Global Brokerage Group Of Hong Kong: A Crisis Unfolds (B) Harvard Case Solution & Analysis

Q.  What is the core cause of the crisis at GBG?

The international business around the world has become more complex, uncertain, and fast-moving than ever before. From 2001 till 2013, under the leadership of Anson Chan, Global Brokerage Group (GBG) had grown at a steady pace. As a result, Anson recognized that it was the time to take GBG at the public platform because it would helpto gain a competitive market advantage as well as to prosper the long-term growth of the company. Moreover, the Anson appointed Raymond Lau, Head of Compliance, as a CEO of Global Brokerage Group, and prepared the company for public listing. However, under the leadership of Raymond, Anson faced multiple issues and complaints regarding Raymond’s leadership, management style, and interpersonal skills.

Moreover, the other crisis and challenges faced by the company and Raymond, which resisted GBG to bring the change in the workplace, included high competition, discrimination among the employees, morale issues, and lack of communication, support and trust among the managers and employees of different departments. Furthermore, the crisis included conflicts among Priscilla and Raymond because according to her opinion, Raymond was approaching his retirement age and was unsuitable for the GBG. Apart from that, there was a clash among Priscilla and the employees, due to prejudice and ineffective annual incremental system. Most importantly, the company decided to abolish the commission-based system by raising the base salary levels.

Q.  What should Anson do about it?

Anson Chan plays an important role in increasing the company’s growth and creating harmony among the employees of the different departments. However, with an increasing crisis and problems in the company, it is important for Anson Chan to develop a winning strategy in order to over come the conflicts in the company. Firstly, Anson should acknowledge the action plan proposed by Raymond, in order to increase his motivation level. Secondly, Anson should develop ethical standards and values in the company, and should effectively communicate with the employees regarding why the change is necessary for the organization because many people live in the status quo and do not want the change to be implemented. Third, Anson should adopt an ethical leadership approach in the working environment to produce innovative and diverse organizational culture. Additionally, this strategy would help to bring constructive change in the workplace.

Fourth, the management of the company should provide an opportunity for the employees to participate in the decision-making task and share their innovative and creative ideas that would help to build an innovative organizational structure and procedure for the disclosure of information, in order to comply with the regulatory requirements. Moreover, before implementing the ethical diversity and the change in the company, Raymond, Priscilla and the managers should develop leadership skills and knowledge, and a management style through leadership.Global Brokerage Group Of Hong Kong A Crisis Unfolds (B) Case Solution

development programs. Furthermore, it is important for Anson, as a business leader, to act ethically and morally to influence the positive behavior of the people, which would lead GBG to increase diversity in the workplace. Most importantly, GBG should develop Equal Employment Opportunity Act (EEOA) in the company and should not abolish the commission-based salary, however it should also provide a base pay according to the market value, which would the employees and managers to work effectively and increase the productivity and profitability of the company in the long run.................

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