Text 2: Family Business: the Next Generation
David Zaudtke Doug Ammerma
Introductions: In Chinese, there is a saying that it is by no means easy for a clan to remain its prosperity over three generations. It is not common for a clan to remain a ve ry humble situation over three generations either. As success of a family business seems to be checked by many factors. In different generations, all the background leading to success or failure would change. In terms of the succession to a family business, success is decided by many factors. The authors of this text have pointed out four factors. Do you agree with the authors?）
1.America is in the midst of one of the greatest wealth transfers in the history of mankind. Over the next 20
years, an estimated $15trillion in assets will be transferred from one generation to the next.
2.
Much of this wealth transfer will be in the form of family-owned businesses. But the viability of many of these transfers is questionable. The fact is, most will fail. Typically, only one out of three businesses is successfully transferred to the second generation. Survival of a family business into the third generation is
a rare occurrence.
3.
Thousands of family businesses, some of the household names, will disappear over the next decade. The sad part is that many of them could survive with proper planning. For many, however, it may already be too late.
The proper time to start planning the succession of a family business is not one, not three, not even five years ahead. Indeed, a comprehensive succession plan, which includes sophisticated estate planning strategies, generally requires at least a 10-year horizon to be properly structured.
4.
Whether large or small, high-tech or low, public or private, every family-owned business is different. But regardless of how diverse they are, four key elements must be in place before a business can be successfully passed from one generation to another.
5.
Plan Y our Succession Management
Owners / founders are extremely driven and dynamic. Often they excel at more than one skill. In many cases, production experts are also marketing geniuses or skilled financiers. Replacing them may require more than one person. Therefore, family business owners should determine exactly how the business functions by creating organizational charts. Each key member of the succession process should create his or her own chart. These charts should then be compared. The differences will point to gaps in the management structure and highlight areas of misunderstanding and differences in perception.
6.
Take Judy, for instance. Judy owns a software company and has three children ---a computer whiz, a racecar drive and one with a business degree but no interest in the company. In addition, Judy has a strong management team in plac e. In her case, she should consider giving ownership to children, but continuing to have the management team run the business.
7.
Finding people from within the family, or from outside, to fill those spots may not be easy, nor happen overnight. Therefore, it is vital to develop an action plan and timetable early in the process in order to allow for an orderly transition of responsibilities.
8.
Few businesses, even family businesses, grow without the help of loyal employees. More often than not, they hold key positions in management. Therefore, you must keep your employees informed about long-range succession plans. Key managers must have a clear picture of where they stand and what their responsibilities will be in a succession-management structure. Develop a compensation and benefit structure that is sufficient to attract and retain key managers as well as to motivate them to perform in the best interests of the business and the family.
9.
There is also the matter of timing. The children you hope will take over may be too young or inexperienced when you retired. In such cases, transitional management teams may be formed to provide interim management until the children are properly trained and seasoned to be in a position to manage the business successfully.
10.
Define Family Employment Practices
Establish a clear employment policy for family members and stick to it. Most parents believe their children should be treated equally. Company executives, however, must be selected on ability. Selection should be made on the needs of the business rather than on the needs of the children.
11.
For example, Jim owns an electric company. He treats his three children equally---all three work for the company and receive the same salary. All three, however, do not work equal hours, nor are they all dedicated to the business. Instead of benefiting from the equality, there is discord and resentment in the company because only one child really works.
12.
Parents can pass on their legacy to their children without necessarily giving them control of a company.
When the children are not suited to take over the business-about 30 percent of the time-other methods can be found for them to share in the family wealth.
13.
However, if you do determine that a child will carry on the business, you should be sure your choice is capable. Ensure that he or she will receive the right education and business experience.
14.
Outside job experience is extremely useful for children who will one day assume control. Working outside the family business can give them valuable experience, expose them to differing management styles and give them the confidence to know that their successes are their own. Often they will receive better mentoring and more opportunities to take responsibility than they would in the family business. Proving themselves outside the family business also gives children greater credibility with employees when they do eventually take control of the family business.
15.
For those families that insist their children begin their careers at the family business, children should start at the level that their education and experience justify-even if it means sweeping floors, operating a machine on the factory floor, etc. The experience will be invaluable. In addition, working their way up from the bottom will increase their respect among employees and management. In our experience, children who develop in this manner are twice as likely to succeed than children who assume unearned executive positions.
16.Establish and Maintain Family Harmony
Rivalries and jealousies can be extremely time-consuming, not to mention destructive. Once children have grown, married and have children of their own, they are considered a separate family with different -and sometimes conflicting-ideas. If the business is large enough, consider seating an outside board of directors to
ensure that the interest of the family and business are properly balanced.
17.Develop a family business vision document to make certain family members-as well as employees, suppliers
and customers-understand the future of the company. Used family council meetings to communicate to all family members about the company and issues facing it now and in the future.
https://www.doczj.com/doc/5415666997.html,panies and families that communicate often, honestly and on a timely basis increase their probability of
surviving and prospering.
19.Plan Y our Estate
Poor estate planning has led to the demise of more family businesses than any other cause. In many of these cases, the liquidity needs caused by estate taxes due on the value of the family business are far greater than the business can absorb.
20.In most cases, life insurance may be an effective way to cover estate taxes. However, the cost of life
insurance for a business reinvesting most of its capital in growing the business usually makes the insurance an impractical solution for the entire estate-tax dilemma. In most cases, there is a need to utilize other planning techniques to minimize estate-tax costs.
21.
That was the case for a grocery store owner who spent all of his capital on expanding the business and not buying insurance. Unfortunately, he died after completion of the renovations. There was nothing left to pay estate taxes, so the family had to sell the business.
22.
With the help of your advisors, find ways to reduce or manage the transfer taxes. Again, it is important to start the process as early as possible.
23.
These are the four "must" elements. However, underlying all of them is a willingness to make difficult decisions and do what is best for the business and the family.
24.
Dealing with succession issues may cause you discomfort or even great pain. However, if not addressed early in the succession process, these very same issues will come up later when it may be impossible to deal with them. Remember, your ultimate goal is the survival of the company so that your children, employees and community continue to derive the benefits your company provides.
25.
The best way to assure the existence of the family business into future generations is to deal with issues in a comprehensive manner well before the final succession is to take place. For the overwhelming majority of family businesses, that means now.
Translate the following paragraphs into Chinese:
1.Owners / founders are extremely driven and dynamic. || Often they excel at more than one skill.
In many cases, production experts are also marketing geniuses or skilled financiers. || Replacing them may require more than one person. || Therefore, family business owners should determine exactly how the business functions by creating organizational charts. || Each key member of the succession process should create his or her own chart. These charts should then be compared. || The differences will point to gaps in the management structure and highlight areas of
misunderstanding and differences in perception.
2. Few businesses, even family businesses, grow without the help of loyal employees .|| More often than not,
they hold key positions in management. || Therefore, you must keep your employees informed about long-range succession plans. || Key management must have a clear picture of where they stand and what their responsibilities will be in a succession-management structure. || Develop a compensation and benefit structure that is sufficient to attract and retain key managers as well as to motivate them to perform in the best interests of the business and the family.
Translate the following Chinese into English
1.他不但是位出色的银行家和公认的贸易专家，而且还是位经验丰富的企业主管。(not to mention)
2.意大利一个和平组织的志愿者不顾危险，已开赴伊拉克首都巴革达组成人体盾牌""body shield" ，以
阻止美国轰炸该地。(regardless of)
3.在这个家庭里，没有人比朱蒂更能致力于经营房地生意。(be dedicated to)
4.由于经济不景气，房地产经纪人正处于或降低房价或减少销售量的两难境地. (dilemma)
5.史密斯先生往往靠慎重投资而获取巨额利润。(more often than not)
6.约翰在学校里各门功课的成绩都不怎么样，但在体育方面倒是身手不凡。(excel at)
7.有条不紊的职责交接是家庭企业长期繁荣的一个条件。(transition; long range )
8.在制定投资计划之前，你最好对投资前景有个清楚的了解。(have a clear picture of )
9.尽管雕塑费时，但是仍有一些人以雕塑为职业。(time consuming)
10.这家电脑软件公司正处于从独资经营到合资经营的转化过程中。(in the midst of )
Questions:
Q1. What are the four suggestions do the authors give for a successful transfer of a family business?
Q2. The authors make three suggestions as to how to establish and miantain family harmony. What are the suggestions?
1. in the midst of = ( lit or archaic) in the middle of, in the course of e.g.: The country is in the midst of economic reform. / A little girl stood in the midst of her classmates, crying.
2. transfer vt. = give the ownership or control of sth to another; e.g.: The military government is refusing to transfer power to a democratically elected civilian government. // move sth from one place to another e.g.: It took two trips to transfer all Lillian's furniture to her new flat. // move officially from one job to another: e.g.: The manager has decided to transfer me to a new post in Shenzhen Development Zone. // change from one vehicle to another: e.g.: To get there you can transfer from the No. 2 trolley bus to the subway. // transfer n. = handing over the possession or control of sth/ the move of sth from one place to another; the act of moving from one job to another e.g.: the transfer of family business / the transfer of the ship's cargo onto the pier / transfer fee转会费// c.f.: transference = transferring or being transferred, e.g.: the transference of heat from one body to another
3 trillion: = one million million 兆，万亿
4. asset n. [pl.] sth or sb that is valuable because they help to succeed 财富，资产e.g.: asset to
sb/sth: An outgoing personality is a definite asset to a salesman. / Good health is a great asset. / His asset included shares in the company and a house in Guangzhou. // c.f.: liabilities = debts or financial obligations 债务
5. viability n. [U] = workability 可实施性,e.g.: The executive directors are currently investigating the viability of the proposal you have put forth. // viable adj. that can be done and will succeed 切实可行的 e.g.: We are in favour of the program, but we want strong assurance that it is viable. ||c.f.: feasibility 可行性；practicality 实际性
6. questionable adj. doubtful and uncertain e.g.: The conclusion of the survey is questionable because the research was based on a very small sample of people. // c.f.: problematic
7. Survival of a family business into the third generation is a rare occurrence. This sentence means: It is not common that a family business can survive long enough to be transferred to the third generation. // survive v. continue to live or exist in spite of accidents, illness or difficulties / survival n. // occurrence: = event, incident, happening e.g.: Robbery is now an everyday occurrence.
8. succession [U] n. = 1. taking one's place, coming after sb/ sth 继任，继承(头衔、王位、财产) e.g.: Who is in succession to the throne? / Who succeeded Churchill? // succession n. [U,C]= 2. number of things or people coming one after the other in time or order 一连串的、接二连的：e.g. a succession of wet days, defeat, poor leaders // in succession e.g.: three championships in succession // c.f.: successive adj. The school has won five successive games. || c.f.: legacy 遗产（money or property that you receive from someone after they die || heritage (文化）遗产(important qualities, customs, and traditions that have been in a society for a long time)
9. Indeed, a comprehensive succession plan, which includes sophisticated estate planning strategies, generally requires at least a 10-year horizon to be properly structured. This sentence means: Actually owners need to form an overall 10-year future plan for succession, which includes complex and careful planning strategies. // comprehensive = entire, through // sophisticated means very advanced, and more cleverly designed or skillfully made than other thins of the same type; having a lot of knowledge and experience of clever, fashionable thins and showing this by the way one talks and behaves, have lost natural simplicity 高度发展的、尖端的、老练的、富有有经验的、世故的e.g.: sophisticated electronic equipment, a sophisticated businessman // horizon n. = knowledge, experience, interest 眼界、见识e.g.: a woman of narrow horizons / Travel can broaden one’s horizon.
10. large or small, high-tech or low, public or private: Pay attention to the use of parallelism, which enforces the emphasis.
11. Regardless of how diverse they are, four key elements must be in place = But no matter how different they are, four key elements must be functioning. // regardless of = in spite of , e.g.: A true professional can work with anyone regardless of age, race, or color. // diverse adj. = different, various 不同的，多种多样的: All the members of the team come from totally diverse backgrounds. / diverse culture // c.f.: diversity n. e.g.: a wide diversity of opinion 众说纷纭的看法// diversify vt. e.g.: We must diversify our syllabus to attract students. diversify into sth 兼营:Some publishers are now diversifying into software.
12. Owners / founders are extremely driven and dynamic. Often they excel at more than one skill. It sentence means: Owners / founders are highly motivated and exceedingly energetic. They are often very good at quite a few skills. // driven = energetic有魄力的，有干劲的c.f.: drive n. e.g.: Our sales people need determination and drive. // dynamic = energetic and forceful 精力充沛的// excel vi. excel at/in sth = be very good at sth e.g.: She excels at learning foreign languages and can speak English, Japanese and Russian. // excel oneself胜过以往Her meals are always very good, but this time she has excelled herself.
13. marketing geniuses = people who have great aptitude or talent for selling
14 organizational charts = charts that illustrate the administrative and functional structure of a business
15. highlight areas of misunderstanding and differences in perception = draw attention to the areas where misunderstanding differences in perception exist // highlight vt. = emphasize, stress, n. = the most interesting and most exciting part of something 最精彩的部份 c.f.: highlighter (作记号用的）亮光笔// perception = the ability to hear, see, or understand 认知能力 e.g.: We must study to improve our power of perception. // c.f.: perceptible可觉察到的、看得出的// perceptive adj. = quick to notice and understand things 观察敏锐的、善于理解的、富有见解的: a perceptive analysis, comment, judgment.
16. whiz = a person having great skill or ability in some particular activity of field.
17.Judy has a strong management team in place. = Judy has a strong management team run the business for her.
18. fill those spots = work in those positions
19. in the process in order to allow for an orderly transition of responsibilities = In order to enable the transfer of responsibilities to proceed systematically and smoothly // in the process = in the course of action // allow for sth/ sb 在计算、估计、考虑时把某人或某事加以考虑= permit e.g.: The journey usually takes six weeks but you should allow for delays caused by caused by bad weather. // allow sth (for sb/sth) (为某目的)留出: I should allow an hour for the unexpected traffic jam. // transition n. passage from on state, position, or condition to another n. 过渡e.g.: the transition from childhood to adult // c.f.: transitional adj. transitional stage, government // c.f. transit运载，搬运：transit system 运输系统/ transit visa 过境签证
20. More often than not adv. = very often, in more than half the instances: 多半，往往 e.g.: More often than not, he is drunk when I meet him.
21 have a clear picture of = have a complete understanding of || put sb in the picture = give sb information about sth so that they can understand it.
22 a compensation and benefit structure = a system for paying salaries and offering employee benefit.
23 retain = keep v. c.f. retainer (聘用，租凭）定金
24. motivate them to perform in the best interests of the business and the family = give them incentive to do their best for the sake of the business and of the family owning the business
25. inexperienced Pay attention to the prefix "in" which means "not" and is often placed before adjectives, adverbs and nouns, such as incorrect, infinite; Other similar prefix are "il-, im-, ir-", such as illogical, illegal, immorally, improper, imperil, irregular.
26. provide interim management = manage the business temporarily // interim临时的= temporarily e.g.: an interim loan, payment, arrangement, measures, proposals // interim n. = meantime / in the interim在期间: I was away in Beijing on business last month, what did you do in the interim?
27. season (often used in passive voice) v. = Originally it means making wood hard and ready to use by gradually drying it. In the text, it means making experienced by practice通过实践使有经验|| seasoned adj. e.g.: a seasoned boxer, a seasoned traveler.
28. stick to: Pay attention to the prepositional "to", which has been emphasized in Note 5 in Unit 1. Now, let's go over the prepositional "to" once again: acceptable to / according to / accustomed to / adequate to / adjust to / admit to / approach to / attach to / pay attention to / attribute to / belong to / close to / contrary to contribute to / devote to / due to / equal to / exception to / inferior to / look forward to married to / native to / necessary to / next to / opposed to / preferable to / prior to / refer to / related to / relevant to / solution to / stick to / subject to / take to / thanks to
29. select vt. // cf. select adj.(常作定语）精选的： e.g.: select passages of Milton's poetry // c.f.: selective adj. 挑选的，选择的: I am very selective about the people I associate with. / selective training of recruits
30. dedicate oneself / sth to sth 奉献= devote to e.g. He dedicated his life to helping the poor. / She dedicated her first book to her husband. // dedicated adj. = devoted 献身于某事的、专用的 e.g.: a dedicated teacher, / a dedicated word processor
31. legacy n. [C] sth handed down or received from an ancestor or predecessor 遗产，传代物e.g. cultural legacy / His weak chest was a legacy of a childhood illness. // c.f. inheritance: receiving (property, title, etc) as a result of the death of the previous owner. e.g.: The property passes by inheritance to the eldest son. || c.f.: heritage (Refer to Note 8)
32 discord = disagreement, quarreling 不和，纷争：A note of discord crept into their relationship. 他们的关系出现了裂痕。
33. percent: Pay attention to the usages between percent and percentage: 1."Percent" may be either written as "per cent" or percent, which often comes after a number. The verb followed may be singular or plural agreeing with the singular or plural of the noun. E.g.: forty-five percent of Americans were against it. / 70 percent of land is covered with water. 2. Percentage (百分数) cannot be used after a number. E.g.: What percentage of the students passed the examination?
34 assume v. = suppose, // assumed adj. // assumption n. // assume v. = undertake
35 mentoring n. help or guidance from a tutor or adviser. // a tutor or an adviser
36. credibility = trust, believing // ant. incredibility = unbelieving
37. invaluable adj. = priceless, very useful, // c.f. [Ant.] valueless, worthless
38.rivalries n. = continuous competition
39. jealousy n. [C,U] e.g.: She grew tired of his petty jealousies. // jealous adj. jealous of sth / sb //
c.f.: envy e.g.: envy of sb // envy at / of sth
40.family council meetings 家族委员会会议
41. on a ... basis 以...为基准的：Rates of work are calculated on a weekly/ monthly/ basis.
42. demise (fml) = failure, death e.g.: This loss led to the demise of the business. 这一损失导致了公司的倒闭。
43. liquidity n. 资产折现力，资产的流动性
44. due adj. 应支付的、欠下的：I am still due 15 days' holiday. 我还应有15天的假期。// dues n. 应交纳的费用e.g.: I haven't paid my dues yet. 我还没有交会费。
45. absorb vt. vi.
Pay attention to the meaning to the sentence: The liquidity needs caused by estate taxes due on the value of the family business are far greater than the business can absorb. 由于需要支付的家庭企业固定资产税而产生的资产折现远非家庭企业所能承受的。
46.impractical adj. = unrealistic // c.f. impracticable adj. 行不通的e.g.: Your plan is very appealing, but quite impracticable // impracticality n. [U]
47. dilemma n. [U] situation in which one has to choose between two undesirable things or courses of action // be in a dilemma / place sb in a dilemma
48. must n. [U] = thing that must be done, seen, heard e.g.: His new novel is a must for all lovers of crime fiction.
49. issue = important topic for discussion; point in question 重要议题，争端，
Key to Vocabulary and Structure
A. 1.H 2.I 3.A 4.A 5.K 6. N 7. L 8.G 9.D 10 C
B. 1. perception 2. responsibility 3. organization 4. marketing 5. strategies 6. assests
7.transitions 8. dilemma 9. Rivalry 10 compensation 11. whiz 12 invluable
C. 1. A.justify B. justification C. justifiable
D. justifiably
E.justified
2. A. strategic B.strategy C. Stragtegics (or Strategy) D. strategists E.
strategized F. strategically
3. A.fiance B. financial C. financier D. finance D. Financially
4. A. resentful B.resents C.resentment D.resentfully
5. A. perceive B. perception C.perceptible D.perceptive E. perceptibly
6. A. diverse B. diversify C. diversity D. diversification E. diversified
7. A. destroyed B.destructive C.destruction D. destructionist E.destroyers
F.destroying
G. destructible
8. A. markets B. marketable C. markets D.marketing E. marketer
9. A. prosperity B. prospering C. prosperous D. prosperously
10. A. derived B. derive C. derivative D. derivative
D. 1A 2A 3C 4C 5B 6D 7A 8B 9A 10A
E. 1. amufacturers 2. natural 3. treatment 4. experienced 5. approached 6. relatively
7.global 8. chained 9.sustainable 10. vision 11. extended 12.improving 13.
accomplish
14. array 15. involvement 16. activity 17. rewarded 18. prosposals 19.
domestic 20 competitors
Key to the Translation from English to Chinese:
Ａ业主/企业创建者不仅进取心强，而且精力充沛。|| 他们往往擅长于多种技能。在很多情况之下，他们即是生产专家又是营销天才或经验丰富的金融家。|| 要接替他们的工作则需要很多的人。|| 因此家庭企业主应当通过制定组织机构图来明确规定该企业怎样运作。|| 参予交接过程的每个主要成员也应当制定他们自己的组织构图。然后,?对它们进行比较。|| 各机构之间的不同点将表明管理体制上的差异、存在误会的主要方面及观念上分歧。
Ｂ没有忠心耿耿雇员,很少企业能够发展壮大，|| 即使是家庭企业也是如此。这些尽职的雇员多半担任了主要管理职务。|| 因此，应当将关于产业继承的长远计划随时通报给他们，|| 而主要的企业管理人员必须清楚知道他们在产业交接管理机构中的职责。|| 改进企业的劳保福利制度以吸引和留住主要部门经理,激发他们的积极性,使他们能为企业和业主的最大利益而工作
Key to the Translation form Chinese to English:
1. He is an experienced banker and an acknowledged trade expert, not to mention an excellent managing director.
2. Regardless of danger, volunteers from an Italian organization for peace have gone to Baghdad, the capital of Iraq, to form a "body shield" for the purpose of preventing the US from bombing the place.
3. Nobody in the family is more dedicated to operating the real estate business than Judy.
4. Because of the economic depression, real estate agents are in the dilemma of whether to lower prices or let sales fall off.
5. More often than not, Mr. Smith earns great profits by careful investment of his capital.
6. John did not make much of a mark in his studies at school, but he excelled at sports.
7.Ordrly transition of responsibilities is a condition for the long-range prosperity of a family business.
8. You had better have a clear picture of prospects before formulating a plan for investment.
9. Although sculpture is a time-consuming art, there are still some people following it as a profession.
10. The software company is in the midst of being transformed from an individual proprietorship to a joint venture.
Q1 1) Plan a succession management. 2) Define family employment practices 3) Establish and maintain family harmony 4) Plan the estate.
Q2 1) Seating an outside board of directors. 2) Developing a family business vision document. 3) Holding family council meetings.
Key to Vocabulary and Structures
A.1H 2I 3A 4E 5K 6N 7L 8G 9D 10C
B 1 reception 2 responsibility 3 organizational 4 marketing 5 strategies 6 assets 7 transitions
8.dliemma 9 Rivalry 10 compensation 11 whiz 12 invaluable
C.1. justify, justification, justifiable, justifiably justified
2. strategic, Strategy, Strategics/Strategy, strategists, strategized, strategically
3. finance, financial, financier, finance, Financially
4. resentful, resents, resentment, resentfully
5. perceive, perception, perceptible, perceptive, perceptibly
6. diverse diversify, diversity, diversification, diversified
7. destroyed, destructive, destruction, destructionist, destroyers, destroying, destructible
8. markets, marketable, marke5s,marketing,marketer
9. prosperity, prospering, prosperous, prosperously
10. derived, derive, derivative, derivative
D. 1.A.it even harder 2. A. that 3. C. not taking enough exercise 4. C. to have gone back on
5. B. functioning
6. D. on.
7. A. object to seeing
8. B. to go with it
9. A. to expanding
10. A. anxiously awaiting
E. 1.manufacturers 2.natural 3.treatment 4.experienced 5. approached 6. relatively
7.global
8.chaired 9.sustainable 10.vision 11. extended 12.improving 13. accomplish 14 array
15. involvement 16. activity
Key to Reading Comprehension
1. Because there were far fewer approaches having been used by executives than the author had hypothesized
2. The Strategy
3. It implies that these executives rarely promote young employees to key posts.
4. They encourage their employees to cultivate and improve their expertise believing that the cultivation and improvement to expertise is a source of competitive advantage.
5. The highly value those who are aggressive and independent and people who view their jobs and possibilities for advancement as opportunities that must be seized firmly.