Evaluating the ethos and challenges facing family business organizations: The case of Cengiz Holding
Cengiz Holding is a parentage owned, necessary multinational order delay its headquarters in Istanbul, Turkey. Ever past its prosperity in 1980, the order has workd inferior the presidentship of Mr. Mehmet Cengiz (Cengiz, 2012). Past its disconnection, the order has confirmed to befit one of the necessary cannonade companies in Turkey. Its ocean cannonades are in finance tourism, mining and discollocation sectors and are scatter balance twelve organizations. The order’s largest cannonade is in the view diligence. Most of its view projects embrace airports, subways, motorways, dams, pipelines, bridges, railways, tunnels and telecommunication infrastructures together tourism abodes and amenities (Cengiz, 2012). In ddition to these, Cengiz Holding has of-late diversified into security and aviation, submissive an effectual luck delayin a very poor age.
The subjoined Nursing essay seeks to evaluate the ethos and dares confrontment parentage transaction organisations delay Cengiz Holding as the order of investigate. The investigate critically analyses the opportsingleness and sensation of parentage owned transactiones highlighting twain the usages and disadvantages akin to it. Further, the investigate presents the dares faced by Cengiz Holdings in agreement to parentage transaction organisations. In misentry, recommendations are supposing as to what Cengiz Holdings needs to do to succor crush the escalating wholes associated delay parentage owned transactiones.
The opportsingleness and sensation of parentage transaction
In most companies, (Cengiz Holdings for specimen), parentage owned transactiones are born out of the yearn and autonomy for a parentage’s financial anarchy. For the last two decades, the countenance of parentage transactiones has life material of scrutiny and bud delay continued influence from countries synods. The vulgar buds can be attributed to an outgrowthd scrutiny and investigate on the material, changes in policies and buds in friendship networks (Kelin et al, 1997). The opportsingleness of parentage transaction has of-late gained a lot of observation not barely in the European Union but globally.
Family transaction particularizement for balance 70% of all transaction in the European Union Block creating an occupation plane of balance 40% of the population necessary to an outaugmentation on its benefits in the gregarious economic bud of countries economies. This has led the countries synods to produce policies to excite the outaugmentation of parentage run transaction. An specimen of these policies embraces the implementation of the 2008 European Council’s Small Transaction Act (kosgeb, 2012). This act was meant for European nations to succor beget viable environments for the bud of parentage owned transactiones (Quentin, 2010). The Competition and Innovation framework Programme (CIP) for 2007-2013 recognizes Cengiz Holding as a key specimen of luckful parentage owned transaction resisting its relenting woes and associated lawsuits.
Advantages of parentage transactiones
Currently, it is estimate that parentage owned transactiones subscribe up to 70% of the integral county’s Gross Domestic Product. These appoint a foundation for symbolical usage in stipulations of outaugmentation and bud of the army sovereignty. These usages embrace:
Common values shapeless parentage parts: Regular approve in most parentage run transactiones, the Cengiz’s appear to occupy homogeneous ethos and beliefs on how the transaction should be conducted. This has succored in the solidification in the agreementship shapeless the parentage parts creating zealous transaction acumen shapelessst them.
Strong transaction executement: The Cengiz’s Parentage parts are collective to execute a lot of age and instrument for the bud of the transaction than non-parentage parts.
A wisdom of constantty: It is conspicuous that the Cengiz’s Parentage parts are constant to their own transaction. This constantty has begetd a security incompact them and the transaction exciteing continued constantty to the transaction and on to one another, creating a technique for forgiveness and gratification for luck at all consumes. This can be proven at the 2009 Nokia and Motorola Lawsuits at which twain parentage parts boycotted the hearing regularity. This signified singleness shapeless parentage parts.
Decreased operational consumes: This is oceanly realized through stunted drudge requirements as Cengiz’s Parentage parts appoint the largest sum of treatees of this transaction sovereignty. The Cengiz’s Parentage parts are so collective to possess made vast financial sacrifices towards the bud of the order, reducing the consume of acquiring funds from elsewhere. i.e. advance consumes and interests.
Creation of anarchy: life in a parentage transaction media that decisions are made by parentage parts at their own interests. This articles apparent exigency in the transaction and all the avail realized are streamed to the transaction owners (Quentin, 2010).
Disadvantages of parentage transactiones
There are sure disadvantages associated delay parentage owned transactiones. They embrace but are not poor to:
Lack of interest: Not all parts of the parentage are born delay a zealous transaction wisdom. Sluggish parentage parts faculty bring to the cessation of the transaction.
Unfair rewarding system; Parentage parts are approvely to sanction inferior salary than non parentage parts. This can article financial incomes for the parentage parts.
Lack of professionalism: Parentage owned transactiones are incredible to allure unprofessionalism from the parentage parts as they are loth to treat professionals from the after a whileout. This is the equablet in most of the elder cannonades of Cengiz Holdings as the top superintendence is chiefly appointd of parentage parts.
Financial constraints: Mostly, parentage transactiones are faced delay financial constraints in the equablet where parentage parts are not in a collocation to educate the yearnd sum of coin for the bud of the transaction.
Challenges faced by Cengiz Holding as a parentage transaction
Emotions from parentage parts: Tender outbursts from parentage parts are collective to desire non-parentage parts who are treatees of the establishment. In give-back, this may bring to the produceation of warring camps in the establishment regular approve the equablet in the Cengiz holdings Transaction or parentage; which is which?: This is a elder whole realized in Cengiz Holding regular approve any other parentage owned transaction existence. This can be affiliated to tender attachment shapeless parentage parts in managerial collocations. Transaction scholars and scrutinyers possess life occupied in debates to investigate the involvement of women in the superintendence of parentage owned transaction citing their leniency towards parentage than transaction which is approvely to destruction their force in the affairs of the transaction (Kosgeb, 2012).
Succession planning: This is another key dare realized in parentage transactiones. As generations by on, divergent parentage parts possess divergent opinions as to who should the superintendence of the transaction be left to.
Unprofessionalism shapelessst parentage parts: Parentage run transactiones are usually faced by the hobble in retaining unprofessional parts of the parentage in the transaction. The Cengiz holdings parentage transaction has been faced delay a dispose of law suits most of which are attributed to diversified parts of the parentage. The order has faced equablets of deprivation, defamatory-publication and equable racketeering twain termed to possess been steered by parts of the parentage. Also, the president, Mr. Mehmet Cengiz has life blamed for using his zealous transaction sovereignty to subsidize his gregarious activities (Hurriyet Daily News, 2012).
Organization structure: The closing of a courteous defined organizational culture has depleted the Human Instrument office in the establishment of most of its functions i.e. Resisting diversified misdeeds, lawsuits and criticisms on the order’s president, he calm?} retains the top situate. The 2009 Nokia and Motorola lawsuit resisting the order consume the order an prodigious sum of coin elevation issues of superintendence power (Quentin, 2010).
Huge satisfaction plans for parentage parts: Parentage parts affiliated to the order are collective to hold larger salary and salaries compared delay other superintendence professionals in the order. The order so suffers from financial constraints brought about by the misdeeds from its president and parentage parts. During the 2009 Nokia and Motorola lawsuit, parentage parts were issued delay an take assure should they set their pedestal in US tarnish. The president uses allowances from the order to cbalance his gregarious hospitalitys approve the 2008 France hospitality.
Conclusions and recommendations
The equablet of Cengiz Holding is one shapeless abundant equablets relative-to to parentage owned transaction. Having a transaction life workd by parentage part can either destroy or find the transaction. Cengiz Holding has been faced delay diversified criticisms from the collective and synod citing misconducts shapeless parentage parts. According to the aloft findings, it is penny to particularize that the cruel woes at Cengiz Holding can barely follow to an end if barely the order could be left to work delayout the community of parentage parts in its activities (Kosgeb, 2012). However, it is material to investigate the event that the transaction is exceedingly usaged in having a workman in familiarity on what is best for the order, a lineament that is chiefly detriment in society and strengthening transactiones. Another configuration of a demeaning eventor desireing the transaction is in gregarious issues.
Cengiz Holding. 2012. Available on-line from