Analysis of the case

“Liu Bai: A Chinese Successor’s Dilemma”

In partial fulfilment of the WAC assignment

Submitted to Professor Urjani Chakravarty

Submitted by:
Gita Gyaneshwari (2018PGP139)

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 LETTER OF TRANSMITTAL

To
Ms Urjani
Professor, IIM Indore

Date: 19th Nov, 2018

Subject: Recommendation of the case “Liu Bai: A Chinese Successor’s Dilemma”

Dear Ma’am,

This letter is to transmit the recommendation of the case “Liu Bai: A Chinese Successor’s
Dilemma” based on the analysis done by me. Further details of the case is attached with this
letter.

Regards,
Gita Gyaneshwari

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 EXECUTIVE SUMMARY
The case is about Liu Bai, a 35 year old Malaysian, who has quit his family business and
shifted to London in order to lead a life of independence. He left home ten years earlier
because he has been mistreated and tormented by his father. In London, he managed to land a
job in Tate and Lyle, a company that competed directly with the family sugar trading
company in South East Asia. Recently he got promoted because of his hard work and talent.
Now he is leading a life of financial security and independence. Suddenly, he gets a call from
his father saying that his company, Plantation Sugar Trading, has been struggling after
several years of declining profits. He couldn’t see the family firm being acquired by
somebody else and he was also not in a position to run it anymore, owing to his old age. As
his other children weren’t interested in the business, Liu’s father requests him to take up the
responsibility of running the business. Liu is in a dilemma now, wondering what to do - stay
back and lead a happy life in London or go back to the place where he was never supported
by anyone ? I have analyzed possible alternatives which Liu should consider. After critical
evaluation, I have recommended that

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 TABLE OF CONTENTS

Sr. No. Topics Page No.

1 Situational Analysis 5

2 Problem Statement 6

3 Options 7

4 Criteria for Evaluation 8

5 Evaluation of Options 9

6 Recommendation 10

7 Action Plan and Implementation 11

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 SITUATIONAL ANALYSIS
Liu Bai is a descendant of an extremely wealthy Chinese business family. As the peculiar
family tradition demands, Liu had joined family business. But he has been tormented by his
father, Liu Hong, all throughout. Liu Hong’s behaviour towards his son had always been one
of controlling and manipulative. The fact that his father was autocratic and controlling led
Liu to conclude that he wouldn’t be able to sustain good people in the company and hence the
family firm had no future. Hence, he decided to quit. Liu Hong mocked at his decision and
didn’t support him at all. Liu was considered as a disgrace to his family for having rejected
his filial duty and leaving. Eventually, Liu became quite successful and was rewarded for his
hard work and talent. Now, the family business is in tatters and Liu Hong needs his son’s
support to restore the business back to normalcy, since none of his other children were
interested in the business. Liu Hong has also promised Bai to confer upon him the status if
the successor and heir on his return. Liu is confused whether to abandon a life of happiness
and security and go back or continue in his current job.

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 PROBLEM STATEMENT
Having dealt with the mistreatment by his father throughout and the total disregard for his
decision, and finally being able to lead a happy and successful life in London all by his own,
how should Liu Bai react to the offer of his father to come back and take up the responsibility
of his family business ?

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 OPTIONS
 He could reject the offer
 He could accept the offer and leave his current job
 He could suggest his father to hire a talented team of people through a recruitment
process since they had good connections in Asia

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 CRITERIA FOR EVALUATION
Following are the criteria for evaluation of the above stated options. The impact of the three
options have been summarised in the table:

 Peace of mind
 Job security and financial independence
 Job satisfaction
 Family reputation

Criteria/ Peace of Job security and Job Family

Options mind financial satisfaction reputation
independence

Reject the offer Medium High High Low

Accept the offer Low Medium Medium High

Request his dad to hire a High High High Low

talented team of people
because of their connections in
Asia and continue with his
current job

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 EVALUATION OF OPTIONS

Option 1: Reject the offer

If he rejects the offer, Liu Bai might be assured about the level of intellectual satisfaction he
is going to get from his current job but he will not be fully at peace. Job security and his
financial independence would remain unchanged but the fact that his family business isn’t
doing well at all and might soon be acquired by another company will continue to distract
him. The reputation of his family would also be at stake. It is true that his decision to leave
was met with total disregard but the fact that the business empire would collapse would
remain at the back of his mind.

Option 2: Accept the offer

If Liu Bai accept the offer, he would have to let go off the happy, independent life and a
successful career which he had earned with a lot of hard work. The satisfaction which he
derived out of establishing a career all by his own would be lost. But he would be rest assured
that his family business wouldn’t collapse since he would be assuming the responsibility.
Even though his father has promised to make him the heir to the company, he is still not sure
about his behaviour and attitude towards him. If he chose to join the business again, the
reputation of his family would remain intact.

Option 3: Hire a talented team of people because of his connections in Asia and continue
with his current job

Liu Bai’s family was one of the wealthiest families in Malaysia and he had many contacts in
Asia. Hence, he could leverage this to hire a team of talented people to work for his family
business. In this way, Liu Bai wouldn’t have to lose his job and his father wouldn’t have to
sell the company. The reputation of the family would remain intact and Liu Bai would still
lead a happy and independent life.

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 RECOMMENDATION
According to my analysis of the case “Liu Bai: A Chinese Successor’s Dilemma”, Liu Bai
should follow option 3 - recruiting a talented team of people to work for his family business.

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 ACTION PLAN AND IMPLEMENTATION
The possible option in my opinion is for Liu Bai to recruit a team of talented people since he
has a lot of connections in Asia. He can’t outrightly let his family business collapse. That
would imply total disregard for the living members of his family and the earlier generations
as well.

Liu Bai should first explain to his father how important the current job his for him and how
happy he is doing what he is doing. He should mention that derives a lot of satisfaction out of
it and he is leading an independent life which he has been able to establish all by himself.

He should then suggest that since they have a lot of connections, they could conduct a
rigorous hiring process for hiring talented people from all over Asia. In this way, normalcy
would be restored in the business and Liu Bai could continue with his job.

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