Business

Founded almost 60 years ago by W Garfield Weston in the year 1935, Associated British Foods plc is currently headed by one of the forty members of Weston family George Weston. Mr. G. Weston was appointed the Chief Executive of ABF in 2005 in April after the retirement of Peter Jackson. The other executive director and also a member of the board is Mr. John G Bason who is the Finance Director of this firm (Associated British Foods, 2009d). The companys secretary Mr. Paul Lester, is the third executive director who is charged with the responsibility of ensuring that all the stipulated board procedures are followed. The chairman of this board is Mr. Charles Sinclair who took over from Mr. Martin Adamson in April this year. According to the company profile, the board of directors is also composed of four-non executive directors. The said directors are independent of the overall management of this family business since they do not have relationships that might materially interfere in their exercise of independent judgment (Associated British Foods, 2009d).
    However, the board also includes Mr. Galen Weston who despite being regarded to be a non-executive director is not independent owing to his relationship in connection to Wittington Investments Ltd. The said non-executive directors are namely Timothy Clarke, Peter Smith, Javier Ferran, Michael Jay of Ewelme as well as Willard Weston. Mr. Timothy Clarke is designated as the senior independent director within the business organizational structure.  As the representative of the Weston family, the CEO Mr. George Weston is tasked with the role of managing and leading this family business in accordance to the authority given to him by the board of directors. The other family member within the board Mr. Galen Weston provides complementary professional advice to the Chief Executive officer to ensure that the family business maintains its market leadership position in the recent wake of cut-throat competition (Associated British Foods, 2009c). In addition to these senior positions, there are other family members spread across the firms senior management levels and thereby ensuring that the family business is managed according to the aspirations of this family.
b) Management of family business in context
    According to Aronoff, Joseph and John, (2002, p. 96), the issue of management of such family businesses is definitely one of the most controversial, a yet very important component to success of these types of businesses. This has further been aggravated by the fact that family businesses are usually intricately connected in terms of the family itself, the business in question as well as its ownership. Hence, it is this complex web that tends to be the root cause of a range of family problems across the globe irrespective of the size. Therefore, in most cases, family business usually generates a mixture of family, business as well as ownership concerns.  A combination of these issues eventually results to the creation of an environment which is emotionally charged for problem solving and planning (Manfred, Randel and Elizabeth, 2007, pp. 78-79).  . In this context, this type of business requires the management of the three overlapping components.
    The said overlap of these components the business, family alongside ownership, more often than not leads to a significant difference of views as far as the management of the family business is concerned. For instance, family members who are not employed by the business but are shareholders tend to have different views regarding the dividend level in comparison to their counterparts who work in such business. It is imperative to note that the two divergent viewpoints are legitimate in their own might and should be reconciled respectfully as means of setting the direction of the family business while at the same time preserving harmony within the affected family. In this regard Aronoff, Joseph, and John, (2002, p. 124), hold the view that effective management of family business such as the Associated British Foods is founded on free communication  alongside decision making across and within the business, family and ownership groups.
    Reconciling all these elements of family business is often very difficult if not challenging and are not able to effectively deal with family-business-ownership related tensions. However, majority of family business management units usually find it feasible to employ the use of short-sighted and dysfunctional approaches in order to handle these tensions (Grant and Nigel, 2008, p. 65). One of the strategies used are secrecy and exclusion in which case some of the shareholders or family members are usually kept out of conversations pertaining family business. Furthermore, this might be extended to the keeping of several business secrets from the family members, shareholders or employees. Others on the other hand find it appropriate to use the divide-conquer strategy. In order to achieve this, some members of family usually enlist support from close allies within the family business while at the same time excluding the others from both decision making and information. The third method used to calm these tensions is through bribery. In most cases this is brought to the fore through hiring of some relatives despite the fact that they do not deserve those jobs in the first place. Closely related to this, is the idea of paying a cross-section of the close relatives hefty salaries than they actually deserve.
    The other method involves the distribution of more funds than is required from the company for the sake of maintaining harmony within the family. As noted by Hoovers (2007, pp. 31-32) the aforementioned methods only serve to provide the much needed short-term relief but fail short of exhaustively resolving the underlying issues. As a result, such measures only provide an environment for these tensions to intensify in the long run. Therefore it is noteworthy that effective management of family business takes into the account of the fact that it can not eliminate the existence of tensions but rather strive towards reducing them as much as possible. This can be achieved through ensuring that there is clarity of roles, responsibilities and rights for all persons captured in the overlapping components. The other feasible way is to encourage family members, employees of the firm as well s the owners to embrace the ethical behavior. On a more radical note, regulation of appropriate owner and family inclusion in the various business discussions might be necessitated.
c) Non-Core elements and their value to the business
    Business success as Fisherman (2008, pp. 75-76) indicates, requires an integration of key core and non core elements that dictate their ability to fit in the wider society, follow the missions, and thereby achieve their objectives. Though analysts have differed over the efficacy of applying the non-core elements, it is no doubt that they form key anchors towards Associated British Foods growth and development. 
i) Management training and leadership issues 
    In his view, Grant and Nigel (2008, pp. 58-59) indicate that the need for management training and leadership remains one of the most critical aspects that dictate the ability of a business unit to not only guide its holistic outlook in the society, but generate the need for sustainability. This notion is particularly critical in a family business as it drives the need to establish supportive structures at all levels of management. Associated British Foods (2009b) indicates that the current progress has been associated with its special treatment for different employees in the management. Particularly, the company indicates that its employees are the most crucial asset and therefore the need to maintain highest possible standards in their recruitment and development. In addition, the company has assimilated an inclusive and democratic leadership mechanism that seeks to bridge the gap between employees and the top management. For all the employees in the organization, the management has sought to generate the necessary identity for all by initiating integrative cultural derivation towards improving creativity, innovation and overall identity with the company (Associated British Foods, 2009c).
ii) Corporate and social responsibility
The notion of corporate social responsibilities in derives the need to link with the community and therefore put back some of the profits that have been assimilated from it. Under this consideration therefore, it becomes clear that companies are very critical on creating their images both internally and externally. Associated British Foods has internally established the correct orientation towards improving the employees welfare through professional ethics observance and integrity operations. Besides, it provides attractive remunerations for the employees and further contributes towards community projects (Associated British Foods, 2009a). However, the company has undergone increased pressure to increate its social corporate responsibility in the areas of the companys operations.
iii) Change management and professional skill
    In his view of organization management, Grant and Nigel (2008, pp. 86-87) indicated that the only permanent aspect in it is change. Likening organizations with ships sailing from one side of the sea to the other, organizations management should expect disturbances in their journey towards achieving their missions. Therefore, they must establish mechanisms to address these change demands in a manner that generates further progress. Family businesses have often been accused of falling short in this area mainly due to reduced external focus. Indeed, Associated British Foods lacks a clear outline for managing its change demands.  The management therefore takes full responsibilities of establishing and initiating changes and facilitating them to completion. This method is however very risky in that it can creates core resistance by the employees as they view the change considerations to be external towards their subcultures.    
iv) Role of creativity and innovation
    The notion of creativity and innovation as Fisherman (2008, pp, 35-36) indicates, brings out the need for improvement and refocusing the main objectives of an organization. Therefore, it requires careful employment of motivation by the management towards the employees.  Notably, application of this facet by the families have been highly varied ass it is partially seen an unavoidable expense or a growth facilitator. Association British Foods different employees has over the years maintained departmental innovation by encouraging team operations, emergent leadership, effective culture and the better remuneration. As a result, key ingredients and foods offered in the company retail outlets have remained highly attractive to consumers for creativity (Association British Foods, 2009a).
d) Management Issues to be considered by ABF
    According to Moorhead and Ricky, (2008, p.261), the present day 21st century rapid developments in technology have most certainly presented the business fraternity with a range of opportunities. In particular, the internet has emerged to be one of the vital platforms upon which various businesses across the globe may use to further consolidate their market positions. Faced with heightened competition within its market, Associated British Foods can not afford to overlook the importance of e-commerce. One of the notable benefits of the management of ABF to embrace this idea is its ability to reach a wider network of the market on a global scope. Therefore, this shall imply that this family business would be able to increase its penetration into the untapped markets. At the same time e-commerce shall enhance for increased sales within the existing market segments.
    This is attributed to the fact that e-commerce ensures for convenience to the customers since it provides the products to the clients through the electronic communication as the interface between the two parties. The emergence of this technology also means that such family businesses have been provided with an addition market platform to increase their visibility. Hence, the management is able to take advertise on the internet across the globe which in turn helps to promote its visibility. A closer look at the Westons family business shows that the management has embraced this concept since it offers a range of its products online for sales. Furthermore, this family business has opted to use the internet as an advertising platform for its range of products a move that has served to increase its visibility. E-commerce also carries the benefit of increasing efficiency in terms of communication both within and without this family business. In particular, the firm is now able to link up with its various suppliers through the internet spread across the country to ensure for timely delivery of goods or raw materials. That e-commerce has contributed towards the growth of Associated British Foods since its inception in 1935 is a fact (Associated British Foods, 2009c).
    In todays business environment, the role played by production of quality goods or services can not be over emphasized. According to Fisherman (2008, pp. 45-47), quality ensures that customers get value for their money which in turn increases customer loyalty. Ranging from grocery all the way to the sugar products, one can not fail to note the high quality of ABFs products. Against this backdrop, the management has put in place measures aimed at ensuring that the ultimate product is of high quality.  This has enabled for its various products to stand out from the rest within the United Kingdoms market as well as across the globe (Associated British Foods, 2009c). Indeed this is evidenced in its continued growth throughout the history of time in comparison to other market players.