Family Business in India Coursework Example | Topics and Well Written Essays - 9250 words

Family Business in India - Coursework Example India being a country with people who has rich shared values and communication within the family, will ever like to allow such family feuds. This is the prime area of the current research to identify the attitude and circumstances with family firms after the reported major family feuds. Hence the study has considered a case analysis as well as quantitative analysis to identify the factors aided for such feuds as well to observe the trend in the remaining family firms. The study was conducted with the family firms who are in first, second and third generation of transition. Very few cases include successors after 4th and 5th generation also. The study found a remarkable preparedness among the family firms with high professionalism and education. More than half percentage of the studied family firms is executing the succession plan, by training and communicating the succession plan with the successors. Though a minor part of the study group exhibited conflict and sibling rivalry, still they feel the need for a smooth succession plan. The remaining considerable amount of study group is in the stage of preparation of succession plans. The study found that education and communication are directly influencing the preparedness of the successors. With this knowledge, the r esearch found out that Indian firms are acknowledging the need for succession planning and are developing preparedness for succession management. Introduction: Most of the Indian Economy is amassed from the Family businesses. It is estimated that 95 per cent of the registered firms are family businesses. The success of these Family firms has attained from the rich family culture and values nourished through out generations.Family business is a dominant organization form worldwide. According to Steven family is not only a viable factor of economy, but is in many ways its the exemplary form of business. He writes: "The family business is being rediscovered as the embodiment of management practices and business values needed to help the nation's industries regain their competitive edge" (I991).1 Though there are many papers observed the scenario in the past, the current trend is to be observed with variable factors involved in causing the trend. Most family businesses, though relatively small in scale, involve highly complex interrelationships between two analytically separate but inextricably linked social systems: the family and the business. (Lansberg, 1983)2. In the recent times, the globalization factor made it to many Family businesses to attract many Foreign Investments. And the recent Industrial scenario in India presents some cases where the Family