Representing four-fifths of businesses worldwide, family businesses are a prevailing form of business organizations. Their importance has brought on several studies concerning their development and behavior. Drawing on Gersick et al’s three-dimensional developmental model, this study examines the development of a Taiwanese family firm. Gersick et al’s three-dimensional developmental model develops a typology based on the dimensions of ownership, family and business. Through one-on-one in-depth interview of a Taiwanese textile manufacturer, this study finds that the founder’s character is an important factor that triggers challenges that family firms must face. With this unique factor, it is found that the family firm has employed an informal communication mechanism through close family members acting as third party liaisons to minimize communication conflict. Furthermore, through the application of quality management certifications, the firm has formalized organizational procedures and policies. Close affiliation with government aided institutions allows the firm to offer a comprehensive training program to attract and develop new talent. All these serve as future guidelines for family firms to overcome challenges in their developmental process.

The diploma thesis deals with evaluation of the current state of the Vinotéka Rek family business and results in a strategy of its further development. The first theoretical part is based on the theoretical backgrounds focusing on the development and growth of entrepreneurship in particular small and family businesses, the context of strategic management within the development of companies and also on selected analytical and research methods that examine the internal, external and market environment of the company. The second, analytical part of the thesis contains the practical application of the methods to the selected company, the identification of key factors and impacts on the company and the evaluation of the overall results for the subsequent selection of the appropriate development variant. Third, the part of proposals builds on the results of the analyzes and processes the selected variant of the development strategy, including the implementation steps and the benefits of the proposals.