Dayang Case
Dayang (Guangdong) Co.
Case summary
Father of Miss Tang, chairman of the board of Dayang Group(Dayang), was an entrepreneur in Hong Kong textile industry. Miss Tang took over her father's business expanded the company size. She established Dayang in Hong Kong and manufacturing facilities on the Chinese mainland. Dayang became a multinational corporation, an exemplary of successful expansion from a traditional local business into a profitable multinational corporation. The company provided products and services such as cotton planting, spinning, knitting, carding, clothing production and accessory production. Dayang was the first textile company to receive quality certifications from both China and abroad.
Zhang Jiemin joined Dayang as after graduation of American universities. He understood the western business cultures and applied advanced management concepts and skills. He led Dayang successfully to achieve rapid growth and profits. He was excellent at adopting advanced management techniques and applying effective risk-taking investments. He became the youngest board member from the Chinese mainland and even Miss Tang considered him be Dayang's future leader.
Everything seemed so well until this terrible incident happened. Zhang had registered three companies together with Wen Feiming, a manager of Dayang in Shanghai, to undertake illegal transactions and embezzle Dayang's property. These three companies were owned by either Zhang's family members or Wen's relatives. Zhang and Wen undersold Dayang's cloth to their own companies with low price and then resold to other companies for higher profits. The profit that Zhang and Wen acquired was approximately 10 million yuan.
The problem was that nobody in Dayang could make any investigations or accusations against Zhang due to his overwhelming authority. Zhang had absolute control over everything in Qingzheng. Those who did not obey would not survive. In a word, there was no supervision on him for his misconducts.
Case summary
Father of Miss Tang, chairman of the board of Dayang Group(Dayang), was an entrepreneur in Hong Kong textile industry. Miss Tang took over her father's business expanded the company size. She established Dayang in Hong Kong and manufacturing facilities on the Chinese mainland. Dayang became a multinational corporation, an exemplary of successful expansion from a traditional local business into a profitable multinational corporation. The company provided products and services such as cotton planting, spinning, knitting, carding, clothing production and accessory production. Dayang was the first textile company to receive quality certifications from both China and abroad.
Zhang Jiemin joined Dayang as after graduation of American universities. He understood the western business cultures and applied advanced management concepts and skills. He led Dayang successfully to achieve rapid growth and profits. He was excellent at adopting advanced management techniques and applying effective risk-taking investments. He became the youngest board member from the Chinese mainland and even Miss Tang considered him be Dayang's future leader.
Everything seemed so well until this terrible incident happened. Zhang had registered three companies together with Wen Feiming, a manager of Dayang in Shanghai, to undertake illegal transactions and embezzle Dayang's property. These three companies were owned by either Zhang's family members or Wen's relatives. Zhang and Wen undersold Dayang's cloth to their own companies with low price and then resold to other companies for higher profits. The profit that Zhang and Wen acquired was approximately 10 million yuan.
The problem was that nobody in Dayang could make any investigations or accusations against Zhang due to his overwhelming authority. Zhang had absolute control over everything in Qingzheng. Those who did not obey would not survive. In a word, there was no supervision on him for his misconducts.