Case Study

Aokang: Where do we go from here?

5 pages
May 2009
Reference: IMD-3-2073

Aokang was one of China’s largest shoe manufacturers. In the early period, it was a typical family-run business, with many of the company’s high-level posts held by relatives. After two major adjustments, Aokang became a company mainly run by professionals. But Wang Zhentao, the founder of the company still owned 100% of Aokang and had firm control over the company. Aokang required a substantial injection of capital for further growth. Would Wang be willing to accept the dilution of shares thereby losing some control of the company?

Learning Objective

To provide insights into privately and family run businesses in China which evolve from an entrepreneurial to a more professionally managed business. The involvement of several family members in the business creates complexities which can be addressed either through the sidelining of some family members or the creation of effective multi-level governance structures.

Keywords
Family Business, Entrepreneurship, Succession, Partnership, Business Strategy, Ownership Strategy, Governance, Family Relationship, General Management, Strategy
Settings
China
1997-2008
Type
Field Research
Copyright
© 2009
Available Languages
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics