News from Cass Business School

Why Western family-run businesses are declining

And the lessons they can learn from India

While large family-owned businesses in the West are declining, those in the East are still thriving. In this week's Cass Talks, Professor of Global Innovation Management, Ajay Bhalla, who recently spoke on the topic at the Third Asian Family Business Conference in Hyderabad, explains why.

From Disney in the US to Sainsbury's in the UK, most large family businesses in North America or Europe that have evolved are beyond the third generation and rely on family trusts to represent the family interest.

Families in the majority of large Indian family firms continue to be actively involved in running the family business, as opposed to the West where this is no longer the case. Most of them have little reliance on formal governance mechanisms and continue to rely on informal management techniques.

Drawing on his research, Professor Bhalla shares insights into the disapperance of Western family businesses, the success of large Indian family firms and offers advice to help those running their own family business prosper.

The Cass Talks interviews are an opportunity to hear Cass faculty and prominent alumni give their perspective on current business and finance news stories, global issues affecting the business world and new research coming out of the School. Listen, watch and download Cass Talks and see other Cass academics share their opinions at: www.cass.city.ac.uk/casstalks

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