The Employee Stock Ownership Plan (ESOP) has had a very positive influence on the history of Huawei, but has also been subject to public suspicion at every turn. Employee benefits have been accrued alongside Huawei’s impressive development and have generated huge amounts of human capital. However, with ESOP’s continual expansion, the diminishing space for such a scheme, and the changing market environment, the risks and drawbacks of ESOP have been slowly exposed. How exactly do these drawbacks threaten a drop in performance? Will ESOP act as CEO Ren’s fetters despite its contribution to the Huawei success story? What should Huawei do next? List on the stock market?
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The CKGSB Case Center
Will Huawei’s ESOP act as CEO Ren’s fetters despite its contribution to the Huawei success story? What should Huawei do next? List on the stock market?Keywords:HR management, shares, public listingCase advisor: Xiang Bing
How to tackle two bottlenecks: staff turnover and operating pressures?Keywords:HR management, data analysis, recruitment, turnoverCase advisor: Wang Yijiang
This case considers the hiring process and analyses the ratio of interviews to recruitment as well as turnover rates. A best practice interview and recruitment process is described in a bid to provide CITIC with a way to curb staff turnover in its credit card service department.
Horizontal integration in shop front servicesKeywords:Horizontal integration, shop front services, wholesale, design, agency, platformCase advisor: Ou Jihong
Although most people have never heard of Rixian, the company is a leader in the field of brand shop front services, an invisible champion. Horizontal integration to Rixian means handling wholesalers’ demands for design and decoration of retail spaces. On the other side, Rixian deals with designers creative abilities and capabilities to display furniture in home wares stores. Rixian considers itself to be not an agent, but a platform.
Foxconn makes managerial changes and moves some operations inland after worker suicides.Keywords:innovation, globalization, strategyCase advisor: Wang Yijiang
Motivated by cheap labor costs, Foxconn scaled up its factories but kept wages low and conditions strict. In 2010, as many as 16 workers attempted to commit suicide, with 11 dying as a result. Pushed by this tragic chain of events to make managerial changes, Foxconn raised wages, and started to move operations inland. Now Foxconn will need to figure out how best to balance rising labor costs, public demand for better working conditions, and its desire to increase the bottom line.
How have Ren Zhengfei's unique management ideas influenced Huawei's development?Keywords:corporate culture, human resource management, management model, global salesCase advisor: Prof. Wang Yijiang
In 2007, Huawei's global contract sales hit 16 billion US dollars, a 45% increase over 2006. Impressively, overseas sales represented 72% of this total. In Europe, America, and Japan, Huawei sales grew by more than 150%. With these results, Huawei has become a role model for domestic Chinese enterprises. How have Ren Zhengfei's unique management ideas influenced the development of the company?