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Kitchen Best In China

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op yo KITCHEN BEST: ETHICS WHEN DOING CROSSBOUNDARY BUSINESS IN SOUTHERN CHINA
I believe you need to set big goals that challenge people to get big results.
- Henry Chan, chief executive, Kitchen Best

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Kitchen Best Appliance Co. Ltd was a home electrical appliances company based in Hong
Kong with its own manufacturing plant in Guangdong province. The company was founded by Hong Kong businessman Chan Dong-hwa. In 2008, Chan handed the reins to his son
Henry, who immediately set some ambitious targets for the business, aiming to double revenues over a four-year period. His plan suffered a setback in 2010 when a series of incidents revealed personal gains made at the expense …show more content…

In 2008, Hong Kong was the world’s third-largest exporter of food grinders, mixers and juicers.6 As competition intensified, especially from their Asian counterparts, many Hong Kong household electrical appliance manufacturers moved from mere original equipment manufacturing (ie, producing to the specifications of other companies) to original design manufacturing (ie, generating designs and carrying out manufacturing for other companies’ brands in order to provide more added value to their customers). Electrical appliance manufacturers also had to comply with the safety and environmental regulations of importing countries. The US and the EU had their own standards and requirements.

The Kitchen Appliances Industry

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The global kitchen appliances industry was forecasted to reach a volume of more than 900 million units and a value of US$154 billion by 2013, with cooking appliances expected to be one of the most lucrative segments, contributing 35.2% of total industry revenue.7 Increased market penetration in developing markets were expected to be strong drivers for industry growth, while the need for replacement, furnishing of new homes and trade-up for new features would continue to fuel developed markets.8 China was not only one of the world’s largest household appliance markets but also one of the biggest exporters. As global demand for household appliances persisted, China’s exports were expected to slow as competition
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