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Augustine Heard & Co.: Building a Family Business in the China Trade (B)
In 1861, the Heard brothers faced a decision: should they continue their family firm's business model that had made them a successful commission house in China, or was it time to make fundamental adjustments to their work? This case reveals that the brothers decided to maintain the status quo, primarily because of a lack of decision-making mechanism amongst the brothers. The firm rapidly went downhill, before declaring bankruptcy in 1875. -
Augustine Heard & Co.: Building a Family Business in the China Trade (A)
Augustine Heard Sr. founded Augustine Heard & Company, a commission house focused on trade between China and the United States, in 1840. He welcomed his four nephews into the family business as it expanded in the increasingly complex economic and political environment of 19th century China. By 1861, the business had been flourishing for many years, but the context for foreign trade in China was changing. The four nephews, all having been made partners in the business, faced a decision. Should (and could) they alter the business model that had served their uncle so well for two decades? How could they best take advantage of the changing environment in China? Most importantly, how could they navigate their relationships as both brothers and partners? -
Agricultural Revolution without a Land Revolution: the Megafarms of CP Group
This case describes the megafarm model launched by the CP group as part of their efforts to ensure the safety and quality of their supply chain of agricultural products (particularly, eggs) in China while also promoting the welfare of Chinese farmers. This model was developed in close partnership with the local government, and received financing support from a local bank. The case asks students to discuss the potential for scaling this model across China. -
HNA Group: Global Excellence with Chinese Characteristics
By 2015, the HNA Group had grown from its roots as Hainan Airlines, a small airline founded in 1993 into a global conglomerate that ranked #464 in the Global 500. Much of this success it had achieved by cross-industry expansion within China, but since 2008, it had increasingly looked to expand globally. The HNA Group in general and Hainan Airlines in particular were recognized for their quality of service within China. However, this high reputation had yet to be translated across borders. Would HNA Group be able to bring its unique characteristics that made it successful within China to bear on the global marketplace? -
From Preparatory Academy to National Flagship: The Evolution of Tsinghua University
Tsinghua University is one of the most prominent universities in China, and, increasingly, in the world. Its evolution to this position reflects the major developments in Chinese history--outward looking internationalism in the 1920s and 1930s, creative survival in the 1940s, Sovietization in the 1950s and 1960s, chaos in the 1970s, rebuilding in the 1980s, and, since the 1990s, a laser focus on becoming one of the best higher education institutions in the world. This case study traces this institutional history and then examines Tsinghua University's recent attempts at reform in faculty governance, curriculum, and funding as it seeks "world-class" status. -
Uber in China: Driving in the Gray Zone
CEO and founder of Uber Technologies, Travis Kalanick, had made clear to investors and the public that expansion into China was one of his company's major priorities for 2016. Uber had already demonstrated remarkable capacity for rapid, global scaling and for operating despite its unclear legal status in many markets. But the China market, while offering Uber unprecedented opportunity in terms of customer demand, presented Uber with a host of new challenges, including a murky regulatory framework and a strong, native incumbent, Didi-Kuaidi, that boasted the lion's share of the ride-hailing market. Could Uber overcome these obstacles and thrive in the China market? -
Higher Education in China: Internationalization in Turbulent Times
The rapid growth in quantity and quality of universities in China since 1978 is the most recent evolution in a long history of higher education. From as early as the Tang Dynasty, academies existed to prepare scholars for the civil service examination, but by the Republican period, higher learning was dominated by a host of well-regarded, cosmopolitan, comprehensive universities. In 1952, these institutions were reorganized according to the Soviet model, and remained highly specialized until the resurgence of comprehensive institutions after 1978. This background note describes this history and then elaborates on the system of higher education since 2000, focusing on university governance, funding, faculty policy, admissions systems, and internationalization. It concludes by looking at the tightening of ideological control in universities in 2013 and 2014, and reflects on the potential for China to establish "world-class" universities. -
"World-Class" Universities: Rankings and Reputation in Global Higher Education
Discussions of "world-class" universities have become an academic cottage industry in the 21st century, and definitions of the term are complex and at times contradictory. This background note traces the origins of university ranking systems and their evolution from a by-product of lists of great men in the United States to a global phenomenon that has a strong influence on the development of higher education. Then, it examines commonalities across various conceptions of "world-class", including productive faculty, excellent students, flexible administration, plentiful funding, and international engagement. -
Advanced Leadership Field Perspectives: Shanghai
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China's Environmental Challenge
China faces enormous environmental challenges. This background note looks at the historical, economic and political origins of the environmental crisis that faces the world's fastest-growing economy. -
Teach For China and the Chinese Nonprofit Sector
Teach For China was founded in 2008 with the mission of expanding educational opportunity across China. By 2013, Andrea Pasinetti's lofty dream had taken flight: over 300 graduates from top American and Chinese universities were participating in its 2-year teaching fellowships in more than 87 rural Chinese schools. The organization had grown from a founding team of three in a shoebox office to an 80-person operation headquartered in Beijing with teams in six other locations across China. Teach For China adapted the model pioneered by Teach For America to meet the needs of the educationally under-resourced of rural China. Led by an American, could Teach For China reshape its international identity and become an enduring Chinese institution? Could Teach For China manage regulatory risks and challenge public and government skepticism of the still-nascent and highly volatile nonprofit sector? Would Teach For China be able to sustainably scale its model to truly end educational inequality in China? -
From Beijing Jeep to ASC Fine Wines: The Story of an American Family Business in China
In 1985, Don St. Pierre Sr. became President of Beijing Jeep, the troubled joint venture between American Motor Corporation and the Chinese government to build Jeep Cherokees in China. Just over a decade later in 1996, leveraging contacts from his time in the automotive industry, he founded ASC Fine Wines with his son, Don Jr. Despite many challenges, from building a distribution network from the ground up to Chinese Customs throwing Don Jr. in prison, the St. Pierres prevailed, and ASC was standing tall as China's number-one fine wine importer by volume and value in 2013. ASC had developed a reputation for quality of product and service, beating out the competition of private wine importers and state-owned enterprises. What lessons had this father-son team learned in their 20 years of doing business in China? Would ASC make the transition from being a family-run business to a part of Suntory Holdings and still thrive? Could ASC under its leadership continue to adapt to the changing market for fine wine in China? -
Why China Can't Innovate
China has no lack of entrepreneurs, market demand, or wealth, but can the country succeed in its quest to become the world's innovation leader? For nearly 40 years, the government has been establishing research programs and high-tech zones, encouraging domestic firms to boost their innovation capacity, and helping colleges and universities flourish. Recently it declared its intention to transform China into "an innovative society" by 2020 and a world leader in science and technology by 2050. But against the government's intentions and resources run some powerful currents. Communist Party representatives must be present in companies with more than 50 employees--a requirement that constrains competitive and entrepreneurial behavior. And many Chinese companies have found that the rewards for incremental improvements are so vast that there's little incentive to pursue breakthroughs. Certainly, China has shown a potential for innovation and has the capacity to do much more. But will the state have the wisdom to lighten up? -
The Ex-CEO Contemplates a Coup (HBR Case Study)
A family business in Indonesia is hit hard by the economic downturn, and some family members want the former CEO--the founder's son--to retain the reins. Others argue that this would be a mistake. This fictional case study is written by William C. Kirby, featuring expert commentary by Les Trachtman and Lilli Friedland. -
The Ex-CEO Contemplates a Coup (HBR Case Study and Commentary)
A family business in Indonesia is hit hard by the economic downturn, and some family members want the former CEO--the founder's son--to retain the reins. Others argue that this would be a mistake. This fictional case study is written by William C. Kirby, featuring expert commentary by Les Trachtman and Lilli Friedland. -
The Ex-CEO Contemplates a Coup (Commentary for HBR Case Study)
A family business in Indonesia is hit hard by the economic downturn, and some family members want the former CEO--the founder's son--to retain the reins. Others argue that this would be a mistake. This fictional case study is written by William C. Kirby, featuring expert commentary by Les Trachtman and Lilli Friedland. -
Wanxiang Group: A Chinese Company's Global Strategy (B)
Supplements the A Case 308-058. With an almost forty-year history as a business in China, the Wanxiang Group has navigated through the significantly different political and economic changes in China to succeed as a global leader in the auto parts industry, and to develop into a broad business conglomerate. Beginning in 1994, when it first began its operations in the United States, Wanxiang started to expand its role as a parts supplier into a discerning acquirer of distressed companies in the U.S. While it saw acquisition as an exciting means for growth, company strategy at its Hangzhou, China headquarters also included vertical integration with a goal of developing a full-on electric car. Were these two goals divergent or complementary: mutually supportive or exclusive? -
Kunshan, Incorporated: The Making of China's Richest Town
In 1980, the city of Kunshan was mere countryside, registering neither on the Chinese government's nor the international business community's radar. By 2010, Kunshan had become the richest city per capita in China and a global technology powerhouse, home to companies such as Foxconn, Compal Electronics, and Wistron. Kunshan's entrepreneurial, self-starting development combined with strategic location and high levels of local government support had been responsible for Kunshan's tremendous growth and success. How could it continue to grow at a rate to maintain its leadership among Chinese entrepreneurial cities? And would the founding of an international, joint-venture campus with Duke and Wuhan University keep the city of Kunshan innovative and ahead of the curve? -
The China Entrepreneurs Forum
Some of China's most successful entrepreneurs and founders of private enterprises naturally came together to share the insights and tactics that helped them and their businesses survive and thrive in China's rapidly changing business environment. Soon, the group's mandate expanded to include improving the environment for private business in China and conducting outreach to help spread the word about the important role entrepreneurs played in a modern market economy. How has the China Entrepreneurs Forum been an innovative business and social organization in modern China? What lies in the future for them? -
Taikang Insurance: Standing Out in China's Crowded Insurance Market
As a joint-stock insurance company in China, with both state-owned enterprises and foreign firms as investors, Taikang Insurance was becoming a force in the industry. It not only competed with well-entrenched state-owned rivals but it was also seen as an entrepreneurial upstart. With the insurance landscape in China growing increasingly competitive, Taikang has had to be innovative and strategic in its ability to maintain its place as the fourth largest insurer in China. Chairman Chen Dongsheng laid a strong foundation when he launched Taikang in 2006, what will he do going forward to enable Taikang to continue to stand out in a crowded field?