A Journey of a Family Business
Review of Article Entitled
The Journey of a Family Business
1.0 INTRODUCTION
This article is discussing about managing family business by the group CEO of KHIND, Cheng Ping Keat. The article is mainly on managing a family business which is known as Khind. Khind is an international company founded by Cheng Ping Keat’s father Cheng King Fa, aged 72. Under his vision and guidance, the business has grown into one of Malaysia’s leading local electrical products manufacturer. When Cheng King Fa needed help as the business grew, he seconded his brother, Cheng Hup to join in. Khind initially started out as a family business which eventually grew and expanded throughout time. This article discusses about the advantages and disadvantages of running a family business and the author had highlighted the conflicts which rise throughout the process of the business.
2.0 SUMMARY
A family business is basically a company managed by family members. According to the author, running a family business has more advantages in the early stages as compared to starting a business with a partner with no blood ties. The author believes that the bond of trust and common interest within family members has a huge impact on the growth of the business.
According to Cheng Ping Keat, there are few strengths and weaknesses of a family business for comparison. According to the author, there are few benefits of starting a family business. One of them being, having a low start up capital without any interest payment. Besides, having management personnel who are trustworthy and willing to share the gains or losses of the business is also an advantage. The author mentions that the probability of success during the early stages of the business is quite high. However, he also emphasizes on the weaknesses of family business. The first example mentioned is the lack of a consistent supply of capital for the business especially when the business starts to expand. He justifies his point by giving an
The Journey of a Family Business
1.0 INTRODUCTION
This article is discussing about managing family business by the group CEO of KHIND, Cheng Ping Keat. The article is mainly on managing a family business which is known as Khind. Khind is an international company founded by Cheng Ping Keat’s father Cheng King Fa, aged 72. Under his vision and guidance, the business has grown into one of Malaysia’s leading local electrical products manufacturer. When Cheng King Fa needed help as the business grew, he seconded his brother, Cheng Hup to join in. Khind initially started out as a family business which eventually grew and expanded throughout time. This article discusses about the advantages and disadvantages of running a family business and the author had highlighted the conflicts which rise throughout the process of the business.
2.0 SUMMARY
A family business is basically a company managed by family members. According to the author, running a family business has more advantages in the early stages as compared to starting a business with a partner with no blood ties. The author believes that the bond of trust and common interest within family members has a huge impact on the growth of the business.
According to Cheng Ping Keat, there are few strengths and weaknesses of a family business for comparison. According to the author, there are few benefits of starting a family business. One of them being, having a low start up capital without any interest payment. Besides, having management personnel who are trustworthy and willing to share the gains or losses of the business is also an advantage. The author mentions that the probability of success during the early stages of the business is quite high. However, he also emphasizes on the weaknesses of family business. The first example mentioned is the lack of a consistent supply of capital for the business especially when the business starts to expand. He justifies his point by giving an