Case Analysis on AccuForm

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Case Analysis on AccuForm

• HK012
• The Hong Kong University of Science and Technology

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INTRODUCTION
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KEY PROBLEM
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Accommodation of Management System to Chinese
Culture

• The Key Problem

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The Problem
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Partnership

• Conflict in beliefs and corporate culture between
  Joint-Ventures
• Assignation of management level by DynaCoat,
  operation level by CreaseFree
• Incompliance of ethical code of conduct by JV
  counterpart

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Symptom

• Company Vision focus on
• developing supplier network
• RD activities
• Cultural aspects not in primary focus
• Leadership Style
• False expectations on Chinese working style
• Result-orientated, laissez-faire
• Discipline not in focus

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Corporate Governance

• Over-reliance on Mutual Trust but negligence on
  Systematic Management
• Insufficient Supervision
• Lack of Transparency

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Symptom

• Chings misconducts without alert
• Use of raw material was lack of monitor
• Machine overproduced without alert
• High scarp rate by Chings RD team

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Operation

• Ignoring the Chinese working behaviors
• Chinese workers tends to obey power from
  hierarchy
• Without clear and strict guidance, Chinese
  workers tends to work for self-interest rather
  than company interest

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Symptom

• Unclear division of work
• It is easy to abuse ones authority, damaging
  company interest
• Unclear guidance of work
• employees are unclear about their rights and
  responsibilities
• employees have no knowledge on protecting the
  interest of company and themselves

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DRAWBACKS
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Drawbacks

• Short Term
• Chings bribery and misconduct
• Possibilities of confrontation of lawsuits and
  penalties

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Drawbacks

• Long Term
• Damage of company image
• Poor workers morale
• Deterioration of partnership between both
  ventures
• Disruption of relation with suppliers

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SOLUTION
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Integration of Culture

• Introduction of local voice in the top management
• Adaptation of local business culture
• Meeting consensus on ethical standard

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Division of Power

• Clear-defined role and responsibility
• Provide working guidelines
• Avoid abuse of power
• Prevent uncertainty avoidance

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Supervision

• Balancing autonomy and supervision
• Establishing internal auditing system
• Tracking of Usage of resources
• Use of Information Technology
• Formalizing reporting mechanism
• Whistle-blowing

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Communication

• Encouraging communications between different
  levels of workers
• Adding interaction channels with the help of
  Information Technologies

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Education

• Educating employees on working ethics
• Differentiated education focus to suit the needs
  of different level of employees

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CONCLUSION
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Conclusion
Problem
Solution
Partnership
Integration of Culture
Communication
Corporate Governance
Division of Power
Education
Operation
Supervision
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THANK YOU!

• END