Essay Example on Family Business Management

Section 1: INTRODUCTION

NAME:

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The name of the business is Venus fashion line.

VISION STATEMENT:

To be the foremost fashion and design line in UK on provision of clothing and foot wear.

MISSION STATEMENT:

To make Venus business an international family accommodative of all ideas and strategies of all members in order to be economically and corporately successful in its service by:

• Establishing the business in New York in this first year of operation.
• Generating funds through our thrift of at least $ 12 million through aggressive marketing using all possible media strategies.
• Diversifying into other enterprise such as oil and gas, educational institutions or services, within three years of operation.
• Introduce a new service called pampered party. This party will be geared towards females of age 16 to 26 years to showcase the various designs at the beginning of every year. This will be a source of attracting new clients and generating revenues.

MOTTO:

The motto of this business will be 'I do not do fashion, I am fashion.'

ADDRESS

The head Office: No 125, DSC Express way, Bangor.

AIMS AND OBJECTIVES

In three years of operation, Venus Fashion Limited has claimed a niche of serving busy women in all classes. We will continue building this fashion line by:

• Filling the store line with high-end apparel
• Provide more options for customers in fashion and design
• Marketing our unique fashion line Salvatore family through targeted media
• Create clothing designs
• Forming network connections
• Member empowerment

To engage in any other fashion and design activity that may tend to enhance the brand as well as the economics of the members.

SECTION 2: GUIDING BELIEFS OF THE FAMILY CONSITUTION; THE VALUES TO BE TRANSMITTED

ABOUT THE FOUNDERS

This company was founded by Katrina and Mary Salvatore. The company has greatly progressed in size and its competitive strength. This is not only as a result of its founder's effort but the professionalism but also the dedication of the second generation.

Noting that the company is growing, we the members of second generation would like to leave a written document for other generations.

VALUES TO BE PASSED ON

The values and principles of Salvatore family which have made the business a success and should be passed on include:

• Mutual respect. All members should respect each other's thoughts and ideas. This is the key to family harmony and success in a family business.
• Social responsibility. All members should carry their duties diligently. This has played a basic role in continuity of the family.
• Willingness to fight for beliefs, including family values and principles.
• Integrity and hard work. These values have helped the company maintain its status and stand out in the competitive market.
• Support community and show concern for needs of others. The members should give back to the society
• Family atmosphere. The business will have a loving atmosphere for the family members and non family members. All members should be treated equally regardless of their positions in the business.

OTHER VALUES

The members of the future generation offer themselves to know, understand and follow the following values.

• Performance-Fashion is the base for all we do and outstanding us the core value of our Company.
• Passion - Passion about the business should be at our hearts.
• Integrity- Family members and non family members are honest, open, ethical and fair.
• Diversity- Appreciate people with diverse ideas, strengths, interest and cultural backgrounds to make the Venus successful.

SECTION 3: WHAT WE EXPECT FROM OUR FAMILY BUSINESS

THE TYPE OF COMPANY WE WANT TO BE

Venus wants to be a business when the Salvatore family members are represented in the board committee.

A business where family members control the ownership.

A business that is outstanding in fashion and design industry among other companies in the market.

A business which is lead in the current technology

An emperor which runs for generations and remains successful

A business which has equal opportunities and well managerial structures, that is it offers employment to family members and non family members

WHAT CAN BE EXPECTED FROM OUR FAMILY BUSINESS

Expanding of the business to other regions to enhance our brand

Increase in profits, customer loyalty, developing new and unique designs

Undergoing a business expansion which is fair -Handling risk and speculation

A company which has good internal cash flow and does not rely on the debts to run its activities.

SECTION4: CONDITIONS THAT WOULD SIEZE US TO BE A FAMILY BUSINESS

Venus Limited should be the source of capital for the Salvatore family but if the company and the family sinks in debts, then they can dissolve the business and settle the debts.

SECTION 5: PRINCIPLES RELATING TO WORK IN THE FAMILY BUSINESS

It is essential that the family members to know the challenges and the opportunities of working with Venus Limited. The company will support internships and volunteer at the family business of the future generations to be able to familiarize themselves about the business.

The family members willing to work at Venus should meet the criteria for non family member's applicants.

Family members are subjected to perform their work well

Family members will be paid the same way and same amount as non family members in a similar position

Family members can participate in internship and volunteer programs.

SECTION 6: PRINCIPLES RELATING TO OWNERSHIP IN THE FAMILY BUSINESS

Business shares should be maintained by family members

Members should ensure the decisions about shares passing to another generation through Estate planning and should ensure other generations can participate.

In context of liquidity shares the company should pay dividends and ensure liquidity finance.

SECTION 7: PRINCIPLES RELATING TO GOVERNING IN THE FAMILY BUSINESS

The family committee should be responsible for sharing meetings, education committees and developing communication policies.

The board of directors will be highest governing body for the business.

Information discussed in annual shareholding meetings will be confidential.