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Developing Effective Middle Management in an Entrepreneurial Firm in China  
Product Ref: 07/340C Company: Victoria Idea Co. Ltd.

Product Type: Case Industry: Pharmaceuticals & Biotechnology
Software & Services
Technology Hardware

Related Product(s): Teaching Note
Victoria Idea Company Limited was a major network security solution provider based in Zhuhai, China. The company had been facing problems common to many family-owned businesses due to its management style. It was later restructured with the goal of transforming it from a family-run business to a professionally managed one by first removing most family members from the company and then slowly re-building a new, solid management structure. In order to instil a sense of responsibility and accountability in its middle managers, the company promoted staff from within instead of recruiting from outside, sponsored management training courses and made several other changes, including giving out shares to management staff. Despite all the efforts made, middle managers were still reluctant to make decisions on their own and would turn to senior management who used to be the sole decision-makers before the restructuring. Victoria Idea needed to find a way to develop a sense of trust among its middle managers so that the latter would feel confident to make decisions on their own without seeking advice or approval from senior management. A proactive and responsible management team was deemed to be crucial if the company wanted to expand further. This case illustrates how and why changes to long-established practices and operations or management styles can be difficult to implement.
Functional Area : Management of Information Systems
Strategy & General Management

Issues: Family-owned business, management, corporate restructure, inertia to changes
Length: Text: 8 pages
Exhibits: 10 pages
Country: China (People's Rep. of)

Pub. Year: 2007 Level of Difficulty: 1
This product type is available in the following language(s):      English
Related Information: Family-owned business, centralised decision-making process, changes, restructure, responsible, accountable
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