Strengthening traditional SMEs business in Thailand
On the family business trends in Thailand
The concept of family ownership of firms has raised a lot of focus of late since the common trend in the U.S. is the dispersed ownership which has a strong separation between the ownership and the control of the business. There is a growing trend of firms being part of the group of companies which are brought together by a common family bond or common ownership at some point hence having common control at the family level. Such family-controlled businesses largely employ the pyramid structures in ownership in order to exert the requisite control over the large networks of the business. It is apparent that the family ownership models are predominant in countries with low levels of protection of the minority shareholders. However, this trend is fast changing with the U.S. fast adopting such a model in the ownership and running of its businesses (Bertrand M., et.al., 2008: Pp 466-467). Apart from the fact that they are owned by families, the family owned businesses do not in any way differ at the administrative requirements by the government. Each registered business is required to file their annual financial statements that are audited by an authorized auditor to the Thailand Ministry of Commerce (Bertrand M., et.al., 2008: Pp 469).
One thing that remains factual about the Thailand economy is that the family owned and run businesses still hold a significant portion of the economic pillars and a large number of the listed companies are family owned firms with the owner family members controlling the ownership and management of the businesses. The family owned business significantly initiated and drove the industrialization of Thailand with a significant majority having their beginnings in the textile industry, commerce and trading then later on diversifying into other areas but still with a strong family ownership as their basis with all the accompanying characteristics of family controlled firms (Akira S. & Natenapha W., 2004: Pp82). The family businesses have over the years proven to be a force that cannot be ignored in Thailand with at some point contributing a significant 62% of the nominal GDP of the nation as was the case in 1997. It is however predicted that, as is the tradition in many developed nations, the third generation of the family owned businesses are often responsible for the decline in the viability and performance of the family businesses. This seems to be the case in Thailand where the family owned businesses are not as vibrant as they used to be two decades ago. The decline of the investment fund, insufficient accrual of the requisite production technology as well as lack of knowledge of the new markets for the new products accompanied by lack of a new team of well trained human resources are a contributing factors to decline of the family businesses from their previous glory with the first and second generations (Akira S. & Natenapha W., 2014:Pp 998).
The family owned businesses in Thailand have board of governors that are predominantly consisted of family members, with some percent of hired professionals meaning the separation between the ownership and control is to the minimum possible. The directors are mainly internally promoted and to an extent from the shareholders and founders who are deemed to be people who can be trusted with the decision making and running of the family businesses (Matin W.M., 2015:Pp3-4).
Importance of business plan
There are various reasons why a business needs to have a plan in order for it to run smoothly and have a prospect for growth. Weather it is a family business or corporate owned business, the business plan is bound to clarify direction of the business by defining the products/services involved and the customers hence giving the business a direction towards success (Jeras J., 1995:Pp1). According to Lawrence S. & Moyes F., (2004:Pp2) the plan will also help shape future vision of the organization with aspects like growth ac change well catered for within the plan with the future goals guiding the planning process. A business plan will also attract financing for the organization since it is the plan that will show whether a business has the potential to make profits. The statistics therein will guide the investors to make decisions on investing in the business. The plan will as well help lay out the structure of the business management hence forming a basis for regular cross reference to ensure the business is in the right course, meets the sales targets and achieves the strategic and operational goals (Clark T., 2012). The
Grocery Store by Entrance of Hypermarkets in Bangkok Thailand Small grocery store owners in Thailand are faced with the ever growing threat of foreign -- owned hypermarkets. Hypermarkets are part of a global trend that threatens to destroy the small grocery store. If this trend continues the traditional market structure of Thailand might become obsolete in the future. This research explores strategies that small grocery store owners can employ to
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Cultural Dimensions Cultural Differences/Similarities Both France and Greece are Mediterranean countries in Europe. They are both part of the EU and have a shared Western Civilization heritage. Both have moderately high power distance and uncertainty avoidance. However, France scores much higher for individualism and Greece for masculinity. Hofstede does not outline time horizon for Greece; France scores as a short-term time horizon society. II. Cultural Dimensions There are five dimensions under Hofstede. Power distance
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