THE OFFICE OF AIMA CENTRE FOR MANAGEMENT EDUCATION AT ANDHRA ASSOCIATION BUILDING, 24-25 INSTITUTIONAL AREA, LODHI ROAD, NEW DELHI HAS RELOCATED TO AIMA’S NEW PREMISES AT 15, LINK ROAD, LAJPAT NAGAR, PART-III, NEW DELHI W.E.F 6TH NOVEMBER 2017                   The office of AIMA Centre for Management Services at Management House, 14 Institutional Area, Lodi Road, New Delhi - 110003 has relocated to AIMA’s new premises at 15, Link Road, Lajpat Nagar, Part-III, New Delhi w.e.f. 13th November 2017

Management News

Winds of Change

In ‘family business’, family is all about emotions and business about economics. They cannot be separated, but a slight skew towards one imbalances harmony. Tata, a legendary example of how a family business can grow strategically, recently faced a dispute regarding succession planning that challenged the company’s long-term sustainability as a family business. Finally, they chose someone capable from within.

Long-term gains over short-term profit
It is usually assumed that in a VUCA environment, family businesses would have difficulty in sustaining their growth. However, we believe that wanting the business to succeed in the long run makes it easier for family enterprises to leave aside strategy, which offers only short-term gains. Many professional CEOs of companies such as British Petroleum, Rio Tinto, etc., have delivered long-term blow to their companies by focusing on short-term objectives, which is generally linked to their bonus. Tony Hayward, in his enthusiasm to take BP to the number two position in the oil industry, from the then number seven, took decisions which have so far led to an estimated $50 billion in fines and costs and over 50% erosion in market value. Today, BP is at number 17. Much has been written about how keeping his focus solely on the bottom line (and his linked bonus), Richard Fuld took Lehman Brothers down the road to bankruptcy....... Page 47