Report on the case

Liu Bai: A Chinese Successor’s Dilemma

SUBMITTED BY
Jain Rupesh Sunilchand
2018PGP027
Section A

Indian Institute of Management, Sambalpur

 Report on the Case
“Liu Bai: A Chinese Successor’s Dilemma”

In partial fulfilment of WAC course

PGP 2018-20
Term - III

Submitted By:
Jain Rupesh Sunilchand
2018PGP027
Section A

Submitted To:
Prof. Abha Chatterjee

On 8th March, 2019

Indian Institute of Management, Sambalpur

 LETTER OF TRANSMITTAL

Rupesh Jain
IIM Sambalpur
March 8, 2019

To
Prof. Abha Chatterjee
IIM Sambalpur

Subject: Report on the case “Liu Bai: A Chinese Successor’s Dilemma”

Dear Prof Chatterjee,

After analyzing the case considering all the relevant facts, we have evaluated possible courses
of action Jim can take and suggested the best alternatives. A detailed report is enclosed along
with this letter.

Thanking you.

Yours faithfully

(Rupesh Jain)

Enclosures: Recommendation report on the case “Liu Bai: A Chinese Successor’s Dilemma”

i
EXECUTIVE SUMMARY
Liu Bai is talented, hard-working and affluent Chinese youth who fled from home to have an
independent career. Bai's family has a sugar trading company in Southeast Asia. Because of
fathers' autocratic, mistrustful and controlling behavior, Bai escaped from the family business.
As the business had been struggling, and Hong doesn't want to sell the business. So, Hong
wants Bai to come back. Bai has to choose between his thriving career in London or going back
to take over his family enterprise. It is recommend that Liu Bai should remain in London, and
get professionals to run the family enterprise.

ii
 TABLE OF CONTENTS

S.NO CONTENTS PAGE NO.

1 SITUATION ANALYSIS 1
2 PROBLEM STATEMENT 1
3 OPTIONS 1
4 EVALUATION CRITERIA 1
5 EVALUATION OF ALTERNATIVES 2
6 RECOMMENDATION 3
7 IMPLEMENTATION PLAN 3
8 CONTIGENCY PLAN 3

iii
SITUATION ANALYSIS
Liu Bai is a 35-year-old guy with an MBA in the US and working at Tate & Lyle in London, which
competed directly against his family business. He had quickly risen to the ranks in his
professional career as he is talented, hardworking and well connected in Asia. Bai is the heir to
a wealthy business family who runs a sugar trading firm in Malaysia. He has enjoyed a
privileged life as the son of an affluent family.

Owing to his fathers' irrational criticism, exploitation and autocratic behavior he fled from the
family's business. His mother, Yi, didn't support him as she is befitted, Chinese wife. He has not
spoken to them for five years, until one day he received a call from his father, Hong. Hong said
that after recent floods and political unrest in the country, profits are declining, other children
also were not interested in running the business and also he doesn't want to sell it, but he was
too old to run the business. He wants Bai to come back and take over his family business. He
added that sale of the business would bring disgrace on all living members of the family and the
memory of the earlier generations.

PROBLEM STATEMENT
Whether Liu Bai should go back to family enterprise or continue with his current job?

OPTIONS
1. Liu Bai should ignore his father’s call and continue the status quo
2. Bai should quit his job and join his family business in Malaysia.
3. Bai can keep his job and get professionals to run his family business, asking Hong to step aside
completely from business.

EVALUATION CRITERIA
1. Personal satisfaction
2. Career aspirations
3. Family reputaion

1
EVALUATION OF ALTERNATIVES
 Liu Bai should ignore his father’s call and continue the status quo
 Personal satisfaction
Liu Bai would be pleased to continue his job, as he had a terrible experience working
with his father. Staying back in London, he can enjoy his independence and will be
personally satisfied, as the job has given enough financial security.
 Career aspirations
Bai has got promotion quickly. He has got an apartment for himself without any
financial help from the family. As Bai is talented and hardworking, continuing in the job
would take him to higher positions in professional career.
 Family reputation
Bai rejected his filial duty as a son and successor by fleeing away to London, which is
worse than the dead child in Chinese tradition. Continuing the status quo in London and
letting family business sale, will bring disgrace to his family.

 Bai should quit his job and join his family business in Malaysia.
 Personal satisfaction
While working in the family business, Bai was exploited and, faced irrational and
extreme criticism. He is living a happy and independent life in London, so going back to
family business in Malaysia, might again create the same situation for Bai and, he won't
get personal satisfaction to him.
 Career aspirations
After going to back to family business Bai would be doing great because he is working
with a direct competitor in the west and experience from here would certainly help him
in the business.
 Family reputation
Bai’s return would also give hopes to Hong for the business turnaround after declining
profits for several years. Bai’s comeback to the family business as successor would be a
big boost to the family reputation.

 Bai can keep his job and get professionals to run his family business, asking Hong to step aside
from business.
 Personal satisfaction
Bai would be pleased to live a happy and independent life in London, as per doesn't
want to go back to his Tormentor father, Hong. Helping Hong to get good professionals
to run his family business would also save his family reputation.
 Career aspirations
 Bai is a talented and hardworking guy. So continuing in the job, will also take him to top
positions in his professional career.
 Family reputation

2
 As per Chinese tradition, selling of business brings disgrace to family. But, Bai would
help Hong to get the best professionals to run the business and look for a turnaround.
It will save his family reputation.

RECOMMENDATION
On the basis of the analysis, it is recommended that Lui Bai should stay back in London and help
his father to get best professionals to run the family business in Malaysia.

IMPLEMENTATION PLAN
Bai should do a thorough study of the business situation in Malaysia. As he is well connected in
Southeast Asia, he should look for professionals who all can be best fit to run the family business
and prepare their list. Bai should call Hong and tell him about his decision, explaining to him that
he needs to step aside as his leadership makes it tough to keep good people in the team. Also,
assure him that he is getting best professionals for the business and also send him the list of the
professionals

CONTIGENCY PLAN
Help Hong, to get the best deal for selling the business as none of Bai’s sibling is willing to run
the business, and Hong is too old to run a business