Kitchen Best In China
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rP os t
HKU948
SAY GOO
op yo KITCHEN BEST: ETHICS WHEN DOING CROSSBOUNDARY BUSINESS IN SOUTHERN CHINA
I believe you need to set big goals that challenge people to get big results.
- Henry Chan, chief executive, Kitchen Best
tC
Kitchen Best Appliance Co. Ltd was a home electrical appliances company based in Hong
Kong with its own manufacturing plant in Guangdong province. The company was founded by Hong Kong businessman Chan Dong-hwa. In 2008, Chan handed the reins to his son
Henry, who immediately set some ambitious targets for the business, aiming to double revenues over a four-year period. His plan suffered a setback in 2010 when a series of incidents revealed personal gains made at the expense of the company and instances of misconduct within the company that undermined its management. As chief executive, Henry
Chan had to decide what kind of internal control mechanisms he should put in place to ensure the future success of the company.
Small- and Medium-Sized Enterprises in Hong Kong
No
Hong Kong’s industrialisation, which began in the 1950s, was driven by light manufacturing and small- and medium-sized enterprises (“SMEs”) as a result of insufficient land and natural resources for the development of heavy industries. SMEs’ agility, willingness to respond to customers’ requirements, and cost competitiveness led them to flourish.1 At the end of 2009,
Hong Kong had some 282,000 SMEs, comprising more than 98% of business units in the territory and providing about 48% of employment in the private sector.2 Hong Kong SMEs were dominant in the import/export and wholesale sectors and, to a lesser extent, the retail sector. 1
Do
Sit, F.S. and Wong, S.L. (1989) Small and Medium Industries in an Expert-Oriented Economy: The Case of Hong Kong, Hong
Kong: Centre of Asian Studies, The University of Hong Kong.
2
HKSAR Information Services Department (January 2011) “Hong Kong: The Facts”,
rP os t
HKU948
SAY GOO
op yo KITCHEN BEST: ETHICS WHEN DOING CROSSBOUNDARY BUSINESS IN SOUTHERN CHINA
I believe you need to set big goals that challenge people to get big results.
- Henry Chan, chief executive, Kitchen Best
tC
Kitchen Best Appliance Co. Ltd was a home electrical appliances company based in Hong
Kong with its own manufacturing plant in Guangdong province. The company was founded by Hong Kong businessman Chan Dong-hwa. In 2008, Chan handed the reins to his son
Henry, who immediately set some ambitious targets for the business, aiming to double revenues over a four-year period. His plan suffered a setback in 2010 when a series of incidents revealed personal gains made at the expense of the company and instances of misconduct within the company that undermined its management. As chief executive, Henry
Chan had to decide what kind of internal control mechanisms he should put in place to ensure the future success of the company.
Small- and Medium-Sized Enterprises in Hong Kong
No
Hong Kong’s industrialisation, which began in the 1950s, was driven by light manufacturing and small- and medium-sized enterprises (“SMEs”) as a result of insufficient land and natural resources for the development of heavy industries. SMEs’ agility, willingness to respond to customers’ requirements, and cost competitiveness led them to flourish.1 At the end of 2009,
Hong Kong had some 282,000 SMEs, comprising more than 98% of business units in the territory and providing about 48% of employment in the private sector.2 Hong Kong SMEs were dominant in the import/export and wholesale sectors and, to a lesser extent, the retail sector. 1
Do
Sit, F.S. and Wong, S.L. (1989) Small and Medium Industries in an Expert-Oriented Economy: The Case of Hong Kong, Hong
Kong: Centre of Asian Studies, The University of Hong Kong.
2
HKSAR Information Services Department (January 2011) “Hong Kong: The Facts”,