FAMILY BUSINESS

MANAGEMENT

GROUP
PROJECT
 DONE BY

 A. NAME :-
 1. RISHAB B JAIN – 20E2106
 2. YASH S JAIN – 20E2130
 3. PRATHAM A JAIN – 20E2131
 4. DEVENDAR M JAIN – 20E2142

 B. DEPARTMENT :- BBA - II YEAR – “C” SECTION

 D. ROLL NO. :- 20E2142
 E. REGISTRATION NO. :- 2013101096359, 2013101096368, 2013101096357, 2013101096342
 F. TOPIC :- INDIAN TRADER FAMILIES – FAMILY BUSINESS MANAGEMENT
FAMILY BUSINESS

 A family business is a commercial organization in which 

decision-making is influenced by multiple generations of a family,
related by blood or marriage or adoption, who has both the ability to
influence the vision of the business and the willingness to use this
ability to pursue distinctive goals.[1][2] 
 They are closely identified with the firm through leadership or
ownership. Owner-manager entrepreneurial firms are not considered
to be family businesses because they lack the multi-generational
dimension and family influence that create the unique dynamics and
relationships of family businesses.
 CHARACTERISTICS OF INDIAN FAMILY BUSINESS

 There are eight basic characteristics of Indian Family Business:-

 1. They Face Difficult Decisions Head On:-
 Successful business owners aren’t afraid to stare down difficult decisions in the face. But in a family-owned business, where you have family relationships
in the mix, things can get messy fast. Just because your son shares your last name, for example, it doesn’t mean he’s the right person to take over the
business when you retire. Likewise, promoting a qualified long-time employee to president, instead of your daughter who doesn’t have enough experience
yet for a leadership role, can ruffle feathers. Decisions are particularly difficult when you mix family and business, but it’s absolutely essential to make
those difficult decisions with the overall welfare of the family business in mind.
 2. They Have an Exit Plan:-
 The numbers don’t lie. Unfortunately, studies show that only about 70% of family-owned businesses make it to the next generation. According to the
Family Business Institute, only 12% of family businesses are still around in the third generation, and only 3% are still operating in the fourth generation.
It’s tricky, and that’s why you need a detailed exit plan that lays out a clear roadmap for you, your business and the next generation of leaders. Having an
exit plan in place — and sticking to it — can help remove some of the emotional stress of making difficult decisions like the ones described above. If
you’re already in business, you hopefully already have an exit plan. If you’re starting of thinking a family business, now is the perfect time to start thinking
about your exit. That’s right, the ideal time to plan your exit from the business is before you even start the business.
 3. They Are Honest With Family Members:-
 Say you have three children and all of them want to be involved in the family business. You, as the business
owner, have to be honest with yourself and your children. Not everyone can be the president. Be honest with
your children about their skills and abilities. Make your intentions known sooner rather than later (refer to
your exit plan!) and be honest about what is best for the family business.
 4. They Aren’t Afraid to Rely On Outside Advisors:-
 The family-owned businesses with the most impressive longevity often keep things close to the vest. But that
doesn’t mean they avoid seeking help from outside advisors. In fact, owners of successful family businesses
realize how critical it is to get the objective input of non-family members who aren’t involved in daily
operations. Those owners know that when family and business mix, emotions often get in the way. When
things get heated and messy, outside advisors can help bring down the temperature in the business. At a
minimum, your team of advisors should include a CPA, attorney and banker.
 5. They Hold Non-Family Members and Family Members to the Same Accountability Standards:-
 One of the quickest ways to undermine a good employee’s positive attitude and dedication is for the business
owner to show favoritism to a family member. When that outstanding employee sees Jack, the owner’s son,
consistently roll into the office parking lot at noon in his shiny new Tesla, don’t expect it to go unnoticed by
employees. The most admired family-owned businesses have a reputation for treating employees and family
members fairly and equitably.
 6. They Embrace Change:-
 Don’t be comfortable with “this is what we have always done,” or you’ll be the last family business making wagon
wheels. While your business might have made it to the next generation, is it poised to make it to the next? Ask
yourself if you’re offering products and services that are still relevant. Do you have a plan for how to differentiate
your business from the competition in a crowded market? You get the idea. Change is inevitable and must be
embraced by any business that wants to remain successful in the future. Make sure your stakeholders are on board
with the need to evolve.
 7. They Don’t Ignore Financial Reporting and Oversight:-
 Many family business owners see financial reporting as a necessary evil, but accurate and timely reporting
can quickly show where the company is doing well and where it is not. Embrace and prioritize financial
reporting to help your management team make decisions in real time. Make an effort to delegate financial
functions to various individuals, particularly when cash is involved. Include a qualified and trusted family
member whenever possible. Accurate and concise financial reporting on a timely basis, along with tight
internal controls, can help ensure your family’s business success in the future.
 8. They Keep Family Emotions and Dynamics In Check:-
 A struggling family business is bad enough, but a struggling family is even worse. Although the business
might close at 5:00 PM, work and home too often overlap in family-owned businesses. Make an effort to
separate work time and family time for the good of the business and the good of your family.
BENEFITS OF INDIAN FAMILY
BUSINESS

 1. Stability:-
 Family business are ideal in nature as they are loyal to the principles of the founder and
top leadership, which results in overall stability within the organization. Leaders usually
stay in the position for many years, until a life event such as illness, retirement, or death
results in change.
 2. Commitment:-
 There is a greater sense of commitment and accountability by all family members due to
involvement of reputation stake of the entire family. These level of commitment is almost
impossible in non-family businesses. It is natural that all family members demonstrate
and share a level of commitment to the firm since the core of any family business is a
shared business vision and identity.
 3. Leadership:-
 In family run business, most of the time leadership is centred to the senior most
people in the family. So each family members show faith and loyalty in the top
leadership.
 4. Trust:-
 Since all family members know each other and related by blood relations, there
is feeling of trust in each other.
 5. Flexibility:-
 In family run business, all family members can take any role which the business needs.
You won’t hear, “Sorry, this is not my job” in a family business. They can take several
different tasks outside of their formal role in order to ensure the success of the company.
 6. Decreased Cost:-
 All family members contributing land, labor, capital and entrepreneurship means there
will less cost of running and managing business. In hard times just like COVID-19,
family members even can take a pay cut or work without any pay.
LIST OF INDIAN FAMILY BUSINESS

 1. Bohra :-
 Dawoodi Bohra
 2. gujaratis :-
 Wipro, Amul, Nirma, Parle, Asian Paints
 3. Khatri :-
 Chitpavan Brahmins
 4. Marwaris :-
 Aditya Birla Group. Birla Corporation. Grasim Industries. Hindalco Industries. Idea
Cellular. UltraTech Cement.
 5. Parsis :-
 Ratan Tata
 6. Sindhis :-
 Chandru Raheja, Deepak Perwani, Gulu Lalvani, Hari Harilela, Kabir Mulchandani.
 7. Kerala :-
 Kalyan Group