Beijing Weihao Aluminum (Group) Co. Ltd. Harvard Case Solution & Analysis

Zhang Zhengxi resigned from the state-owned (SOE) in 1992 and created Nanchen Aluminum Ltd. in 1995. Through a combination of joint ventures and outsourcing Nanchen aluminum use external resources to expand their business. After a series of acquisitions, Zhang successfully established Beijing Weihao Aluminum Group, which had assets of 400 million yuan. Currently Weihao Group plans to initiate two projects with a total investment of 200 million yuan. Furthermore Weihao group Nanchen aluminum has also invested in three joint ventures: OOO Tianhong Food, Agriculture Tianhong Ltd., and information technology Nanchen LLC, the rapid expansion puts a big problem on the ability to Zhang. Meanwhile, the so-called SOE syndrome appeared to eclipse entrepreneurial incentive, because the majority of employees were employed in state enterprises before joining Weihao Group. "Hide
for Shengjun Liu Source: Richard Ivey School of Business Foundation 12 pages. Publication Date: December 8, 2005. Prod. #: 905M64-PDF-ENG

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