Since 1945, the liberal-democratic model of capitalism spread across the globe, ultimately prevailing over communism. Over the past two decades, a new statist-authoritarian model has begun diffusing across East Asia. Rather than rejecting capitalism, authoritarian leaders harness it to uphold their rule. Based on extensive research of East Asia's largest corporations and sovereign wealth funds, this book argues that the most aggressive version of this model does not belong to China. Rather, it can be found in Malaysia and Singapore. Although these countries are small, the implications are profound because one-third of all countries in the world possess the same type of regime. With an increasing number of these authoritarian regimes establishing sovereign wealth funds, their ability to intervene in the corporate sectors of other countries is rapidly expanding.
This case describes the development and struggles of Opple Lighting (Opple), a leading Chinese company in the lighting industry. Opple explored and developed an e-commerce business in response to the threat of emerging e-commerce retail channels in the online lighting market. There were significant differences involved in running an e-commerce business versus a traditional (offline) sales business in this industry, and most of Opple's management team disapproved of the development of the e-commerce business division; they believed that e-commerce operations would inevitably cannibalize the existing offline business. How would the e-commerce business division gain the needed approval and support from the other business divisions? There were "hidden rules" behind the murky pricing practices in the traditional lighting industry, whereas e-commerce stressed price transparency. How could the e-commerce business be operated to avoid direct conflict with the offline sales channels? Traditional lighting products were characterized by a long product development cycle with a large-scale supply-chain distribution channel, whereas e-commerce lighting products emphasized small batches with rapid development and updates. How could the e-business departments resolve the challenges and conflicts in production, logistics, new product development, and distribution between traditional and e-commerce sales?
This case details how Opple grew its e-commerce business from zero to RMB 1.5 billion in five years and optimized its e-commerce supply chain by reorganizing its product development process, manufacturing, logistics, warehousing, marketing, and after-sales service. It also looks at how Opple adjusted organizational structure changes, encouraged innovation, overhauled talent management, and improved its performance management systems to eventually achieve rapid growth in sales performance. In 2017, sales revenues for three-commerce division were nearly 2.1 billion yuan, representing 25% of Opple's total revenue and making the e-commerce business a new growth engine for the company. That division also encouraged changes to Opple's culture, organization redesign, and incentive scheme, helping to drive rapid growth in the company's other businesses and – more importantly – providing the necessary incubation period for several other Opple businesses.
organizational structure adjustment
traditional enterprise transformation
The primary purpose of this case is to teach and/or integrate key strategic planning frameworks used during the strategic management process, including those used in external analysis (i.e., industry, suppliers, customers, and competitors) and internal analysis (i.e., resources, capabilities, and firm value chain). It also introduces a framework for strategy formulation at the business-level (i.e., cost-leadership, differentiation, and focused strategies). This case is applied for teaching strategic planning and business-level strategy formulation. It is particularly useful to illustrate strategic planning in the Chinese context.
The case introduces the formation of Branded Lifestyle Holdings Ltd. (Braded Lifestyle), an Asian apparel retail company that emerged from Fung Retailing Limited’s acquisition of Hong Kong–listed Hang Ten Group. With five apparel brands (i.e., Hang Ten, H:Connect, Arnold Palmer, LEO, and Roots), Branded Lifestyle had been profitable in most of its markets in Asia (e.g., Hong Kong, Taiwan, South Korea, Malaysia, and Singapore). However, it had struggled in China, reporting annual loses until its acquisition in 2011. Ramanathan Dilip Shivkumar (Dilip) was appointed as the new Managing Director of Global Brands of Branded Lifestyle in 2014. Looking at the evolving apparel industry in China and reviewing the company’s weak performance over the past years, Dilip needed to develop a strategic plan to turnaround the company’s operations and build a strong and sustainable business in the Chinese market.