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Published by:
Asia Case Research Centre, The University of Hong Kong (2007)
13 pages
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AccuForm is a German-Hong Kong joint venture specialising in the production of chemical coatings for application on garments. Confronted with a situation where an unauthorised Chinese manufacturer had stolen one of AccuForm''s experimental coatings, applied it to their own brand of clothing, and sold it to the public as an AccuForm product. The product had caused allergic reactions in some children and the media had widely reported the incident. It was later discovered there was more to the situation than stolen coating, as some staff were found to have engaged in money laundering, misappropriation of company assets, and acceptance of illegitimate rebates and bribes. The general manager of AccuForm, in addition to having to deal with the media, also had to find a way to resolve the differences in business practices between the company''s German and Hong Kong parents, which were thought to have been partially responsible for the incident, as well as rebuilding staff morale and customers'' confidence in AccuForm''s products. This case illustrates how differences in company cultures can create difficulty for management and how a formula for success in one country may guarantee failure in another.


Bribery; Money laundering; Illegitimate rebates; Media crisis management; Poor staff morale
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