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This case describes the background to an upcoming negotiation between a Chinese social entrepreneur (Jamie Zheng) and a venture capitalist (Chris Liu). Case (A) lays out the situation from the perspective of Jamie, who is trying to attain first-round investment in order to better grow Smart Health, which was founded by Jamie. However, Jamie's purpose for the firm includes not only the pursuit of profit but also a desire to have a social impact by making life easier for the elderly. This provides a potential conflict, as Jamie's social purpose may impede the company's commitment to the pursuit of profit. After negotiating with five investors, Jamie still could not reach an agreement, especially with Smart Health's social goal being an important condition for its future development. However, Jamie is optimistic heading into this meeting with Chris, as Jamie believes Chris shares the same vision and understands the unique nature of Smart Health as a social enterprise. Case (B) presents the perspective of Chris, who, on a personal level, likes Jamie's idea of helping the elderly. However, as a traditional venture capitalist and an agent of XYZ Capital, Chris understands the importance of investing in firms based on their potential profitability. Therefore, Chris needs to ensure a sound return on investment, which includes some control over how the firm makes financial decisions in the future. Students will be asked to play the role of either Jamie or Chris and negotiate on how they can come to an agreement on the venture capital firm's potential investment in Smart Health and what degree of control the venture capital firm should have over Smart Health, in order to ensure it meets its financial obligations. They must haggle over one issue-social purpose. The key question for this negotiation is: How does one reach a deal when there is more than just a financial incentive at stake? How does one negotiate when the social purpose of the firm is among the issues at hand?

This case describes the background to an upcoming negotiation between a Chinese social entrepreneur (Jamie Zheng) and a venture capitalist (Chris Liu). Case (A) lays out the situation from the perspective of Jamie, who is trying to attain first-round investment in order to better grow Smart Health, which was founded by Jamie. However, Jamie's purpose for the firm includes not only the pursuit of profit but also a desire to have a social impact by making life easier for the elderly. This provides a potential conflict, as Jamie's social purpose may impede the company's commitment to the pursuit of profit. After negotiating with five investors, Jamie still could not reach an agreement, especially with Smart Health's social goal being an important condition for its future development. However, Jamie is optimistic heading into this meeting with Chris, as Jamie believes Chris shares the same vision and understands the unique nature of Smart Health as a social enterprise. Case (B) presents the perspective of Chris, who, on a personal level, likes Jamie's idea of helping the elderly. However, as a traditional venture capitalist and an agent of XYZ Capital, Chris understands the importance of investing in firms based on their potential profitability. Therefore, Chris needs to ensure a sound return on investment, which includes some control over how the firm makes financial decisions in the future. Students will be asked to play the role of either Jamie or Chris and negotiate on how they can come to an agreement on the venture capital firm's potential investment in Smart Health and what degree of control the venture capital firm should have over Smart Health, in order to ensure it meets its financial obligations. They must haggle over one issue-social purpose. The key question for this negotiation is: How does one reach a deal when there is more than just a financial incentive at stake? How does one negotiate when the social purpose of the firm is among the issues at hand?

The Chengdu Research Base of Giant Panda Breeding (Panda Base), located in Chengdu, China, was the world's most popular scenic spot for giant panda tourism. Panda Base was founded in 1987 with a mission that included the protection and breeding of the endangered giant panda, scientific research, public education, and cultural tourism. In 2002, the director of Panda Base began to build panda culture and the panda brand in an effort to resolve low brand awareness and to better protect the giant panda. In 2020, Panda Base promoted the giant panda on various digital media platforms. Based on the concept of Web 3.0, Panda Base integrated the theories of social media marketing, content marketing, and viral marketing to promote panda culture and brand value, and successfully developed its core cultural brand value: "Tell the most touching story of the giant panda." Looking to the future, Panda Base's director wanted to develop a smart tourism project to continue protecting giant pandas and increasing their population with the help of 5G (fifth-generation) technology, while providing tourists with an immersive experience. How can the director best use technology to support and promote Panda Base?

This case series describes the dilemmas encountered by Shenzhen Chasm Security Co., Ltd. (referred to as "Chasm Security") in its three rounds of funding since its establishment in 2012. As a company with Internet security technology as its core asset, it has five co-founders from three regions. Given the political and economic context of the China-U.S. trade war and the sensitivity of the information security industry, this case series always generates vigorous and enthusiastic discussions. Case (A) focuses on the first two rounds of funding in mid-2016 and discusses various dilemmas faced by the founding team. First, should the equity split among the co-founders be based on instinct or logical rationale? Second, should the company's shareholding structure be more concentrated or distributed? Third, should President Zhi Wang exercise his veto power? Crucially, the judgment on the last question encompasses three other dilemmas: (1) whether to insist on his rationale on market positioning, or swallow his opposition for the sake of maintaining relationships; (2) whether to gain a firm foothold in the Chinese market, or pursue a broad global presence; and (3) whether to chase a high valuation and wealth, or retain company control.

Case (B) is based on the China-U.S. trade war and discusses how this Chinese Internet security company with American capital raises Series C funding in the second quarter of 2018. Should the company seek dollar funding to grow in the global market, or opt for RMB funding to focus on the Chinese market? Of utmost importance is how to deal with a situation where U.S. investors are pessimistic about Chinese security companies, and RMB funds are unwilling to invest in businesses with a dollar funding structure.

Case (C) introduces the latest progress of Chasm Security as of the end of 2018. It then poses a very inspiring question to comprehensively summarize the case series: "If the founders had a second chance, how would the game play out?"

The Chengdu Research Base of Giant Panda Breeding (Panda Base), located in Chengdu, China, was the world’s most popular scenic spot for giant panda tourism. Panda Base was founded in 1987 with a mission that included the protection and breeding of the endangered giant panda, scientific research, public education, and cultural tourism. In 2002, the director of Panda Base began to build panda culture and the panda brand in an effort to resolve low brand awareness and to better protect the giant panda. In 2020, Panda Base promoted the giant panda on various digital media platforms. Based on the concept of Web 3.0, Panda Base integrated the theories of social media marketing, content marketing, and viral marketing to promote panda culture and brand value, and successfully developed its core cultural brand value: "Tell the most touching story of the giant panda." Looking to the future, Panda Base’s director wanted to develop a smart tourism project to continue protecting giant pandas and increasing their population with the help of 5G (fifth-generation) technology, while providing tourists with an immersive experience. How can the director best use technology to support and promote Panda Base?

This case explores the challenges and opportunities of practicing venture philanthropy in an emerging market. Jaff Shen, a serial social entrepreneur and Founder/General Secretary of Leping Social Entrepreneur Foundation ("Leping"), brought the international venture philanthropy network Social Venture Partners ("SVP") to China in 2012 to help build China's overall civil society and proclivity for social entrepreneurship. SVP's Beijing branch, which launched as a non-profit in 2013, made fast progress in attracting partners and investing in multiple mission-driven organizations. SVP Shanghai followed in 2016, registering as a for-profit for greater flexibility of operations, but was making slow progress. Students are asked to explain the reasons for Shanghai's slow growth, and then critically evaluate a strategy suggested to Shen for accelerating the progress. They must take a stand in Shen's internal debate about whether to push a fast top-down strategy or tolerate a slower-paced bottom-up trajectory. Students also have the opportunity to compare four different SPO investment opportunities shortlisted by SVP Shanghai's partners for their initial investment, and to propose an evaluative framework for screening the potential targets and subsequently monitoring the investment outcomes.

This case aims to help students understand how digitization is enabling and shaping the transformation of the traditional FMCG industry in China. It introduces Andrew Cui's response to the challenges posed in Case (A)-i.e., how WinChannel could improve the reach and efficiency of the traditional trade channel when online/mobile B2B FMCG platforms were emerging in the market. In May 2015, Cui launched Huixiadan, a mobile-based B2B FMCG ordering platform, connecting a select group of leading FMCG companies and their numerous distributors and wholesalers with potentially millions of mom-and-pop stores in China. Huixiadan has used mobile technologies to develop an inclusive and collaborative business model linking most players in the existing traditional trade channel. However, it faces fierce competition from many online competitors seeking to disrupt the FMCG industry, including Chinese e-commerce giants Alibaba and JD.com. Cui is wondering how competitive and sustainable Huixiadan's business model is and what he should do to withstand the competitive threats even as he tries to exploit opportunities in the traditional FMCG industry in China.

This case presents an overview of China's FMCG industry in the early 2010s from the perspective of WinChannel, an information service provider to major FMCG companies in China. It describes the three major distribution channels (i.e., Routes-to-Market) and focuses on the challenges facing the traditional trade channel through which FMCG companies provide their products to millions of "mom-and-pop" stores (i.e., small, independently owned and operated convenience stores), especially in rural parts of China. In early 2015, Zhen (Andrew) Cui, Founder and CEO of WinChannel, is exploring how he can help improve the reach and efficiency of the traditional trade channel and wonders if the emerging online/mobile B2B FMCG platforms offer the best solution for the increasingly digitized FMCG retail industry in China.

This case explores the opportunities and challenges of building a sustainable social enterprise in China. It traces the development in Shenzhen, China, of Shenzhen Xihaner Car Wash Center ("Xihaner Car Wash"), founded in August 2015 by Mr. Jun Cao, the father of a Xihaner child. Cao's goal was to provide gainful employment and continuing care for Xihaners. From the start, he was determined to build a social enterprise that could generate enough profits to become sustainable over the long term and not a charitable organization that relied on donations. With a carefully designed business model, Xihaner Car Wash made good progress in its first two years. Its achievements won the enterprise the Gold Award at the Sixth China Charity Fair on September 24, 2017. Despite these achievements, Xihaner Car Wash still faces many challenges. Cao wonders: "Do we have a sustainable business model for our social enterprise? How can we grow Xihaner Car Wash further to benefit more Xihaners in China?"

Supplement to case W19053 This part (B) of the case follows Scanteak: The Making of Successors in a Family Firm (A) to disclose how the founders of Scanteak Corporation responded to the proposal put forward from their second child, as described in part A of the case. While part A focuses on the issue of succession at the company, part B follows the business developments and discusses the transfer of management rights and family wealth to the next generation.

Scanteak Corporation was a furniture retailer founded in Singapore in the 1970s. By 2010, it had established more than 100 stores around the world. It had also become the first furniture company to be listed on the Taiwan OTC (Over-the-Counter) Exchange. The two founders had invested a great deal in developing the business and preparing their children to become their successors. In 2003, the two founders' daughter joined the company to help grow the family business, achieving great success in brand promotion and market expansion. In 2010, the two founders' son was asked to help with the business in Singapore or Taiwan but rejected their offer, stating that he would only agree if he could independently run the Japan division of the business, which was in deficit. The two founders questioned whether their recently graduated son could handle the business in Japan, and wondered how to respond to his bold request.

This part (B) of the case follows Scanteak: The Making of Successors in a Family Firm (A) to disclose how the founders of Scanteak Corporation responded to the proposal put forward from their second child, as described in part A of the case. While part A focuses on the issue of succession at the company, part B follows the business developments and discusses the transfer of management rights and family wealth to the next generation.

Scanteak Corporation was a furniture retailer founded in Singapore in the 1970s. By 2010, it had established more than 100 stores around the world. It had also become the first furniture company to be listed on the Taiwan OTC (Over-the-Counter) Exchange. The two founders had invested a great deal in developing the business and preparing their children to become their successors. In 2003, the two founders’ daughter joined the company to help grow the family business, achieving great success in brand promotion and market expansion. In 2010, the two founders’ son was asked to help with the business in Singapore or Taiwan but rejected their offer, stating that he would only agree if he could independently run the Japan division of the business, which was in deficit. The two founders questioned whether their recently graduated son could handle the business in Japan, and wondered how to respond to his bold request.

Since its founding in 1990, Shenzhou International Group Holdings Limited evolved from a small clothing manufacturer to a world-leading apparel supplier, serving well-known sports and leisure brands such as Uniqlo, Nike, Adidas, and Puma. Over the previous 10 years, the group experienced explosive growth. Yet, in an age of increasing consumer expectations, could it rely on existing models to achieve greater success? Comments made by the US president about reviving his country's manufacturing industry encouraged many firms to invest in building factories in the United States. Despite being a traditional labour-intensive manufacturer, the company wondered if it should consider setting up a factory in the United States as part of its future strategic plans. If so, would the challenges outweigh the opportunities?

This case describes why and how Advantech Co., Ltd. (hereinafter referred to as Advantech) has transformed in the age of the Internet of Things (IoT). Aware of the ecosystem attributes of the IoT industry and committed to the company's principle of altruism, Advantech strategically positioned itself as an "IoT platform provider" and an "enabler" of IoT applications. Since carrying out reforms in terms of its internal management, external cooperation, and development model, Advantech has evolved from an industrial computer maker into an IoT solution provider. Since the launch of the "co-creation model" at the end of 2016, Advantech has drawn attention from many excellent companies in traditional industries. With the Internet of Everything close at hand, Chairman KC Liu is well aware that there are many challenges to overcome as Advantech strives to build an industrial IoT ecosystem, the evolution continues. Case discussion will be carried out based on a three-step analysis of ecosystem strategy (seeing the ecosystem-choosing your position-winning the game) proposed by Ron Adner. Students will take a close look at the critical decisions made by Advantech as it made inroads into the IoT ecosystem as well as its organizational transformation and exploration as the company implemented strategic decisions. Through this case, students will not only learn about the latest developments of the emerging IoT industry, but will also gain a systematic understanding of "ecosystem strategy" and get to know a new corporate growth model called "co-creation."

This case describes the process of Austrian chocolate producer Zotter Chocolate entering the Chinese market. There are several things that make this company stand out: it is a small, family-run entrepreneurial firm from Austria that makes a wide range of unconventional flavors of chocolate. It prides itself on being organic and fair trade, and has attracted many loyal customers and visitors to its "chocolate factory" in its headquarters in Bergl, Austria. After successfully entering the German market-an "obvious" target for a firm from Austria-the founder, Josef Zotter, and his family considered where to go next, in 2010. After comparing the U.S. and Chinese chocolate markets, Zotter Chocolate selected China as its first major non-European market. The case introduces how Zotter sought out a local partner in Shanghai and decided to enter the market with an "experience-based" offering in its first chocolate factory outside its home market, overseen by the founder's daughter Julia. Their innovations and learning process are also presented in the case. The case ends with Julia's key concerns about Zotter China's next step when she has to leave China for Zotter Chocolate's Austrian headquarters in August 2017.

This case study discusses the entrepreneurial story of FreshFresh Trade and Commerce (Shanghai) Co., Ltd. ("FreshFresh" for short), showing the continuous improvements and innovations it has made to develop a profitable model in the fresh food industry. At the end of 2013, its two founders, Leo (Bin) Shen and Baiyuan Fang, first got the idea of creating an online platform to provide fresh food. Since then, they have constantly tested the business model of FreshFresh. After two years of effort, its model became recognized by users and capital markets. By the end of June 2016, over 700,000 users have registered, and nearly 50% of them have purchased products on its platform at least once. The repeat purchase rate (at least twice) is around 45%. In March 2016, FreshFresh announced that it had raised US$20 million in Series A financing. On June 30, the company won the 2016 Top Digital award, making it the only fresh food e-commerce platform to win a prize at that year's innovation launch ceremony for China's telecommunication, media, and technology industries. However, just like 99% of companies in this sector, it has not yet managed to establish a profitable model. In 2015, it suffered losses of around ¥20 million, representing 20% of its operating revenue. After a series of improvements, the company hoped to make a profit in the first half of 2016, and to expand its business to other cities. But when Shen receives the performance report in July 2016, he decides to abandon this plan. He imagines fresh food e-commerce to be like running a marathon, and he wonders how FreshFresh can make a profit and achieve sound development by rationally allocating its strategic resources.

Branded Lifestyle Holdings Limited (Branded Lifestyle) was an Asian apparel retail company that emerged in 2011 after Fung Retailing Limited acquired Hang Ten Group Holdings Limited, a company listed on the Hong Kong Stock Exchange. With five apparel brands, Branded Lifestyle was profitable in most of its Asian markets. However, it was struggling in China and had reported annual loses until the acquisition. In 2014, a new managing director of global brands was appointed at Branded Lifestyle. Looking at the evolving apparel industry in China, and reviewing the company’s weak performance over the past years, the managing director knew he needed to develop a strategic plan to turn around the company’s operations. His aim was to build a strong and sustainable business in the Chinese market.