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CASE REPORT

Submitted to:
Prof. Devpriya Chakravarty
Communications Department
Course: Written Analysis and Communication
Indian Institute of Management, Indore

Submitted by:

………. | 2019PGP… | Section: G

 Letter of Transmittal

Date: 19th November 2018

To,
Professor…..,
IIM Indore

From,
Prathamesh Nivalkar,
2018PGP272, Section D,
IIM Indore

Subject: Submission of Report on case “Liu Bai: A Chinese Successor’s Dilemma”

Dear Ma’am,
I have analysed the case "Liu Bai: A Chinese Successor's Dilemma" and have come up with a
possible solution considering the various facts mentioned in the case. I have considered a set
of different alternatives and various evaluation criteria, and have proposed a
recommendation for the case. I have attached the analysis of the case in the report.
Thank you.

Regards,
Prathamesh Nivalkar
2018PGP272, Section D
IIM Indore

WAC Report | Liu Bai: A Chinese Successor’s Dilemma 2

 Executive Summary

Liu Bai is facing a dilemma since his father calls him and tells him the present state of their
family business in Malaysia. Due to the controlling nature of Hong, and his irrational criticism
in spite of working hard for several years, Bai decided to move to the West for achieving
personal objectives. Several alternatives like maintaining a status-quo by sticking to his job,
returning to control the family business, and discussing certain terms with his father and
having a mutual consent are being discussed in the report. The alternatives are evaluated on
the basis of freedom in decision-making, financial security, and family reputation. Taking a
short break and visiting the family to understand the current state of the family business, the
mental state of his father, and discussing the terms to have mutual consent is recommended
in the report.

WAC Report | Liu Bai: A Chinese Successor’s Dilemma 3

 Table of Contents

Sr. No. Description Page No.

1 Situational Analysis 5
2 Problem Statement 5
3 Alternative Options 5
4 Criteria for Evaluation 5
5 Evaluation of Options 6
6 Recommendation 6
7 Plan of Action 7
8 Contingency Plan 7

WAC Report | Liu Bai: A Chinese Successor’s Dilemma 4

 Situational Analysis

Liu Bai, a 35-year-old, has been living in London for the last three years. Talent, hard work,
and connections in Asia had earned Bai a promotion very quickly on his new job. Bai hailed
from a well-to-do Chinese family living in Malaysia. Liu Hong, Bai's father, who ran their
family business had been a mentor as well as a tormentor (in some ways) to Bai. Since Bai
wanted to escape from his father's influence and from the family business, Bai fled to the
West to become a voluntary exile in London.
Bai, who earned an MBA degree from the USA was now working with Tata & Lyle, a direct
competitor of his family sugar trading company. Bai felt life to be safe and successful in
London, whereas promotion brought in financial security and independence.
While everything seemed to be working fine, Bai once received a call from Hong to tell him
the ups and downs through which their family business is going through. Hong also told Bai
that he no longer wished to run it by himself, and the other siblings also did not seem to be
interested in the business. If this situation continues, Hong would be forced to sell their
family business at a loss which would bring disgrace to their family as well as to the memory
of the earlier generations.

Problem Statement
What should Liu Bai decide to do after receiving a call from his father?

Alternative Options
 Liu Bai should continue working in London at Tata & Lyle
 Liu Bai should return and take the ownership of the family business
 Liu Bai should take a short break and visit the family business to understand it’s
current state, vulnerability of his father

Criteria for Evaluation

 Independence/ Freedom in decision-making
 Financial Security
 Family Reputation

WAC Report | Liu Bai: A Chinese Successor’s Dilemma 5

 Evaluation of Options
 Option 1: Liu Bai should continue working in London at Tata & Lyle
o Working with Tata & Lyle in London has given Bai, a high degree of
independence/ freedom in decision-making. Also, he has attained financial
security which he lacked while working for his father in their family business.
The talent and hard work which Bai showcased was given appropriate
acknowledgment in his new job, contrary to the exploitation and irrational
criticism which he faced while working for his father. However, if he doesn't
return to his family business, the family reputation would be at stake.

 Option 2: Liu Bai should return and take the ownership of the family business
o Hong, Bai’s father, had a controlling attitude due to which majority of his
good employees couldn’t continue working with him. If Bai returns to take
the ownership of his family business, there is a possibility that the business
could be back on track and the profitability of the firm might again increase.
However, the major concern would freedom in the decision-making process.
Given the approach of Hong towards the fellow members and the previous
working experience of Bai, the objectives like freedom and financial security
which Bai wishes to attain would be at stake. Also, since Bai would be
controlling the business operations, the family reputation in the society
would be maintained according to the prevailing societal norms.

 Option 3: Liu Bai should take a short break and visit the family business to
understand it’s current state, vulnerability of his father
o Bai wishes to attain freedom and financial security, for which he has moved to
the west. The current state of his father and their family business is also
important since they have been into this business for several generations.
Provided Bai achieves the objectives that he has decided for himself, if he
controls the entire functioning of the business which would also preserve
their family reputation, Bai can analyse the current state of the business and
that of his father and then take a call.

Recommendation
Bai should go for Option 3 wherein he visits his family on a short break, analyses the state of
their business and the vulnerability of his father and then takes an optimal decision.

WAC Report | Liu Bai: A Chinese Successor’s Dilemma 6

 Plan of Action
 Bai should request for a short break in his company to visit his parents in Malaysia
 On returning to Malaysia, Bai should analyse the current state of their business
 Bai should also discuss the terms and difference in opinions with Hong
 Bai should also take into consideration the mental state of his father, Hong
 Since freedom in decision-making and financial security are Bai’s main objectives, he
should discuss these issues with Hong openly and seek proper clarification
 Once all these things are properly justified and if there is a mutual consent on these
terms with Hong, Bai should consider taking the ownership of his family business

Contingency Plan
Bai should return to London and resume work at Tata & Lyle if the discussion with Hong
doesn’t reach a mutual consent.

WAC Report | Liu Bai: A Chinese Successor’s Dilemma 7