Kitchen Best

Grade 84/100 87/100 Challenges 16/20 Causes 16/20 PoA 20/25. Be more particularised Research 20/20 Writing 12/15. Work to organize your paper more concisely and coherently with more effective headings/subheadings/visual help Grade update I added 3 more points to make this section 15/15 based upon your re-draft.? hydrogen Chan, who is the CEO of Kitchen Best, has set some would-be(prenominal) targets for the worry in 2008. However, his plan suffered a setback when a series of crises happened in 2010.These incidents involved in serious counselling problems such as in the flesh(predicate) gains made at the expense of the bon ton and kickbacks offered and accepted between Kitchen Best and its partners. Symptoms Deep rooted practices of kickbacks, bribing and corruption Accepting kickbacks, bribing and corruption were common in business dealings of kitchen best. Chan dong, founder of kitchen best treated his employees as family, and turned blind eye on any such practices as long a s they were assistive in business expansion.But later when Henry Chan took over the business, a series of incidents had led him to take a deeper look into the company and uncover serious instances of misconduct. wrong means followed by kitchen bests most trusted employee The shago incident Horatio Sze Sze awarded the contract to a factory owned by his brother in law, for his individualized gain. Knowing that the products were faulty, he hasnt taken any remedial action or cancel the contract. Macy wei Having known that the products showed faulty in the in-house testing and Szes default towards this for his personal gain, she hasnt reported it to the higher management, considering the good relation between Sze and Li. Ignorance of Henry and Ma luk Sze reported at once to Ma Luk. Neither Ma took the duty to enquire unless on the issue, nor did Henry involve himself much in monitoring the terminations of sub-contracting made by Sze. Haus de metro Henry Chan, after having learn t from an anonymous letter that a shipment for German retail chain HdM did not meet the companys safety requirements, did not pursue the case any further for fear of losing the customer. Honghua appliances Ma Luk Ma has built good relations with Honghuas general manager for greater china, through wining, entertainment, dining and offering kickbacks. But the changed management of Hanghua was strictly 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 go much grasp on the clients and relations with them. He was mostly dependent on the project of the sr. management, like 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 of well-designed financial policies Kitchen best did not have any well-defined policies o r guidelines to control the expenses for entertaining customers.Henry Chans Cultural barrier Henry Chan found it difficult to deal with mainland customers due to his cultural barriers. He was born(p) 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 proper grip on the business there. Causes Unplanned/sudden shift in management Kitchen bests employees were not fain for the sudden change in management from Chan dong to Henry Chan.Each of them had completely different managing styles. Chan followed a paternalistic managerial style, treating the employees as a family and maintaining good relations with them, while Henry followed the western style of management. This gave the employees a chance to misuse the liberty of taking decisions that western style invoked In the west, the pattern boss is a re in itiationful democrat. He sets the vision and strategy for the business but empowers subordinates to execute. He encourages two-way communication with his employees and allows bottom-up input in decision- reservation. In China, the ideal boss is a benevolent father. He is like a p arnt (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 caring for the personal welfare 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 focus on different set of customers east and western management (business cultures)is for 95% the same and differs in every important aspect. - Takeo Fujisawa (Honda) Kitchen best mostly focused on Asian market but Henry focused on extending the business to western customers. Till then(prenominal) the company had no ex perience with directly 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 working 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 un honourable. Lack of control over decision making and financial 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 implemented 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 frequent auditing. Henrys cultural limitations Henry was born and brought up in Hong Kong, studied at U. S. Although he had experience in marketing of electric and electronic appliances, it was the first time for him to work with kitchen best.He was not so familiar 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 often a source of conflict than of synergy. cultural differences are nuicanse at best and often disaster Dr. Geert Hofstede Recommendations A strong form _or_ system of government for i nternal contro l and financial management has to be designed and implemented. 2 months a strong policy to mitigate financial risks, continually asses new risks and minimize operational distractions to achieve the key results established in a commissions strategic plan That should clearly and consistently maintain an internal control framework by developing a control policy and accompany procedures that establish a commitment to trim down risk of loss and preserving commission resources.This document should briefly explain 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 training a set of employees according to western business culture. Investigate and warn/ take disciplinary action Next one month Ignoring the ethical breach of employees could hold in 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 committee 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 company Trial implementation of the policy made and make amendments if necessary 2 months Implementing the designed poli cy for a period of two months and check for any loopholes, and make amendments if necessary. Managing the risk of fraud The uprightness is you cannot defeat internal fraudsters if you are unfamiliar as to where and how they play their game of deceit 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 hoot L Hayes Ethics management Keep the unique ethical climate of each market in mind when crafting your code of ethics to run into that it is relevant to the international arena Apply standards equally 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 prepared to turn down opportunities in markets with unfavorable ethical climates. Make company-wide ethics training a regular activity, in amplification to administering comprehensive ethics training programs for new hires. Use training sessions to highlight actual areas of concern in your organization, citing specific examples as often as possible. References diary of Academic and Business Ethics International Business Ethics International Business Ethics Institute Top Ten Mistakes References http//www. f5ac. org/item. asp? id=3340 first quintette 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. html http//www. copedia. com/internal_controls. html http//smallbusiness. chron. com/cultural-communication-barriers-workplace-13888. html