The Lee Kong Chian School of Business Academic Year 2015 /2016 Term 1

Transcription

1 The Lee Kong Chian School of Business Academic Year 2015 /2016 Term 1 MGMT 222 FAMILY BUSINESS Instructor Name Title Office : Dr Roger Low : Adjunct Faculty of Strategy & Organisation : rogerlow@smu.edu.sg : LKCSB Level 5 Adjunct Office COURSE DESCRIPTION Family businesses are the most prevalent form of business in the world. It is also an emerging and vibrant area of interest today among academics, practitioners and students of management. This course explores the unique challenges and opportunities involves in ownership and management of family businesses. This course will be useful to students from business-owning families. As most of the business organizations in Asia are family-owned, this course will also benefit students who may work for a family business in the course of their future career. Students who wish to enter the private banking, wealth management, corporate banking and consulting industry will find knowledge gained in this course helpful to their work. Anyone who thinks the interaction of two somewhat mutually exclusive systems the family and the business - difficult will find this course fascinating. LEARNING OBJECTIVES By the end of the course, students will be able to: Describe the key roles played by family businesses in the business environment Explain the challenges and issues faced by family businesses Propose ways in which families who choose to further their businesses as family enterprises might ensure that their businesses continue to be sustainable across future generations. Understand the organisational dynamics of family businesses, from the perspectives of family members, non-family employees, consultants and other service providers such as bankers, lawyers, etc. Use tools to advise family businesses particularly in the area of strategic management of family businesses PRE-REQUISITE/ CO-REQUISITE/ MUTUALLY EXCLUSIVE COURSE(S) Please refer to the Course Catalogue on OASIS for the most updated list of pre-requisites / co-requisites for this particular course. Do note that if this course has a co-requisite, it means that the course has to be taken together with another course. Dropping one course during BOSS bidding would result in both courses being dropped at the same time. ASSESSMENT METHODS Assessment Components: Class participation Presentation Test 1 Test 2 Group Project Marks 20% 10% 10% 20% 40% Further details will be provided during 1 st session MCQ test comprising 20 questions Details in course schedule Note: There will be NO Final exam for this course 1

2 ACADEMIC INTEGRITY All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication, facilitation of acts of academic dishonesty by others, unauthorized possession of exam questions, or tampering with the academic work of other students) are serious offences. All work (whether oral or written) submitted for purposes of assessment must be the student s own work. Penalties for violation of the policy range from zero marks for the component assessment to expulsion, depending on the nature of the offence. When in doubt, students should consult the course instructor. Details on the SMU Code of Academic Integrity may be accessed at INSTRUCTIONAL METHODS AND EXPECTATIONS Discussion, Presentations, Tests, Role Play, Project Work and Assignments Group Work: Students will be grouped into course groups once they have signed up for the course. The groups will then be assigned cases and presentations where they will prepare for the designated sessions during the course. Students will also be given a Group project to complete. Details of this will be announced later. Class Attendance: In order to enhance maximum contribution to learning, it is important that students attend all classes. Failure to attend at least 11 of 13 classes (without legitimate written reason for not attending, e.g due to illness, may result in the non-awarding of a course grade). Punctuality: in order to minimize disruption while class is in progress students are asked to be seated no later than 5 minutes past the start of class and after the break. Laptop computers will be permitted in class and may only be used for course related work. RECOMMENDED TEXT AND READINGS Family Business by Ernesto J. Poza. Mason, Ohio: Thomson/South-Western, c2004. of Family Business cases 2

3 COURSE SCHEDULE Week Number & Dates Topics and Content Readings Course Administration Introduction and Course Objectives Assessments and Expectations Formation of Groups Poza Ch 1 & Introduction to the study of family business Importance and prevalence of family business in the economy Defining the family business What makes family business unique? The family business as a system Key issues confronting family businesses Ownership and Management Roles and responsibilities of shareholders 2.2 Case: The Harilela Enterprise: An Indian Family Business in Hong Kong 2.3 Paper Presentation: Calder, G.H.(1961) The Peculiar Problems of a Family Business, Business Horizons, 4, 3, Poza Ch Succession and the next generation Is the next generation good enough to run the family business/ Does the next generation want to run the family business? 3.2 Case: Love and Work Finding One s Place in the Family Firm 3.3 Paper Presentation: Landsberg, I. (2007) The Tests of a Prince, Harvard Business Review, 85, 9, Poza Ch Family Dynamics and the transfer of power Is letting go so difficult? Letting go and exit styles Role types Promoting trust in the process of transferring power 4.2 Case: Ho Tak Kee Book Co Ltd A Third Generation at a Crossroads (A & B) 4.3 Paper Presentation: Barnes, L.B. Hershon, S.A. (1976) Transferring Power in the Family Business, Harvard Business Review, 54, 4, Poza Ch 5 3

4 5 5.1 Non-family managers in family businesses Role of non-family managers Having a non-family manager as CEO Recruiting and retaining non-family managers Extending the family culture to non-family managers Consultants and family businesses 5.2 Video: The Dangers of Nepotism 5.3 Case: The Professionalization of Ujwal Bharati 5.4 Paper Presentation: Blumentritt, T.P., Keyt, A.D. and Astrachan, J.H. (2007) Creating an Environment for Successful Nonfamily CEOs: An Exploratory Study of Good Principals, Family Business Review, 20, 4, Poza Ch Strategic planning and the family business The family culture Creating values and business models Family dynamics and strategic planning Life-cycle of family business 6.2 Conflicts in Family Businesses Video: Conflicts Different Attitudes Among Family Members 6.3 Case: Bhiwar Enterprises Poza Ch Paper Presentation: Sorenson, S.L. (1999) Conflict Management Strategies Used in Successful Family Businesses, Family Business Review, 12, Project Presentation and Approval 8 Vacation/Project Time Family business governance and estate planning Estate Planning and ownership transfer Advisory boards and boards of Directors Family meetings, family councils and family offices Poza Ch 7, 10 & Video & Discussion: Family Governance at the Cousin Consortium Stage 9.3 Case: Hebei Dawu Group: The First Family Business Constitution in China" 9.4 Paper Presentation: Hauser, B.R.(2002) Family Governance: Who, What and How. Journal of Wealth Management, 5, 2, Models of Asian family businesses- issues and success(1) Examining Fambiz in Asia Presentation 1 (India): GMR Group: A Case of Serial Entrepreneurship Examining Fambiz in Asia Presentation 2 (Hong Kong): Lee Kum Kee Corp Ltd (HK): 120 years and going strong Au,K. et al Ch 11 Au,K. et al Ch 3 4

5 10.2 Paper Presentations Santiago, A.L. (2000) Succession Experiences in Philippine Family Businesses. Family Business Review, 13, 1, Ward, J.L. (2000) Reflections on Indian Family Groups. Family Business Review, 13, 4, Models of Asian family business success (2) Examining Fambiz in Asia Presentation 3 (Thailand): Family Business in Thailand Its Management, Governance and Future Challenges Examining Fambiz in Asia Presentation 4 (Japan): The Yazaki Corporation 11.2 Paper Presentation: Tong, C.K. (2005) Feuds and Legacies: Conflicts and Inheritance in Chinese Family Businesses, International Sociology, 20,1, Suehiro, A. & Wailerdsak, N. ASEAN Economic Bulletin vol 21 No 1 (2004) Ichijo, K. IMD- Lombard Odier Family Business Award The Future of Family Business Changing the family culture Institutionalising the change The future: Can family businesses compete and thrive? Poza Ch Models of Asian family business success (3) Examining Fambiz in Asia Presentation 5 (Singapore): The KPMG Singapore Family Business Research Findings 12.3 Paper Presentation: Miller, D. and Breton-Miller, I.L. (2005) Management Insights from Great and Struggling Family Businesses, Long Range Planning, 38, There will be no class. Students can have a final consultation session with the Instructor, if needed. Project due at noon on xx xx