, MNE3704 Assignment 5 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 8 May 2025; 100% TRUSTED
Complete, trusted solutions and explanations.
Questions:
1.1 Define the concept of family governance and explain how it befits
the energy company. (2)
Family governance refers to the structures, processes, and practices that
family businesses put in place to guide interactions among family
members, manage business operations, and ensure alignment between
family values and business goals. It typically includes policies on
ownership, succession planning, roles of family members in the
business, conflict resolution mechanisms, and communication channels.
Its purpose is to foster long-term sustainability and harmony both within
the business and the family.
How Family Governance Benefits the Energy Company:
In the case of the energy company founded by José, family governance
played a critical role in securing the business’s long-term stability and
growth. Key benefits include:
1. Smooth Succession Planning: Lorenzo introduced a formal
succession plan that prepared the business for leadership transition,
reducing potential conflict and uncertainty about future leadership.
2. Professionalisation of Management: The appointment of an
external CEO and corporate governance consultants marked a shift
from informal, family-run operations to professional management,
improving operational efficiency and credibility.
3. Clear Roles and Responsibilities: By implementing structured
governance, the company clarified roles for José’s sons, enabling
them to participate effectively in the business and reducing the risk
of internal disputes.
Semester 1 2025 - DUE 8 May 2025; 100% TRUSTED
Complete, trusted solutions and explanations.
Questions:
1.1 Define the concept of family governance and explain how it befits
the energy company. (2)
Family governance refers to the structures, processes, and practices that
family businesses put in place to guide interactions among family
members, manage business operations, and ensure alignment between
family values and business goals. It typically includes policies on
ownership, succession planning, roles of family members in the
business, conflict resolution mechanisms, and communication channels.
Its purpose is to foster long-term sustainability and harmony both within
the business and the family.
How Family Governance Benefits the Energy Company:
In the case of the energy company founded by José, family governance
played a critical role in securing the business’s long-term stability and
growth. Key benefits include:
1. Smooth Succession Planning: Lorenzo introduced a formal
succession plan that prepared the business for leadership transition,
reducing potential conflict and uncertainty about future leadership.
2. Professionalisation of Management: The appointment of an
external CEO and corporate governance consultants marked a shift
from informal, family-run operations to professional management,
improving operational efficiency and credibility.
3. Clear Roles and Responsibilities: By implementing structured
governance, the company clarified roles for José’s sons, enabling
them to participate effectively in the business and reducing the risk
of internal disputes.
