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Authors: Nandani Lynton
Published by: China Europe International Business School
Published in: 2011

Abstract

This is part of a case series. Five years previously, Tian Fu Tools (TFT), a Chinese state owned machinery enterprise bought the Stuttgart-based mid-sized lathe and machinery building company, Kaper Maschinenbau. Enjoying a rare day off, Heinrich Baumann, CEO of Kaper, is interrupted by a phone call from the TFT GM, Zhang Jian, stating that the TFT board has decided to move production of a further three Kaper machines to Tianjin, as well as moving large parts of the Kaper research facilities to China. Baumann is dismayed to be caught off-guard and not involved in discussing such a decision. He tries to make sense of Zhang Jian’s behaviour and wonders how to present this change credibly to the union and supervisory board. Baumann begins strategizing ways to protect the company from their Chinese owners.
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Abstract

This is part of a case series. Five years previously, Tian Fu Tools (TFT), a Chinese state owned machinery enterprise bought the Stuttgart-based mid-sized lathe and machinery building company, Kaper Maschinenbau. Enjoying a rare day off, Heinrich Baumann, CEO of Kaper, is interrupted by a phone call from the TFT GM, Zhang Jian, stating that the TFT board has decided to move production of a further three Kaper machines to Tianjin, as well as moving large parts of the Kaper research facilities to China. Baumann is dismayed to be caught off-guard and not involved in discussing such a decision. He tries to make sense of Zhang Jian’s behaviour and wonders how to present this change credibly to the union and supervisory board. Baumann begins strategizing ways to protect the company from their Chinese owners.

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