The paper "Family Business - Anderson Property Plc " is a perfect example of a business case study. Family business poses several challenges that may not be experienced in other forms of business, due to the increased participation of the family in every aspect of the business. In this respect, if the affairs overlapping and the family and its business are not managed well, there are high chances that a family business may not survive to pass on to the next generations. The discussion below analyzes the Anderson Property Plc (APC); a family company business that was established in 1986, and has proven successful in its property and real-estate business over the last three decades.
While the organizational structure and the organizational strategy of the company are well formulated and have acted as the basis of the company success in the past, there is a major weakness both in the shareholding structure and the succession planning of the business. The APC family company shareholding is not specified in terms of the percentage shareholding for each of the family members, while most of the top management level positions are reserved for the family, yet not clarified on how succession should occur.
Therefore, it is recommended that the Anderson Property Plc (APC) builds its shareholding and succession planning upon the equitable family value and principle, which will distribute the benefits associated with the business positions and wealth equitably among the family members. This will be crucial to alleviate the unhealthy competition for top management positions, which is increasingly building tension and resentment in the family. IntroductionThe family business is different from the other types of business, owing to the fact that the family plays a pivotal role in both the management and the succession planning of the business (Poza, 2013).
The majority of family businesses owners have a prospective of running the business successfully and then passing the business over to the next generations. However, it is estimated that “ 70% of family business will not make it to the second generation, while 90% will not pass on to the third generation” (Walsh, 2011:2).
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