The Conflicts of Take Overs in the Century Pie Shop: Who is the Prince?
In the past decades, business governance has always been the major issue of global enterprises. As this issue extends to family governance, it reveals the significance on how family affects the business management. Whether in Europe, North America, Africa, the number and value of family enterprises should not be underestimated. However, the family enterprises in East and West are two very different systems. While Western family enterprises value rational and democratic governance, Eastern family enterprises, influenced by their ancient philosophies and emperor governing strategy, place great emphasis on family regulations and ethic norms. Although Eastern and Western are different in cultural thinking, they share some similarities and facing the same opportunities and challenges. In this sense, both of the systems have something to learn from each other.
This paper will focus on the issue of family enterprises and examine one traditional cake store as the object of study. The cake store is a family enterprise over one hundred years and yet in the transition between fourth and fifth generation, the conflict over trademark burst out. While the second brother of the fifth generation of the store attempted to innovate, this road of was a bumpy ride and full of problems in succession. This study will compare the succession problems in the case with that in the Western family enterprises. This study aims to build a discussion platform on the succession of family business. By doing so, this paper will evaluate whether the theories in Western family enterprise can be applied to Chinese family enterprise and discuss other related problems in the issue of succession in family enterprises.