Group Control Of COFCO in its Process to Build the Business Mode of “Fully Integrated Value Chains”
Product Number：
EN_2016ZLGL_2283
Page Views：
1153
CaseName：
Group Control Of COFCO in its Process to Build the Business Mode of “Fully Integrated Value Chains”
Authors：
Wang Fengbin,Sun Chunyan, Hao Jin
Author Affiliation：
Renmin University of China
Enterprise/Organization：
COFCO
Industry：
Others
Discipline：
Strategy、Organizational Behavior
Scale：
Large
Language：
English
Type of Case：
Decision Case
KeyWords：
COFCO Limited; Fully Integrated Value Chain; Group control
Abstract：
From the perspective of group control, this teaching case reports the thinking, exploration and planning of COFCO Limited’s top management in the process of building the business mode of FIVC (i.e., fully integrated value chains). After introducing current issues facing the Group leader, Mr. Ning, this case first describes the company’s track of business development toward constraint diversification and its practices in constructing a fundamental control system for the group. Then, following the introduction of the background of proposing the so-called FIVC business mode and its basic connotation, the whole picture of the complicated multi-staged value chains across diverse categories of products is elaborated. After that, it describes the major driving points and key challenges in building such a new mode, and discusses the role of FIVC Promotion Committee and the effects of this and other coordination mechanisms practiced currently. The final part of the case brings the students into the consideration on whether COFCO which possesses several listed companied needs to change into an integrated, wholly listed company at least in the production and sales of foods & oils and how to design the organizational structure and group control systems to support the realization of the FIVC business mode in an effective and long-lasting way.
Intended Audience：
Graduate,MBA,EMBA
Data Source：
Primary
Publication Date：
2013
Revision Date：
2016
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