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Case Study For Kingdee

3269 words - 14 pages

Kingdee

Q.1 What are the distinctive management competence and business practices that enabled Kingdee to be successful in the past and how will these need to be changed or further developed in the future? (You need to have a view on what are Kingdee’s future business challenges.)

Stages | Business Model | Management Competence | Business Practices |
Startup | A/C | ●Attractive compensation for "Hukou" to hold talents
●Green Light" to satisfy employees
●“Five winner sons” method to motivate staff | ●Financial application based on Windows 95
●Success in securing venture capital |
Rapid Growth | ERP | New core value "care, integrity and innovation" to keep innovation | ●Changes in ...view middle of the document...

The tax reduction and ability to satisfy employees’ basic needs significantly enhanced Kingdee’s competitiveness in its early years.
3. “Five winner sons” method to motivate staff
In 1998, Kingdee had 500 people at that time. Great importance was attached to people and their needs. Robert knew that to open new market and survive competitively, staff needed to be motivated effectively. He used the “five winner sons” method to motivate staff. The method was defined differently by him as “a good position, good money, a nice car, a cozy home and an adorable child”. These well concluded most young people’s dream of living a middle-class life at that time.

* Full Speed Growth Period: 1999-2006
New core value to keep Innovation
During Kingdee’s fast growth period, 1999-2006, its core value was revised to “care, integrity and innovation.” This change was aimed to bring the company back on track to their company vision of better service and leading innovation. With the growth of organization, conflicts between different interest groups and bureaucratic culture in this company make the decision-making process became very slow. This was not, however, a good phenomenon that Robert Xu, the CEO of Kingdee, wanted to see.

* 2007-Kingdee’s Strategic Turnaround
“People Culture” to strength team-work under corporate policies
Since 2007, Kingdee has given a priority to institutional management and “People Culture”.
Robert identified the three components of it as systematic management, standard business model and professional employees. The company also makes many detailed policies to realize the concept. It creates better work and living environment for the staff through activities like parent-child paradise; Some actions like intranet BBS and blogs, etc. are also taken to create an open atmosphere;
In the aspect of career development, Kingdee has a dual-path system-managerial path and expert path for employees to choose, which is called a platform “without ceilings or walls” for employee’s growth; Tutor system appoints every new employee a tutor to help himself; The reimbursement of books and exams for professional certificates encourages employees to acquire new knowledge.

From the history of Kingdee’s management, we can easily conclude that Kingdee has been always regarding its employee as the core assets and trying all methods to hold talents and accelerate their growth within the company. The management competence ensures the effectiveness and efficiency of the organization. This is a critical reason why Kingdee could achieve considerable success in different stages.

Business practices:
* Entrepreneurial Period: 1992-1998
Kingdee’s business practices at different stages have something in common. That is, Robert Xu, the CEO of this company can always predict the trend and well adapted to the ever-changing era.
1. Financial application based on Windows 95
In 1994, Microsoft launched Windows 95 system. Kingdee...

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