Robert Bosch GmbH-Research On The Governance Issues Of Family Business

This thesis is composed of two parts: Case and Case Analysis.In the case part, the Bosch group is described. As a 130 year history of the family business, Bosch group has become one of the world’s largest industrial groups in the areas of automotive and industrial technology, consumer goods, and building technology. Bosch group has experienced five major stages of development, until the company has become a multinational corporation which focus on the technology and services. According to the different historical period, the characteristics of each stage are described in this paper. Its particularity lies in the fact that Bosch is a family business, despite a number of difficulties and setbacks encountered in its development process. Although there are still some problems at present, but companies adhere to the entrepreneurial freedom, making it possible for the company to plan over the long term in the safeguarding of its future. And the road of privatization will not change.In the case analysis section, firstly, the author points out that the case of Bosch group has provided a new perspective and direction for the study of governance of family business. Then classify the definition of family business and point out the deficiencies, and further explain the definition based on the actual case. Subsequently, according to the theory of property rights and corporate governance, the evolution process of the corporate governance model of Bosch group is analyzed in this paper, and the point of view of family business will eventually be open to the outside is refuted, and it also proved that the family business could develop stably by remaining private ownership and a high concentration of company shares. Finally, from the perspective of property rights structure, governance structure, strategy and process, management mechanism, organizational culture, the article puts forward the corresponding solutions to the current problems of Bosch group which including a relatively slow management decisions, an overall performance without progress, the risk of excessive innovation and the lack of effective incentives.