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Case Study

Shanxi Haixin Iron and Steel Group

By Denise H. Kenyon-Rouvinez and Nan Li

4 pages

November 2015

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Reference: IMD-7-1663

Shanxi Haixin Iron and Steel Group is a second-generation family business that was China’s second largest private steelmaker before it entered bankruptcy proceedings in November 2014, after failing to repay bank loans that matured earlier that year. Looking back, the unexpected death of the founder in 2003, at age 48, had left his brothers and family squabbling. To maintain peace in the family, his 22 year old son took charge of the business despite his young age and inexperience.

Learning Objective

The case sets the scene for a discussion on succession planning and the risks when there is no succession plan or will in place. It looks at issues of sibling rivalry, jealousy, and the consequences of an unprepared successor in times of crisis.

Keywords

Family Business, Family Succession, Family Relationship, Sibling

Settings

Asia, China
Shanxi Haixin Iron and Steel, Manufacturing, Materials, Steel
2014

Type

Published Sources

Available Languages

English

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