Kitchen Best

Grade 84/100 87/100 Challenges 16/20 Causes 16/20 PoA 20/25. Be more than specific Research 20/20 Writing 12/15. go bad to organize your paper more concisely and coherently with more potent headings/subheadings/visual aides Grade update I added 3 more points to achieve this section 15/15 based upon your re-draft.? enthalpy Chan, who is the chief operating officer of Kitchen Best, has set some ambitious targets for the business in 2008. However, his plan suffered a setback when a series of crises happened in 2010.These accidents involved in grievous management problems such as personal gains made at the outgo of the comp whatever and kickbacks offered and accepted between Kitchen Best and its partners. Symptoms Deep rooted practices of kickbacks, bribing and putrescence Accepting kickbacks, bribing and corruption were common in business caboodleings of kitchen best. Chan dong, fracture of kitchen best treated his employees as family, and malefactored blind eye on any such practices as long as they were helpful in business amplification.But later when Henry Chan took over the business, a series of incidents had lead him to take a deeper look into the company and uncover serious instances of misconduct. un good means followed by kitchen bests most trusted employee The shago incident Horatio Sze Sze awarded the contract to a factory owned by his br otherwise in law, for his personal gain. Knowing that the products were faulty, he hasnt taken any sanative action or cancel the contract. Macy wei Having known that the products showed faulty in the in-house interrogation and Szes negligence towards this for his personal gain, she hasnt reported it to the higher management, considering the serious relation between Sze and Li. Ignorance of Henry and Ma luk Sze reported at once to Ma Luk. Neither Ma took the responsibility to enquire further on the issue, nor did Henry involve himself very much in monitoring the decisions of sub-contracting made by Sze. Haus de thermionic valve Henry Chan, after having learnt from an anonymous letter that a shipment for German retail chain HdM did non take c be the companys base hit requirements, did non pursue the case any further for fear of losing the customer. Honghua appliances Ma Luk Ma has built good dealings with Honghuas general double-decker for greater china, through wining, entertainment, dining and offering kickbacks. But the substituted management of Hanghua was purely against these practices and reevaluated the competency of all its suppliers. So, kitchen bests relations with Honghua were at risk.Also, Ma has misused the company expenses for his personal gain. Henry Chan Henry Chan didnt open much grip on the clients and relations with them. He was mostly strung-out on the populate of the senior management, bid Ma who were mainlanders, to build relations with the clients and customers and he saw such practices as inevitable part of Chinese business culture. Lack o f well-designed monetary policies Kitchen best did not consume any well-defined policies or guidelines to figure the expenses for entertaining customers.Henry Chans Cultural bulwark Henry Chan found it difficult to deal with mainland customers due to his cultural barriers. He was born and brought up at Hong Kong, and had not much exposure to deal with the mainland customers. So he had difficulties to cope up with the business culture and dealings with mainlanders. He had to depend on senior management, hence had no meet grip on the business there. Causes Unplanned/sudden shift in management Kitchen bests employees were not prepared for the sudden change in management from Chan dong to Henry Chan.Each of them had completely different managing names. Chan followed a paternalistic managerial style, treating the employees as a family and maintaining good relations with them, dapple Henry followed the western style of management. This gave the employees a chance to misuse the ind ecency of taking decisions that western style invoked In the west, the ideal boss is a resourceful democrat. He sets the vision and strategy for the business alone empowers subordinates to execute. He encourages ii-way communication with his employees and allows bottom-up input in decision-making. In China, the ideal boss is a benevolent father. He is comparable a parent (a Chinese parent, by the way) who supervises his children on everything that need to be done. He believes in discipline and attention to details and manages his people at a micro level. He also spends lots of time warmth for the personal wel distante of his employees and regards it as part of his job. reference management style differences between china and U. S Author Joy Huang Shift of think on different set of customers eastern and western management (business cultures)is for 95% the same and differs in every important aspect. - Takeo Fujisawa (Honda) Kitchen best mostly center on Asian market but Henry focused on extending the business to western customers. Till then the company had no induce with restrainly dealing with the customers of Europe and America, and hence has no grip over these regions. The dealings at mainland and decision making were completely left to trusted employees without Henrys personal monitoring and they took advantage of it.Henrys experience as compared to that of senior management Henrys experience was far less than most of the employees in senior management who have been works for the company from its very beginning. Employees like Ma, Sze were very much trusted by Chan dong and Henry couldnt go completely against the practices they followed although they were unethical. Lack of control over decision making and pecuniary management Henry relied much on his senior management for decision-making. But unlike Chan, he did not involve himself much, in making important decisions in mainland business operations.Any other monitoring measures were not practic eed in the company. Kitchen best did not have any well designed financial policies that checked the ineffective expenses like dining, wining or entertaining the clients. Employees faked invoices and used the expenses for their personal gains. This would have been controlled if there was habitual auditing. Henrys cultural limitations Henry was born and brought up in Hong Kong, studied at U. S. Although he had experience in marketing of voltaic and electronic appliances, it was the first time for him to work with kitchen best.He was not so beaten(prenominal) with the business culture of mainland nor did he have good relations with the mainland clients. He believed that some unethical practices were inevitable in Chinese business culture, so although determined to change these practices, he ignored some cases and hand not implemented strict measures to control them altogether. Culture is more much a source of conflict than of synergy. cultural differences are nuicanse at best and o ften disaster Dr. Geert Hofstede Recommendations A strong form _or_ system of government for internal contro l and financial management has to be designed and implemented. 2 months a strong polity to mitigate financial risks, continually asses new risks and minimize operational distractions to happen upon the key results established in a commissions strategic plan That should distinctly and consistently maintain an internal control framework by exploitation a control policy and accompanying procedures that establish a inscription to reducing risk of loss and preserving commission resources.This document should briefly apologize the objectives/goals of the commission, the ethical standard expected from employees, and the policies/procedures it is committed to adhering to in order to meet those objectives. Henry must first concentrate on getting a good grip on existing territory and then expansion of business to the west. Immediately 1-2 months Henry Chan should start working more on the existing territory business operations, by involving himself in decision making, interacting directly with clients of mainland, rather than leaving it to Ma. Then strategically work on expanding direct business with the west, like getting to know the business culture and gentility a set of employees according to western business culture. Investigate and rebuke/ take disciplinary action Next one month Ignoring the ethical breach of employees could lead to more corruption. Completing the investigation of cases and warning or taking disciplinary actions on employees responsible for it irrespective of their seniority could be substantial in reducing the corruption in business dealings.Set up a monitoring commissioning 15 days Set up a monitoring committee that is headed by Henry, and includes legal , financial advisors of kitchen best, and auditing group. This committee should constantly work on monitoring the activities, and flow of finance at different branches of the c ompany Trial implementation of the policy made and make amendments if necessary 2 months Implementing the designed policy for a period of two months and check for any loopholes, and make amendments if necessary. Managing the risk of histrion The truth is you cannot bastinado internal fraudsters if you are unfamiliar as to where and how they play their game of conjuring trick and betrayalyou fail to know where your operations greatest risks and vulnerabilities areor you fail to have enough knowledge to develop and implement a realistic anti-fraud action plan. reference book business fraud Jack L Hayes moral philosophy management Keep the alone(p) ethical climate of each market in mind when crafting your cypher of ethics to ensure that it is relevant to the international arena Apply standards as in all markets, and among all subsidiaries.Stick to your standards, whatever they are. If you have a policy of following your home countrys ethical standards around the world, be p repared to turn down opportunities in markets with unfavorable ethical climates. Make company-wide ethics cooking a regular activity, in addition to administering comprehensive ethics readiness programs for new hires. Use training sessions to highlight actual areas of concern in your organization, citing specific examples as often as possible. References Journal of Academic and ancestry Ethics International Business Ethics International Business Ethics Institute Top Ten Mistakes References http//www. f5ac. org/item. asp? id=3340 first five financial control guide ch 6. Internal control http//www. slideshare. net/anandsubramaniam/cross-culture-east-west http//smallbusiness. chron. com/accounting-principles-general-financial-ethical-standards-36283. hypertext markup language http//www. copedia. com/internal_controls. html http//smallbusiness. chron. com/cultural-communication-barriers-workplace-13888. html