Founded in 2007, Bolaven Farms is a coffee business with a social purpose. Set up in Laos and Hong Kong, Bolaven Farms aims at providing high-quality coffee to the worldwide public while helping to alleviate poverty among coffee farmers in Laos. The business model involves a full integration of the coffee supply chain, from planting the coffee seed to selling the final branded product to wholesale and retail customers. Consequently, farmers and the company benefit from excluding intermediaries from the supply chain and keeping profit margins for themselves. The company's vision of educating farmers and providing them with higher income for their work is very compelling to the public and was quickly picked up by the media. However, the business model has yet to be tested. For one thing, once the farmers graduate from the programme, they need employment assurance and additional land to cultivate. For another, the coffee market is a mature one, with many players and a multitude of competing and lower-priced offers to choose from. People find the company's vision very inspiring, but it is also very difficult to translate into viable actions. The company has already invested US$4.0 million in the project, but is still a long way from educating the public and finding customers willing to pay premium prices for the coffee. Both ends of the supply chain need further refinement, and Say is not willing to compromise on quality or price. The case begins with an introduction of the coffee industry and its practices. A description of Laos as a business environment for Bolaven Farms follows. The case describes the development and implementation of a business model that incorporates vertical integration supported by social networks. It allows for an advanced analysis of issues related to choosing an appropriate business model and focuses on the risks related to future expansion and resulting from the strategic choices of the entrepreneur.
On 11 September 2001, Edwin Lee, a young investment banker from Hong Kong, survived the World Trade Centre attacks in New York City. His office in lower Manhattan, however, and his prestigious job with Credit Suisse were lost as a result of the tragedy. Jobless, Lee decided to take a chance and use his personal savings to start HKBI, Hong Kong's first business brokerage. In the six years that followed, the business went through different stages ultimately establishing itself as Hong Kong's prime business brokerage for small enterprises with a 61% market share and revenues exceeding HK$68m. For 2008, Lee expected revenues to exceed HK$84m. To reach this target he had launched a number of new initiatives including a deal with a local bank to provide prospective buyers with financing. Would Lee be able to grow HKBI at the desired rate?
Georgie Yam arrived in Shanghai in the heat of summer in 2001. He was there on a mission: to develop the market and establish a distribution network for a German hair-care products manufacturer. Soon after he arrived in Shanghai, he discovered that this city, which had been described by an international guidebook as "a playground for foreign adventurers and socialites", fell short of hopes in meeting the demand for a modern indulgence: spa and massage services. Pondering a market that seemed chaotic but thriving, Yam wondered what would be his best bet to capture the opportunity.
This case is an update of the 2005 case on the human capital development of ASIMCO (Asian Strategic Investment Corp.) in China. ASIMCO is an automotive component group serving the Chinese motor vehicle industry. This case showcases ASIMCO's management development efforts in the very different cultural environment of China and its succession program, exploring the challenges faced by Western companies operating in China in the process.
Georgie Yam went to Shanghai in 2001 as consultant for a German hair-care product line. Being a massage enthusiast, he quickly spotted a gap in the city's spa market for a value-for-money relaxation product. One discussion with his colleague and soon-to-be business partner, Eve Zhou, cemented the decision to begin drafting plans for a Western-style spa with a mystical oriental touch. Dragonfly Therapeutic Retreats was launched in 2003. Within the first two years of operations, the partners had successfully opened three shops and had no plans of stopping there. By March 2009, Dragonfly operated a network of 20 local branches and three branches overseas. The question now was how to manage rapid expansion without compromising the brand and its high standards.
Sowers Action was founded in September 1992 as a non-religious, non-political and not-for-profit charity. Its principal objective was to improve the level of education in remote areas of China by subsidizing poverty-stricken students, building safe school premises and enhancing the qualifications of teachers. The organization implemented a business model that led it to a quick success in its start-up phase. Rarely has a similar organization in Hong Kong grown at such a rapid pace and to such a scale. What differentiated Sowers Action from its peers and what were the major factors that drove its early success? This is a case about entrepreneurship and general management, aiming to introduce the concept of entrepreneurship, entrepreneurial processes and dynamics, and how critical factors work together to lead to a successful start-up phase. It also sheds light on management and operation of social enterprises.
New Life Psychiatric Rehabilitation Association has been pursuing its social enterprise initiative since 1994 to create employment and training opportunities for former mental patients in Hong Kong. As of mid-2008, 18 social enterprises have been launched, including a supply chain of organic foods with a farm, two restaurants and five retail shops. Despite success in its social mission, the social enterprises are only partially self-sustaining. The management also faces the challenges of increasing business complexities, keen market competition and more stringent government regulations on food safety. The ability of New Life to tackle these issues is constrained by the fact that the majority of its management staff come from social work or other non-business backgrounds. To scale up its business and to achieve self-sustainability, it is imperative for the organization to revisit its management and human resources strategies, and find ways to improve the financial performance of its social enterprises.
Founded in 1970, the Agency for Volunteer Service (AVS) was a non-governmental organization in Hong Kong with the mission of facilitating volunteerism and managing education, health, and welfare services. For more than two decades, it played an active role in the Hong Kong social service sector. However, in the years 1998 to 2001, several factors prompted AVS to undergo organizational transformation: a temporary crisis in management, a change in the source of government funding signalling a shift in the organization's mission, and the United Nations' designation of 2001 as the International Year of Volunteers. These changes compelled AVS to carry out a strategic review in 2001 and undergo radical organizational transformation. How should it implement strategic change to incorporate this new vision? Introduces students to the concept of radical organizational transformation and familiarizes students with managerial competencies common to successful transformations.
As one of the world's leading manufacturers of houseware products and cleaning products, Hayco produced over five million brushes a month in its Shenzhen plant in 2003. When setting up its new factory in Shenzhen in the mid-1990s, Hayco had to decide how best to manage the issue of staff welfare for its growing number of factory workers. Senior management firmly believed that providing for the well-being of the company's staff would be crucial to ensuring low staff turnover and good workplace morale and, therefore, provided a "Hayco home-away-from-home" for the workers. The labor market has generally always been in favor of employers, and in the mid-1990s many factories were providing just the bare minimum of facilities and benefits for workers (in fact, the working conditions in many factories were appalling). In such an environment, why did Hayco invest money and effort in building the Hayco home-away-from-home? What message or management philosophy did such benefits convey?
Discusses Hong Kong's attempt to become a knowledge-based economy, its socioeconomic condition, and key trends in labor and manpower as well as manpower projections to 2005. Questions what it would take for Hong Kong to achieve the status of a knowledge-based economy, what industries Hong Kong should focus on, what kind of people it should develop and attract, and how it can develop its human resources. Highlights the mismatch between the skills of the workforce and the needs of industry, examines how to bridge the skills gap, and outlines Hong Kong's challenge in attracting talented, skilled people and specialized resources. Also focuses on Hong Kong's population policy and its new approach to bringing highly skilled knowledge workers and other skilled professionals from Mainland China and other foreign countries through the Admission of Talents Scheme and the Admission of Mainland Professionals.
In 2000, the Hong Kong government introduced the Language Benchmark Assessment for all teachers in Hong Kong. As part of its education reform, the government wanted all teachers to take the tests to prove that they were skilled enough to teach. The pressure to upgrade English raised hackles and drew severe criticism from the 75,000-strong Professional Teachers' Union. Provides a study of why the government introduced the test, the critical issues in implementing the test, and how the government is managing the results of the first benchmark test. Presents issues such as the validity of the test, what the testing proved, and what has been solved in administering the test. Also presents the issue of whether the test is being used for selection and/or recruitment purposes.
Jack Perkowski established Asian Strategic Investment Corp. (ASIMCO) in February 1994. ASIMCO became one of the largest components organizations serving the Chinese motor vehicle industry. This case shows the process of human capital development at ASIMCO. Describes ASIMCO's management restructuring efforts, its management development strategy, and its system of fast-tracking leaders through the leadership development program. Instead of transplanting Western management models into China, ASIMCO strongly believed in creating a centralized, top-down management model that could be adapted to China's unique environment.
Hong Kong's first avian flu crisis started in March 1997, when close to 7,000 chickens on three rural farms were wiped out by an H5 strain. To contain the outbreak, the Hong Kong government ordered a mass slaughter of all poultry. Altogether, the first outbreak led to 18 confirmed H5N1 cases in humans, resulting in 6 deaths. The decision to slaughter the chickens was controversial at the time. Poor coordination and inefficiency characterized the first cull and damaged the Hong Kong government's credibility. The crisis put pressure on the chief executive, Mr. Tung Chee-wah, to find new solutions to curb the avian flu. Against the background of the first bird flu crisis, the Environment and Food Bureau and the Hong Kong government faced repeated bird flu outbreaks in May 2001 and February 2002. With the recurrence of the avian flu, there was an opportunity for the Hong Kong government to show the public how it learned to manage the continuing crises.
In 2002, Hong Kong civil servants were the envy of many people. Their salaries, fringe benefits, and employment terms compared favorably with international standards. However, as civil servants staggered from one disaster and mistake to another, the public had an impression that their performance did not match their liberal remuneration. While private sectors were announcing massive layoffs, pay cuts, and reduced benefits in the sluggish economy, the Hong Kong government was under pressure to reduce civil service pay, and, at the same time, to increase public accountability and improve performance.
Electronic Communications Ltd. (ECL) had decided to make China its second home and to seek common prosperity with Chinese people. The company knew that there were major gains to be made, but there were also risks and challenges. One of these was the management of cultural differences. An essential question facing the management was whether it should adapt ECL's management practice to the Chinese culture or instead implement ECL's global management policies in China.
Since the Hospital Authority officially took over the management of the public hospitals in December 1991, it initiated numerous schemes aimed at improving the quality and efficiency of its staff and health care services. This included implementing a new management structure in most of the hospitals under its jurisdiction, including Patient Care Hospital. A few of the steps taken to improve the delivery of medical services were successfully and smoothly implemented, but a few met with resistance and complaints from the medical staff. This case takes a look at the management of medical professionals, and also at the role of medical professionals as managers. It introduces students to the culture of medical professionals, and aims to help students understand the reaction of medical professionals toward changes that affect their work routines.
By March 2000's first quarter evaluation, it was evident that EUROCAP Equities Japan had performed beyond expectations. Its primary year-2000 objective was to become the top-choice broker for its client for Japanese equities. However, when bonuses were handed out in March for 1999's performance, two key research analysts threatened to resign and the team was overall dispirited, as bonuses were lower than expected and lower than industry payouts. Key issues facing EUROCAP Equities Japan management included: How would key employees' expectations be managed in 2000? How was EUROCAP Equities Japan going to retain its employees in a bull-run with competitive pressures on the small local resource pool? How would employees be motivated through compensation packages, and what other methods would be used to make employees excel in their performance and thrust EUROCAP Equities Japan's performance into the limelight?
Torrington Wuxi Bearings (TWB) was a Sino-American joint venture that manufactured ball and roller bearings in China. When Jesse Chen, the new general manager, arrived, the company had recorded three straight years of losses. Together with his new management team, Jesse undertook a series of measures aimed at transforming TWB from a state-owned enterprise (SOE) to a market-driven sales organization. This case allows for a discussion of issues related to a radical organizational change in a former SOE in China and the strategic considerations in entering the Chinese market.
The Bird Flu virus was first detected in Hong Kong in early 1997. This strain of virus had been previously known to infect only birds but had now crossed the species barrier and infected humans. By the end of 1997, the confirmed number of cases had reached 17, resulting in 6 deaths. The implications for Hong Kong were enormous. Bird Flu not only threatened the health and welfare of the people of Hong Kong, but also affected Hong Kong's economy and reputation in terms of international tourism and trade. The Hong Kong government must develop a communication strategy.