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Case Study

China Resources Beer: Becoming future ready

By Mark J. Greeven and Wei Wei

17 pages

January 2025

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Reference: IMD-7-2538

The China Resources Beer (CR Beer) case study is a compelling narrative of the world’s largest beer producer by volume under the leadership of CEO Hou Xiaohai. In 2016 CR Beer embarked on a pivotal transformation journey. This case study offers critical insights that particularly resonate with Chinese corporations navigating similar challenges in an era marking the end of China’s rapid economic growth. Faced with industry saturation, changing consumer behaviors, the rise of digital technology and the imperative shift from expansive to high-quality growth, CR Beer’s story mirrors the predicament in which many Chinese companies find themselves today. The case delves into CR Beer’s strategic overhaul, how it optimized its vast 60,000-employee structure, streamlined operations and embraced digital transformation to remain competitive. CR Beer’s transformation was characterized by tackling “three mountains” – operational inefficiency due to numerous small factories with high costs and low-capacity utilization, weak brand presence in the high-end beer market and an underutilized and mismatched workforce. The study also highlights the company’s innovative approach to rebranding for younger consumers, integrating consumer insights into product development and exploring new business models. It underscores the importance of internal cultural shifts to support these external changes and the role of leadership in guiding transformation. CR Beer’s journey from traditional efficiency to future-readiness offers valuable lessons in managing large-scale organizational change, strategic management and business innovation. It provides essential insights for understanding the complexities of transformation in a rapidly evolving industry, making it a crucial read for those interested in organizational change, particularly in the context of the Chinese market and its unique challenges and opportunities.

Learning Objective

Grasp the complexities of transforming a large enterprise in a saturated market, balancing operational excellence with future-oriented innovation.
Delve into effective organizational restructuring to streamline operations and prepare for strategic shifts.
Assess the critical role of digital transformation in enhancing organizational efficiency and competitiveness.
Analyze the strategic use of partnerships and brand diversification to successfully penetrate and thrive in high-end market segments.
Learn the significance of aligning corporate culture with strategic goals to drive sustainable development and long-term success.

Keywords

China, Digital, Human Resources, Strategy, Inclusion, Equity, Diversity

Settings

Asia, China
China Resources Beer, Consumer Goods, Food and Beverage
2017-2023

Type

Field Research

Available Languages

English

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Teaching note

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