Succession Planning in Family Owned Businesses: A case of succession planning among business in UK

By

ACKNOWLEDGEMENT

I would like to thank my supervisors, friends and family, without their support this research study would not have been possible.

DECLARATION

I adjudge that the entire content of this dissertation is entirely my own work; the content used in this dissertation has not been submitted before in any educational institution and represents my own opinion.

Signed __________________ Date _________________

ABSTRACT

In this research study the aim is to find out about current status of succession planning in UK family owned businesses. The study analyzes the importance of succession planning in the family owned businesses in UK and how many of those businesses have realized its importance and executed in their businesses. The research study discusses the case studies of different UK family owned businesses and analyzes their succession plans. The study helps in finding out the challenges face by the UK family owned businesses in executing succession plans in their business, and the reasons why these businesses avoid implementing succession plans. For doing this, the mixed methodology was employed in that interview; questionnaire and case studies methods were used. After analysis and discussion the conclusion can be drawn that the succession planning is significant for firms. There are 65% of the UK family owned businesses which do not have any succession plan. Although the responses and analyzes suggest that in order to get the lucrative returns it is essential that the firms must execute the most effective succession plan and there must be smooth ownership transition.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the study1

Succession Planning2

Challenges in Succession Planning2

Problem statement4

Significance of the study4

Research aims and objectives5

Research aims5

Research objectives5

Research questions6

Rationale of the study6

Summary of Thesis6

CHAPTER 2: LITERATURE REVIEW8

Introduction8

Succession Research History8

Areas of Succession Research Focus9

Succession planning literature10

The Importance of Succession Studies11

Previous Landmark Succession Reviews11

Why Succession Planning is Important14

Resistance to Succession Planning17

CHAPTER 3: METHODOLOGY19

Introduction19

Research Methodology19

Data collection methods20

Case Research Process20

Secondary sources21

Questionnaire22

Geographical location22

Sample size and participants22

Selection and Number of Cases23

Limitations23

Ethical considerations23

Using keywords23

CHAPTER 4: ANALYSIS AND DISCUSSION24

Analysis of case studies24

Case study 1: TED24

Case study 2: European Foods - the worst laid plans25

Case study 3: Wates26

Interview analysis26

Interview question 1:27

Interview question 2:27

Interview question 3:27

Interview question 4:28

Interview question 5:29

Interview question 6:29

Interview question 7:29

Interview question 8:30

Interview question 9:30

Questionnaire analysis31

Discussion37

Interview findings37

Questionnaire discussion39

Case studies discussions39

Case study 1:39

Case study 2:40

Case study 3:40

Secondary research discussion41

Challenges and solutions to succession planning42

Effective succession plan45

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS50

Recommendations52

REFERENCES54

APPENDIX57

CHAPTER 1: INTRODUCTION

Background of the study

For many industries the human resources serve as the most significant part and there is no exception of family businesses. The family businesses are considered and relied on the human resources from the bottom up and these are not more important than those executives who guide and establish their organizations (Buckingham, Vosburgh, 2001, 17). In today's businesses, the leaders of those family owned businesses are the scare resources. In order to develop and enhance these resources leadership abilities, proper time, planning and the preparation of the resources must be executed. In the small family businesses the human resources like the leaders who have potential are ...