AN EVALUATION OF FAMILY BUSINESS AND CHALLENGES OF SUCCESSION

INTRODUCTION 

The succession system involves planning, selection and preparation of the next generation of managers, transition in management responsibility gradual decree in the role of previous managers and finally discontinuation of any input previous managers.

In contrast to the above process, management succession can be by crisis. The crisis may be brought about by the death or disability of the found, or hiring of an outside manager in an attempt to finally fix things gone wrong in the process not motivated by crisis nor characterised by a single event not marked by a single date on the calendar. (Solomon, 2005)

Whether succession is a process or a crisis depends on several characteristics of the business, senior managers and family. Growing profitable and successful business cause managers to think about expanding opportunities and continuity. Stagnant business with disappointing profits cause managers to concentrate on today’s predicaments. An attitude of I have got to solve to days problems before I can worry about the future make training succession as a process difficult if not impossible. 

Table of Contents

Approval Page. ii

Dedication. iii

Certification. iv

Acknowledgement v

Chapter One. 1

1.1.     Introduction. 1

1.2      Statement Of The Problem.. 2

1.3.     Objectives Of The Study. 2

1.4      Research Questions. 3

1.5.     Significance Of The Study. 4

1.6.     Scope And Limitation Of The Study. 4

1.8      Research Methodology. 5

1.8.1       Population Of The Study. 5

1.8.2.      Sample Size. 5

1.8.3.      Sample Techniques. 6

1.8.4.      Method Of Data Collection. 6

1.8.5.      Method Of Data Analysis. 6

Chapter Two. 7

Literature Review.. 7

2.1      Introduction. 7

2.2      Business Succession Planning. 8

2.2.1       Management Succession Planning. 9

2.2.2       Ownership Succession Planning. 9

2.3.     Field Of Succession Management 10

2.3.     Leadership Concept And Succession. 11

2.4      Creating A Business Succession Plan. 13

2.5.     Reasons For Have A Business Succession Plan. 15

2.6      Succession Plan And Leadership. 16

2.7      Factors Affecting Succession Effectiveness. 19

2.8      Data Analysis And Presentation. 21

Chapter Three. 27

Summary, Conclusion And Recommendation. 27

3.1      Summary. 27

3.2      Conclusion. 27

3.3      Recommendations. 28

References. 30