I’m not sure whether they understand that a firm cannot he a bundle

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• International Hr Management
•  
• Total Marks 80
• Note All Questions are Compulsory
• Each Question Carries Equal Marks
• CASE STUDY 1 (20 Marks)
• Zhuhai of Shanghai
• Im not sure whether they understand that
  a firm cannot he a bundle of discreet businesses.
  Most of the senior Chinese executives I talk to
  arc convinced that they can make anything . .
  absolutely anything that will make money. After
  so many years of command economy, managers are
  oblivious to the concept of market they arent
  keen to get into bilateral trading even when it
  makes sense. They would rather pursue different
  ventures totally unrelated to each other, said a
  financial analyst of an American brokerage firm
  located in Shanghai. Mr. Dong Hong is the
  president of Zhuhai To Zi Company (Zuhai) which
  was founded in 1980 as a construction company.

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• Before joining the company in 1989, Hong was a
  high ranking army officer in the Peoples
  Republic of China. As president of Zhuhai, he
  attended an executive management programme at
  Harvard Business School. Although Hong enjoyed
  the programme, he came back with some
  reservations about the relevance of what he
  learned. One of his oft-repeated summation of the
  programme was I have problem with the terms
  like core competency and synergy. At this point
  in time, there are ample opportunities in China
  to make good return in any business. You dont
  mean to say that we simply stick to the knitting
  and pass these opportunities to others? China is
  a virgin land, you need to understand that.

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• HISTORY OF SGL
• Zhuhai has received a favorable media
  splash in China upon its taking a controlling
  interest of Shanghai Gue Za Liao Company (SGL), a
  poly-crystal manufacturer. SGL was founded in
  1969. At that time, it was the largest
  manufacturer of poly-crystal in China employing
  900 people. It received quality awards for six
  consecutive years. In 1992, SGL was authorized by
  the Shanghai Municipal Government
• MANUFACTURING TECHNOLOGY OF POLY-CRYSTAL
• Poly-crystal is a crystalline specimen
  which contains many small individual crystals.
  There are different methods of making this
  product. The most common and widely used method
  is called Chemical Vapour Disposition or CVP.

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• OPERATIONAL EFFICIENCY OF SGL
• Since China started allowing imports,
  SGLs market share had shrunk for a combination
  of reasons. First was the slow rate of growth of
  Chinese electronic industry where poly-crystal is
  mostly used. Second was that imports had been
  consistently of high quality which SGL could not
  match due to lack of skilled labour and obsolete
  technology. Third was the ever-increasing costs
  of power and raw materials contributing much to
  increasing cost per unit of production.
• RESTRUCTURING OF ZHUHAI
• The president of Zhuhai restructured the
  company making each division a separate strategic
  business unit (SBU). The revised organisation
  structure is provided below. Note that the
  positions immediately below the unit vice
  presidents and under them there were a cadre of
  personnel doing various jobs as directed by their
  bosses.

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• Question
•  
• 1) Discuss the typicalities of Chinese Industrial
  system vis-à-vis the Western/global Industrial
  system.
•  
• 2) Where does the Chinese system fault?
•  
• 3) Is over production and mis-match in marketing
  leads to poor prices of Chinese products in the
  International Market?
•  
• 4) If you are offered, views as a top consultant,
  what would you like to suggest the Chinese
  Government and industry? Give your reasons.

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