Family Business In Mexico

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Family business in Mexico

Introduction

Mexicans have great emotional sensitivity (it feels more motivated by personal respect and recognition) in contrast to the Anglo -Saxon culture where the task is more important than the individual, in Mexico the individual and interpersonal relationships are given great importance.

Relationships in Mexican families tend to be strong and complement themselves with values and traditions. Economic activity in Mexico occurs in a set of interactions and relations between the government, foreign investors and the elite of society converging in an economic bloc of a powerful industrial business group. This group has the majority of business activities involved as capital, sources, labor force, sales work etc. The dominant economic pattern in Mexico is that the industry is under the control of a leading family. The problem is that these families have 95% of businesses in Mexico.

Developing

A family business is one in which the founding family has a significant participation of its capital (the one that allows it to exercise political and economic control over the company) also the family actively participates in the direction by incorporating some of its membersto the governing bodies and sometimes, to management positions and as a ultimate purpose it aspires to develop in the future a business project under its control.

The characteristics that define a family business are:

  • Significant participation of its capital that allows you to exercise political and economic control over the company.
  • Generally, the family actively participates in management by incorporating some of its members, although the most appreciated trend in large family corporations is to the withdrawal of the family in an execution position to exercise control fromgovernment bodies.
  • A strong sense of continuity of the company in the hands of the family in order to see a common project that excites all of the family group.

 

Challenges facing the family business

Some challenges will be to make all the problems that can face:

  • overcome transition processes
  • Structural and cash flow problems
  • Succession problems, little organization of growth and generational change.
  • Lack of information in legal and tax accounting matters
  • Family problems
  • Strategic planning problems
  • Lack of training in the company-family areas by family members
  • Lack of information

 

Challenges faced by women to participate in management positions in the family business in previous decades, an almost invisible role of women in family businesses was observed, but from 2000 to 2010 this has gradually changed. The role of women in the business and managerial context has become more active. There are many challenges that women must overcome to participate in management or government positions.Some internal factors such as:

  • Conservation of unity and family harmony
  • Professional and personal development
  • Family heritage care and some external factors cone
  • Definition of the professional career plan within the family business
  • Presence of familiar policies that allow family and work to reconcile
  • support of the family and spouse The woman must have the necessary academic preparation, feel motivated to participate in these positions and feel able to contribute to the growth of the company for the benefit of her whole family and collaborators

 

Management succession

By definition, succession is a dynamic process during which the roles and tasks of the predecessor and the successor evolve independently- in parallel- until they intelapate and overlap or splican. What is the purpose of the succession? It is to transfer both the administration and the property of the business to the next generation, which may or may not be from the family it is necessary to plan the succession process

Advantages of family businesses

 The involvement of the family as the key in unity, commitment and trust offers us greater degree of commitment and dedication to the business

  • Sense of belonging
  •  Business risk (heritage, prestige, future of the family) guides the search for success, arouses a continuous eagerness of overcoming and progress ability.
  • Hierarchy is hierarchy, when the founder is present, he is making decisions
  • The family shares a cultural tradition and the fact that its members know themselves intimately can facilitate job relationships from each other
  • Better market orientation
  • greater degree of self-financing and reinvestment of benefits to finance the future growth of the company

 

Lebrijana activity.

  • Better link with customers
  • Motivation at work and link with the project (it is everyone’s dream)
  • Competitive flexibility and adjustment capacity in the depressive phases of the economic cycle, with notable effects on the stability of employment

 

Professionalization of family business

All organizations must be professionals. Not doing so can mean your disappearance, so professionalizing could be the only survival alternative of a family business. Professionalization is a process of gradual transformation that implies a change of mentality in each of the elements of the organization.

What would a professional family business be like?

It would be the one where:

  • The assignment of positions is based on capabilities.
  • There is a developed administrative system
  • Decision making is done based on information,
  • The functions of all personnel are clearly defined,
  • There is a succession plan known by all involved.
  • There is an organizational structure that responds properly to business needs etc.

 

Internationalization of the family business

One of the most important challenges of family business for the third millennium will be internationalization. Family businesses will need to ask what role do you want to have in an increasingly global economy? Although we know that there are both opportunities and threats, it is necessary to seek that new profitable markets for your company are opened. Learning to think not only from within (national level) but learn to think out and be prepared to have a good perspective of everything that is necessary for globalization.

Values and culture in the family business

The consolidation of the germinal project that starred in an entrepreneur is achieved when the company begins to transcend its founder to give rise to what is called “family business” the transit to this “family business” goes through the development of a corporate culturethat the basis for the future will lay. 

conclusion

This culture is defined by a series of values. The values and principles shared by the owner family are transferred to the company and those who describe it best are justice, credibility, respect, trust, hard work, responsibility for society, punctuality, continuity of the company inFamily hands

The current markets have evolved and all forecasts indicate that the future awaits with a deepening of this model, towards higher levels of demand both for the demands of consumers and customers and for a fierce pressure of the concurrent ones in the industry. It is essential.

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