Written Analysis and Communication

Report on:
Liu Bai: A Chinese Successor’s Dilemma

By
Saurabh Gupta
Section D
2018PGP490

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 Letter of Transmittal

19th November,2018
Prof. Abha Chatterjee
IIM Indore
Subject: Report submission of the case “Liu Bai: A Chinese Successor’s Dilemma”
Respected Ma’am,
As discussed in previous session, I am submitting an attached report on the case “Liu Bai: A
Chinese Successor’s Dilemma”.
This report examines the conundrum that Liu Bai is facing on deciding upon a proposal made
by his father of coming back and taking over the falling business. It takes into considerations
various criteria and aspects that must be taken into consideration before deciding upon a
reasonable decision. It also discusses the alternative solutions along with recommendations.
I hope you find the report satisfactory.
Sincerely
Saurabh Gupta
(Sec - D)

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 Table of Contents

S.NO CONTENT PAGE NUMBER

1. Executive Summary 4

2. Situation Analysis 5

3. Problem Statement 5

4. Alternatives/Options 6

5. Criteria for Evaluation 7

6. Evaluation of Options 7

7. Implementation 8

8. Contingency Plan 8

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 Executive Summary

Liu Bai is a middle-aged independent man living in London away from his home since the time
he fled away from his family business and family itself. He was living safely and successfully
when one day his father calls him to explain about their declining business and how his sisters
have turned away from business. He tells Liu that he has no other option than selling business
which would bring shame on name of family if Liu doesn’t turn up in revival of their business.
The report discusses about options Liu has in form of staying in London or going back to
Malaysia to help his family in crisis, or he could potentially take a temporary break from his
current job and go to Malaysia and come back when business starts flourishing again.
Before taking a final decision, Liu must consider about his own personal life might get
affected, think for his career and future growth opportunities while also considering his family
and emotions for them.

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 Situation Analysis

Liu Bai is a middle-aged man hailing from Malaysia and living in London for the past three
years. He is a talented, hardworking person having lots of connections in Asia, which has
resulted in his quick promotions. Years earlier he had turned away from his family’s business
empire and family itself to flee to the West. He is working with Tate & Lyle, a sugar trading
company. He is living an independent life away from home, which was unacceptable to his
family and their traditions. He was disinherited by his family, and he had not spoken to them
in five years.
Life in London for Liu was beginning to feel safe and successful when one fine day he receives
a phone call only to find out his father on the other side. His father explains how the recent
flooding and political unrest in country is having a major impact on their family business.
The business has been experiencing low profits for years and is in need for desperate revival.
Liu’s father explains how old he is getting and cannot run the business all by himself. As Liu’s
sisters have also turned their faces away from their business, he asks Liu to come back and
start leading the business or else he would have to sell it, which would eventually bring a
shame to their family.
Faced with choosing his personal life or moving back to family business, Liu asks for two
weeks’ time before making a final decision.

Problem Statement

What decision should Liu Bai take considering proposal made by his father?

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 Alternatives/Options

Option- 1: Staying in London

Liu Bai is living an independent life and has got financial security after promotions. Friends
have replaced family ties and life is beginning to feel safe and successful. He has not spoken
to family for five years and going back for his family business would revive all his pasts painful
and psychological scars.
Option-2: Go back to Malaysia
Liu Bai can go back to Malaysia with his family and start the revival of their business. Being
born and brought up in family Liu Bai cannot see disgrace on living family members and earlier
generations.
Option-3: Spend some time with business and come back later
Liu Bai can take a temporary break from his job in London and move to Malaysia for their
family business revival. Once he finds business flourishing, he should return to London and
continue his job

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 Criteria for Evaluation

1. Personal life
2. Career growth
3. Family and Emotions

Evaluation of Options

Option 1: Staying in London

If Liu Bai decides to stay in London, his personal life would be settled. He already has financial
security and is living independently. Liu Bai has got promotions and his career is growing
because of his hard work and huge connections he has in Asia. While he would stay away from
his family, he already hasn’t spoken to them in five years and friends in London have replaced
family ties.

Option 2: Go back to Malaysia

While going back to Malaysia could be personally draining as all the pains of his past scars
would haunt him again. Although his career would not progress as steadily if he were in
London, but he could in all give a new direction to his career by leading his family business
and scaling new heights. Liu would be thus back to his family and get a chance to have new
beginnings.

Option 3: Spend some time with business and come back later
By choosing this path Liu personally would feel of having fulfilled his duties towards his family.
He can be proud of this fact and not regret anymore of having fled away. His career would
not get affected much as he would only be taking a temporary break from his current job. In
this way he can also convince his sisters of joining their business and giving them motivation
and confidence to take it forward.

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 Implementation

Liu Bai should consider taking a temporary break from his current job in London and go back
to Malaysia to take care of declining business. Liu having knowledge of company that directly
competes with his family business would give him an upper hand and help the revival process
speedily. In this way he can also convince his sisters to join the business and hire some
valuable employees who can take the business forward.

Contingency Plan

Liu Bai could else decide to go back to Malaysia and have a new beginning with his family.
Although he may not be sure of his father’s nature he can opt out of living with family and
stay in separate house.

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