HomeResearch & Knowledgeback to HomeFamily Businessback to Research & KnowledgeShanxi Haixin Iron and Steel Groupback to Family Business

Case Study

Shanxi Haixin Iron and Steel Group

By Denise H. Kenyon-Rouvinez and Nan Li

4 pages

November 2015

Order this case study

Reference: IMD-7-1663

Shanxi Haixin Iron and Steel Group is a second-generation family business that was China’s second largest private steelmaker before it entered bankruptcy proceedings in November 2014, after failing to repay bank loans that matured earlier that year. Looking back, the unexpected death of the founder in 2003, at age 48, had left his brothers and family squabbling. To maintain peace in the family, his 22 year old son took charge of the business despite his young age and inexperience.

Learning Objective

The case sets the scene for a discussion on succession planning and the risks when there is no succession plan or will in place. It looks at issues of sibling rivalry, jealousy, and the consequences of an unprepared successor in times of crisis.

Keywords

Family Business, Family Succession, Family Relationship, Sibling

Settings

Asia, China
Shanxi Haixin Iron and Steel, Manufacturing, Materials, Steel
2014

Type

Published Sources

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Case Study

Co-CEOs at Handtmann: Can the family business be led in tandem? (B)

The Handtmann case examines the co-CEO leadership model in the context of family business. Based on interviews with three key executives – the co-CEOs and the President of the Advisory Board – the case focuses on how Handtmann handled the leadersh...

Family Business Corporate Governance Leadership

By Peter Vogel and Anouk Lavoie Orlick

Case Study

Co-CEOs at Handtmann: Can the family business be led in tandem? (A)

The Handtmann case examines the co-CEO leadership model in the context of family business. Based on interviews with three key executives – the co-CEOs and the president of the advisory board – the case focuses on how Handtmann handled the leadersh...

Family Business Corporate Governance Leadership

By Peter Vogel and Anouk Lavoie Orlick

Article

CDL saga casts spotlight on succession and why family businesses struggle with it

Decades of stability can unravel overnight, but sustaining both family harmony and corporate success is a perpetual challenge. Succession is among the buzzwords as all eyes are on City Developments Limited (CDL), where a bitter leadership feud has...

Family Business Leadership Organizational Behavior

By Marleen Dieleman

in The Straits Times

6 March 2025

Article

Le aziende devono capire il loro scopo e inserirlo nel business

An organization's purpose is the fundamental reason why a company exists, going beyond the simple pursuit of profit. It reflects the core values, mission and impact that the company wishes to have on society. Often, when we talk about purpose , th...

Organizational Design Family Business Purpose

By Alfredo De Massis

in Il Sole 24 ore

1 March 2025

Article

Sfide e opportunità per il futuro delle famiglie imprenditoriali italiane

Italian entrepreneurial families can ensure their continuity through structured governance strategies, effective family wealth management, engagement of new generations, and the enhancement of their legacy. The Objectives-Resources-Governance mode...

Family Business Organizational Change Innovation

By Alfredo De Massis and Josip Kotlar

in Modulo24 Magazine

January-February 2025, no. 1, pp. 97-109

Article

Managing Multiple Role Identities - Family Enterprise

Leaders of family firms are struggling with multiple role identities, and poor board management is putting the future of family enterprises at risk.

Corporate Governance Family Business Operations Organizational Behavior Organizational Culture

By Alfredo De Massis, Cristina Bettinelli, Manisha Singal and John Davis

in I by IMD

Article

A tribute to the life and work of Jess Chua

Jess Chua was a leading scholar in the field of family business and a major contributor to Entrepreneurship Theory and Practice both as an author and editor. His significant contributions to the field were acknowledged by the Web of Science, which...

Family Business

By James J. Chrisman, Zhenyu Wu, Alfredo De Massis and et al.

in Entrepreneurship Theory and Practice

5 February 2025, ePub before print, https://doi.org/10.1177/10422587251315653

Article