Shandong Moris Chemical Co. Ltd. : A Hidden Champion in the Brine Chemical Industry
(8 pages of text)
In June 2019, the founder and chairman of Shandong Moris Chemical Co. Ltd. (Moris), a leading chemical production group, had to decide whether Moris should diversify into an unrelated industry. Moris’s main business had been the production and processing of brine chemicals. With several of its chemical products dominating worldwide markets, Moris had become a hidden champion in these industry segments. Through the company’s most recent diversification move into water treatment and land improvement, the founder had stretched Moris’s corporate umbrella beyond purely chemical businesses, hoping to transform the negative corporate image associated with chemical industries. Now, he had to determine whether the cultural and creative industries would fit with this strategic aspiration, especially since a move into this area would be the first unrelated diversification for the company.
This case can be used in undergraduate- and graduate-level courses on corporate strategy. From the specific perspective of analysis, the case is particularly suitable for courses on strategic management, corporate strategy, diversification strategy, and hidden champions. After working through the case and assignment questions, students will be able to do the following:
- Understand the concept of corporate strategy.
- Differentiate between different types of diversification: horizontal versus vertical, and related versus unrelated.
- Analyze the motives and implementation considerations for diversification.
- Explore the management of a multi-business enterprise.
- Understand the concept of a hidden champion as well as the application of this concept.
China, Large, 2019
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