Issue link: https://www.e-digitaleditions.com/i/571132
September/October 2015 19 3. Are we satisfied with our rate of growth? To answer this question, next-generation leaders should understand the positives and negatives associated with growth—which vary by industry. Sometimes, growth is required to remain a viable competitor. Sometimes, more growth means increasing risk or reducing quality. These issues must be carefully examined. 4. How does the availability of capital constrain our stra- tegic choices? The willingness of owners to provide capital to the business and to reinvest profits in the business has significant impacts on growth, diversification and other strategic options. 5. What is our orientation toward risk? The next generation should consider the financial structure of the business and their willingness to use leverage (borrow money) to pursue the strate- gies adopted. FOR THE NEXT GENERATION By Craig E. Aronoff, Ph.D. aronoff@efamilybusiness.com By Craig E. Aronoff, Ph.D. 6. How patient are we with our capital? Are the owners looking for current or quick returns, or are they willing to wait for the strategies to come to fruition? Reaching consensus on this question has a significant impact on strategy selection. 7. What are our expectations about liquidity? The group should reach consensus on their desires for distributions and the ability to sell shares. 8. What are our business's strategic strengths and weak- nesses? What opportunities and threats confront us? These questions are the basis of a widely used strategic plan- ning tool called S.W.O.T. analysis (Strengths, Weaknesses, Opportunities, Threats). Owners should go through this exercise to sensitize themselves to the strategic planning process and to improve their ability to offer strategic direction and feedback. LED LIGHTS - THE BRILLIANT CHOICE FOR FOODSERVICE LED lights are the energy-efficient, money-saving choice to replace incandescent and fluorescent lights. Component Hardware offers a wide variety of LEDs – all UL and NSF listed, with low wattage, high lumen output and 50,000 hour life. high lumen output and 50,000 hour life. © Copyright 2015, Component Hardware Group, Inc. 05/2015 • 7W Edison-base LED bulb for reach-in refrigerators • 20W Edison-base LED bulb for canopy hoods • 24" and 48" surface mount LED fixtures for walk-in coolers and freezers • 24" and 48" recess mount LED fixtures for canopy hoods • T4 linkable light bars for display applications It's here! 20W Edison-base Passive Infrared MOTION SENSOR bulb for walk-in coolers and freezers. Call or email us for a complete LED Lighting catalog and price list. 800-526-3694 • 732-363-4700 • sales@componenthardware.com. continued on page 31