Smith family owns the used car retail business and the family focuses on the preservation of the family control over the business on the principle of parity of all family members and their full participation in the business. The family consists of four members, including Mr. John Smith, Mrs. Marry Smith, Mr. Adam Smith and Mr. Paul Smith. John Smith is the head of the family and spouse of Marry Smith. Adam and Paul are their sons. Each family member owns equal share in the family business and performs his responsibility. John Smith is the technical director of the family business, Marry Smith is an accountant, Adam Smith is a supply manager, and Paul Smith is the customer relations manager. Each family member performs his or her specific functions and is responsible for his share of business. At the same time, they share profits of business respectively to their contribution in the business on the principle of parity. Each family member has equal rights in the family business but all decisions in the family business should be taken on the ground of the consent of each family members mentioned above. The family business is owned by the family members and the ownership cannot be changed otherwise but upon the full written consent of each family member.
Statement of family values and beliefs
The family focuses on the maintenance and development of its business. The primary concern of the family is the improvement and expansion of its business to provide the family business with the steady progress and development of the family business. The family business puts interests of the family above all. Family members cannot pursue business interests if they are harmful for the family. Therefore, business interests should not be prior to the family interests. The family interests should be prior to the business interests. The family members cooperate closely to reach possibly better effects for the business development. Family members should not sabotage family business or commit actions that contradict to interests of the family business. Each family member should do his or her best to maximize the effectiveness of his or her performance and to meet interests of the family and the business.
The family believes in the well-being of the family, if each family member works hard on the family business but remembers about the priority of family interests over business interests. Each family member should work for the well-being of the family but not for his or her own well-being. Personal interests of each family member should not be prior to interests of the family and family business. The family business is the product of the family but the business cannot interfere into interpersonal relations within the family. Family members should respect each other and support each other. The mutual support is a crucial condition of the successful development of the family business.
Each family member focuses on his or her specific functions and is responsible for his or her specific scope of responsibilities. Each family member should take care of other family members and the family business. The family should be supportive and help each other to contribute to the family business development.
Outline of family business principles
The principle of parity of all family members
The family business is grounded on the family parity principle. This principle implies that each family member has equal rights and responsibilities in the family business. The age or gender of family members is irrelevant to rights and responsibilities of family members. Therefore, each family member can exercise equal rights and provide for the family business to maintain the successful development of the family business. The parity expands on the ownership of the family business. Each family member owns equal share of the family business and the parity persists throughout the growth of the family business. Neither family member can be the full owner of the business so that other family members will lose their share of business or change their share of business. The equal ownership of business is the key to the maintenance and the successful development of the family business.