Fam­ily Busi­ness Man­age­ment: Strategy, Per­form­ance, Val­ues

Course content

Around the world, family firms have long been the most prevalent form of enterprise organization, and that is still true today. Nor is the common association between family firms and Small and Medium-sized Enterprises (SMEs) true. In Denmark alone we find the world’s largest shipping company (Maersk), the world’s largest toymaker (Lego), and the world’s second largest brewer (Carlsberg) – all of them family firms. Family firms matter, whether that is in the USA, Europe, or emerging economies in South America and Asia. Family firms are very significant drivers of value creation and innovation locally, nationally, and globally.

Family firms possess many significant advantages. Their long-term time horizons, governance structures, financing arrangements, and often prudent attitudes to risk promote resilience and longevity. So-called “familiness” promotes strategic vision and cohesiveness. Family firms’ particular goal orientations promote both value creation, and the strengthening of values. In these and other areas, family firms have very important lessons to teach us, whatever our career intentions. However, family firms often also present complex, ambiguous management challenges. The most obvious among these is the critical process of succession or transfer from one generation to the next. Family firms are also hybrid organizations, containing both business and family dimensions, which can sometimes come into sharp conflict. Relationships between family and non-family members of a firm can also require careful management, for example.

This course is for all students interested in the challenges and rewards of family business management, whether as a member of the owning family, a non-family member of the firm, or an external stakeholder, such as consultant or other professional service provider. Developed in collaboration with CBS’ Centre for Owner-managed Businesses, the course will introduce students to the core principles and practice of family business management. Working with applied case-studies in dialogue with theoretical texts, and learning from both CBS faculty and experienced practitioners, you will explore the sources of competitive advantage, particular challenges, and strategic options available to family firms. You will develop an appreciation for how family firms both create value and how they build on their culture to create values.You will explore how both forms of value creation might be brought to bear on the challenges facing humanity. And you will learn to evaluate the role and importance of family firms in local, national, and global contexts. Ultimately, the course aims to deepen your theoretical understanding of family business management whilst also equipping you with practical applied knowledge and skills.