Your Answer ▼ There has been a controversial issue in terms of running a business by family members. Even though some people argue that it has a lot of advantages, I believe that it should be banned for lasting development. This essay will spell out the pros and cons of the company family owned and the reasons why I disagree with these companies. First of all, it has many advantages in efficiency and communication in company’s decision. In general, we usually communicate easily and better in family than with other people. So, when they meet an emergency situation in business, they can treat their problems efficiently by making a decision within close family members. According to a recent news report, the family company showed that it can deal with economic recession more than other companies. Many experts say that it is because they can have a proper solution through fast and efficient relationship system. However, there is a serious problem in the family-run business. In my opinion, monitoring system is one of the most important part in running a company. This audit function can weaken in relationship of family members. For example, Samsung the biggest company in Korea has developed through family-run, but embezzlement problems have arisen these days. Studies have indicated that Samsung should stop family members’ for sustainable development. To sum up, there are merits and demerits about family-run companies. As I mentioned above, efficiency and communication are main advantages, but it has a fatal drawback in weak monitoring and improper money use. Therefore, we should control and maintain properly these businesses for long-term development. |