question archive Establishing a branch of a family business in China A family-owned carbon steel company from Germany has extended its business to Hong Kong
Establishing a branch of a family business in China A family-owned carbon steel company from Germany has extended its business to Hong Kong
Subject:ManagementPrice: Bought3
Establishing a branch of a family business in China
A family-owned carbon steel company from Germany has extended its business to Hong Kong. The owners bought a small traditional Chinese firm and decided to copy the successful structure they had developed at home. This structure was headed by three general managers who equally shared the responsibilities for the business activities of the firm. The consequences were as follows.
1. Now the Chinese employees were assigned tasks by people they have never seen before and whom they did not understand. Many understandings occurred, some were quite costly.
2. The employees back in Europe were only concerned with whether the assigned tasks were completed and did not consider any other obligations to the Chinese employees, such as taking care of the relationships with the Chinese government, banks, etc.
3. Eventually, the local employees became frustrated and were ready to leave the company.
The result was that the management model was changed again, and a single managing director of the subsidiary was accountable for all business activities in Hong Kong.
