Kitchen Best Appliance Co. Ltd was founded by Chan Dong-hwa in1985. It was a home electrical appliances company which has its own manufacturing unit in Guangdong province. In 2008 Henry Chan, son of Chan Dong-hwa, took up the role of Chief Executive. Henry Chan was aggressive to develop the business in overseas and double the profits of the company in four years. Henry Chan depended on his senior management who were not reliable. Senior Management for their personal benefit, at expense of the company weakened the Company. The company faced a crisis resulting from the unethical behavior of the employees like accepting bribe to buy low quality products, accepting biased reports, and using kick backs to maintain business relationships. Henry Chan the Chief Executive of the Kitchen Best has to now decide what kind of necessary action to be taken to control the day to day operations within the organization in order to achieve future success. This Case study is a good example of typical management Challenges faced by Small and Medium Enterprise doing a cross border which do not have a good internal controls team like a Quality Assurance/Quality Control and Legal Advisor. Challenges:
The main challenge facing by Kitchen Best is to control the internal actions in the organization. It can be observed that no intense research has been done by Henry Chan to monitor the business operational outside of China. Expanding a Company to other Countries requires understanding different culture to effectively manage the conduct of the employees. Henry Chan’s focus was on growth and expansion of the company but was not on creating an objective management system in his absence. The founder of the company, Chan Dong-hwa and CEO, Henry Chan are not having any control on the Company and its operations. Due to the unethical and illegitimate behavior of some executives within the company Kitchen Best’s reputation is at stake. Henry Chan’s growth strategy is based on...
References: Kitchen Best Case Study from Harvard Business Course Pack
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