The Family Dynamics And Management Of Industrias La Vega

3. Intellectual property sharing issues between family and friends- Laura and Julie, as they live together, do not avoid

The second ethical problem in this case relates to the Rigas family’s use of publicly-held corporate funds as a personal “piggy bank.” The Rigases used the company jet for personal reasons “without approval of the Board of Directors”, on one occasion flying to Africa for a safari (Markon & Frank, 2002). On another, one of John Rigas’ sons used a corporate jet to pick up an actress friend of his (Grant, Young, & Nuzum, 2004). The former CFO claimed that Adelphia’s funds were used by one of Rigas’ sons to buy a condominium, and to build a $13M golf course (Grant, Young, & Nuzum,

* The new investor should leave sufficient liberty for the management to pursue their own strategy

Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire structural organization of a company, its managerial system and eventually to the company's societal responsibility. A corporation is well organized with stipulated division of responsibilities among the arms of the organizational structure, shareholders, directors, managers and corporate officers. However, conflicts between managers in most firms and shareholders have brought about agency problems. Shares and their trade have seen many companies rise to big investments. Shareholders keep the companies running

Each family member will be taught on the importance of listening to the issues raised other members of the family. This will lay down the foundation for the future sessions. I will also coach the members of the Kline household on how to provide suitable feedback on issues raised by other family members. The session shall also entail a discussion of the expectations of each family member. It is a good point to begin instructing the family on the necessary required in order for those changes to be achieved.

Bob’s rationale behind establishing an advisory board, and his approach for selecting its members, has thus far been successful and valuable for him and the company. He correctly recognized the importance of “the big picture,” as he chose people whose backgrounds covered a wide range of industries and skills and who could therefore fill in any gaps. Furthermore, Bob’s choices were all successful business professionals, so he could therefore be relatively sure that they would be effective in handling any future challenges and recognizing future opportunities. Bob was also cognizant that the business and the family needed unbiased consultants in order to offer advice regarding family employment, and establishing the advisory board presented an outlet in which family members could privately discuss any issues on their mind. Lastly, he established an objective for the board, in that the board would only focus on the “big picture,” which meant that they didn’t get caught in the daily details or argue over the day-to-day routine.

Due to these potential estate and management succession problems, the current president can either continue operating as a family-owned business or sell the out. In order to keep this business as family-owned, Mr. Gorman will have to think of a succession plan after his retirement.

This week’s readings take us on a journey through the makings of a successful multigenerational family business. I personally noticed a few of the same themes from class in the readings, two primarily. The first was the processes and concepts a family can include in their business model that allow the company to run as efficiently as possible (such as deliberating on share distribution, holding family meetings, or implementing a non-family board). The second was the steps that current generation leaders should take to prepare the next generation, and the qualities to look for in the next generation. These two themes, as discussed in class, were the main themes in Chapters three and four of Poza’s book.

As alluded to in the description of the family foundation, communication is limited in the family. This lack of communication has become a roadblock in many relationships throughout the generations. Some may say the quiet, no-tell style of communication comes from our Norwegian Lutheran heritage. Others in the family say that it is the way that they were raised (J. Ellefson, 2015; S Gerdes, 2015; J. Gerdes, 2015).

Throughout the years, the family dynamics has changed; as far as how each family member interacts with one another over preferences or who share common interests with one another. Although each family unit varies, family members must be cohesive this is where the family dynamics come into action. Difficult situations that families may encounter can cause a bit of imbalance within the family dynamics and are often described as dysfunctional, conflict of personal interest with one another can also be a factor or they disagree. Other times, families often argue over a family member who disapproves of what the other family member is doing with their life. Family dynamics is are not always powered by common interest and goals but rather some other

We use the word role today meaning a function or part played in life. As a member of a family or a work situation the roles we have in life depend on the situation we are in at the time. I myself am a wife, a mother, a daughter, a care assistant, a student and a friend. As you can see I have many different roles in my everyday living. The main role in my life will be the role within my family unit. This project will look at the roles of members in a family unit and how this has changed over the last 25-50 years.

Experience shows 90% of family and small businesses generally fail, because of lack of leadership, decision making, or to become fully professional and competitive in the market. It is on Mr. Pacheco’s shoulders, as the family business leader, this decision rest, to keep the existing path – or - grow and prosper with a new structure.

Firstly, the company's share-holders, agree to part with their money permanently on the faith that it shall be invested in the stated objects and in no others.

The principals (the shareholders) have to find ways of ensuring that their agents (the managers) act in their interests.

Nevertheless if companies operate in weak markets and fail to create growth and profit the concept of maximization of shareholder wealth is also an opportunity for self-regulation and security against threats for a company. This approach is in particular useful for safeguarding against difficulties arising from wrong or misguided leadership within a corporation. Shareholders of a company have the strongest interest in a company’s success because they often invest a lot of capital in the business and require revenues for their deposit (Moore, 2002). As a matter of fact, they become more