Family Business Management

5.

Strategic Management in Family Firms

5.1.

Strategic Planning Process

5.1.1.

Vision and Mission Development

5.1.2.

5.1.3.

Goal Setting and Implementation

5.1.4.

Strategic Review and Adaptation

5.2.

Aligning Family and Business Goals

5.2.1.

Balancing Family and Business Priorities

5.2.2.

Mechanisms for Alignment

5.2.3.

Managing Trade-offs

5.3.

Sources of Competitive Advantage

5.3.1.

Patient Capital

5.3.1.1.

Long-Term Investment Horizon

5.3.1.2.

5.3.2.

Long-Term Perspective

5.3.2.1.

Strategic Consistency

5.3.2.2.

Relationship Building

5.3.3.

Social Capital and Reputation

5.3.3.1.

Community Relationships

5.3.3.2.

5.3.3.3.

Trust and Credibility

5.3.4.

Organizational Culture

5.3.4.1.

Values-Based Leadership

5.3.4.2.

Employee Loyalty

5.4.

Innovation and Entrepreneurship

5.4.1.

Fostering Intrapreneurship

5.4.1.1.

Encouraging New Ventures

5.4.1.2.

Supporting Family Member Initiatives

5.4.1.3.

Innovation Culture

5.4.2.

Adapting to Market Changes

5.4.2.1.

Responding to Disruption

5.4.2.2.

Embracing New Technologies

5.4.2.3.

Agility and Flexibility

5.5.

Financial Management

5.5.1.

Capital Structure Decisions

5.5.1.1.

Debt vs. Equity

5.5.1.2.

5.5.1.3.

External Financing

5.5.2.

Reinvestment vs. Distribution

5.5.2.1.

Balancing Growth and Payouts

5.5.2.2.

Investment Priorities

5.5.3.

Performance Measurement

5.5.3.1.

Financial Metrics

5.5.3.2.

Non-Financial Indicators

5.5.3.3.

Balanced Scorecard Approach

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6. Succession Planning and Leadership Transition