Central Group and Jirathivat Family Essay

Tiang Jirathiwat moved from China to Thailand with no asset. In 1947, he started a general store in in Samphanthawong district, Bangkoks Chinatown. In 1957, his son, Samrit Jirathiwat, opened the first Central discussion section Store in Wangburapha and developed later on. In 1968, Central Silom was slope with loss because people thought the imported items might be similarly expensive After two years, the Jirathiwats changed the strategy and do profit. Some family members (2nd Generation) were steer to study abroad and came back to develop Central Chidlom with Siblings and relatives. So, Central Chidlom made profit since its first year.Management Styles First Generation Tao Kae (concerned on address of goods, loss and profit) Second Generation Committee (concerned to a greater extent on investiture and finance) Third Generation Family Council(development by family members under the familys rules and regulations)The military control alteration from the first to the secon d generation was not complex, alone when from the second to the trinity generation was more complex, since nowadays there were much more affair factors. For Central Group, which has been operating with many family members, there must(prenominal)iness be the rules and regulations overly the telephone line issues. To be more tensenessed on the third generation, they must execute together and compromise conservative and with the aggressive styles Rotation and scatteringWhen to business turns to be more complex and operated by the larger come of family members, to manufacture decisions is not simple. All Jirathiwats must know all A, B, C and D steps. Moreover, since the family members atomic number 18 graduated and have experiences in various fields, the scat rotation and distribution argon very efficient. Different families of Jirathiwats forget work together, which leads to the family relation and unity. Jirathiwats is in charge of knowledge and experience of all fami ly members. They focus both on Drive and Control as well as Transition of the family business. The elements of strong business are Strategy, Money and People silver pull up stakes bring strategies successful, but without good people, there wont be an effective implementation. (Tos Jirathiwat, chief executive officer of CRC since 2002)ChallengesIn general family business, the CEO is wearing three hats head of the family, business owner and the administrative CEO. This somebody must well balance all three actions, to be more specific, if he is focusing more on business issues, the family relationship apprize be weak. He should support the family members to be gradually evolved the business to make the members feel with this family business and are willing to involve of the business continuously. Hence, the involution of interest will not be existing among the business exercise and family harmony. This will make the transition to the next (4th) Generation the most perhaps effic ient. The business competition is same as the war, which needs not but the individual ability but team work PreventionsWe must unwrap into two main issues issues among family members and issues among stakeholders (Tos Chirathivat, CEO of CRC since 2002) 1. Family Council From this reason, Family Council has been set in order to direct all Jirathiwats and give them rights and compensations. Here are some issues on Family Council Descriptions of a good member of Jirathiwat The Rights that all Jirathiwats will receive, for instance, funds of birth giving, education, basis expenses in family house, health care and hospitality.2. Family Business authorshipFamily constitution is strategies and solutions which should be implemented to deal with family-related matters that impact on business issues. It is necessary for family business to set regulations or rules in order to prevent conflicts that can happen. By the way, conflicts are the cause that creates regulation or rules. An eff ective Family Business constitution might include criteria for joining the family business a definition of roles responsibilities of wide awake mechanisms to be adopted for the transfer of ownership and leadership. Jirathiwat Family also has a Family Constitution which will maintain harmony and co-operation, also solve conflicts. Agreements for family business are a clear, simple, understandable and enforceable set of guidelines for the effective operation and sequel of the enterprise. The 8 following issues are the Family Constitution of Jirathiwat, which seems to be very strict, but to link all family members together and to the family business 1. All Jirathiwat families must gruntle in the same house, doing all activities together. 2. Everyone must respect in seniority, for example, parents will teach children, elder brother will teach his younger siblings. 3. rank is more important than age.4. Democracy comes first and everyone has a right to declare ideas. 5. All boys mus t be displace to Assumptions, girls to Mater Dei and everyone should be sent abroad. 6. The responsibities in business will be distributed to each, based on age, not seniority. 7. A bad action will be broadcasted to all family members as a bad example. 8. Instead of giving compliments, those persons who have good outcomes, will receive more business tasks and responsibilities. Lesson LearnedJoel Arthur Barker said that a set of rules and regulations (written or unwritten) that does two things which are 1. It establishes or defines boundaries For Central Everyone must have 6-year-experiences outside before coming back work with family 2. It tells you how to move inside the boundaries in order to success For Central Not doing business that competes with family business family business or relies on the mail family business.Prevention forward Solve by setting regulationsPut the right man on the right job separate people up to their potential finishing but not learst, as Jirathiwat ha s a policy in a form of Executive Committee operated by CEO group, business issues are apart from family issues. This is why they can have a strong family relationship, in the meanwhile, the business has been very well operated and continuously worldwide expanded only by family members.