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Published by:
Singapore Management University (2015)
Version:
2015-02-12
Length:
10 pages
Data source:
Field research
Abstract:
This case, set in August 2014, examines Kheng Keng Auto (KKA), a Singapore-based family business with global operations that deals in pre-owned vehicles, recycled auto-parts and scrap metal. Founded as an auto repair shop in 1980, the company eventually diversified its offerings and expanded into 54 countries in Asia, Africa, the Middle East and South America. In 2013 revenues exceeded USD40 million. However, if the company is to continue growing, it needs to further expand internationally. Cher Kwang Siong, the managing director and 26-year veteran of KKA, is therefore faced with several challenges that make such further expansion increasingly difficult and complex. The first is regulation. Not only does each country have its own unique market conditions and set of regulations, but also there exists broader global regulatory trends that demand greater environmental compliance. The second issue is related to business continuity -grooming leaders, employee retention and managing succession. This case can be used in undergraduate, graduate or executive education classes on topics related to strategic management, family business, international business expansion and corporate social responsibility.
Learning objectives:
1. This case can be used in undergraduate, graduate or executive education classes on topics related to: Strategic management. 2. Students will gain an understanding of the business challenges associated with transitioning from a 'sunset' industry that is dirty, noisy and labour intensive into an eco-friendly, sustainable, global business. 3. Discuss how these challenges can be addressed. 4. Family business: students will understand common issues pertaining to business growth and continuity, particularly succession planning. 5. International business expansion: students will evaluate market entry strategy, scalability, business model sustainability.
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