An analysis of how the internal and external factors bring about a Divorce in ownership and management of Family Businesses: a case study of FG Curtis Plc, UK

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TABLE OF CONTENTS

CHAPTER 2: LITERATURE REVIEW……………………………………………………………………………2

Introduction…………………………………………………………………………………2

Divorec of Ownership and Management……………………………………………….……2

PART I: The Family Business Industry………………………………………………………2

Prevalence of Family Business…………………………………………………………2

The Three Circle Model of a Family Business………………………………………..2

Divorce between Ownership and Management……………………………………….2

PART II: Change Management Theories…………………………………………………...2

Lippitt, Watson and Westley's Expansion of Lewin's Change Model………………..2

Kotter's Model………………………………………………………………………...2

Jicks Model……………………………………………………………………………2

Mento, Jones and Dimdorfer's Model………………………………………………...2

Action Research Model………………………………………………………………..2

Case of Curtis Plc…………………………………………………………………………..2

Conclusion………………………………………………………………………………….2

Summary and Application…………………………………………………………………..2

REFERENCES……………………………………………………………………………………………………2

CHAPTER 2: LITERATURE REVIEW

This section of the research study aims upon reviewing an extensive literature regarding the family businesses and the divorce in the ownership and management of the family businesses.

Introduction

Amongst many other professional small and large scale organizations and businesses which are on boom these days. In general, the business organizations in the entire world in general, and in Europe in particular, are dominated by the ownership structures such as sole proprietorship, partnerships and cooperatives. Besides this, there are many other forms of business including such as stock companies. These companies employ the careful and careful form of organization. There still has to be a more complex reality which is masked by this simple distinguishing structure. However, this simple distinction masks a more complex reality (Feltham & Barnett, 2005, Pp. 1).

Divorce of Ownership and Management

In the classes of such business structures, there is a variation of ownership that exists and affects the operations of businesses. Regarding such varying structures, there can be two extremes: at one , the ownerships of the business stocks might be completely concentrated in the hands of the management; while, in the other, there can be a widely dispersed ownership of the business stock, when the stock might be owned and invested in by the mutual parent of the organization. Many degrees of separation are evident from the various degrees of separation of ownership from management (Hannah, 2007, Pp. 404). In particular, there is an increase in the extent of divorce of ownership from the management as an individual moves across the ownership structures to closely held companies by their managements from those organizations which were closely held by the parties other than management (Andre, 2006, Pp. 517).

The key reading here consists of the extensive study on the subject of family business systems and the separation of business activities due to the divorce of ownership and control. Much literature collected and other research studies have shown that all these companies have possessed various different structures regarding their operations and performances. These structures have also known to be significantly different from one another and these distinctions are significant and have major implications for the compensation, distribution and other dimensions of the employees operations in a company (Mayers and Smith, 1996). The differences in structure also put effects on the behavior of employees, investment strategies, and the business and marketing mix of a company (Mayers and Smith, 1997). The output given by the current studies are the results of the ownership of management and ...