very
rational and systematic manner and has not been biased for or against
anybody. Credibility needs to be earned and is a function of other people’s
perception. Hence, he should be articulative in managing the perception of
others. This doesn’t mean that he should be manipulative; but he must be
sensitive towards the feelings, opinions, and thoughts of others.
7. A family leader deals with close people and hence needs to be patient with
them. Processes like succession planning may last for a lifetime and require
extraordinary patience. Business is run on a going concern basis and is
assumed to last till eternity. One needs to be reasonably patient with a process
which can produce enduring results. Low patience with process is a typical
Indian problem. We look out for instant solutions. This mindset is the result of
gut-feel decision making which has succeeded in the past. There is a tendency
to jump to conclusions without getting all the information and facts. Such
short-term approach is not right in the context of family businesses who may
last for generations.
8. A family business leader needs to master communication and inter-personal
skills. He must be a good listener. He must not get over-excited while criticizing
a family member. Criticism, like rain, should be gentle enough to nourish a
man's growth without destroying his roots. Some kinds of criticism can hurt
deeply but leave no visible mark. Harsh words, bullying and ridicule are violent
tactics that are totally inappropriate between family members. Helpful
criticism always includes praise for what was done well and recognition of the
doer. He should not pass verbal violence but should transform it into
constructive criticism.
9. He should be emotionally intelligent. Five factors are important for achieving
a high level of emotional intelligence: high self-awareness; mood management,
self-motivation, interpersonal expertise; and emotional mentoring. He should
not fall prey to emotional exploitations and should not be over-stressed in
adverse or emotion-ridden situations.
10. Because a family leader serves a long tenure, he should be a learner. He
should remain young at heart and should not mind learning from people who
are younger than him. He should interact frequently with experts and other
business owners for cross fertilization
of ideas.
11. He should blend entrepreneurship with caution. On the one hand, he is
required to ensure constant business renewal through innovation, on the other
hand, he must make sure that the legacy is safely passed on to the future
generation. He cannot take undue risks that may threaten the very survival of
the family firm the entire family depends upon. This doesn’t mean that he
should become risk averse. He should continue to set stretch targets.
Happiness comes from setting such targets to test our powers to the fullest but
not by pursuing unrealistic targets which may destroy us.
12. Families present many stressful and emotionally draining situations. He
cannot afford to sink into the emotions for too long and needs to bounce back
fast to normalcy. Resilience and forgiveness are essential qualities of any
family business leader. He cannot afford to overreact with a hurt feeling or
with vengeance. The capacity for hope is the most significant fact of life. Hope
provides human beings with a sense of destination and the energy to get
started. In spite of all the adverse conditions, he has to maintain the belief that
he can come out of any situation; that any deadlock in interpersonal
relationship can be worked upon.
13. The key function of a leader is to identify and nurture talent, and finally to
delegate matching jobs with commensurate authority. This applies to family as
well as non-family
14. A family business leader needs to enjoy the role he is playing. Since the
business colleagues accompany him to home too, he must master the art of
separating the two contexts and not allow the negative experiences of family
context to spill over to the business context and vice versa. He must not
remain over-possessed with achievement and should have the ability to enjoy
small things of life. Too much of business orientation weaken the family ties.
He should make it a point to attend to personal occasions and should carry
deep respect for family rituals.
15. High sense of pride and commitment towards family name and reputation
are the driving factors for a family leader. It is this force that helps in sailing
through many of the crisis situations that a family leader is bound to encounter
during his long tenure. A leader embodying these qualities becomes a source
of inspiration to other people associated with the family firm. This spirit also
helps in creating a strong brand image for the family name.
16. Most of the research on long lasting family firms suggest that such firms
use their finances conservatively and members lead a frugal lifestyle, example
being the houses of Tata, Godrej and Murugappa. The family leader must not
encourage reckless spending and vulgar display of wealth. But he should not be
penny wise pound foolish, as is often the case with founders who have come
up the hard way.
17 Despite being success oriented, he should not lose his human touch and
must respect the individuality of each person associated with the family firm.
He should not over dominate the personal aspects of everyone’s life, including
those of the family members. He should not always use his authority at home
with complete disregard to the personal needs and desires of family members.

6.Explain Importance, types and characteristics of organisation

culture?

 What is organisational culture?

Organizational culture — often called company culture — is defined as the
shared values, attitudes and practices that characterize an organization. It's the
personality of your company, and it plays a large part in your employees'
overall satisfaction.
 Why Is Organizational Culture Important?
A strong company culture will attract the right candidates for the job and keep
them engaged as employees. According to a Glassdoor study, 77 percent of
adults would evaluate a company’s culture before applying to an open
position. Perhaps more impactful, 56 percent rank an organization’s
organizational culture as more important than compensation.

Creating a winning organizational culture takes a lot of time and effort — your
culture must accurately reflect your values and align with your overall mission.
It’s a big to-do, but don’t get discouraged: your efforts will pay off in the long
run.
 FOUR Types-of-organizational-culture
TYPE 1: CLAN CULTURE
Primary Focus: Mentorship and teamwork.

Motto: “We’re all in this together.”

About Clan Culture: A clan culture is people-focused on the sense that the
company feels family-like. This is a highly collaborative work environment
where every individual is valued, and communication is a top priority. Clan
culture is often paired with a horizontal structure, which helps to break down
barriers between the C-suite and employees, and it encourages mentorship
opportunities. These companies are action-oriented and embrace change, a
testament to their highly flexible nature.
 Benefits: Clan cultures boast high rates of employee engagement, and
happy employees make for happy customers. Because of its highly
adaptable environment, there’s a great possibility for market growth
within a clan culture.
 Drawbacks: A family-style corporate culture is difficult to maintain as the
company grows. Plus, with a horizontal leadership structure, day-to-day
operations can seem cluttered and lacking direction.
  Where You’ll Find Clan Culture: It’s no surprise that clan cultures are
often seen in start-ups and smaller companies. Young organizations that
are just starting out put a heavy emphasis on collaboration and
communication, leadership looks to employees for feedback and ideas
and companies prioritize team building.
For companies with a large percentage of employees working remotely
like HR tech provider Hierology, creating an empathetic and
communicative organizational culture is key to success. “When you have
a blended team, your local staff can help bridge gaps and build
empathy,” said Joel Schlundt, vice president of engineering at Hierology.
The team coordinated job swaps to help employees better understand
and appreciate their peers’ roles.

 TYPE 2: ADHOCRACY CULTURE

Primary Focus: Risk-taking and innovation.

Motto: “Risk it to get the biscuit.”

 About Adhocracy Culture: Adhocracy cultures are rooted in innovation

and adaptability. These are the companies that are on the cutting-edge
of their industry — they’re looking to develop the next big thing before
anyone else has even started asking the right questions. To do so, they
need to take risks. Adhocracy cultures value individuality in the sense
that employees are encouraged to think creatively and bring their ideas
to the table. Because this type of organizational culture falls within the
external focus and differentiation category, new ideas need to be tied to
market growth and company success.

 Benefits: An adhocracy culture contributes to high profit margins and

notoriety. Employees stay motivated with the goal of breaking the mild.
Plus, with a focus on creativity and new ideas, professional development
opportunities are easy to justify.

 Drawbacks: Risk is risk, so there’s always a chance that a new venture

won’t pan out and may even hurt your business. Adhocracy cultures can
 also foster competition between employees as the pressure to come up
with new ideas mounts.

 Where You’ll Find Adhocracy Culture: Think of Google or Apple — these

are companies that embody the external focus and risk-taking nature of
adhocracy culture. They run on creative energy and doing what hasn’t
been done before. Adhocracy cultures are commonplace within the
ever-changing tech industry where new products are being developed
and released on a regular basis.
 TYPE 3: MARKET CULTURE
Primary Focus: Competition and growth.

Motto: “We’re in it to win it.”

 About Market Culture: Market culture prioritizes profitability. Everything

is evaluated with the bottom line in mind; each position has an objective
that aligns with the company’s larger goal, and there are often several
degrees of separation between employees and leadership roles. These
are results-oriented organizations that focus on external success rather
than internal satisfaction. A market culture stresses the importance of
meeting quotas, reaching targets, and getting results.

 Benefits: Companies that boast market cultures are profitable and

successful. Because the entire organization is externally focused, there’s
a key objective employees can get behind and work toward.

 Drawbacks: On the other hand, because there’s a number tied to every

decision, project and position within the company, it can be difficult for
employees to meaningfully engage with their work and live out their
professional purpose. There is also risk for burnout in this aggressive and
fast-paced environment.

 Where You’ll Find Market Culture: The goal of a market culture company
is to be the best in its industry. Because of that, these are often larger
 companies that are already leaders of the pack. They’re looking to
compete and beat out anyone else that may compare.

For an industry leader like Blue core, a retail marketing platform that
utilizes AI technology, providing employees with clear objectives helps
the team provide all-star customer service. “Our team is clear on its
goals, and we are incentivized through compensation structure and
recognition,” said Kim Surko vice president of customer success. “With
that foundation, we can apply our personality and values to define how
we will accomplish those goals.”

 TYPE 4: HIERARCHY CULTURE

Primary Focus: Structure and stability.

Motto: “Get it done right.”

 About Hierarchy Culture: Companies with hierarchy cultures adhere to

the traditional corporate structure. These are companies focused on
internal organization by way of a clear chain of command and multiple
management tiers that separate employees and leadership. In addition
to a rigid structure, there’s often a dress code for employees to follow.
Hierarchy cultures have a set way of doing things, which makes them
stable and risk averse.

 Benefits: With internal organization as a priority, hierarchy cultures have

clear direction. There are well-defined processes that cater to the
company’s main objectives.

 Drawbacks: The rigidity of hierarchy cultures leaves little room for

creativity, making these companies relatively slow to adapt to the
changing marketplace. The company takes precedence over the
individual, which doesn’t necessarily encourage employee feedback.

 Where You’ll Find Hierarchy Culture: Hierarchy cultures can be found at

both ends of the corporate spectrum, from old-school organizations to
 those of the customer service industry, such as fast-food restaurants.
These are companies that are hyper-focused on how day-to-day
operations are carried out and aren’t interested in changing things up
anytime soon.

7. Business opportunity and benefits and challenges of family

business? (In notes)
8. Difference between family first and family business? (In notes)
9. How we attract nonfamily professionals in family first and
business first?
Family members are often committed to the business; they sometimes
lack the skills and fortitude necessary to maintain it across generations.
In response, family firms are increasingly hiring non-family employees to
help their businesses survive and grow. However, family firms face a
challenge in this regard as they generally offer Lower Compensation
extend fewer opportunities for advancement or skill development and
have policies and cultures that treat non-family members differently
than family members.
 ACCORDING TO RESEARCH, THERE ARE THREE SPECIFIC WAYS THAT
FAMILY BUSINESS CAN LEVERAGE THISFAMILIES TO ATTRACT
QUALITY NON- FAMILY PERSONNEL: THERE ARE:
A)LEVERAGE NETWORKS: Because of the family’s ties and history in a
community or industry, family business leaders typically have vast social
 networks. Instead of relying on the latest recruitment fads and trends,
family businesses should look to these networks to identify like-minded,
industrious recruits who share the family’s values.
B)BUILD A FAMILY: Integrity. Tradition. These qualities embody many
family firms. By leveraging these cultural identities, family firms can gain a
competitive advantage in hiring. Family businesses often go above and
beyond to create a culture of care and concern for all employees. Built on
trust and cohesiveness, family business leaders often feel a sense of moral
duty to take care of their employees. 
C)SIGNAL STABILITY AND LONGEVITY: With fewer financial resources and
limited growth prospects, staffing reductions or business closure may be a
looming possibility in the minds of prospective employees. However, when
next-generation members devote their careers to the family business, this
signals stability and a family’s long-term commitment to the firm.

10.key family governing issues at different stages of a family business

growth?

Family Businesses:

1) The first stage is called as start-up stage where the business is still new
and varies from 1st to 5th year after the company started to venture
their business in the market. The direction and business objective are
clear since it more focused on the creation of the new business. The
culture is in revolutionary change since everything is new and everything
must be created first. Family and ownership is not an issue since the
founder dedicated all available time to developing the business. Raising
the start-up capital is the critical barrier since the business might face
the danger of under-capitalizes during the initial period of business
initiation and the family members are an important source of finance
and business advice. Inadequate estimation of initial capital, operating
cost and stream revenue will contribute to cash flow problem starting
from the beginning of the business started.
2) The second stage is survival and stability stage where the related period
is between 6th to 15th years after the business was started. During this
period the company needs to consolidate and structure their business
 function and area due to rapid growth and positive cash flow. The
culture is in evolutionary stage since it is building on what founder has
created rather than changing tremendously. The ownership become
important to a small number of family members however the newer
generations tend to escape and create their own path rather than
submission to the founding generation.
3) The third Growth Stages and Challenges Faced
Family business can be described when business own by one or more families’
members directly or indirectly and have significant ownership and
commitment toward the business wellbeing. Family business can consist of
numerous combinations of family members such as husband and wife, parents
and child, extended family, and multiple generations such as grandfather,
father, and son. These family members also play roles as stakeholder, board
members, working partners, adviser, and employees for the company.
Generally, there are three different stages of family business had gone through
for the business to growth from inception to maturity. Different skills are
required in each stage and family issues might happen when the business
moving from one stage to another stage.
4)The fourth stage is success stage where the business was already running for
16 year and above. During this period the business will traverse to a different
generation and there can be several hundred of family members who already
inherit share in the business. The ownership becomes to the fore since the
family members with minority ownership tend to wonder about their roles in
the business since they don’t work in the business and not sit on the board.
They might want to sell their share and invest the money elsewhere for
themselves.
The business might also face a difficult decision in how they want to manage
the company whether they should continue running the business according to
the old ways as determined by the founder or adapt to the new market needs
and requirement. The culture during this period can be evolutionary,
revolutionary or the mix of both. During this period most of company will
growth and expend their capacity or business. Sometimes the company will
neglect the financial planning, control procedure and contingency plan for
worst case scenario. When the crises occur, it might result in some loss of
credibility and exposed their weakness to the customers and shareholders.
11.difference between the council and business and why is it
important?
 
 

(On desktop)

12.components of marketing research? (In notes)

13. creating strategy for the family business?
14. Family business governance, board of directors, etc.?
 Family governance meaning: - Family governance’, refers to the
structures and processes families use to organise themselves and guide
their relationship with their enterprise. When well-designed (and
properly implemented), family governance can help set boundaries,
create clarity, and result in greater harmony between family members, a
more focused business, and easier transitions between generations.
However, to be effective, family governance must reflect the culture,
dynamic and objectives of the family in question.
 Key family governance issue
  

15. Family culture and organisation culture?