Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 15.04.2009
Length: 5 pages
Data source: Field research
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Abstract
Aokang was one of China's largest shoe manufacturers. In the early period, it was a typical family-run business, with many of the company's high-level posts held by relatives. After two major adjustments, Aokang became a company mainly run by professionals. But Wang Zhentao, the founder of the company still owned 100% of Aokang and had firm control over the company. Aokang required a substantial injection of capital for further growth. Would Wang be willing to accept the dilution of shares thereby losing some control of the company?
Location:
Industry:
Size:
2007 sales revenues CNY4 billion, about 20,000 employees, 30 subsidiaries, 3,000 retail outlets
Other setting(s):
1997-2008
About
Abstract
Aokang was one of China's largest shoe manufacturers. In the early period, it was a typical family-run business, with many of the company's high-level posts held by relatives. After two major adjustments, Aokang became a company mainly run by professionals. But Wang Zhentao, the founder of the company still owned 100% of Aokang and had firm control over the company. Aokang required a substantial injection of capital for further growth. Would Wang be willing to accept the dilution of shares thereby losing some control of the company?
Settings
Location:
Industry:
Size:
2007 sales revenues CNY4 billion, about 20,000 employees, 30 subsidiaries, 3,000 retail outlets
Other setting(s):
1997-2008