This case describes how SeaCloud, a real estate company founded in 1999, redesigned its performance management system in an attempt to achieve the strategic goal of improving efficiency at a time when many Chinese real estate enterprises doubled down on their strategies to undertake projects with short turnaround times. In December 2018, Ling Yun, the Founder and CEO of SeaCloud, discovered that a major project under development by the company was significantly behind schedule, despite most employees meeting their performance goals. It was then he realized that there were problems with the company's existing performance management system, and he asked the HR Director, Liu Min, to undertake a full review and redesign the performance management system. The new performance management system needed to address a number of issues, including (i) there was no direct link between mid-level and junior employees' performance appraisal results and salary increases; (ii) neither was there a link between corporate strategy and the performance criteria used to evaluate staff performance; (iii) senior executives were appraised annually, limiting the ability to take more timely corrective measures and actions; and (iv) cross-departmental collaboration was not effective. Under the new system, mid-level and junior employees' performance bonuses were based on and determined by both individual and departmental evaluation outcomes. In addition to job responsibilities, key performance indicators (KPIs) and key work processes were established by managers and used to evaluate staff performance. Senior executives were now appraised on a quarterly rather than annual basis. The results of 360-degree feedback were also taken into consideration when assessing staff promotion. To enhance cross-departmental cooperation, employees from different departments would also be jointly evaluated.
This case describes the plight of Li Fen, a human resources (HR) manager. In 2008, Li began working as a management trainee at Company A, a smartphone manufacturer. After landing a formal job at the company, she handled HR and administrative tasks for a new project and a big company project that had encountered some difficulties. She handled both projects effectively due to her self-discipline and strong work ethic. Nevertheless, she found it difficult to get along well with her colleagues, including superiors, peers, and subordinates, who frequently complained about her, and they even got into heated arguments. She had never considered that interpersonal relationships could get in the way of her work. Disheartened, she returned to company headquarters to enhance her professional skillset. However, would better professional skills alone help her deal with these interpersonal issues? People often joked that Li had low emotional intelligence (EQ), but she could never quite put her finger on the problem. In the past, she had believed that work was just about getting things done and that managers should not preoccupy themselves with other people's emotions or show empathy to others. Now, however, she began to question this assumption: Could it be that EQ was actually critical in the workplace, and in that case, how could she improve her EQ to forge stronger interpersonal relationships?
This case series was developed around QuMei's takeover bid for Ekornes ASA, a company headquartered in Norway. QuMei, the Chinese furnishings manufacturer established in 1993 and listed on Shanghai Stock Exchange in 2015, was the promoter of the takeover bid. In the same year, it introduced its "New QuMei" strategy, pivoting from a pure furnishings supplier to a content and service supplier in the furnishings industry. The target company, Ekornes, was a prime Norwegian furnishings manufacturer with four affiliate brands, including "Stressless", known as the "most comfortable chair in the world". It also had vast market bases in Europe and America. Case A mainly discusses the reasons behind QuMei's takeover of Ekornes. First, it explores why QuMei opted for acquisition rather than organic growth. Second, having decided to take the acquisition route, how did it choose Ekornes as its target. Finally, the case examines the feasibility of the takeover and potential ensuing risks. Based on case discussions, students are given the chance to analyze the logic behind takeovers, how target companies are selected, how takeovers take different forms depending on purpose, and how to analyze and avoid potential risks that may be involved. Case (B) focuses on the transaction arrangements in QuMei's takeover of Ekornes: was Ekornes suitably valued? How would QuMei reach a consensus with the target company's shareholders regarding the reasonable consideration for takeover? Then, after valuation, how should the transaction be funded and structured? By the end of 2017, QuMei's assets were at ¥2.1 billion, while its overseas sales were a mere ¥4.87 million. In contrast, Ekornes's assets were valued at over ¥4 billion. This case therefore can be reference for practical problem-solving in acquisition of snake swallowing elephant.
This case series was developed around QuMei's takeover bid for Ekornes ASA, a company headquartered in Norway. QuMei, the Chinese furnishings manufacturer established in 1993 and listed on Shanghai Stock Exchange in 2015, was the promoter of the takeover bid. In the same year, it introduced its "New QuMei" strategy, pivoting from a pure furnishings supplier to a content and service supplier in the furnishings industry. The target company, Ekornes, was a prime Norwegian furnishings manufacturer with four affiliate brands, including "Stressless", known as the "most comfortable chair in the world". It also had vast market bases in Europe and America. Case A mainly discusses the reasons behind QuMei's takeover of Ekornes. First, it explores why QuMei opted for acquisition rather than organic growth. Second, having decided to take the acquisition route, how did it choose Ekornes as its target. Finally, the case examines the feasibility of the takeover and potential ensuing risks. Based on case discussions, students are given the chance to analyze the logic behind takeovers, how target companies are selected, how takeovers take different forms depending on purpose, and how to analyze and avoid potential risks that may be involved. Case (B) focuses on the transaction arrangements in QuMei's takeover of Ekornes: was Ekornes suitably valued? How would QuMei reach a consensus with the target company's shareholders regarding the reasonable consideration for takeover? Then, after valuation, how should the transaction be funded and structured? By the end of 2017, QuMei's assets were at ¥2.1 billion, while its overseas sales were a mere ¥4.87 million. In contrast, Ekornes's assets were valued at over ¥4 billion. This case therefore can be reference for practical problem-solving in acquisition of snake swallowing elephant.
This case presents the development trajectory of Meizu, a well-known smartphone brand in China, including its inception, rapid rise, and gradual decline, as well as how the leadership characteristics of J. Wong, its founder, precipitated both its success and failure. High school dropout Wong founded the company in 2002. As a result of the company's superb product quality, Meizu became the leading company in China's MP3 player market. In 2006, Wong realized that MP3 players would gradually give way to smartphones and decided to switch production to the latter. He had a perfectionist approach to product development. After three years of R&D and rejecting two versions he deemed unsatisfactory, he finally launched the M8, Meizu's first mobile phone. To craft a comfortable wooden back cover for the MX3, he even made 31 models using a woodworking plane. He was also one of the first people to ride the wave of the fan economy and internet marketing, and frequently discussed technological topics with users on the Meizu BBS forum. In the past, when copycat mobile phones inundated the market, Wong's geeky personality garnered attention and a vast fan base for Meizu. However, as the market gradually matured and competition intensified, Meizu slowly fell behind. It only launched one smartphone model per year, and its excessive perfectionism meant it could not keep up with the competition. What kind of person was Wong? How should we evaluate the successes and crises he has brought to the company? This case sheds light on how the personality traits of a company's leader could affect the development of both the leader himself and the company.
This case examines how a traditional manufacturing company can be challenged by a new market environment and its strategic options. The company in this discussion, TIDIY, is a middle-sized ceramic tile company based in Foshan. In 2014, TIDIY split from Oceano, a sibling brand under parent company Teda, and became an independently managed entity. TIDIY's restructuring coincided with major changes in the construction ceramics market in China. As such, TIDIY faced a market that was fundamentally different to the one in 2004 when it was founded. Once rapid growth had slowed, overcapacity and product similarity created fierce competition, and the industry was fragmented. The preferred sales model also changed from selling via distributors, to strategic partnerships with large real estate developers. Newly independent TIDIY had to find its own path. Compared with better-established competitors, TIDIY's brand awareness and access to capital were limited. What should TIDIY do to achieve differentiation? This case explains how TIDIY leveraged anion technology and "charted itself a new path". Company chairman Feng Hongjian and Managing Director Li Qiang renamed the brand "TIDIY Ceramic Tiles", upgraded stores into anion experience centers and sciences museums, trained distributors' salespersons, engaged designers, improved customer satisfaction to create positive word-of-mouth, iterated products. He implemented various policies to provide strong organizational support. These strategies enabled TIDIY to grow by 37% during the first year after independence. TIDIY then set itself a goal to double its revenue in three years. To this end, TIDIY identified three possible strategies: investing in R&D and inventing tiles with new functions, applying anion technology to products other than tiles, or expanding its business scope to the health industry. What might be the right strategy for TIDIY? This case will help students understand the challenges and strategies of transforming a
Since entering China in 1987 with its first restaurant in Beijing, KFC has been a great success and has become the largest quick-service restaurant (QSR) in the country. In 2015, Joey Wat was named Chief Executive Officer of KFC China. In the following year, Yum China (NYSE: YUMC) spun off from Yum! Brands and became an independent, publicly traded company. To expand KFC China's business one step further, Joey Wat had to navigate through a rapidly changing and increasingly competitive landscape. With China's rising economy and personal income levels, many more fast-food chains and snack choices entered the market and competition intensified. Moreover, over the years consumers were increasingly attracted to not only healthy diets, but also an enjoyable consumption experience. As Gen Z customers become the largest consumer base, they have shifted their focus more to value, personalized experience, and a sense of engagement in their food purchases, beyond just affordability and speed. For KFC, other issues were added to the challenge too: a high employee turnover rate and rising rent and labor costs. With highly standardized products and a stable ticket average, how should KFC move forward amid the new and challenging dynamics to achieve a breakthrough? KFC China had started its digital ecosystem early and built up powerful digital capabilities. Under Joey Wat's leadership, KFC China made various attempts to drive productivity, reduce costs, and constantly improve the customer experience. How did digitalization help with these accomplishments? How did KFC China carry out the digitalization? Would digitalization continue to benefit the business in the future?