Family Own Business Essay Example | Topics and Well Written Essays - 3500 words

Family Own Business - Essay Example However, the prime objective of the paper is to generate a transition plan for the company with an aim to increase its business’ success rate. Torrini: A Family Owned Business Torrini is remarked to be a dignified name in the family business sector of Europe and is based in Italy. It is one of the ancient family business firms in the county which has flourished for a period of six centuries. The firm produces various kinds of fashionable, high priced jewelleries ranging from rings and precious stones to luxurious watches and even perfumes (Torrini, n.d.). History of Torrini The establishment of Torrini as a jewellery designing, producing and marketing firm can be recognised during the 16th century. However, its roots lay in the 14th century, in 1369, when Jacopus Torrini the founder of the firm settled in Florence as a forger of armour. With the growth of the economy and also due to the transformation in the lifestyle preferences of the county people, Jacopus Torrini initiated to diversify his business in the production of unique and luxurious fine jewelleries (Torrini, n.d.). Since 600 years, the firm has provided a few noteworthy contributions to the creative industry in Italy and other economies of European region. Presently, it is categorised as one of the most prestigious and successful family owned businesses in the region. Subsequently, the management responsibilities have been solely on the family heirs. In other words, the skills, knowledge and creativity were handed down hereditarily to design Torrini products. The firm in the present context is supervised under the leadership traits of Frabrizio Torrini. The other family members having a... This essya stresses that while executing the transition plan the leaders should provide extensive consideration to the conflicts likely to arise among the family members including the potential heirs of the business. In this regard, the leaders need to depend entirely on their conscience and knowledge due to the fact that there are no specific theories prescribed to manage a family business and the conflicts arising during transitions. Torrini, as a brand holds remarkable potential to create strong impulse on the targeted customers. This paper makes a conclusion that family business groups have gained considerable significance in the modern era due to their remarkable inclusion in the economic growth. After the recent economic downturn, the western economies including the European economies have started considering family business units as a crucial element to stimulate their growth providing wider scope to the family business entities. However, the leaders of family business entities are often recognised as reluctant to adopt change due to the fear of losing control and/or disturbing the values preserved in the business’ operations. This can also be identified in the case of Torrini. On the contrary, in the case of Swarovski the business has adopted a modern and strategic technique to ensure the growth of the brand without disturbing the interests of the family leaders and the heritage of the brand providing its wider scope to prosper.