Jad Zniber, Isabell Mller

Week 6: Strategic Management Of Family And Business

Strategic Management
Of Family And Business

Jad Zniber, Isabell Mller

Week 6: Strategic Management Of Family And Business

STRATEGIC PLANNING - 5 Reasons Why Successful Companies Do It and Why You Should Too

By Wayne Rivers

1. Strategic planning increases the odds of success

In 2001, the Journal of Small Business Management wrote thatplanning does make a
difference and can reduce the probability of firm failure, and firms with no written plans
exhibit slower growth than firms with more sophisticated planning.

2. Planning allows for faster growth and more prosperity

Faster growth and more prosperity are the result of strategic planning which must include the
implementation of effective management practices. The International Journal of Entrepreneurial
Behavior and Research wrote, Effective management of growth requires formal management
practices often missing. Clear definition and delegation of authority and responsibility, greater
accountability, and planning are necessary for effective management of growing family firms.

3. Planning allows you to establish clear roles and responsibilities

A strategic plan designates which departments in your company and which people or
organizations are responsible for achieving desired outcomes. This creates structure,
accountability, and consensus among employees.

4. Planning allows you to avoid mistakes

A strategic plan is like a map for your business. Can you imagine what it would be like to drive
from New York to California without a map? You know what its like when you make wrong turn
while driving it creates frustration and impedes your progress. Wrong turns in business create
many corollary problems along the way: directionless employees, decreased revenue, reduce
productivity, slower growth, opportunity costs, and the list goes on

5. Increased morale and better harmony

Strategic planning allows key managers both family and non-family to participate and
contribute to the plan. This fosters an atmosphere of open communication among key mangers
and give them a sense of ownership--both of which increase the likelihood of plan adoption and
execution. When employees understand their purpose, feel valued and included, and there is a
common vision for the organization, a company will experience increased morale and harmony.

2
1/2

Jad Zniber, Isabell Mller

Week 6: Strategic Management Of Family And Business

Jad Zniber, Isabell Mller

Week 6: Strategic Management Of Family And Business

Jad Zniber, Isabell Mller

Week 6: Strategic Management Of Family And Business

Mica Reflection Week 5:

Exchange of different narratives of

family businesses

Good story telling is a talent that

becomes rare nowadays and therefore
needs to continuously be practiced

Elena told her story about a very

traditional family business operating in
the Italian pasta company

Mohammed presented his story about

two friends who once founded a
company together and didnt come
along at one point of their lives
anymore

Kems story was about a family

business in Nigeria, a country that is
still highly influenced and shaped by
gender differences.

The skit of week 5 focused on

succession and different ways how to
do were discussed

The weeks main outcome was to

understand how important succession
is and that families should consider it
as soon as possible to prevent
difficulties, and issues about potential
successors or the companys future in
general.

How to set up and follow a

corporate strategy

https://www.youtube.com/wat
ch?v=LkesApAMSQk
This video explains how to
develop a strategy for an
organization, addresses the risks
but also its advantages. 7 steps
are presented that help to create
and implement a successful
strategy that guarantees growth
and sustainability.

Jad Zniber, Isabell Mller

Week 6: Strategic Management Of Family And Business

Jad Zniber, Isabell Mller

Week 6: Strategic Management Of Family And Business