Research On Inheritance And Coping Strategies Of Family Enterprises Under The Influence Of Emergencies

Family business,as the most common mainstream organization form in modern enterprises,plays an important role in the current world economic system.China’s economic development has entered a new stage.As the main force of the socialist market economy,family business has greatly boosted the high-speed running of the Chinese economy and is the core force to promote the high-quality development of the Chinese economy.At the same time,the first batch of private entrepreneurs are generally old,indicating that the family business is about to enter a period of high inheritance.By studying the intergenerational inheritance cases of family businesses at home and abroad,it can be found that the factor of unexpected events has begun to attract the attention of the academic community in recent years.Because the accident of one generation of family founders will cause the enterprise to fall into a particularly passive situation,the intergenerational inheritance process caused by this is quite different from the traditional family business and the situation is more complicated and tricky.In recent years,many founders of Chinese companies have left office unexpectedly,leaving their successors unprepared to take over.It should be pointed out that the generation founders of family businesses are often strong,so the power of enterprises is concentrated,which leads to the late screening and training of heirs.If the founder suddenly leaves office due to an accident,it will pose a serious threat to the smooth succession and subsequent management of the enterprise.This paper takes Sunflower Pharmaceutical Group Co,,Ltd.as the case study object,which was listed on the small and medium-sized board of Shenzhen Stock Exchange in 2014.On December 23,2018,the company’s chairman,Guan Yanbin,was arrested by the police "on suspicion of intentional homicide",and his daughters,Guan Yuxiu and Guan Yi,were quickly promoted to the position of chairman and general manager.In view of the unexpectness and suddenness of Guan Yanbin’s "wife killing case",this case has full typical value for the inheritance research under the unexpected negative events of family enterprises.Based on the research of existing scholars,this paper draws on the existing research experience and uses the single case analysis method to carry out relevant research focusing on the coping strategies adopted by Sunflower Pharmaceutical in the process of inheriting unexpected negative events.And innovatively combined with the Social Emotional Wealth Theory to analyze its impact on the implementation of strategic decisions of enterprises,at the same time,the long-term and short-term performance of enterprises after the successful completion of the intergenerational inheritance was evaluated and analyzed.The purpose of this paper is to explore the reasons why the case company can smoothly inherit and make a smooth transition when facing unexpected negative events,so as to provide references for family businesses that encounter unexpected crises in the process of inheritance,and make appropriate adjustments in their own management practices to better cope with crises.This paper draws three research conclusions:First,in the era of information network,any behaviors of enterprises will be exposed in the spotlight of the media,and the public will tend to read negative news when reading corporate news.By limiting the spread of news and reducing the heat of public opinion,the continuous impact of this negative event on enterprises can be reduced to a certain extent.Secondly,when negative events happen to family enterprises,they will strengthen the construction of corporate social responsibility and increase the investment in charitable donations,which conveys a positive signal to the market that enterprises actively undertake social responsibilities after negative events,thus establishing a good image of enterprises and reshaping their reputation.Finally,the construction of core competitiveness is the decisive factor for the long-term survival of family enterprises after negative events.To sum up,this paper draws the following enlightenment:When a generation of founders does not carry out relevant succession planning or have a weak awareness of crisis,when a family business has an unexpected negative event,emergency measures should be taken to limit the spread of negative news,which can leave time for the enterprise to plan countermeasures and make strategic decisions.As a signal of "goodwill" from enterprises to the outside world,social responsibility activities will influence information users’ views on negative corporate events to some extent.Enterprises’ active commitment to social responsibility can divert the outside world’s attention to negative corporate events and relieve the pressure of public opinion.In order to let the family business out of the impact of negative events as soon as possible,shape the corporate image,enhance the brand barrier,and do a good job of products,to give external investors confidence,let consumers at ease.