MNE3704
Assignment 4 Semester 1 2026
Unique number:
Due Date: 28 April 2026
QUESTION 1
1.1 Three-Circle Model Analysis
The Three-Circle Model explains that a family business is made up of three connected parts,
which are family, ownership, and management. These parts affect each other, so a problem
in one area affects the whole business.
In the family system, Mokoena Furniture Manufacturers is facing conflict between family
members. The second generation does not agree on the future of the business. One wants
growth through technology, another wants expansion, and another wants a cautious
approach. This shows emotional tension and lack of unity. The book explains that family
relationships can affect business decisions because emotions can override logical thinking
(Poza and Daugherty, 2018).
In the ownership system, the founder controls 80 percent of the business and makes most
decisions alone. This creates imbalance and limits the involvement of other shareholders.
The book shows that when ownership is not shared properly, it can lead to conflict and poor
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
1.1 Three-Circle Model Analysis
The Three-Circle Model explains that a family business is made up of three
connected parts, which are family, ownership, and management. These parts affect
each other, so a problem in one area affects the whole business.
In the family system, Mokoena Furniture Manufacturers is facing conflict between
family members. The second generation does not agree on the future of the
business. One wants growth through technology, another wants expansion, and
another wants a cautious approach. This shows emotional tension and lack of unity.
The book explains that family relationships can affect business decisions because
emotions can override logical thinking (Poza and Daugherty, 2018).
In the ownership system, the founder controls 80 percent of the business and
makes most decisions alone. This creates imbalance and limits the involvement of
other shareholders. The book shows that when ownership is not shared properly, it
can lead to conflict and poor decisions because not all voices are considered (Poza
and Daugherty, 2018).
In the management system, the business is struggling with low growth and
competition. The founder still controls all major decisions, which slows down change.
The book explains that centralised control and lack of adaptation can weaken the
business and make it less competitive (Poza and Daugherty, 2018).
These three systems are not balanced at MFM. Family conflict affects ownership
decisions, and ownership control affects management performance. This shows how
the whole system is under pressure.
1.2 Risks of no succession plan and solutions
The lack of a succession plan creates serious risks for the business. The book states
that failure in succession planning is one of the main reasons why family businesses
fail (Poza and Daugherty, 2018).
Assignment 4 Semester 1 2026
Unique number:
Due Date: 28 April 2026
QUESTION 1
1.1 Three-Circle Model Analysis
The Three-Circle Model explains that a family business is made up of three connected parts,
which are family, ownership, and management. These parts affect each other, so a problem
in one area affects the whole business.
In the family system, Mokoena Furniture Manufacturers is facing conflict between family
members. The second generation does not agree on the future of the business. One wants
growth through technology, another wants expansion, and another wants a cautious
approach. This shows emotional tension and lack of unity. The book explains that family
relationships can affect business decisions because emotions can override logical thinking
(Poza and Daugherty, 2018).
In the ownership system, the founder controls 80 percent of the business and makes most
decisions alone. This creates imbalance and limits the involvement of other shareholders.
The book shows that when ownership is not shared properly, it can lead to conflict and poor
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
1.1 Three-Circle Model Analysis
The Three-Circle Model explains that a family business is made up of three
connected parts, which are family, ownership, and management. These parts affect
each other, so a problem in one area affects the whole business.
In the family system, Mokoena Furniture Manufacturers is facing conflict between
family members. The second generation does not agree on the future of the
business. One wants growth through technology, another wants expansion, and
another wants a cautious approach. This shows emotional tension and lack of unity.
The book explains that family relationships can affect business decisions because
emotions can override logical thinking (Poza and Daugherty, 2018).
In the ownership system, the founder controls 80 percent of the business and
makes most decisions alone. This creates imbalance and limits the involvement of
other shareholders. The book shows that when ownership is not shared properly, it
can lead to conflict and poor decisions because not all voices are considered (Poza
and Daugherty, 2018).
In the management system, the business is struggling with low growth and
competition. The founder still controls all major decisions, which slows down change.
The book explains that centralised control and lack of adaptation can weaken the
business and make it less competitive (Poza and Daugherty, 2018).
These three systems are not balanced at MFM. Family conflict affects ownership
decisions, and ownership control affects management performance. This shows how
the whole system is under pressure.
1.2 Risks of no succession plan and solutions
The lack of a succession plan creates serious risks for the business. The book states
that failure in succession planning is one of the main reasons why family businesses
fail (Poza and Daugherty, 2018).
