Beifang Cased

Synopsis

The case is about Beifang Chuang Ye Vehicle Group (Beifang) was a holding company comprised of fourteen companies, most of which operated in segments of transportation market in northern China. Previously, Beifang was owned by the Chinese central government but now, the company was privatized with only ten percent of government holding. The other ninety percent was owned by private investor and the most prominent were Ming Zhou’s family. The business of Beifang company consist of three taxi companies, a car rental company, an automobile association, an advertising company, a vehicle importer, automobile repair company and three automobile dealerships that were all hundred percent privately owned. Beijing Munitions Vehicle Trade Head Company (Beijing Munitions) was the largest dealership company. The other two automobile dealership companies are North Zhi Xing, sold new cars only and Qun Xing Cal Lin Suo Dian sold domestic vehicle brands. All of the dealership companies were organized by function. Until 1999, all of the dealership companies were profitable and growing at healthy rates at twenty percent or more annually. However, on January first, the municipal government of Beijing mandated a new vehicle emission control standard that all passenger vehicles sold within the Beijing city limits to be equipped with a fuel injection system instead of old carburetor system. This new regulation harms Beifang Company since new car sales feel to zero.

The protagonist

Based on the case, we identify Mr. Zhou is the protagonist since he is vice president and general manager. He is held responsible of the Beifang Company.