Family Business - Example of Central Group
Central Group and Jirathivat Family
Business and Family Background
Tiang Jirathiwat moved from China to Thailand with no asset. In 1947, he started a general store in in Samphanthawong district, Bangkok's Chinatown. In 1957, his son, Samrit Jirathiwat, opened the first Central Department Store in Wangburapha and developed later on. In 1968, Central Silom was run with loss because people thought the imported items might be too expensive ! After two years, the Jirathiwats changed the strategy and made profit.
Some family members (2nd Generation) were sent 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 cost of goods, loss and profit)
Second Generation : Committee (concerned more on investment and finance)
Third Generation : Family Council
(development by family members under the family’s rules and regulations)
The business transition from the first to the second generation was not complex, but from the second to the third generation was more complex, since nowadays there were much more business factors. For Central Group, which has been operating with many family members, there must be the rules and regulations besides the business issues.
To be more focused on the third generation, they must work together and compromise “conservative” and with the “aggressive” styles !
Rotation and Distribution
When to business turns to be more complex and operated by the larger numbers of family members, to make decisions is not simple. All Jirathiwats must know all A, B, C and D steps. Moreover, since the family members are graduated and have experiences in various fields, the work rotation and distribution are very efficient. Different families of Jirathiwats will work together, which leads to the family relation and unity. Jirathiwats is in charge of knowledge and experience of all
Business and Family Background
Tiang Jirathiwat moved from China to Thailand with no asset. In 1947, he started a general store in in Samphanthawong district, Bangkok's Chinatown. In 1957, his son, Samrit Jirathiwat, opened the first Central Department Store in Wangburapha and developed later on. In 1968, Central Silom was run with loss because people thought the imported items might be too expensive ! After two years, the Jirathiwats changed the strategy and made profit.
Some family members (2nd Generation) were sent 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 cost of goods, loss and profit)
Second Generation : Committee (concerned more on investment and finance)
Third Generation : Family Council
(development by family members under the family’s rules and regulations)
The business transition from the first to the second generation was not complex, but from the second to the third generation was more complex, since nowadays there were much more business factors. For Central Group, which has been operating with many family members, there must be the rules and regulations besides the business issues.
To be more focused on the third generation, they must work together and compromise “conservative” and with the “aggressive” styles !
Rotation and Distribution
When to business turns to be more complex and operated by the larger numbers of family members, to make decisions is not simple. All Jirathiwats must know all A, B, C and D steps. Moreover, since the family members are graduated and have experiences in various fields, the work rotation and distribution are very efficient. Different families of Jirathiwats will work together, which leads to the family relation and unity. Jirathiwats is in charge of knowledge and experience of all