Please wait - loading…

What You Can Learn From Family Business


What You Can LearnFrom Family Business "Harvard Business Review"
Mind Map by iris221293, updated more than 1 year ago
Created by iris221293 over 6 years ago

Resource summary

What You Can Learn From Family Business
  1. Family Business
    1. focus on resilience more than performance
      1. forgo the excess returns during good times
        1. invest with a 10- or 20-year horizon
        2. Seven differences in their approach
          1. 1.- They’re frugal in good times and bad
            1. don’t have luxurious offices
              1. keep their expenses under control.
                1. have leaner cost structures
                  1. 2.- They keep the bar high for capital expenditures
                    1. judicious when it comes to capex
                      1. capex investments have a double hurdle to clear
                        1. a project must provide a good return on its own merits
                          1. judged against other potential projects,
                        2. " we do not spend more than we earn"
                          1. 3.- They carry little debt
                            1. associate debt with fragility and risk
                              1. debt means being beholden to a nonfamily investor
                                1. 4.- They acquire fewer (and smaller) companies
                                  1. acquisitions worth 2% of revenues VS nonfamily businesses acquisitions worth 3.7%
                                    1. prefer organic growth (partnerships or joint ventures ) vs acquisitions
                                      1. favored smaller acquisitions
                                        1. 5.- Many show a surprising level of diversification
                                          1. 46% highly diversified VS 20% of the comparison group
                                            1. diversification key to protect the family wealth
                                              1. 6.- They are more international
                                                1. ambitious about their overseas expansion
                                                  1. on average 49% of their revenues come from outside their home region
                                                    1. 7.- They retain better talent that their competitors do
                                                      1. 9% of the workforce turned over annually VS 11% at nonfamily firms
                                                        1. extol the benefits of longer employee tenures
                                                          1. they create a culture of commitment and purpose
                                                          Show full summary Hide full summary


                                                          Entrepreneurship Quotes
                                                          Diego Santos
                                                          Chapter 1: Supply Chain Management: an Overview.
                                                          Elizabeth Torres
                                                          TRANSPORTATION: CRITICAL LINK IN THE ECONOMY
                                                          Aranza Castillo
                                                          SWOT ANALYSIS
                                                          Berenice Huerta Hurtado
                                                          .............The family
                                                          Business Intelligence
                                                          Paola Rodriguez9295
                                                          FAMILY MEMBERS
                                                          Daniel Taborda
                                                          English Vocabulary: Management
                                                          Javiera Fernández
                                                          Gran compendio de verbos regulares e iregulares en ingles (Parte 1)
                                                          Ruben Ramon