Essay on Kitchen Best Case Summary

1053 Words Sep 23rd, 2012 5 Pages
KITCHEN BEST: ETHICS WHEN DOING CROSS-BROUNDARY BUSINESS IN SOUTHERN CHINA
CASE SUMMARY * Brief background and context
Henry Chan, inherited Kitchen Best Appliance Co. Ltd---a home electrical appliance company from his father Chan Dong-hwa, is facing the challenge of establishing a more efficient internal control mechanisms of the company to ensure its future success. Kitchen Best Appliance Co. Ltd belongs to small- and medium-sized enterprises and is based in Hong Kong with its own manufacturing plant in Guangdong province.
As a chief executive, Henry Chan is more aggressive than his father. He focused on expanding the company’s reach in the European and American markets and brought a more western and less paternalistic management
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Legal risk to Kitchen Best and its employees (including Henry Chan) ii. Probability of being found out iii. Reputation and long-term profits of Kitchen Best iv. Henry Chan’s self-respect and desire to live honorably and be honest * What else happened in the case?
Small and medium-sized enterprises (SMEs) comprised more than 98% of business unites in Hang Kong. To earn more profits, many SMEs do cross-Boundary business in mainland. Most of the customers and suppliers of Kitchen Best mentioned in the case are located in Southern China. It is true that kickbacks, entertainment and gift-giving are inevitable part of doing business in mainland due to Chinese culture. Henry Chan, educated in US, had a more western management style and set some ambitious targets for the business. His goal of expanding the company’s reach in the European and American markets requires him to improve internal management level to comply with US and EU standards and requirements. * How do you feel about what happened? What are your reflections? What would you do and why?
I don’t feel good about what happened. Henry Chan’s focus on expansion made it difficult to spend enough time on management and leaded to a series of incidents.
In the name of making short-term profits for the company and, therefore, turning a blind eye on

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