Essay
MNE3704 ASSIGNEMNT 6 SEMSETER 2 2023
- Course
- Institution
MNE3704 ASSIGNEMNT 6 SEMSETER 2 2023
[Show more]
Seller
Follow
tatendamuzavazi
Reviews received
Content preview
0717513144 MNE3704 ASSESS 6 SEM 2 2023 muzavazi47@gmail.comDISCLAIMER
The MNE3704 assignment 6 Semester 2 2023 is a guide that help students to
answer their 6th assessment. Therefore, students can use as the document
contains different pools of questions. Those who need further assistance may
contact the given details:
CONTACT NUMBER:
071 751 3144
muzavazi47@gmail.com
,0717513144 MNE3704 ASSESS 6 SEM 2 2023 muzavazi47@gmail.com
Question 1
1.1 Define the concept of family governance and explain how it benefits
the energy company.
According to Basco and Rodríguez (2011) family governance refers to the set of rules,
processes, and structures that guide decision-making and management within a
family-owned business. It involves establishing clear roles, responsibilities, and
communication channels among family members involved in the business (Chrisman,
Chua & Steier, 2003).
Family governance benefits the energy company in several ways. Firstly, it helps to
maintain family harmony by providing a framework for resolving conflicts and making
decisions collectively. This ensures that family dynamics do not negatively impact the
business operations. Secondly, it promotes long-term sustainability by establishing
mechanisms for succession planning and professionalizing the management of the
company. This ensures that the business can adapt to changing market conditions and
remain competitive. Lastly, family governance enhances transparency and
accountability, reducing the risk of nepotism or favoritism within the company. This
fosters trust among stakeholders and improves overall corporate governance.
1.2 Identify and discuss six (6) challenges to family governance that
Josè’s family successfully overcame. Indicate with practical examples
from the case study how Josè’s family overcame these challenges.
Succession Planning
According to Basco and Rodríguez (2011) Josè's family successfully overcame the
challenge of succession planning by implementing a structured process. They
established a family council to evaluate potential successors based on merit and
qualifications, rather than solely relying on family ties (Chrisman et al., 2003).
Conflict Resolution
, 0717513144 MNE3704 ASSESS 6 SEM 2 2023 muzavazi47@gmail.com
The family faced conflicts related to business decisions. They overcame this challenge
by creating a family constitution that outlined decision-making processes and
established a family assembly where conflicts could be discussed and resolved. The
case study mentions that Josè's family successfully resolved conflicts through regular
family meetings and discussions (Chrisman et al., 2003). They established a culture
of open communication and active listening, allowing family members to express their
opinions and reach consensus.
Separation of Ownership and Management
Josè's family separated ownership and management roles by hiring professional
managers to run the business. This allowed family members to focus on strategic
decision-making rather than day-to-day operations.
Professionalization
The family recognized the need to professionalize the business and brought in external
expertise to improve governance practices, financial management, and operational
efficiency. The family recognized the need to bring in outside expertise to manage the
business effectively (Chrisman et al., 2003). They hired professional managers who
brought specialized knowledge and experience, enabling the company's growth and
success.
Communication
Effective communication was a challenge for the family. They addressed this by
establishing regular family meetings and implementing transparent communication
channels to ensure that all family members were informed and involved in decision-
making.
Balancing Family and Business Interests
Josè's family successfully balanced the interests of the family and the business by
creating a family council that represented different generations and interests. This
allowed for open dialogue and decision-making that considered both family dynamics
and business objectives (Chrisman et al., 2003).
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tatendamuzavazi. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.52. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79202 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now