Pitcairn Family Heritage Fund: Business Analysis

Pitcairn Family Heritage Fund: Business Analysis

Introduction

Investment keeps the business thriving. Proper market and sales researches should be conducted to ensure that the business does not invest in poor sectors. Pitcairn had been conducting researches. They had been to an extra step to test the market before venturing into the opportunity. This is the motive of any business enterprise aspiring to live long in the market. This report presents an analysis of the company’s investment portfolio, strategic direction and management structure as a way of appraising the investment philosophy that has been adopted in the business.

Analysis of Business Portfolio

The enterprise did a prudent activity of involving the clients, who were part of the families as founders and corporate members. This ensured that each and every person was mindful about the performance in order to not let the business make losses. This was the best investment choice the company did to have the chance to be driven by people having the interest. The management also did extra work of forming other affiliation to provide a larger pool; hence, the investor could invest according to desired manner and with their level of assets. This among other strategies enabled the family business to thrive. After the good performance under the leadership of two mangers they were promoted to higher grades. The two managers contributed much to the business since they had been in the business hence, they were aware of the norms of the business. They shared the same interest with the business founders.

Pitcairn had been conducting vigorous research and keeping their researches as clean as possible. The database was their blueprint for business options to undertake. The records were well kept and analysed. This was to help them when making decision on the best line of business to venture in. Communication between the managers and the corporate owners was close, thus, this ensured that prudent option was selected. They had maintained high level of transparency between managers and owners of the business. The managers could not bet with companies resources. They had to be clear on their ways of assets usage and management. The family involvement in decision of investment ensured that the organization interest was at hand. They acted as the watchdog to the other clients and owners. The manager could not make careless decision in their presence.

Many investors had invested into the business with a lot of funds. The organization had opted to allow outside investors to have their contribution as a way of expanding their boundaries. This could risk the business from being taken over by such “big” investors. The corporate managers had keenly and closely their holdings, this was to ensure that their interest and the family interest could not be compromised at all. They had showed to prioritize their interest first than the influence. Feder and Larrabee’s monitoring of the business ensured that the business would never collapse. They involved their expertise even in sales decision.

Pitcairn had taken a prudent decision of providing its clients with mutual funds as investment vehicles for their own personal and trust assets. This was a good step to ensure that they won the client’s loyalty. They did proper advice to the clients to ensure that they would succeed and, therefore, could have their interest guarded. As for this reason, they had to come up with an investor advisory committee to help the clients.

Overall Strategic Direction

Failure of a strategy or any approach calls for business to use another strategy to upraise the business to earlier status. This is quite evident from what the corporate manager did when the method of sale decision failed they had to they minimized the turnover, incorporating tax consideration into every purchase and the overall harvesting losses to improve the client’s tax position. This is well elaborated from their performance highlights. Every business requires reorganization. This gives the business the chance to change on whole strategic, financial and management bodies. The appraisal of the employees ensures that the business will have the higher beneficial change. The three quarter contribution of the family to the business was quite risky. The business ought to have done what the Bessemer did, they had moved from being a single family office of founding single family to the multifamily status. Their merging with the constellation only led them to be overtaken by it and, hence, given the responsibilities of day to day fund management. That was not the best alternative from the business to undertake. The business was family property merging with other business with an aim of making exorbitant profits were risking their funds. Such a standing business made a mistake to involve its fund management with other organization.

The proper analysis of the market guaranteed success of the business. They had to scrutinize any opportunity to ensure that the businesses will never lose its interest. Routine market analysis of the stock market was helpful to the business. In cases where market research is not conducted, business indulges in non-profit transaction, which leads to failure of the business. For instance, tax efficiency strategy used by the corporation had good returns. This was the fruitful efforts from the strategically management. These were the benefits had to reap for hiring highly trained personnel to manage their business.

Management Structure

The family business was to be run for the interest of the family not like other companies where shareholder’s interest is in the consideration. Proper management of business guarantees success of business in all sectors or departments. To prevent influential leaders from overtaking the business from their founders, the business had a different method of electing their board of governors. Shareholder’s interest ought to be taken care of but not it to cost for the fall of the business. The management of the enterprise was quite good. Success of business requires proper management. Therefore, the managers and directors need to have one common goal, that is, success of business. The family business did a prudent decision of promoting the manager to their respective chairs in the business since they saw them perform to their best. This ensured the business kept its secret form other competitors. Where the shareholder, investor and the management bodies are in one voice and they have a common interest in the business, chances of high performance is possible. The management of Pitcairn is not questionable. They had to conduct a proper research before any transaction or any investment.

Moreover, the managers who were promoted to higher chairs were well aware of the business. The Pitcairn foundations were very vigilant to the dominance of the real founders of the company. They did a good thing to higher expert managers. Cases of a group dominating the whole thing is risky, most of them make some decision to favour only their side and leaving the others to face the losses. Involving some of the family members in the day-to-day running of the business or management levels is very helpful to the business. The family members, who have the interest for the performance of the business, ensure that the other managers will never steal from business. They act like watchdogs for the business. This will ensure that no embezzlement of fund or unnecessary salary promotion occurs as a method of guarding the business.

The business has a long-term performance aim. The managers were well equipped to realize their mission. The welfare of the investors and the entire shareholders is very important. The management of the Pitcairn realized that they had been involving the family owners in their decision-making. Business meant for long-term life is highly likely to thrive. The Pitcairn has the trend of being inherited from one generation to another. The enterprise had the best expansion mechanism. They had allowed outside clients to their own their business. This was the prudent decision to expand their business and ensure its sustenance in the market. This led to the enterprise being a multifamily corporation since most of single family investment was absorbed by the company. This was a good way of expansion instead of merging or amalgamation like that of Elli LILLY.

Family ownership and control had an overall importance to the corporate performance. The business had to affirm this by conducting some research of the same. This was very essential and wise idea to ensure that the business is well aware of any change or the current running of the business. It is from this researches that had kept the business still in the market. This is the advantage of employment of good expertise in the running of the business. Feder and Larrabee had been in the business; hence they were aware of the business long-term performance. The two experts had imparted a positive rise in the business, and showed a high level of expertise and tactics in their work of management. The business should ensure that productive employees are not suppressed instead they should be promoted as method of performance appraisal which will ensure that they perform well.

Conclusion

In conclusion, the business was working under the long-term performance. They never tried any risky methods to gain the high profits. The managers had the total interest of the business. They were not ready to risk the interest of the business. Good performance relies on the management body. Pitcairn family heritage has depicted that family business can also thrive. The success of such kind of business of investment will require managers with great interest to the performance of business. They will have to possess the best strategic plans for them to succeed.

Live Chat
Online