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Abstract

On 8 July 2008, SAP (China) held its third quarter sales conference at Jiuhua Spa and Resort in Beijing. Timothy Cheung, the new President of SAP (China), who had joined the company two months ago, announced changes in the top management. To the astonishment of Cheung and the 200 other people present at the event, three incumbent vice presidents questioned the legitimacy of these changes and the rationale behind them. Later, the conflict became increasingly irreconcilable between the two parties, and the dispute was finally taken to arbitration by the three vice presidents who got expelled from SAP (China). But the incident was, in fact, far more complicated than it seemed. What were the possible underlying causes?: (1) the poor communication between the local executives and their foreign superior? (2) the conflict of interests arising from the overlapping organisational structure? (3) the failure of SAP (China)''s human resources department? or (4) the strategic transition of SAP (China) under the boosting competition pressure?
Location:
Size:
Multinational company, 351,800 employees
Other setting(s):
2008

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Abstract

On 8 July 2008, SAP (China) held its third quarter sales conference at Jiuhua Spa and Resort in Beijing. Timothy Cheung, the new President of SAP (China), who had joined the company two months ago, announced changes in the top management. To the astonishment of Cheung and the 200 other people present at the event, three incumbent vice presidents questioned the legitimacy of these changes and the rationale behind them. Later, the conflict became increasingly irreconcilable between the two parties, and the dispute was finally taken to arbitration by the three vice presidents who got expelled from SAP (China). But the incident was, in fact, far more complicated than it seemed. What were the possible underlying causes?: (1) the poor communication between the local executives and their foreign superior? (2) the conflict of interests arising from the overlapping organisational structure? (3) the failure of SAP (China)''s human resources department? or (4) the strategic transition of SAP (China) under the boosting competition pressure?

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Location:
Size:
Multinational company, 351,800 employees
Other setting(s):
2008

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