The Succession Problems of Traditional family business -A Case Study of C Company

• Main Authors: Tzu-Han Chen, 陳姿翰
• Other Authors: Cheng-Ming Chang
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/86103304771991509123

碩士 === 國立中正大學 === 企業管理研究所 === 102 === Family businesses are a prevalent form of organization. Naturally there is a certain degree of solidarity and closeness among family members because of blood relationship, and the family cohesion has a positive effect on the family business. However, it cannot be denied that the model of family businesses hides a lot of crises. According to many reports, there is few family businesses which can be handed down from generation to generation without diminishing. In the alternation of generations, because of varied backgrounds and experiences, the predecessors and successors have different concepts of values and distinct thinking patterns, which influences their thoughts, ideas, and operation of the business. Furthermore, successors have to face a lot of pressure which is not only for taking over the traditional industries of the previous generations, but also for seeking the opportunity of industrial innovation and sustainable development in a competitive market. It is also pressure to take care of the communication with the previous generation and maintain family harmony. Consequently, the overlapping roles between family and enterprises may cause potential internal conflicts. The purpose of the present study attempts to explore how a family business strikes its own balance with the changes between internal and external environments and continues the business smoothly. This study aims to investigate the development of a family business, “C Company”, and probes into and reflects from it. The suggestions based on the business status are as follows. For sustainable development of family businesses, it must be taken into account to attend to family harmony and cohesion. In addition, a successor has to know the atmosphere and the challenges within the company and anticipate and exclude the possibility of conflicts. What’s more, a successor should also prevent the possible conflicts from being caused. In order to conquer the rapidly-changing challenges, it is essential to respect and modestly learn the previous generations’ successful experiences and the maintenance of interpersonal relationship. It is also important to timely integrate the experiences from old and young generations and to foster the energy of innovation.