Succession in Chinese Family Businesses (B): Huamao and the Xu Family
(11 pages of text)
This case series is suitable for graduate- and executive-level courses on family businesses and China. It is relevant to many Chinese families and to business people who are interested in learning more about Chinese business practices. This case series has been effectively used in executive development programs that include participants from Chinese family businesses.
The case discussion is designed around four 1.5-hour sessions: Session 1 is a role-play exercise based on the (C) case; Sessions 2 and 3 discuss, respectively, the (A) and (B) cases; and Session 4 compares the situations facing the two families in the (A) and (B) cases.
The case discussion explores the following key issues:
- The evolution of the family business in China.
- The unique set of outcomes specific to a family business and distinct from the characteristics of a non-family business.
- Different methods of succession, in terms of choosing and developing a successor among family members and non-family executives.
- Various definitions of wealth, including the new concept of socio-emotional wealth, and different ways of passing the wealth to the next generation.
- The emergence in China of the family constitution or the family agreement.
- The importance of governance and the benefits of clearly defined roles.
- The complexity and interferences of family emotions, and the role of the chief emotions officer.
China, Large, 2014
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