24/12/2014
In a lecture in East Chamber Qatif Branch
Al Wahaibi calls for family businesses to determine their options in growth
Many positives generated family businesses should be preserved
Several options for the growth in the family's industry framework
Image of growth, the scope size, successful company that identifies its location
A specialist instrategic managementand familybusiness, Dr. Samibin AbdullahAl Wahaibistressedthe need for aspecialphilosophyatthe family business,determinewhichoptionsto grow,to answerall the questionsfor"growth andits price, scope and size,"thisif it wants togrowthcontinue to operateand the continuation ofits business.
Wahaibisaidina public lectureentitled (philosophyand strategies forgrowthinfamily businesses)at the headquarters ofthe easternprovince ofChamberQatifBranchyesterday evening(Tuesday, 23/12/2014):"The concept offamily businessesare thosebusinessesthat are ownedor managedor controlledinitsstrategicfamily" He explainedthat thestrategic decisionsmean theadministrationand management ofthe competitionto staywith distinction,anddraw a picture ofthe future.
Wahaibiaddedin front ofa strikingpresenceofthe businessto maintainand interestedmen tofamily businessesexperiencingoverlap betweensocialentity(the family),the entity-profit(companyinvestment)thisoverlapgivesstrengthtothe "Company",by having afocused visionand continuingthrough thegenerations ofthe family,whichshowmostlywilling to supportthat visionat the lowest cost,evensacrificefor it, the companyhas the supportoffundsand family members tothe growth andcompetition..alsogivesthe interferencestrengthfor "family"where there has beenthroughthis companya number ofgainswhichpreserve the heritageandfamily history,the company isthe bestsystemfor the continuation ofthe familythrough the generations,andcontribute to thedeepening ofties betweenfamily members, as well asthe companyprovidesjobs forfamily members,therefore, there are severalfeaturesof family businessesshould be preserved.
WahaibiexplainedDuring the lecture,the concepts of"growth, philosophy andstrategy,"Growthmeansthe increaseandevolution, acosmicyear,cannot be stopped,itmeanharm,andphilosophy is:"Tryrationalityto formulatequestions and answer them," whilethe strategyis"to identify andselect theappropriateoptions forsuccess in thelong run",these optionsare necessaryto deal with thecompetitive situation, soit mustbe clearand non-contradictory,it is true, for example,befirmseekscreativity andworkingcentraloption..He pointed outthat the strategyisthe visible partcompanywith,whilephilosophyispartinvisibleto it,and eachprivatefamilyphilosophydoes not necessarily meanthe best, they areliketrees,tree isproducedTamaraapplesandotherproduce.
Turning totalk about thegrowth ofphilosophyinthe family business, alecture,which is partof theresettlement andinvestmentcenterof EastChamberactivitiesaddress hesaidthat there arefundamental questionsof growth,should beanswered, namely:"Whygrow,and wherewe grow,andwhat the growth volume,its price?"It is well knownthat the goal ofgrowthis the realization ofa need,and needsa sequential(according toMaslow's hierarchyof needs), there areorganicneeds(air, food,sleepandwater),the needs ofsecurity (forthe bodyand souland function),theneeds ofthe social(love, friendship andaffiliation),psychneeds(achievementsand appreciationandrespect), followedat the top ofthe pyramidneedmeaning(which isself-realization),hereis not seenstudentsneed tohimself, butto the other, that you findtendstowardsgiving andphilanthropy..thisstratificationhierarchyas it applies tohuman,applies tothe company orthe family thatshould be determinedits position in thepyramid, theygrowfrom theneedto achievethese needs,which vary fromfamily to family.
The second questionbythe lectureris"wherewe grow?"There areseveral entitiesmoving in thescope ofthe familythere(family,investment,philanthropicnon-profit), allgrowth areasshould be identifiedfamilyscope, doesthe familyis movingforfamilyonly,orfor investment,andhereshould bea familycompanydeterminewhere togrow, as it shouldaccordingly,to determinethe size ofthe growth, the thirdquestionshouldbe answered,there is a smallfamiliesthatwant togrow, and there arefamiliesdo not want togrow up.
Turningtopricegrowth andsaidthatany gainIntervieweffort, time, ormoney,there is nothingwithout a price,exceptthat some peopleare paying the priceis notsatisfied,and anotherpaysall thesatisfaction,the price may beequal to thegain,it may beless,andhereit is necessary tobalance.
He talked about thegrowthoptionsandsaidthatthere are several optionsfor companieswhich (horizontal integration)anygrowthwithin thecurrent industryof the company,throughacquisitions and mergers,orthe establishment ofnew companies(such asa shopping centeropensitsbranchesseveral,ormergewith othersimilar centers),thisoptionhasadvantagesand haschallenges,it reducescost,limits competition,givesthe company'sbargaining powerwith customers and suppliers,but facesdifferingculturemerged companies,damagefreemarket due tothe merger,Fadharconsumerandforcedthe stateto intervene.
The second optionfor growthis(vertical integrationbackward), atakeover,or createfor supplierscompany, such asa restaurantdominated bymeatcompanies orpotatoes,andthere is an option(vertical integrationof thefront)which isthe acquisition of thebuyerscompanies, both havebenefits, including increasedproduct qualityby controllingsuppliers, and control theschedulingand time ofmanufacturing products, but itinvolveschallenges, includingincreasing thecost structure,andtechnicalchange,
The fourthoption isdiversityconvergentstrategyand isentering intoa new industryrelated tothe currentindustrythe company,such as the entryAramcointhe petrochemical industry..The fifthoption, adiversitydivergentstrategywhich isto enter intolong-industryandhave nothing to dowith thecurrent industryof the company,andisthe last optionis theleast important,the existence ofa state offragmentation andlack of focus, whichlead to increasedcost.
In conclusionBoard MemberAbdul MohsenAl Faraj honored the lecturer withmemorialshield.
