CASE ANALYSIS

Liu Bai: A Chinese Successor’s Dilemma

Submitted to Prof. Abha Chatterjee

Submitted by,
Saurabh Pal
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 A
Case Report
On

Liu Bai: A Chinese Successor’s Dilemma

Submitted at

INDIAN INSTITUTE OF MANAGEMENT

SAMBALPUR
In partial fulfilment of the requirement for the course WAC - II
Of
Master of Business Administration
By

Saurabh Pal – 2018PGP087

Under the guidance of

Prof. Abha Chatterjee

Submission Date: 08 March 2019

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Letter of transmittal

Saurabh Pal

IIM Sambalpur, Jyoti Vihar

Sambalpur, Orissa (768019)

Date: 8th March 2019

To,

Prof. Abha Chatterjee

IIM Indore, Prabandh Shikhar

Indore, Madhya Pradesh (453556)

Subject: Recommendation report for Bai’s future course of action regarding the Hong’s offer.

Dear Ma’am,

I hope this letter finds you in good health. We have analysed the current evaluated it based on
the decision criteria’s. After analysing the scenario, we have come up with a recommendation
and the same is mentioned in the report. If you have any questions concerning this report and
the analysis, please feel free to contact the undersigned.

Yours sincerely,

Saurabh Pal

Enclosure: Final report.

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Executive Summary

Liu Bai faces a tough decision regarding the course of action of Hong’s offer of joining the
family business in Malaysia. Five year ago, Bai left his family business and shifted to London
due to dominant and disrespectful behaviour of Hong towards him. The two options that are
being taken into consideration are the acceptance of offer and rejection of proposal. The
decision criteria chosen to evaluate the above two alternatives are Impact on career
advancement of Bai, Impact on the personal life of Bai and Impact on family relation. We
recommend Bai to reject the Hong’s offer.

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Table of Contents

1. Situation Analysis .................................................................................................................. 5

2. Problem Statement ................................................................................................................. 5

3. Decision Criteria .................................................................. Error! Bookmark not defined.

4. Generation of Alternatives ..................................................................................................... 6

5. Evaluation of Alternatives ..................................................................................................... 6

6. Recommendation ................................................................................................................... 7

7. Implementation Plan .............................................................................................................. 8

8. Contingency Plan ................................................................................................................... 8

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Situation Analysis
Liu Bai, who is working at Tate and Lyle in London belongs to a Chinese business family who
runs a sugar trading company. Bai’s job is going very well in London, and he also got
promotion in his career due to his family background and contacts and in the sugar industry.
Before this, he has worked under his father’s “Hong” mentorship for almost ten years. He often
criticised by Hong and he feels that even after giving his best, he is poorly paid. Hong, who is
very strict and dominating in nature, and his mother maltreated and disregarded Bai and his
three sisters starting from his childhood. Due to Hong’s behaviour, many good people leave
the organisation. Hence he decided to left the company. Due to his decision, his family
including his mother dispossess him. In London, he makes many good friends who help him
to come out from his sorrows. Unexpectedly, after five years he received a call from Hong.
Hong stated that the company is facing loss due to flooding and the political situation in
Malaysia. Hong offers Bai to join the business as his successor; otherwise, Hong will sale his
company to outsider which hamper the family reputation in industry.

Problem Statement

What should Liu Bai do regarding the offer from Hong?

Decision Criteria

1. Impact on Bai’s career advancement

2. Impact on Bai’s relation with family

3. Impact on Bai’s personal life

Generation of Alternatives

1. Reject the offer and continue career in London

2. Accept the offer and lead his family business

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Evaluation of Alternatives

Alternative 1: Reject the offer and continue his career in London

Testing against Decision Criteria 1: Bai’s career advancement

By rejecting Hong’s offer, Bai can continue his job in London and can enjoy his independent
space and can grow his career as he is doing very good in London. The chances of growth in
family business are quite higher than doing a job outside. However, the company is currently
facing a decline in profits due to flooding and political disturbance in Malaysia and creates
uncertainty in Bai’s career growth.

Alternative 1: Reject the offer and continue his career in London

Testing against Decision Criteria 2: Impact on Bai’s relation with family

A denial of proposal would worsen the relationship with his family as from childhood he has
strained relation with Hong. A rejection would force Hong to sale his company to outsider who
would hamper the family reputation. Due to this Hong may try to damage his relation in the
industry which again worsen the relation between Hong and Bai.

Alternative 1: Reject the offer and continue his career in London

Testing against Decision Criteria 3: Impact on Bai’s personal life

A denial a proposal would nowhere impact his own happiness as he is sharing a strong bond
with his friends in London which would improve with time. He can also enjoy his independence
and can live according to him and can save himself from tantrum of Hong.

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Alternative 2: Accept the offer and lead his family business
Testing against Decision Criteria 1: Bai’s career advancement

Acceptance of the offer would lead Bai to start his career again in family business and chances
of growth in his relatively higher than a job. However, the sugar industry is in matured stage
and due to flooding and political disturbance company facing a decline in the profits. If it
remains the same, then this can hamper the career of Bai in future.

Alternative 2: Accept the offer and lead his family business

Testing against Decision Criteria 2: Impact on Bai’s relation with family

Acceptance of the proposal would improve the relation of Bai and his family. Acceptance of
the offer will also empower the family reputation in Malaysia. It will lead to better relations
with Hong in the future.

Alternative 2: Accept the offer and lead his family business

Testing against Decision Criteria 3: Impact on Bai’s personal life

An acceptance of the proposal would force Bai to moved to Malaysia. It would hamper the
independent living style of Bai, and this will lead to unhappiness is his life. In addition to this
Hong’s strict and dominant behaviour towards he will create problems in future for Bai.

Recommendation

Liu Bai should reject the offer of Hong and should continue his life in London.

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Implementation Plan
1. Liu Bai should call Hong and informed Hong about his decision of rejecting the offer.
2. Bai should have explained to Hong that he is doing very well in his job and his life is going
good in London.
3. Bai should offer help (financial & operational) to Hong remotely from London.

Contingency Plan
Rejection of offer can hit badly to Hong’s ego. Due to this, Hong would try to hamper his connections
in the industry in future. To avoid this situation, he should have informed about this to his friends,
contacts and office’s higher management in London.