ENT398: Topics in Family Business
TR Fall 2013
Did you know family businesses account for:
80 – 90 % of all businesses
over 50% of gross domestic product
almost 60% of employment
over 78% of new jobs
What are the critical issues facing family businesses?
Why do some succeed and others do not?
How are responsibilities divided among family
members?
What do you do with underutilized family members?
How can the business continue to support the family
in successive generations?
Taught by Mr. Dick Kane, former CEO and current Vice Chair of Kane is
Able (a 4 generation family business) and Dean Jeff Alves
ENT398
Fall 2013
Instructors:
Richard P. Kane
Executive in Residence
J. Sidu Business School
Family Business Forum
Wilkes University
Phone: 570-408-2116
richard.kane@wilkes.edu
Dr. Jeffrey R. Alves
Dean: J Sidu Business School
Wilkes University
Phone: 570-408-4702
Jeffrey.alves@wilkes.edu
Topics in Family Business
Text: Required
Family Business – Ernesto J. Poza
4th Edition 2013 – Mary S. Daugherty
South-western
Cengage Learning
ISBN-13: 978-1-285-05682-1
ISBN-10: 1-285-05682-5
Also available: ebook
Purpose and Scope of the Course:
Family controlled businesses (both private and publicly-traded) are
characterized by unique challenges that threaten their distinct core
competencies.
The challenges are primarily the result of issues presented by the
interaction of family, management and ownership- particularly where the
family wishes to perpetuate its influence and/or control from generation to
generation. Family firms seem to be as agile in one generation as they are
fragile across generations. The course will explore and analyze family
business continuity challenges and best management, family and
governance practices for the effective leadership of family-owned
businesses. The focus is on communication skills, management,
governance, and family/business leadership skills. The course will be taught
primarily through live and written cases, discussions, lectures and a
study/consultation experience with family businesses.
Course Objectives:
Upon completion of this course, you should be able to:
a) Learn why a family firm is a unique and distinctive form of
organization. (Business Knowledge)
b) Increase your understanding of family firms and their role in the
economy. (Business Knowledge)
c) Increase your understanding of the major issues and problems facing
family firms as well as how these issues and problems can be solved
to improve family business performance. (Critical Thinking and
Ethics)
d) Improve your team building and writing skills. (Written
Communication)
e) Enhance your opportunities for assessing your future entrepreneurial
and managerial capabilities in a family business context. (Business
Knowledge)
Sensitivities Objectives:
To demonstrate to the students an appreciation for the ethical and global
impact that Family Businesses have on the global economy with regards to
growth and employment.
Competencies Objectives:
Through the teaching and assignments of the Family Business course it will
develop both written and oral skills along with enhancing team building and
leadership qualities.
The case studies will help develop data gathering, critical, and analytical
thinking.
This Family Business Course ENT398 is meant to be extremely interactive
and class participation is highly encouraged.
The course will be made up of selective content of the text book, case
studies and guest speakers.
The Text Book is an important foundation for this class. We will focus on
select content.
Case Studies will be used both from the textbook and also Harvard case
material.
Guest speakers will be presenting during the semester to describe in detail
real life experiences.
Family Business Forum:
Students will be required to attend Family Business Forum events during
the semester. Two-page papers critiquing the presentations will be
required and will account for 10% of your overall grade.
Family Business Presentation:
Students will be required to select a Family Business and write a paper on
your selection. You are free to choose any Family Business (including your
own family business), present day or past business. A written paper will be
required along with it being presented to the class for discussion.
Your presentation on a Family Business should include the following:
1. Description of the business, history, founding date, major products
/services.
2. Description of the organization of the family business, including
systems, structure and strategy. Describe in detail the culture of the
company.
3. Identify the role of the family in the business (roles, responsibilities
and relationships).
4. Current ownership structure, board, family council, family office.
5. Long-term family business plan, including succession and ownership
plans. Discuss specifically how these long-term plans will be
implemented over time.
6. What problems have been overcome (business and family). What
challenges are to be dealt with (business and family).
7. How is communication, conflict, sibling rivalry dealt with?
8. What is your opinion of the outcome of the future?
Case study presentations will be handed in on 19 Nov 2013.
Oral presentations:
Each student will present their case (15-20 minutes) to the class during
Nov-Dec.
There will be a question & answer session after each presentation.
Presentations will account for 20% of your overall grade.
Grading:
Class Participation
Critique of the Family Business presentations
Mid Term essay
Family Business Presentation
Final Essay
30%
10%
20%
20%
20%
Course Calendar: (Tentative)
8/27
8/29
9/3
9/5
9/10
9/12
9/17
9/19
9/24
9/26
10/1
10/3
10/8
10/10
10/15
10/17
10/22
10/24
10/29
10/31
11/5
11/7
11/12
11/14
11/19
11/21
11/26
11/28
Introductions/ Review syllabus
Chapter 1 The Nature, Importance, and Uniqueness of the Family
Business
Chapter 2: The Family Dynamics Challenge
*Students pick a family business to write their paper on.*
Case 1: The Binghams & The Louisville Courier –Journal
The Blethens and The Seattle Times
Chapter 3: The Ownership Challenge
Case 2, Case 3
Chapter 6: Succession & Selection of the Next Generation
Chapter 7: Succession & Transfer of Power
Case 4, Case 5
Chapter 8: Change, Adaptation, & Innovation: The Future of
Family Business
Innovation/Culture/ Loyalty based employer versus
Accountability based employer.
Mid term results, progress report on assignments
Harvard Business Case
Fall Recess
Chapter 9: Boards of Directors, Family Councils, Family Offices
Chapter 10: Strategic Planning
Case 6, Case 7
Chapter 11: Estate Planning
Case 8, Case 9
Case 10, Case 11, Case 12
Tour of Martin Guitar est. 1833 Nazarath Pa
Chapter 12: The Owners Plan
Chapter 14: Key Nonfamily Management
Case 13, Case 14, Case 15
Assignments Due
Presentation
Presentation
Thanksgiving
12/3
12/5
Presentation
Last class, Wrap-Up/ Reflections