Longfor: A Non-Traditional Company in China ("When in Rome, do not do as the Romans")

Published 30 Oct 2017
Reference 6179
Topic Strategy
Industry Real Estate
Region Asia
Summary

Longfor, a real estate company in China, treats every customer as an individual with distinctive tastes, preferences and needs; the homes it designs emphasize aesthetics, comfort, landscaping and lifestyle in a holistic way. Likewise, its organizational culture emphasizes equality and professionalism in a country where hierarchy and deference to authority are the norm. Its approach to HR (recruitment, training, evaluation, compensation, role-modeling) is completely at odds with common practice in China. The case asks: Is it possible to succeed in business with an organizational culture that is alien to the society in which the company operates? How can emotional capital be generated and embedded in a company to facilitate strategic innovation?

Teaching objectives

Understand how corporate strategy is bolstered by an organization’s culture, together with HR practices and an organizational structure that are consistent with it. Understand how emotional capital serves as a mediator between organizational culture and strategy to facilitate creativity and innovation.

Keywords
  • organizational culture
  • differentiation strategy
  • human resource
  • organizational structure
  • emotional capital
  • real estate industry
  • China
  • equality
  • professionalism
  • innovation
  • creativitity
  • Q11718