School of Business Management

UNIVERSITI UTARA MALAYSIA

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Course Code : BPME 3043

Course Title : Family Business
Pre- requisite : Introduction to Entrepreneurship

Course Coordinator : Madam Norita Deraman

Department : Business Administration & Entrepreneurship
Room No. : Room 286 COB Main Building
Ext : 04-9287511
H/p : 019-5519476

Lecturer : Dr Norria Zakaria

Department : Business Administration & Entrepreneurship
Room No. : Room 221 COB Main Building
H/p : 019- 4158055

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1.0 SYNOPSIS

This course emphasizes on the management of family business. Students will

be exposed to the concept of family business, the development model of family
business, communication, conflicts and solutions, compensation model, strategic
planning, and succession planning. They will also be exposed to the strength
and weaknesses of family business, dynamic interaction, family business culture
and issues related to family business.

2.0 OBJECTIVES :

Upon completion, students will be able to :

2.1 Discuss the concept, theory, characteristics of family business

2.2 Apply the dimensions of the three-developmental model in family
business context
2.3 Explain the multiple issues related to managing family business

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3.0 REFERENCES

3.1 Main Reference:

3.1.1 Ernesto J. Poza and Mary S. Daugherty (2014). Family Business 4

th edition, South Western Cengage Learning USA.

3.2 Additional References

3.2.1 Gersick, K.E, Davis, J.A., Hampton, M.M. dan Lansberg, I. (1997).
Generation to Generation: Life Cycles of the Family Business.
Harvard Business School Press.
3.2.2 Rosenblatt, P.C., Mik, L.D., Anderson, R.M., dan Johnson, P.A.
(1985). The Family in Business. San Francisco: Jossey-Bass
Publishers.
3.2.3 Friedman, M. Dan Friedman, S. (1994). How to Run A Family
Business: How to own, operate and ensure the continuation of
your family business. Ohio: Betterway Books.

3.2.4 Bork, D., Jaffe, D.T., Lane, S.H., Dashew, L., Heisler, Q.G. (1996).
Working with Family Businesses: A Guide for Professionals. San
Francisco: Jossey-Bass Publishers.

3.2.5 Ward, J.L. (1987). Keeping the Family Business Healthy: How to
Plan for Continuing Growth, Profitability and Family Leadership.
San Francisco: Jossey-Bass Publishers.

4.0 TEACHING METHOD

The method used comprises of lectures, guest speakers, case studies and group
discussion.

5.0 ASSESSMENT*

Coursework : 100%

 Organizing Webinar (Practical Skills) 30%

 Report (Written Comm.) 25%
 Oral Presentation 15%
 Case study 20%
 Quiz 10%

* Subject to change.

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6.0 COURSE CONTENT
NO. CONTENT HOURS

1. INTRODUCTION 6
 What is family business?
 The advantages and disadvantages of family business
 The role of becoming members in family business
 A developmental model of family business
 Theories in family business

2. THE THREE-DIMENSIONAL DEVELOPMENTAL MODEL 7.5

OF FAMILY BUSINESS
 The ownership developmental dimension
 Characteristics and key challenges for ownership
dimension
 The family developmental dimension
 Characteristics and key challenges for family dimension
 The business developmental dimension
 Characteristics and key challenges for business
dimension

3. GOVERNANCE IN FAMILY BUSINESS

 Introduction
 Governance challenge and risk for family business 4.5
 Governance for family business
 Corporate governance and board effectiveness in
family business
 Reason for family governance

4. FAMILY BUSINESS RELATIONSHIP, CONFLICTS AND 3

SOLUTIONS
 Building trust and commitment in families
 The importance of conflict
 Sources of conflict in family business
 Advisor’s role in conflict situations
 Strategies for resolving conflicts-conflict resolution
approach

5. SUCCESSION AND FAMILY BUSINESS 6

 Introduction
 Business succession phase
 Factors influence succession in family business
 Succession strategy
 Several method of succession

6. MANAGING INHERITED BUSINESS 3

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  Introduction
 The personal dilemma of managing inherited business
wealth
 The confidentiality of family business

7. SELLING OR BUYING FAMILY BUSINESS 3

 Introduction
 Establishing a price for the business
 Mergers and acquisition

8. COMPENSATION 3
 Compensating owners, family and non-family members
 Compensating directors
 Compensating employees

9. ESTATE PLANNING IN FAMILY BUSINESS 3

 What is estate planning”?
 Gathering information and objective formulations
 Tentative plan
 Pitfalls in avoiding estate and ownership transfer planning

10. STRATEGIC PLANNING IN FAMILY BUSINESS 3

 Definition and the importance of strategic planning in
family business
 Issues in strategic planning

TOTAL OF CREDIT HOURS 42

Student participation in the class is compulsory. Students must participate in any discussion or
activities that require their participation.

REMINDER

ATTENDANCE TO CLASSES IS COMPULSORY. Attendance of less than 80% can

prohibit the student from sitting for the final exam. If the student has any problems, he or she is
advised to meet and discuss with their subject lecturer.

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