kitchen best
Kitchen Best:
Ethics when Doing Cross-Boundary Business in Southern China
Case Summary
Brief background and context:
Kitchen Best is a Hong Kong-based electrical-appliance company founded by Chan Dong-hwa, who ran business with a paternalistic style. The company has a manufacturing facility in Guangdong and sells its wares to customers around the world. Henry Chan, the newly appointed CEO, has ambitious plans for business. He brought a more Western style to company and aimed to double the company’s revenue by 2012.
However, due to his heavy reliance on the senior management, he lost sight of other management aspects of the business. A series of instances of misconduct and unethical behavior occurred, making him realize that the business is suffering from a lack of internal control. He needs to set up a more systematic internal control mechanism to ensure future growth target of the company.
Who are the key players involved:
i. Chan Dong-hwa – Founder and Chairman of Kitchen Best, leave daily management in 2010 due to health deterioration. ii. Henry Chan – Chief Executive, son of Chan Dong-hwa. iii. Li Qingyang – Silent partner with 25% equity stake; aunt of Li Meihua. iv. Ma Luk – Operations Director and Head of Greater China Business, report to Henry.
v. Horatio Sze – Purchasing and Production Manager, report to Ma; Li’s grandson. vi. Macy Wei – Quality Control Manager, under Sze and report to Ma. vii. Eddie Lau – General Manager of Honghua and a friend of Ma.
What are the main issues/allegations?
i. What should Henry do concerning about the crisis below:
a. The customer complaints about “the bowls and plates were not microwavable” from a European designer under the Malaysia-based distributor Shago.
b. Henry Chan ignored the anonymous letter stating that the products for German retail chain HdM did not meet the safety requirements for fear of losing the customer.
c. The business with Honghua is at risk because Ma was unable to use kickbacks with Lau. The delivery
Ethics when Doing Cross-Boundary Business in Southern China
Case Summary
Brief background and context:
Kitchen Best is a Hong Kong-based electrical-appliance company founded by Chan Dong-hwa, who ran business with a paternalistic style. The company has a manufacturing facility in Guangdong and sells its wares to customers around the world. Henry Chan, the newly appointed CEO, has ambitious plans for business. He brought a more Western style to company and aimed to double the company’s revenue by 2012.
However, due to his heavy reliance on the senior management, he lost sight of other management aspects of the business. A series of instances of misconduct and unethical behavior occurred, making him realize that the business is suffering from a lack of internal control. He needs to set up a more systematic internal control mechanism to ensure future growth target of the company.
Who are the key players involved:
i. Chan Dong-hwa – Founder and Chairman of Kitchen Best, leave daily management in 2010 due to health deterioration. ii. Henry Chan – Chief Executive, son of Chan Dong-hwa. iii. Li Qingyang – Silent partner with 25% equity stake; aunt of Li Meihua. iv. Ma Luk – Operations Director and Head of Greater China Business, report to Henry.
v. Horatio Sze – Purchasing and Production Manager, report to Ma; Li’s grandson. vi. Macy Wei – Quality Control Manager, under Sze and report to Ma. vii. Eddie Lau – General Manager of Honghua and a friend of Ma.
What are the main issues/allegations?
i. What should Henry do concerning about the crisis below:
a. The customer complaints about “the bowls and plates were not microwavable” from a European designer under the Malaysia-based distributor Shago.
b. Henry Chan ignored the anonymous letter stating that the products for German retail chain HdM did not meet the safety requirements for fear of losing the customer.
c. The business with Honghua is at risk because Ma was unable to use kickbacks with Lau. The delivery