The Right To Operate The Family Business. Xd The Transitional Inheritance

As an old business model, the family business has its necessary existence reason and the unique advantages. According to the report of Chinese edition"Forbes"in 2010, similarly to the western country's circumstances, among China-listed companies, the family business performed better than the non-family business as a whole trend. However, most of the domestic family companies were difficult to inherit. There are many examples of business failure because of the Rich 2G fail to inherit their companies, so how could the companies build lasting success? Should the company founder hand over business to their"insider"or"outsider"? Whether the Rich 2G can take over smoothly or not? How can companies train their successors and build up a reasonable inheritance model? These series of problems had caused the attention of the company and society more and more, and also attracted many scholars to take further research.The XD Company, one of the typical Chinese family businesses, faced the problem of lacking the potential successors in the process of expanding their business gradually, hoped to seek a rational way to solve the internal management and the inheritance problem in order to realize their family business'sustainable development.The paper was mainly researched how the XD Company can reasonably choose its inheritance model; the research was based on plenty of family businesses and inheritance literatures, spontaneously designed the XD Company's internal survey, and provided intensive investigation. Based on the investigation data and survey analysis, adopted SWOT analysis to evaluate its Strengths, Weakness, Opportunities and Threats; extracted the key points to solve inheritance problem on basis of company's actual performance and identified the model should directed to the transitional inheritance. The paper preliminary proposed two transitional inheritance models for XD Company, then specifically elaborated on the models on the aspects of model designing, model's trigger conditions and model's features in order to provide the companies suitable transitional inheritance model and work out the inheritance problem in terms of their own needed.Main innovation points of this paper as follows: Firstly, it explored transitional inheritance model based on one family-owned company's specific needs, the inheritance of family business obstructing the development of company- has become an increasingly important issue. In practice, during the period of the immediate successor cannot take over the business on time, many companies have already begun to adopt the professional managers or let the relatives take over temporarily, however, they still do not have sufficient theoretical research to help to choose the suitable business take over model, so the actual needs and lack of theories is one of the innovation point of this paper.Secondly, in the study, we adopt the interview and survey to extract the company's needs, and based on the SWOT analysis, In-depth analysis of the family business'status and guided the right direction for XD Company's inheritance model.