Lecture #18 Class Discussion CP Group Case.ppt

Fall 2000 MGTO321 (L1, L2) -- Dr. JT Li Fall 1999 MGTO321 (L6, 7, 8) -- Dr. JT Li Lecture #18: Class Discussion: CP Group Case Reading: 1. Case: CP Group (on reserve) 2. Case summary and preparation questions (on web) Key activities of the class 1. Group presentation of the case (Soft copy due) 2. Class case discussion (summary, update, lessons learnt) 3. Written group reports due Getting in TrimOver the past year, C.P. Group has: Sold Ek Chor China Motorcycle’s 50% share in a Shanghai motorcycle factory Sold a majority stake in Lotus Supercentre, a Thai warehouse-store chain, to Britain’s Tesco Sold 11% of its 7-Eleven operations to Singapore’s Government Investment Corp. Getting in TrimOver the past year, C.P. Group has: Sold TelecomAsia’s minority stake in Apstar, a Chinese satellite operator Sold $19 million worth of shares in Kopin Corp., a hi-tech electronic research and development firm in Boston Sold shares in a Shanghai brewery to its Dutch partner, Heineken Getting in TrimOver the past year, C.P. Group has: Expressed interest in selling Sunny’s Supermarket, Vinythai and Petroasia, and in finding a foreign partner for its insurance businesses. Closed several TelecomAsia subsidiaries, including a paging unit, equipment distributor and software consultancy Past Success of Overseas Chinese Businesses: Circumstances Make Heroes Established Business Formulas Are No Longer Adequate to Sustain Success: Reasons for Pessimism In Search of a Chinese Management Style: Real Heroes Can Stand the Test of Time * Favorable Environment Booming regional expansion Limited competition (local and foreign) Large export markets Favorable government policies Useful Chinese Traits Drive to succeed Insecurity Family Thrift Strategies Flexibility/entrepreneurship Networking Selection of industries (e.g., local industries, proportionally limited competition) Conglomeration Success Growth Asset accumulation Increasingly Unfavorable External Environm