By Maximilian Lantelme

Maximilian Lantelme examines the old progress and decline advancements of enormous German relatives and non-family companies among 1971 and 2011. in keeping with a pattern of the 143 greatest German businesses in 1971 and in 2011, the writer investigates the long term improvement of every corporation and calculates compound annual progress premiums (CAGR) to match the advancements of overall revenues and of the variety of staff among the companies with the final improvement of the German financial system. also, he offers the go out premiums in addition to the explanations for the downfalls of the different sorts of businesses. the consequences express an excellent improvement of relatives companies particularly in comparison to non-family companies as a result of decrease go out and better progress charges. The strategic implications are that family members companies may still in attaining a definite hall of development within the long term to safe the company’s life over generations.

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Preserving family businesses and 3. Entrepreneurial family businesses. The first and second type has relatively low growth rates or their growth even stagnates over years. The ephemeral family businesses often go down after one generation. Only the entrepreneurial type of family business intends to secure the company over generations by strategic developments, innovations and evolutionary growth (see Schwass (2007): p. ). This thesis is based on the understanding of the entrepreneurial family business to improve the understanding of long-lasting strategies and large firms.

The legal form of the AG made it easier to exercise their power. 115 In addition, several salaried entrepreneurs with a strong personal commitment to their firms like Louis Baare (Bochumer Verein) or Georg von Siemens (Deutsche Bank) shaped the evolvement of the large companies based on their leadership position and not on capital ownership. Nevertheless, the idea of the genius entrepreneur dominated in Germany compared to the idea of the manager run large anonymous businesses in the USA. These differences can explain in part 111 112 113 114 115 For different expansion steps of large German companies see Hutzschenreuter et al.

G. Klöckner & Co. 150 Based on this development the ranking from 2011 is also shortened to the top 143 companies to allow a direct comparison between the rankings from 1971 and 2011. In summary, based on the explained research process data for several variables of every single company for the years of observation 1971 and 2011 are collected. 149 150 The analogue countries include France, Germany, Italy, Japan, the United Kingdom and the USA. Their average productivity progress (annual change in %) is based on the average growth in GDP per capita, productivity and ULC (unit labour costs) between 1971 and 2011.

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