Powerpoint - Hong Kong ICAC 香港廉政公署.pptVIP

1 Analysis of AccuForm Management Reconcile Culture Gap in Globalization “Ethical leadership for the New Generation” NHK-250 FUDAN University Executive Summary An accident that 5 children were hospitalised for a rash caused by unqualified clothes broke out, which disclosed a series of business scandal of AccuForm. As joint venture, AccuForm is the combination of a German coating producer and a Hong Kong OEM, while placing its RD center in China mainland. Kim, the general manager of AccuForm, found the obvious differences in business practices between China and the West, yet failed to tackle the issue. As a result of lacking regulated business standard, Ching committed money laundering, misappropriation of company assets, illegal rebates and brides. Actions are imperative to deal with the pressing problem, not only to meet the emergency but also conduct some underlying adjustments concerning business practice involving culture gap. Agenda Company profile and case overview Keep problem analysis Recommended resolutions Appendix Coating Industry Profile 82% of Americans wanted more performance cloth European firms produced 31% of the world’s chemicals The growth of China’s apparel market was up to 19.6% Market players were expanding operations in Asia Pacific, esp. in China. Industry standard should be strictly carried out. The use of precise quantities and mixtures of chemical properties in the coating production was important. The residue of chemical substances could irritate skin. The harm to environment caused by irresponsible handling of chemical waste should be taken seriously. Company Profile Generating profits override anything characterized as internal control system Company’s Vision Enhance product performance Place a strict quality assurance system Manufacturing base with low cost - Use cheap labor in mainland China Market Position Leading supplier of advanced coating - Hold advantage in high-tech and RD Develop suppliers and customers by Guanxi networ