Final answer:
The 'Cousin Coalition' stage in family business growth is an advanced stage typically involving operational inefficiency, emerging when multiple family members from the third generation, like cousins, share management and ownership responsibilities.
Step-by-step explanation:
The 'Cousin Coalition' stage of family business growth is characterized by operational inefficiency. This phase typically occurs in the third generation of a family business when multiple family members, often cousins, are involved in the company. At this point, the business has successfully transitioned from the founder stage and its immediate familial successors and now faces the challenge of management and ownership dispersion among a broader family base. Operational inefficiency can arise due to complex family dynamics, differing visions among the various family members, and potential conflicts of interest. It becomes crucial for the family to establish clear governance structures and policies to manage these complexities effectively and ensure the longevity and success of the business.