This free course is prepared by Business Information Technology students. We look at how to run a successful family business by focusing on four aspects of family business:
After introducing the concept of family business we will consider the benefits of social media, the application of proven marketing techniques and the advantages of using project management tools for improving business performance.
Family businesses are the world’s oldest and most common form of business organisations. Over recent years, the number and type of family businesses have increased significantly and is an ever present dynamic force in the world economy. In many countries, family businesses play a key role in ensuring long-term economic growth as they are very often longer lasting than any other form of business.
There are many benefits of family business that depend on the size and personality of the family as well as its stage of development, some common benefits include…
There are a range of processes that are particularly important for a family business…
A sound recording of a HR Manager talking about project management
Project management describes the method of planning and organising a task. Project management is an increasingly important aspect of any business as the majority of activities that go beyond regular day-to-day tasks can be organised as a specific project. For small and medium family businesses project management enables the close control of precious resources.
Project management also assists a business in keeping a record of what tasks have been completed and those that are yet to be finished. Equally important, project management helps to manage the staff time available to a family business more effectively. To successfully manage a project a family business must be clear about its objectives. The more specific a project’s objectives the better chance that they will be achieved.
Two key considerations define the focus and purpose of any project…
There are various software programs that can assist with project management including Microsoft Project and OpenProj.
The main objectives in a project are always Time, Scope and Cost. This relationship is often illustrated with a balanced triangle…
Any tensions between these three factors will compromise the quality of the project. The project management triangle is a useful technique to illustrate the competing pressures on any project in a family business. If someone is trying to increase the scope of a project without increasing the time or the cost this will affect the quality of the project.
Similarly, if project time is reduced this will impact on scope and cost – which will be reduced too. The main lesson is that there needs to be harmony for the three elements to balance in a project.
The main concerns in a project are always time, quality and cost. Plans can change but the objectives will always remain the same and these objectives have to be achieved in order for the project to be considered a success. Strong project management improves design and execution phase decisions. Clear planning also enables identification of when the project is finished and budget constraints have been achieved.
“The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand – it does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits” (CIM, Shaping the Agenda, 2005).
Marketing orientation
Narver and Slater (1990) identifies three aspects of a successful marketing strategy…
A common classification of decisions made by marketers evolves around the following seven Ps…
Market penetration is where business focus on selling existing products into existing markets. Businesses that use this strategy focuses on markets and products that it knows well, whilst holding a lot of information on its competitors and customer needs. This strategy will not require much investment in new market research.
Market development is where the business seeks to sell its existing products into new markets. It is a riskier strategy than market penetration due to the targeting of new markets and the unknown but this strategy can also high higher returns if a market has no competitors.
“Recent literature has shown that social presence is one of the most significant factors in improving instructional effectiveness.” (Aragon, 2003)
Social Media use can help to bring a family business to the top results of search engine results page. Social networking sites can help promote the business and even expand suppliers and distribution contacts.
Consider a family business and identify the following elements of the brand…
Have you learned some basic principles on how to run a successful family business? Share your thought below and if you like our advice why not share it with your family business members?
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Fantastic work, very informative, well structured and allot new to discover, great team work!
Thank You Dear.. 🙂
Interesting blog! Great recording about the different elements of project management.
Thanks Tan.. 🙂
Thank You Bilal.. That’s very encouraging:)