Introduction:
Strategic Issues in
Family Business
ENT 06.327.01
Entrepreneurship
Learning Goals
Gain understanding and respect for
family business continuity
 Understand the challenges and
advantages faced by family business
(especially your own !!)
 Learn managerial, governance, and
family practices that increase odds of
family business success

Largest Family Businessess
Company
Rank
Wal-Mart Stores
1
Ford Motor Co.
2
Samsung
3
LG Group
4
Carrefour Group
5
Fiat Group
6
Ifi Istituto Finanziario Industriale S.p.A.
7
PSA Peugeot Citroën S.A
8
Cargill Inc.
9
BMW (Bayerische Motoren Werke AG)
10
1-3
Columbia Sportswear




Chairman Gert Boyle's parents —
German nationals ---fled Nazi
Germany in 1938.
Purchased a small hat company
upon their arrival in Portland and
named it Columbia Hat Company.
Gert's husband later took over, and
after he died Gert went from
housewife to executive overnight.
Today, son Tim Boyle is the
longtime president and CEO.
http://www.columbia.com/history/About_Us_History,default,pg.html
1-4
An Example:


A Dream Postponed,
Aug. 26, 2004 (Patient
Rancher, Lynn Godfrey)
http://www.cbsnews.com/st
ories/2003/02/13/hartman/m
ain540443.shtml
Elements of Family Business
Ownership
Family
Management
An Example:

Ditch Digger With Big Dreams
Larson, A Son To Be Proud Of
Jason
http://www.cbsnews.com/video/watch/?id=597086n&tag=related;photovideo
What is Family Business:

A family business is a synthesis of:




Ownership Control By Members of A Family or
Consortium of Families
Family Ownership Of Shares Is 15% Or Higher
Family Exercises Strategic Influence In The
Management Of The Firm
Expectations, Dreams, Possibilities Of Business
Continuity Across Generations
Family Businesses . . .




Constitute 80–98% of businesses in U.S. and other
free economies
Generate 49% of GDP in U.S. and more than 75%
in most other countries
Employ 59% of private sector U.S. workforce and
more than 85% of working population overseas
Family-controlled companies comprise



37% of all Fortune 500 companies
60% of all publicly held companies
Created about 80% of all NEW jobs in the 1980s
and 1990s
Family Business Can be Explosive


Kelly family of Iowa and their demolition
business AED
http://videos.howstuffworks.com/tlc/39698-the-imploders-meet-the-imploding-family-video.htm
1-10