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Changhong: Journey to Shared Services
Founded in 1958 and headquartered in Mianyang - an emerging inland science and technology city in Sichuan Province, Changhong Electric Co., Ltd., started from the military industry. It then entered the color TV industry and subsequently expanded to a wide range of sectors including black electronics, white electronics, IT/communication, services and parts. It is now an integrated multinational corporation (combining R&D and manufacturing for the military industry, consumer electronics, electronic components, etc.) This case shows how a large TV manufacturer has transformed its internal controls to deal with both fiscal austerity and emerging global practice. It demonstrates the new financial control environment in China in 2014 for leading companies and the immense challenges involved in implementing new controls.