Within one month of China’s entry into the WTO, CINCO announced a major corporate restructuring program to transform the group into a shareholding company and open its doors to foreign investors. This case describes the features of the structure and operating systems that have become sources of conflict between rival subsidiaries and functions within subsidiaries. CINCO’s managers must implement changes that eliminate such conflict in order to survive in the increasingly competitive Chinese insurance market.
The case introduces students to current and emerging management issues through an analysis of inappropriate organizational design that is the source of inconsistent customer service and internal conflict between and within sub-branches at this Chinese SOE. It challenges students to propose changes that align the organization with the new competitive environment and increased performance demands.
- Strategic Change
- Corporate Restructuring
- Foreign Competition
- Intraorganisational Conflict
- China
- SOE Reform
- WTO
- Insurance
