HomeResearch & Knowledgeback to HomeFamily Businessback to Research & KnowledgeThe Midea Groupback to Family Business

Case Study

The Midea Group

By Denise H. Kenyon-Rouvinez and Nan Li

4 pages

November 2015

Reference: IMD-7-1668

The Midea Group, a large family-controlled, publicly traded company was one of China’s largest household appliance manufacturers and widely considered a market leader. Founder He Xiangjian grew the small plastics production company he created in 1968 and turned it into a successful household appliance manufacturer that went public in 1993 as “Guangdong Midea Electric Appliances Co. Ltd.” It was Xiangjian’s firm belief that family should only exercise an ownership role and not be involved with managing the company. He himself resigned from the Midea Group board in 2012, naming a non-family member as his successor. The seven members of the senior management team were all professional managers and held Midea Group shares with voting rights.

Learning Objective

This case sets the scene for a discussion about whether family members should be involved in company management as opposed to having an ownership role only. It also opens a debate on the pros and cons of giving shares to employees .

Keywords

Home Appliances, Family Business, Family Ownership, Non-family Chief Executive Officer, Non-family Member, Shareholder Rights, Public Company

Settings

Asia, China
Midea, Manufacturing
1993-2014

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

Article

Tradition and innovation: the paradox powering family business

Tradition is defined as the transmission of customs or beliefs from generation to generation. Innovation is the process of changing something established by introducing new methods

Family Business

By Alfredo De Massis, Emanuela Rondi, Vittoria Magrelli and Francesco Debellis

in I by IMD

31 January 2025

Case Study

Sea2see: Seastainable vision

Entrepreneurship Family Business General Management Global Business Marketing Sustainability

By Benoit F. Leleux and Thomas Brochier

Case Study

Sheng Siong Supermarket in Singapore: A unique values-based advantage?

Founded by Lim Hock Chee in 1985, Sheng Siong has evolved from a humble grocery store into a leading supermarket chain in Singapore, renowned for its cost-effective pricing and commitment to customer satisfaction. Mr Lim’s unique philosophy, which...

Family Business Customer Centricity Leadership

By Marleen Dieleman, Yunfei Feng and Yu Jing Gan

Article

Lessons from a legacy: Keeping business and family in balance to create a multigenerational enterprise

Fourth-generation family member Bruce Grossman tells IMD’s Peter Vogel about his successes and failures in establishing structures to unify the family enterprise and the lessons he hopes the next generations will take from the experience.

Family Business Business Transformation

By Peter Vogel

in I by IMD

14 January 2025

Article

How to get your kids engaged in the entrepreneurial family galaxy

Family businesses hold a unique place in the economic and social landscape. They represent not just entrepreneurship but also heritage, values and a legacy passed down through generations.

Family Business Organizational Behavior Entrepreneurship

By Alfredo De Massis and Emanuela Rondi

in Belfast Telegraph

8 January 2025

Article

The future of family businesses: Trends to watch in 2025 and beyond

Family businesses have long been the backbone of the global economy, contributing significantly to employment, innovation, and economic resilience. As we approach 2025 and beyond, family businesses must adapt to a range of emerging trends to stay ...

Family Business Entrepreneurship Leadership

By Alfredo De Massis and Emanuela Rondi

in Maddyness

30 December 2024

Article

Is Cain more able? A behavioral perspective on the relationship between family CEO birth order and family firms' CSR

We investigate family CEO birth order as an antecedent of family firms' CSR behavior. Despite psychology literature recognizing it as a key predictor of individual behavior, birth order has been largely neglected in management research. Drawing on...

Family Business Social Innovation Leadership

By Paola Rovelli, Michael Razen, Carlotta Benedetti, Nina Schweiger, Alfredo De Massis and Kurt Matzler

in Strategic Entrepreneurship Journal

25 December 2024, ePub before print, https://doi.org/10.1002/sej.1530

Article

Holiday season burnout: How can family businesses manage workload and rest

The holiday season is a particularly demanding time for many businesses, especially for family-owned enterprises. The combination of increased business demands, tight deadlines, and family expectations can create a perfect storm of stress and exha...

Family Business Workplace Well-being Organizational Behavior

By Alfredo De Massis and Emanuela Rondi

in The European Business Review

21 December 2024

Article

In the field with Ragn-Sells

How can a company in crisis become an innovative champion of the circular economy?

Sustainability Family Business

By Florian Hoos and Valerie Keller-Birrer

in In the Field

19 December 2024

Article

كيف يمكن إدارة الصراعات في الشركات العائلية؟

Family businesses are an essential part of the global economy, as they combine the power of a common goal. Long-term vision, and deep personal commitment. But these unique characteristics create a special context in which personal relationships bl...

Family Business Change Management Disruption

By Alfredo De Massis and Emanuela Rondi

in Arabian Business.com

6 December 2024

Sea2see: Seastainable vision

By Benoit F. Leleux and Thomas Brochier
Case reference: IMD-7-2564 ©2024

Summary

BARCELONA, JANUARY 2023. What started in 2016 as a humble entrepreneurial attempt to contribute to a more sustainable future had turned into a solid eyewear brand present in major Western markets. François van den Abeele was even more excited by the rapid development of the Sea2see Foundation, which he set up in Ghana. But success brought its own new questions and issues. From the start, he had relied on the superb craftmanship and dedication of an Italian frame manufacturer. Over time that relationship had turned into a mutual dependency: He was now one of its major clients but, reciprocally, had developed a key supplier risk. What if something happened to that relationship? Should he develop a broader set of suppliers and, if so, how could that be done without antagonizing a great working relationship? Recycling very much set the stage for the brand’s sustainability claims, but it also took massive amounts of time to manage. As other companies started to develop their own fishing net recycling supply chains, did it still make sense to invest so much time in the upstream phase or should he pour his energy into his beloved brand? Finally, maybe it was also time to revisit the growth/profitability dilemma and open up the capital to increase the speed of growth, all for the benefit of the environment as impact fed on scale.

Reference IMD-7-2564

Organization Sea2see

Industry Consumer Goods, Optical Products

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Family Business

General Management

Global Business

Marketing

Sustainability

Browse all topics

Sheng Siong Supermarket in Singapore: A unique values-based advantage?

By Marleen Dieleman Yunfei Feng and Yu Jing Gan
Case reference: IMD-7-2589 ©2025

Summary

Reference IMD-7-2589

Organization Sheng Siong Group

Industry Consumer Services, Retail

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Customer Centricity

Leadership

Browse all topics

Lessons from a legacy: Keeping business and family in balance to create a multigenerational enterprise

By Peter Vogel
in I by IMD 14 January 2025

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Business Transformation

Browse all topics

How to get your kids engaged in the entrepreneurial family galaxy

By Alfredo De Massis and Emanuela Rondi
in Belfast Telegraph 8 January 2025

Summary

Family businesses hold a unique place in the economic and social landscape. They represent not just entrepreneurship but also heritage, values and a legacy passed down through generations.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Organizational Behavior

Entrepreneurship

Browse all topics

The future of family businesses: Trends to watch in 2025 and beyond

By Alfredo De Massis and Emanuela Rondi
in Maddyness 30 December 2024

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Entrepreneurship

Leadership

Browse all topics

Is Cain more able? A behavioral perspective on the relationship between family CEO birth order and family firms' CSR

By Paola Rovelli Michael Razen Carlotta Benedetti Nina Schweiger Alfredo De Massis and Kurt Matzler
in Strategic Entrepreneurship Journal 25 December 2024, ePub before print, https://doi.org/10.1002/sej.1530

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Social Innovation

Leadership

Browse all topics

Holiday season burnout: How can family businesses manage workload and rest

By Alfredo De Massis and Emanuela Rondi
in The European Business Review 21 December 2024

Summary

Contact