One Page Summary of Yeo Hiap Seng Case Study.
Key Points:
Poor Strategic Direction - Expansion:
North America: limited experience and knowledge of this market. Did not have resources and understanding required to survive
Distribution Relationships - Corona:
Perhaps guilty of neglecting existing relationships (Corona) in the effort to try and expand and form or strengthen other relationships (Schweppes, Budweiser, Danone etc.)
Takeovers - 1994:
Extended takeover battle spanning around half a year - obvious negative impacts for corporation
Future Steps - 1997:
Financial year ending December '97 showed significantly diminished profit comparative to previous year. Concerning, despite many noteworthy new investments.
Brief Timeline:
1901: Yeo Hiap Seng Holdings Founded (family business)
1968: Publicly Listed
1994: Family infighting leads to takeover of the now "second largest food and beverage company in Singapore" by Ng Teng Fong's Far East Group
Hindsight:
Better corporate governance would have enabled Yeo Hiap Seng to pre-empt and manage family business conflicts. An understanding of the nature of the conflict and the exploration of the ways to manage the conflict could have been identified by a more competent governing body and helped to ensure the continuity and growth of the family
Poor Strategic Direction - Expansion:
North America: limited experience and knowledge of this market. Did not have resources and understanding required to survive
Distribution Relationships - Corona:
Perhaps guilty of neglecting existing relationships (Corona) in the effort to try and expand and form or strengthen other relationships (Schweppes, Budweiser, Danone etc.)
Takeovers - 1994:
Extended takeover battle spanning around half a year - obvious negative impacts for corporation
Future Steps - 1997:
Financial year ending December '97 showed significantly diminished profit comparative to previous year. Concerning, despite many noteworthy new investments.
Brief Timeline:
1901: Yeo Hiap Seng Holdings Founded (family business)
1968: Publicly Listed
1994: Family infighting leads to takeover of the now "second largest food and beverage company in Singapore" by Ng Teng Fong's Far East Group
Hindsight:
Better corporate governance would have enabled Yeo Hiap Seng to pre-empt and manage family business conflicts. An understanding of the nature of the conflict and the exploration of the ways to manage the conflict could have been identified by a more competent governing body and helped to ensure the continuity and growth of the family