“Recreating a Midea”: wandering at the crossing
Product Number：
EN_2016ZZXW_5231
Page Views：
804
CaseName：
“Recreating a Midea”: wandering at the crossing
Authors：
Wang Fengbin,Tao Zhexiong,Shi Niaoyun,Sun Chunyan
Author Affiliation：
Renmin University of China
Enterprise/Organization：
Midea Group
Industry：
Manufacturing
Discipline：
Organizational Behavior
Scale：
Large
Language：
English
Type of Case：
Descriptive Case
KeyWords：
Organizational Evolution, Divisional Structure, Holding Company Structure, Group Control, Decentralization
Abstract：
From the perspective of organizational evolution, this teaching case reports the explorative practices in the Midea Group’s staged transformation processes regarding the mode of management in the multi-unit company and with external related distribution channels, and overviews the potentially effective way for its future organizing. After introducing the problem that whether expansive strategy should be replaced by retrenchment strategy faced by the CEO of Midea Group Co., this case leads students to focus on the issue of group control. Then it outlines the company’s privatization and grouping process and describes in more detail, its internal transformation process which is divided into three phrases (i.e., functional structure, divisional structure and holding company structure), and discusses the related issues such as business and strategic synergy, parent-subsidiary relationship and group control mode. After that, it elaborates the reconstruction of Midea Group Co.’s external distribution channels and the consequent change of inter-organizational forms. The final part of the case brings the students into the discussion on how to select a suitable group control mode and design a supportive detailed plan to govern the scaled, diversified, multi-regional and hierarchical corporate group.
Intended Audience：
MBA,EMBA
Data Source：
Secondary
Publication Date：
2012
Revision Date：
2016
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