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Case Study

War for management talent in China

By William A. Fischer and Rebecca Chung

5 pages

December 2007

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Reference: IMD-3-1876

This opening note is part of the suite of teaching materials which employs China as an illustration of the managerial implications resulted from the so-called War for Talent, and is intended to generate insights into “how to best play the talent game” in China, or elsewhere. We aim to generate an interactive and rich class discussion of the issues raised among seasoned business practitioners, by adopting a variety of interesting teaching formats: an opening note, four cases, an “appraisal exercise” and a video. In particular, this note presents the major talent-related issues that both local and foreign business leaders in China are facing today. Being deliberately brief, the note is designed to provide quick familiarity with the “big-picture” issues relating to talent in China today.

Learning Objective

Among the critical issues in talent management to be addressed in this suite of teaching materials, the following are the most central for the learning of class participants: 1) Since sizing up potential candidates is the first and most fundamental step of talent management, what characteristics should a business leader look for to meet the competency requirements today and to prepare for the future? 2) What would be some creative and feasible practices to source, attract, develop and retain management talent?

Keywords

Human Resources, Leadership Succession, Talent Management

Settings

China
2007

Type

Published Sources

Available Languages

English

Related material

Teaching note, Video

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This case study is part of a series

War for management talent in China
War for management talent in China: Eramet Group China
War for management talent in China: LEOX Design Partnership
War for management talent in China: SPSS China
War for management talent in China: Shanghai Tyre & Rubber Co. Ltd

2007 EFMD AWARD WINNER (Emerging Chinese Global Competitors)

This case study is part of a series

War for management talent in China
War for management talent in China: Eramet Group China
War for management talent in China: LEOX Design Partnership
War for management talent in China: SPSS China
War for management talent in China: Shanghai Tyre & Rubber Co. Ltd

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Case reference: IMD-7-2538 ©2024

Summary

The China Resources Beer (CR Beer) case study is a compelling narrative of the world’s largest beer producer by volume under the leadership of CEO Hou Xiaohai. In 2016 CR Beer embarked on a pivotal transformation journey. This case study offers critical insights that particularly resonate with Chinese corporations navigating similar challenges in an era marking the end of China’s rapid economic growth. Faced with industry saturation, changing consumer behaviors, the rise of digital technology and the imperative shift from expansive to high-quality growth, CR Beer’s story mirrors the predicament in which many Chinese companies find themselves today. The case delves into CR Beer’s strategic overhaul, how it optimized its vast 60,000-employee structure, streamlined operations and embraced digital transformation to remain competitive. CR Beer’s transformation was characterized by tackling “three mountains” – operational inefficiency due to numerous small factories with high costs and low-capacity utilization, weak brand presence in the high-end beer market and an underutilized and mismatched workforce. The study also highlights the company’s innovative approach to rebranding for younger consumers, integrating consumer insights into product development and exploring new business models. It underscores the importance of internal cultural shifts to support these external changes and the role of leadership in guiding transformation. CR Beer’s journey from traditional efficiency to future-readiness offers valuable lessons in managing large-scale organizational change, strategic management and business innovation. It provides essential insights for understanding the complexities of transformation in a rapidly evolving industry, making it a crucial read for those interested in organizational change, particularly in the context of the Chinese market and its unique challenges and opportunities.

Reference IMD-7-2538

Organization China Resources Beer

Industry Consumer Goods, Food and Beverage

Available Languages English

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