2-2 Harvard Business Review Simulation and Journal (2)

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Southern New Hampshire University *

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400

Subject

Business

Date

Jan 9, 2024

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pdf

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3

Uploaded by Jasmine8394

Jasmine Bowser BUS 400 Module 2 Journal 11/01/2023 2-2 Harvard Business Review Simulation and Journal Value creation and competitive advantage : After taking the Honey Heritage simulation, I believe that the company did a very good job when it came to value creation and gaining a competitive advantage across generations. Value creation can be defined as “giving something valuable to receive something else that's more valuable to you” (Stephens, 2023). I would say that my family honey company in the simulation did just that. Starting off by taking honey from a bee owner who had no desire to keep the honey and turning it into a profit by selling the honey and eventually making a business out of said honey. In terms of maintaining our competitive edge, we were performing quite well. When the possibility of launching an IPO emerged, I initially had reservations, as our business seemed to be operating smoothly without it. Nevertheless, I took into account the potential for non-family members joining the company and aimed to guarantee that all parties were honoring their commitments. This included monitoring family members to ensure they were consistently diligent and taking their roles seriously. I had no hesitation when enlisting external experts to support our rapidly expanding enterprise. Later, when appointing a non-family member as CEO arose, I hesitated again. It became apparent that none of the third-generation relatives possessed the necessary qualifications for the CEO position. Retaining a company's core principles is crucial; however, placing an underqualified third-generation family member in charge would have undoubtedly led to the company's downfall.
Jasmine Bowser BUS 400 Module 2 Journal 11/01/2023 Thought process : The simulation altered my perspective with the realization of the complexities that accompany family enterprises. As more relatives joined, it became increasingly challenging to maintain satisfaction among all parties. My attempts at impartial decision-making resulted in medium scores for both family and ownership. Consequently, the company's growth was limited to the national stage. Had this simulation concerned a non-family business, I would have seized more opportunities to propel the company forward. As previously stated, staying true to core values and culture is imperative for a business. If a family-run business decides to "sell out" and excludes the founding members, they risk losing a significant portion of their clientele due to their evident disregard for the company's foundational values. Discovery : During the initial stage of the simulation, I discovered that each decision in a family- oriented business significantly influences both the company and the relatives involved. In this phase, I opted to maintain a neutral stance, striving to address both the family and business requirements, which resulted in the firm achieving national status. Had I prioritized the business aspect, it might have expanded even more. Conversely, if I had concentrated solely on the family's needs, such growth might have never occurred. Additionally, I found that in a family enterprise, consensus is not always possible. Disagreements and tensions can arise due to perceived unfair choices. It is vital to involve family members without alienating them while also making informed business decisions and assigning roles based on merit rather than familial ties.
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