Title
Author(s)
The evolution and revolution of a rapid growth firm in Hong
Kong
Wong Mak,Yin-yuk, Vanessa.; 黃麥燕玉.
Citation
Issued Date
URL
Rights
1987
http://hdl.handle.net/10722/37431
The author retains all proprietary rights, (such as patent rights)
and the right to use in future works.
The E v o l u t i o n and
Revolution o f
a
R a p i d Growth F i r m
i n
Hong
Kong
supervised by
M r . Tam Kwok Wah, Simon
prepared by
Wong Mdk Y i n Y u k , V a n e s s a
September 1987
Acknowledgements
The a u t h o r w i s h e s t o
g r a t i t u d e t o a l l who
t h i s study possible -
express her deepest
have h e l p e d i n making
Thanks e s p e c i a l l y t o
M r . Simon Tam
f o r h i s invaluable
a d v i c e and c r i t i c a l
comments t h r o u g h o u t t h e
course of t h i s research;
M r . H a r r y Wong
f o r h i s generous
permission i n providing
t h e c a s e m a t e r i a l and
unveiling his
entrepreneurial
philosophy;
M r s . B e t t y Lam
for her enthusiasm
and c o o p e r a t i o n i n
structuring the
history;
M r . James Wong
for h i s revelation
of the c u r r e n t
company affairs and
ambition;
M r . C h a r l e s Cheng
for h i s informative
plant tour and
participation in the
interview;
Mr. Barry W i l l
for his stimulating
intellectual discussions
M r . P . P . Yu
f o r h i s assistance i n
preparing the g r a p h i c s ;
M i s s C a r i s a Wong
f o r her accurate typing•
L a s t b u t n o t least, m y h u s b a n d O n Y u f o r h i s
p a t i e n c e and c o n t i n u o u s s u p p o r t s i n c e t h e
c o m m e n c e m e n t of t h i s p r o j e c t •
Foreword
I t h a s b e e n an i n t e r e s t i n g e x p e r i e n c e r e a d i n g t h r o u g h V a n e s s a ' s
a r t i c l e r e g a r d i n g t h e growth p r o c e s s o f Winner Food P r o d u c t s L t d .
Since childhoodr
工 h a v e b e e n an i n q u i s i t i v e p e r s o n ； a l w a y s
i n t e r e s t e d i n new i n n o v a t i o n s •
工 h a v e p r i d e m y s e l f on my a b i l i t y
t o s m e l l o u t new b u s i n e s s o p p o r t u n i t i e s and 工 am a l w a y s a n x i o u s
t o p u t t h e s e new c o n c e p t s i n t o b u s i n e s s r e a l i t y .
The s p i r i t o f new i n n o v a t i o n h a s b e e n t h e d r i v i n g f o r c e p u s h i n g
Winner F o o d t h r o u g h s t a g e s o f r a p i d g r o w t h .
However,
I
am
c o n s i s t a n t l y t o r m e n t e d b y t h e f a c t t h a t t h e company d o e s n o t h a v e
t h e n e c e s s a r y o r g a n i z a t i o n and r e s o u r c e s t o s u p p o r t i t s
growth
potential.
A t many p o i n t s i n t i m e ,
工 have been f o r c e d t o s i t
down t o r a t i o n a l i z e
and c o n s o l i d a t e b o t h t h e b u s i n e s s a n d t h e
o r g a n i z a t i o n u n t i l we f o u n d s t r e n g t h t o p u s h f o r w a r d a g a i n .
Each s t a g e o f e v o l u t i o n has been a p a i n s t a k i n g p r o c e s s i n v o l v i n g
d e c i s i o n b y t r i a l and e r r o r u n t i l we f o u n d s o l i d g r o u n d
from
w h i c h we c a n l a u n c h new p r o j e c t s .
V a n e s s a h a s summarized my l e a r n i n g p r o c e s s and h a s i n j e c t e d many
v a l u a b l e comments a s t o how t h i s c a n be done more s y s t e m a t i c a l l y •
One
last w o r d
of
advicef
t h e g r o w t h of a n o r g a n i z a t i o n
n e c e s s i t a t e the i m p l e m e n t a t i o n of r u l e s and p r o c e d u r e s .
But o n e
must
never
allow corporate bureaucracy
to
override
its
e n t r e p r e n e u r i a l s p i r i t b e c a u s e t h i s s p i r i t is the r e a l d r i v i n g
force b e h i n d all s u c c e s s f u l b u s i n e s s .
W i n n e r Food P r o d u c t s L i m i t e d
Managing Director
Harry H.H. Wong
September 1987
Contents
Page
T h e Theme
1
1.1
O b j e c t i v e a n d Impetus
1.2
An A p p r a i s a l i n t h e R e l a t e d L i t e r a t u r e
1.2.1
《
1.2.2
Organization Creation
(a)
E n t r e p r e n e u r i a l Approach
(b)
E c o l o g i c a l Approach
(c)
Behavioral Approach
Organization
Development :
The Stage Concept
1.2.3
Rapid Growth Explanation :
The Cognitive Transformation Hypothesis
1.3
Research Intention
Methodology
2•1
Qualitative Longitudinal Survey
2•2
Selecting the Winner
2.3
The Approach
2.4
L a y o u t of S t u d y
The Case History
3.1
F o u n d e r1 s P r e - f o r m a t i o n :
3.2
T h e Spring of Enterprise
3.3
T h e Instant N o o d l e
3.4
The Good Old Days
3.5
The Inventive Firm
3,6
Solid C a s h B a s e
28
35
3.7
Vecorn O i l
3.8
Overseas Venture
3.9
F a s t Food O u t l e t s
Page
3.10
Bean S p r o u t a n d Bean C u r d M a n u f a c t u r i n g
3.11
F i r s t Step i n China
3•12
Gradual Shaping
3.13
Nuts
3•14
Further Acquisitions
t
3 . E x t e r n a l and Internal Crises
3.16
Systematic T r a n s f o r m a t i o n
3.17
E s t a b l i s h m e n t of O w n Plant
3 .18
Frozen/Chilled Food
3 • 19
Planning for Succession
3.20
Beverages
3.21
Harvesting Mature Product
3.22
R e - e n t e r i n g the C h i n a M a r k e t
3•23
Towards Maturity
Systemmatic Analysis - Conceptualization b y
81
Deduction
4.1
Learning Block 1 : Organization which possesses
distinct intrinsic
entrepreneurial qualities has
b e t t e r c h a n c e of s u c c e s s i n
getting-off the ground•
4,1.1
Organization Mission : Entrepreneurial Drive
4.1.2
Production Aspect
: Intellectual Knowledge
Page
4.1.3
F i n a n c i a l Aspect
: F i n a n c i a l Supports
and F o r e s i g h t
4.1*4
Innovation Aspect
: Creative Imagination
4.1.5
Organization Aspect
: L e a d e r s h i p and
Management
4.1.6
4.2
Marketing Aspect
: I n t u i t i v e Awareness
L e a r n i n g B l o c k 2 : The s u c c e s s o f an o r g a n i z a t i o n
*
depends o n t h e r e c e p t i v i t y o f
i t s products/services i n i t s
contextual environment.
4.3
Learning Block 3 : Organization can achieve r a p i d
g r o w t h i f i t manages t o r e a l i z e
a n d i m p l e m e n t one o f t h e
1
formulae“ t o business success .
Organization tends t o repeat
t h e same
1
formula *i n
subsequent growth because o f
organization learning.
4.4
L e a r n i n g B l o c k 4 : R a p i d o r g a n i z a t i o n a l growth w i l l
s t r a i n organization existing
structure. This together with
increasing severity i n
competition w i l l i n i t i a t e the
organizational transformation
process•
Page
5•0
Conclusion
5.1
S u m m a r y of F i n d i n g s f
A p p r o a c h and F u r t h e r
5•2
the Four Season Cycle
Learnings .
Research Achievements r Limitation and Implication
for Future Research.
6.0
124
References
1•0
The Theme
1•1
O b j e c t i v e and I m p e t u s
This
study
aspect
aims to unfold one
of b u s i n e s s .
starting
very
important
It a t t e m p t s to p r o v i d e
a
p o i n t for c o n c e p t u a l i z i n g t h e -creation
and e a r l y d e v e l o p m e n t a l p r o c e s s e s of
successful
organizations .
*
^
Inspiration
to
carry
out
w o r k of the
such
a
study
Chinese
has
stemmed
from
Management
Research
C e n t r e i n t h e D e p a r t m e n t of M a n a g e m e n t
Studies, U n i v e r s i t y of H o n g K o n g . T h i s c e n t r e is
set
up
to
seek
comparative
Overseas
understanding
context,
the
of,
way
a s w e l l as M a i n l a n d
of
a
Chinese
conduct
business and management activities•
major
in
their
O n e of t h e
a r e a s of e x p l o r a t i o n c o n c e r n s t h e p r o b l e m
growth in firms owned b y Hong
(Redding & T a m f
Kong
Chinese
1 9 8 5 ) . T h e i m p o r t a n c e of s u c h a
research question could best b e seen against the
following
experience
expansion
has
of
observation.
in t h e W e s t
of
and
Contrary
Japan.
to
Tremendous
economic activities in Hong
not b e e n accompanied b y growth i n the
firms•
In
the past 3 decades
or
the
so,
Kong
size
the
a v e r a g e s i z e of m a n u f a c t u r i n g f i r m s i n H o n g K o n g
has c o n s i s t a n t l y s h r u n k .
The a v e r a g e s i z e o f
m a n u f a c t u r i n g f i r m was 3 4 ,
a
i n 1949, b y 1985, i t
was 1 4 .
T h i s o b s e r v a t i o n o p e n s up t r e m e n d o u s t h e o r e t i c a l
as
w e l l as p r a c t i c a l i m p l i c a t i o n .
the
last
the
principle
alternative
vastly
(Ouchi,
1982) .
alternative
with
different
Could
organizing
from
there
the
be
a
a s w e l l ? What a c t u a l l y
development
firms?
process
of
like
a
that
programme
triggered
to
Chinese
grow?
I t was
these
Chinese
overseas
what c a u s e s t h e r e f i r m t o
West
happens
causes these f i r m s t o s h r i n k ?
of
i n
decade has i n d i c a t e d t h e e x i s t e n c e o f
Japanese
the
Research
What
questions
huge
research
now l a b e l l e d a s " G r o w t h S t r a t e g i e s
C h i n e s e F i r m s " --一 o f w h i c h t h i s s t u d y
i s a
part •
In
t h e s m a l l b u s i n e s s e c o n o m yf
distinct
categories :
marginal
s u r v i v o r a n d t h e w i n n e r that is
apace•
the
t h e r e are t h r e e
born
f a i l u r ef
b u l k of t h e e c o n o m i c b u s i n e s s
There
is
great
going
T h e first two categories constitute the
great
have
the
a
unit•
c e r t a i n l y n o l a c k of p e o p l e e a g e r
b u s i n e s s of t h e i r own*
number
of b u s i n e s s is
Every
year
(1)
to
a
registered. But
total failures o r partial failures are numerous•
Some
firms
vitality
fail
to
significant
with
the
balance
the
quickly,
sustain
period.
growth
lacking
themselves
Others
factor
for
a r e mere
missing.
o f s u r v i v o r s crowd t h e
economy f
sufficient
any
starters
The
large
undergrowth
individually contributing
of
little
towards i t s o v e r a l l enrichment•
Despite the high infant
stunted
static
developments within
business
scene,
on
creation,
the
developmental
successful
Kong
shown
than
t h a t lead
and
to
early
dynamic
within the Hong
been
(2), r e s e a r c h e r s xnore o f t e n
concentrate on
distinct
local
Although some interest has
in t h i s a r e a
often
organization
business operations
multi-national
a
the
many
there are few in-depth studies
processes
context.
not
m o r t a l i t y a n d the
the
conglomerates
more
and
glamourous
there
is
l a c k of a n a l y t i c a l s t u d i e s o n
heroic
beginnings
of
the
Hong
Kong
businesses•
A n Appraisal o n the Related Literature
Researchers
restrict
they
o n organization development tend to
their vision to two
either
organisation,
separate
focus on the c r e a t i o n
(based
on
one
of
fields；
process
the
of
three
approaches
to
be
described
below)
or
they
i n d u l g e themselves i n the a n a l y s i s o f the growth
process
symbolized
by
the
various
stage
concepts.
1.2.1
Organization Creation
Research
theorizing
“
on t h e concept
of
s u c c e s s f u l o r g a n i z a t i o n c r e a t i o n can
usefully
classified
approaches :
into
be
three
(a) e n t r e p r e n e u r i a l f
ecologicalf
a n d (c) b e h a v i o r a l .
(b)
These
approaches f o c u s on d i f f e r e n t a s p e c t s o f
the c r e a t i o n o f organizations,
different
usually
Each
levels
of
work
at
analysis,
and
employ d i f f e r e n t m e t h o d o l o g i e s .
approach
has
its
own
distinct
s t r e n g t h s and weaknesses.
a•
Entrepreneurial Approach
The
entrepreneurial
focuses
the
approach
on the characteristics
individuals
who
founded
built
u p the business empire
small
beginnings.
its
purest
form
of
and
from
Entreprise
is
a
in
highly
individual
quality
because
new.
small-scale
enterprise is so
much
t h e p r o d u c t o f p e r s o n a l thought and
effort•
The entrepreneur has been f
and c o n t i n u e s t o b e , the p r e v a i l i n g
subject
in
the
literature
folklore
o n organization
and i n n o v a t i o n .
described
a
creation
Many writers have
entrepreneurs as forming
heterogeneous
individuals
collection
that
scientific
the
inventor w h o creates
a
as w e l l
the self-made m a n w h o possesses
special
resources,
special
abilities and perhaps some
to
of
include
n e w product o r technology,
as
and
start
a
French
new
capital
business.
economist
The
J.B.
Say
generalized
and
defined
the
entrepreneur
as
"somebody
who
s h i f t s e c o n o m i c r e s o u r c e s o u t of a n
area
of
higher
lower
into
productivity
yield".
(3)
an
area
and
of
greater
The entrepreneur
has
also b e e n characterized as a profit
maximizerf
as a n agent of
change,.
and
as a lone wolf w h o triggers
new
wave
of
innovations•
a
This
intriguing
studied
individual
from
points
a
has
variety
been
of
view
such as, h i s p e r s o n a l i t y
c h a r a c t e r i s t i c s ( M c C l e l l a n d (1965))
(4) a n d u n i q u e n e s s i n c o n t r a s t w i t h
other
managers
Litzinger
(Howell
(1965)).
“ (1972)f
(5)
(6)
The
entrepreneur has been c h a r a c t e r i z e d
as
having
a
achievement f
make
need
decisions
of uncertainty (Filleyf
(1976》）.（7)
Unfortunately r
research
distinctive
traits,
personalities,
the
expertisep
and
has
has
produced little empircial
a
on
biographies,
of e n t r e p r e n e u r s
inconclusive
to
to
under
House, and K e r r ,
images
for
and as b e i n g a b l e
effective
conditions
high
and
been
thus
evidence
substantiate their existence as
c l a s s of
individuals
different
f r o m o t h e r s . P e o p l e of a l l k i n d s o f
temperaments
and
backgrounds
apparently d o equally well.
consequence, a
creation
theory
As
on
of o r g a n i z a t i o n s that
a
the
is
based
on
this
quasi-mythical
p r o f i l e w o u l d seem t o b e b u i l t o n a
p r e c a r i o u s assumption.
E c o l o g i c a l Approach
The
e c o l o g i c a l approach i s a
recent
view
on
organizations
the
and
(1969) r
linked
perspectives
between
its
creation
and i s
ecology
relation
the
more
an
of
with
on
the
organization
environment
《Campbell
H a n n a n and F r e e m a n (1978) f
Aldrich ( 1 9 7 9 ) ) . 《 8 ) (9)《10》 This
approach
t a k e s the o r g a n i z a t i o n a s
a unit of analysis and examines the
structural,
economic
political,
and
socio-
technological
conditions
in the environment that
give
to
rise
dissolution
of
the
creation
various
organizations.
ecological
important
approach
environmental
conducive
forms
While
insights
to
of
the
provides
on
conditions that
the
and
creation
the
are
of
organizationsr it probably does not
give
useful
advice
to
those
i n t e r e s t e d i n k n o w i n g how t o c r e a t e
organizations.
ecological
Indeed,
perspective
the
emphasizes
t h a t i t i s the environment
not
the
motive,
behavior
i s
and
decision,
of individuals
the
driving
determines
“
that
force
whether
or
that
or
not
o r g a n i z a t i o n s c o u l d be s u c c e s s f u l l y
created.
Some
characteristics
constrain
environmental
do,
of
and
course,
facilitate
o r g a n i z a t i o n b i r t h s and growths b u t
so
also
do
human
motives,
d e c i s i o n s , and b e h a v i o r .
B e h a v i o r a l Approach
The
b e h a v i o r a l a p p r o a c h owes
much
o f i t s l e a r n i n g from the h i s t o r y o f
research
on
leadership.
Recent
research
into
leadership
apparently
made m a j o r p r o g r e s s
has
by
f o c u s i n g on the behavior o f l e a d e r s
( t h a t i s o n what t h e y d o i n s t e a d o f
what
what
they are)
and b y
situational
conditions
that
determining
factors
moderate
or
the
effects
of
their
performance
approach
behavior
(11) .
and
The b e h a v i o r a l
takes
an
applied
managerial view by arguing t h a t the
conditions
under
organization
i s
processes
born
have
consequences
behavioral
i n
later
approach
describe
and
consequences
of
initial
important
to
the
series
decisions
that
and
The
explain
strategic
activites
life.
attempts
the
an
the
on i t s s t r u c t u r e
performance
human
and
followed i n i t s
development
eventsr
which
occur
of
and
when
organizations are created.
Organization
Development
-
The S t a g e
Concept
Central
to
behavioral
organizational
periods
stage
used
studies
creation are
to define
the
the
of
time
creation
o f o r g a n i z a t i o n s a n d t h e way o n e
conceptualizes t h e processes t h a t go on
during
and a f t e r t h e
Authorities
such
creation
as A l f r e d
stage.
Chandler
f
Bruce S c o t t and John C h i l d ,
(14)
(12)
have a l l advanced the concept
organizational
number
of
stages
link
development
distinct
the
organization
stages•
its
complexity.
cycle
(15)
The
of
early"
product
an
simple
scale
corporate
theory proposed b y James
which
a
These
progression
from
of
through
s t a t e to a m a t u r e s t a t e of l a r g e
and
{13}
is c l o s e l y a l l i e d
life
(1973)
to
the
l i f e c y c l e c u r v e i s o n e of t h e
concepts
that reinforces most
the stage concept.
analysing
H e a r g u e s that
company1s
a
solidly
by-
progression
through its emergence, growth, maturity
and d e c l i n e o r r e g e n e r a t i o n p h a s e s r o n e
can
get
a n insight into
a
company1s
pattern of evolution and to some extent
the
company1s
position
in
its
life
cycle.
The
stage
concept
has
, in
generalP
received w i d e recognition in management
literature.
S t u d i e s b y m a n y t h e o r i s t sP
like
(1949),
Fayol
(1955) ,
Newman and
Logan
C a n n o n (1968) , D r u c k e r (1969),
Steinmetz
(1969),
10
Thain
(1969),
Stanworth
have
all
and C u r r a n
{1976} e t c .
pin-pointed i n
one
another
parameters
hierarchy
level,
entrepreneurial
demarcate
stages•
way
or
such
as
delegation,
role
the
(16)
etc.
different
which
identified
A l t e r n a t i v e l y , B u c h e l e (1967)
(17) and G r e i n e r (1972) (18} a d o p t e d
crisis
approach
depiction
of
identifying
and
suggested
stages
the
of
a
the
growth
by
evolution
and
revolution periods in organizations•
Buchele adopts a key crisis approach to
the
growth
seven
of
major
firms
crisis
starting
crisis,
delegation
crisis,
finance crisis,
the
of
identifies
points
:
cash
the
crisis,
leadership crisis,
prosperity crisis
management
(which,
and
c o u r s ef
succession
and
crisis
c a n o c c u r at
any
time).
Greiner on the other hand distinguishes
five
p h a s e s of s e q u e n t i a l d e v e l o p m e n t ,
each
of
which contains
a
relatively
c a l m p e r i o d of g r o w t h that e n d s w i t h
11
a
management
crisis•
He
f i v e p h a s e s of g r o w t h a s
hypothersizes
:
creativity,
direction, delegation, coordination and
collaboration and the associated crises
are :
red
leadership,
tape
sequence,
'?1.
and
organizations
autonomy,
grow
each
He
control,
argues
through
that
defined
phase is characterized
b y d e f i n i t e s t y l e of m a n a g e m e n t and h i s
model
stresses
practices
such
as
the
management
o r g a n i z a t i o n s t r u c t u r ef
style,
control
reward emphasis.
12
organization
focus,
top management
s y s t e m and
management
m e r 1 s F i v e Phases o f Growth
PHASE
PHASE
PHASE
PHASE
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U〇T-Pdz-Hup6:r0
PHASE
Crisis
of?
Evolution stages
Revolution stages
: C r i s i s of
RED TAPE
3: C r i s i s of
CONTROL
I ： Crisis of
AUTONOMY
C r i s i s of.
LEADERSHIP,
i; Growth
through
C0LLAB0RATIC8S[
4: Growth through
COORDINATION
3: G r o w t h t h r o u g h
DELEGATION
TTIcn
Growth t h r o u g h
DIRECTION
Growth t h r o u g h
CREATIVITY
Mature
Young
13
The
wide r a n g i n g s t u d i e s which i n v o l v e
different
parameter
categorising
the
sets
i n
discrete
and
d i f f e r e n t i a t e d s t a g e concepts o f growth
a l l
b o i l down t o a s i m i l a r o b s e r v a t i o n
which
i s
summarized
stated
a
perhaps
by
more
Lievegoed
vividly
(1973)
who
"an o r g a n i z a t i o n development i s
phenomenon
within
a
where
certain
growth
continues
structure
until
a
l i m i t i s r e a c h e d ; beyond t h i s l i m i t t h e
e x i s t i n g s t r u c t u r e c a n no l o n g e r impose
order
on
the
larger
mass;
the
consequence i s e i t h e r d i s i n t e g r a t i o n o r
a
step
up t o a
Lievegoed,
has
approach.
successive
He
:
Pioneer
Management
or
three
the
open
arguef that at
stage
subsystem dominates•
are
(19)
identified
of d e v e l o p m e n t u s i n g
system
each
level"•
i n h i s b o o k 'The D e v e l o p i n g
Organization1
stages
higher
a
different
The three stages
Phase,
Scientific
Differentiation
Phase,
and I n t e g r a t i v e P h a s e .
The
dominant subsystem in the
phase
pioneer
is t h e e n t r e p r e n e u r h i m s e l f
14
who
creates
a maneuverable
organization
so
the
bring
integration.
The
o f t h i s phase a r e reached
when
enterprise
where
efficient
l o n g a s he c a n
about the necessary
limits
and
has
grown t o
t h e e n t r e p r e n e u r does
everyone
within
personally,
the
where
a
riot
know
organization
the
market
e x p a n d e d t o a p o i n t where more
management
size
has
complex
t e c h n i q u e s and t e c h n o l o g i e s
are required.
The
dominant
scientific
follows
i s
Scientific
subsystem
management
the
i n
the
phase
technical
that
subsystem.
management t e c h n i q u e s
mechanizationf
specialization
like
standardizationf
and
coordination
are
u t i l i s e d t o convert the s t r u c t u r e based
on
personal
based
relationships
on
a
logical
one
division
of
hierarchy
of
functions
involving
delegation
and c o n t r o l t h a t s e r v e s t h e
organizations
processes.
system.
a
into
required
by
technical
T h e man i s r e p l a c e d b y t h e
The l i m i t o f t h i s second phase
reached
when t h e n e g l e c t
of
the
social
subsystem
manifests
through
d e c r e a s i n g employee m o t i v a t i o n
w h i c h s l o w s down t h e p r o g r e s s
itself
achieved
through t e c h n i c a l improvements.
Again
growth
unless
a
dominant
i s
new
no
longer ..possible
structure
subsystem
dominant
factor
community
of
i s
with
a
evolved.
now
The
becomes
people working
new
the
together
f o r t h e a c h i e v e m e n t o f a common g o a l ,
n e w
c o r p o r a t e c u l t u r e a n d a new
o f management i s c a l l e d f o r
on
directives
from
a
style
based, n o t
above
but,
on
s e t t i n g o b j e c t i v e s and m o n i t o r i n g t h e i r
performance,
Lievegoed's
clearly
a
phenomena f
three
stage
simplification
however,
i t
model
of
does
i s
complex
purport
intend t o capture the t y p i c a l path o f a
company u n d e r g o i n g g r o w t h ,
to
w i t h a view
providing insights i n t o the
nature
o f o r g a n i z a t i o n growth and development,
and
possibly
constitutes
a
tool
of
practical utility.
Indeed
the
16
stage concept
provides
a
c o n v e n i e n t way o f c o n c e i v i n g t i m e f r a m e
and
conceptualizing
historical
dimensions o f o r g a n i z a t i o n development•
Most
stage
viewed
same
concept
the
theorists
organization in
much
the
w a y a n d t h u s h a v e p u l l e d "together
the
strands
of
connections
and
the
structure.
stages
to
increasing
complexity.
during this
W h i l e it is w e l l a g r e e d ,
"the
Many
organization
technologies
that
from
of e v e r
strategies
procedures
that
beginnings
m a y occur i n the
it,
strategy
emphasize
structure,
puts
logical
grow
differentiation and
changes
growthr
They
undifferentiated
successive
various
between
organizations
an
have
and
even
development.
as Sofer
policies
{20)
and
a p p r o p r i a t e a t o n e s t a g e of
organization1s history
can
become
dramatically unsuited at another",
the
stage
the
concept
is
obscure
in
following aspects :
-
I t a s s u m e s that b u s i n e s s s t a r t s f r o m
undifferentiated beginnings ,
succeeds,
is
a n d if
inescapably
committed
to
critical
phases
growths
It
natural
living
through
(or
the
crises)
of
p e r c e i v e s growth as
p r o c e s s and does n o t r e a l l y
answer why b u s i n e s s c a n grow i n
f i r s t place.
一
The
concept
may
applicable.
stage (or
not
University
size.
universally
of
Hong
unveiled
on
have,
that
the
Chinese firm has shrunk
(Redding
& Tam,
1985)
Greiner1s
stage and crisis
therefore
m a y not b e applicable
the
in
Kong
Chinese business
example,
average
be
crisis》
O n going researches
traditional
for
the
“
progressive
the
a
in
(21)
concept
to
Chinese family business setting
where
direction
leadership
different
control
dominate
periods
and
and
throughout
autonomy,
c o o r d i n a t i o n r c o l l a b o r a t i o n etc• a r e
relatively inconspicious.
-
The
stage
concept also
implicitly
assumes that the primes phase has
shallow
form of
organization,
a
the
phase of scientific management has a
18
deep pyramid form w i t h t h e board
the
top,
and t h e i n t e g r a t i o n phase
has a c l o v e r l e a f o r g a n i z a t i o n
the
at
board
at
the
with
centre•
The
concept m a y have over simplified the
reality.
A c c o r d i n g t o Min-tzberg,
organization
may
configurations
adopt
depending
coordinating
mechanism
degree
of
various
on
its
and
its
specialization,
standization, •
formalization
and
c e n t r a l i z a t i o n . (22)
Rapid Growth Explanaton
- The Cognitive
Transformation Hypothesis
In
view
of
limitations
of
researchers
yield
aforementioned
current
literature,
a r e b e g i n n i n g t o s e a r c h for
alternative
One
the
theoretical
exploratory
lead
s o m e p r o m i s e is
investigation
by
Tam,
formulations.
which
seems
currently
His
to
under
research
a t t e m p t s to a d d r e s s t h e i s s u e s of
:
- W h y business enterprises could grow,
- G i v e n the g e n e r a l o b s e r v a t i o n that t h e
19
average s i z e o f Chinese e n t e r p r i s e s i n
Hong
Kong h a s
shrunk
y e a r by
year,
what a r e t h e u n d e r l y i n g c a u s e s o f t h i s
phenomenon.
face
What
p r o b l e m s do
i n t h e i r growth
accounts
process
f o r a developmental
drastically
different
they
which
pattern
from t h e
West
and J a p a n .
-Amid
size,
t h i s "general t r e n d o f
there
a r e a few
enterprises
which
dwindling
Chinese-owned
has
achieved
s p e c t a c u l a r growth and e x p a n s i o n .
this
minority
they
used
f
what s t r a t e g i e s
t o overcome t h e
tendencies•
have
shrinking
What strategies have they
developed to grow.
they
For
face in the
What problems
p r o c e s s of
do
growth.
In what ways are these firms different
from those that dwindles in size.
Having
framed
his
questions
in
such
m a n n e r . T a m t h e n p r o c e e d e d to a n a l y s e :
-The
firms
field
d e v e l o p m e n t a l e x p e r i e n c e of
in
many
Hong Kong through intensive
s t u d i e sP
interviews
consultancy projects etc.
20
and
"The
developmental experience o f
many
f i r m s o u t s i d e Hong Kong t h r o u g h
visits,
consultancy
documentary
field
work,
studies
of
and
company
history.
So f a r more t h a n t h r e e h u n d r e d c o m p a n i e s
have
been s t u d i e d ,
i n varying
details
r a n g i n g from l o n g i t u d i n a l r e s e a r c h which
last
for
more t h a n s i x y e a r s
documented
down
to
to
jounalistic
Japan,
Singapore
f
well
company h i s t o r y a l l t h e
Geographically
Tam
to
field
account.
work h a d
South
way
Korea,
carried
Taiwan,
E n g l a n d a n d Germany w i t h Hong
Kong a s t h e c e n t r a l r e f e r e n c e p o i n t .
This
wealth
permits
of information
different
formulations.
One
of
course
theoretical
such
formulation
a t t e m p t s t o e x p l a i n why f i r m s c o u l d grow
b i g r a p i d l y a n d s u c c e s s f u l l y . By p l a c i n g
developmental processes o f a l l the f i r m s
so
far
c o l l e c t e d s i d e by
sidef
there
emerged a common p a t t e r n .
"At
this
clear
stage o f
understanding,
p a t t e r n w h i c h marked t h o s e
21
the
which
Simon Tam's Cognitive Transformation Hypothesis
围
a)tnH-ps
JO
WKJJ
(
uo
d9M
、u〇l:cnua)4Jx9
Uo-H-Pf-P①
KEY TURNING POINT
Realisation of a
f o r m u l a and i t s
successful
implementation
Formula evolvement s t a g e
YEARS
. 0 ^ 0 ) 扣 tIQ)e<Dul:g:a)M
c o u l d t a k e — o f f and t h o s e w h i c h could n o t
is that w h e t h e r o r n o t i n the course
company
the
mind
development there exist
of t h e
leader
within
(usually
：
soNVWHOSHd
22
of
the
entrepreneur)
a cognitive transformative
experience.
T h i s experience leads
entrepreneur
approaching
reality
to
realise
o r e x p l o i t i n g the
which
implemented
i f
Such
arrived
at
after
a
setbacks•
At
lot
previous
suddenly
mental
gestalt
the
business
usually
period
of
search•
failures
of
by
and
cognitive
a l l the b i t s a n d p i e c e s
fall
enables
of
efforts
hand in formed.
i s
and
the moment
transformation f
of
untried
lengthy
learning
sometimes
business
T h i s a p p r o a c h i n most
experience
gestation,
of
subs-tantial
i s r a t h e r u n i q u e and
others.
way
successfully
promises
economic b e n e f i t .
cases
a
the
into
and
discoveries
place
about the
and
a
question
new
in
This n e w mental gestalt
person
to
perceive
the
reality in a unique manner and
t h u s p a v e t h e f o u n d a t i o n for t h e f i r m to
move
those
in
a plane beyond
the
reach
of
who conform to the business norms
of the d a y . T h i s r e a l i s a t i o n e n a b l e s t h e
entrepreneur
business
to
capitalise
c o n t e x t i n w h i c h the
23
on
firm
the
is
embedded,
competitors included.
unique
approach
implemented,
i s
I f the
successfully
the f i r m reaps s u b s t a n t i a l
e c o n o m i c b e n e f i t and t h e r e f o r e t h e
takes—off.
The
significant
reward
that
(at
learning
f o r the
firm
is
so'
e n t r e p r e n e u rf
is s o s u b s t a n t i a l f o r t h e
the
firm,
the subsequent history of the firm
l e a s t f o r the r a p i d g r o w t h
period)
could b e s e e n a s a s e r i e s o f a t t e m p t s t o
r e p e a t t h e o r i g i n a l f o r m u l a i n the
context o r
mental
in different
gestalt
consummation
comes
into
before•
contexts.
evolved
of
all
the
effort
that
the
It g e t s d e e p l y
applying
which
The
the
of
approach.
a
As
entrepreneur
and
external
result
of
When
this,
such
the
increasingly
confident
of
the
self-evolved
becomes
effectiveness
of
impetus
reconfirm
this
and
creativity.
of
formula provides
correctness
assured
anchored
r e w a r d d e r i v e d out
confirms
The
becomes
the m i n d a s a result
validation.
same
of
form
the business
the
of
reality
r e p e a t e d l y a c c e p t s , r e w a r d s and c o n f i r m s
24
the
form
profits
of
creativity
by
t h e growth p r o c e s s o f t h e
takes on a d e f i n a t e r o u t e .
variations
formula
unique
t o the
firm
Despite
i n manifestationf
Aggressive
the
handsome
the
firm
its
core
persists.
and r e p e a t e d a p p l i c a t i o n
core
formula
imprint
on
structure,
seems t o
company
also
of
leave
its
culture
setting
i n
and
train
a
s e r i e s o f management p r o b l e m s a n d i s s u e s
pertaining
1
growth.
Tarn's
to that particular
(Tam, 1987)
central
entrepreneur
realised
to
(23).
argument i s
i n
path
his
"Unless
business
a formula which
an
career
could
enable
him t o t a k e s u b s t a n t i a l advantage o f t h e
situation,
the
firm
w i l l not
achieve
r a p i d growth, c a t e r u s p a r i b u s " .
Research I n t e n t i o n
I f Tarn's argument s t a n d s ,
more
detailed
universe
of
particularly
i t c e r t a i n l y pays f o r
understanding o f
the
on
entrepreneurs
the
cognitive
p r o c e s s (the f o r m u l a r e a l i z a t i o n
t h i s i n mind,
the
cognitive
concernedf
transformation
point).
With
a d e t a i l e d q u a l i t a t i v e study on a
25
r a p i d - g r o w t h f i r m i n Hong Kong was l a u n c h e d w i t h
the
i n t e n t i o n o f r a t i o n a l i z i n g the 'magics1
organization
success
transformation•
structure
The
to
complementary
《 o f
aim
progressive
of t h i s s t u d y is
the somewhat scattered
researchers,
balanced
and
synthesis
approaches
effort
these
and t o
" highly
take
view point o n the relative
behavior
in
shaping
the
to
among
a
more
importance
environmental conditions vesus human
and
of
choice
structure
and
p r o c e s s e s of n e w o r g a n i z a t i o n s • N a m e l y :
-
To
acknowledge
and
entrepreneurial
creation
which
categorize
excellence
at
distinguishes the
the
business
business
from i t s c o m p e t i t o r s and e n s u r e s i t s u r v i v a l
in a competitive world.
when
T h i s is t h e
the business develops
1
sound
stage
business
practices'.
-
To
analyse
the ever
changing
environment
that e n h a n c e s o r r e t a r d s b u s i n e s s g r o w t h a n d
to
discuss
means
of
moderating
its
influences.
-
T o identify the business growth strategy and
to
depict
'the f o r m u l a 1 b e i n g e m p l o y e d
a t t a i n i n g i t s rapid； g r o w t h t r a j e c t o r y .
26
in
_
To
investigate
the
causes
t r a n s f o r m a t i o n and p o s s i b l y ,
the
stage
concept
with the
of
to
business
amalgamate
rapid
growth
hypothesis•
It
endeavours,
by
e x t e n d i n g and
merging
b o u n d a r i e s of t h e v a r i o u s e s t a b l i s h e d
to
theories,
i n c r e a s e the v i s i b i l i t y o f the r a p i d
trajectory
and
hence produce richer
the
growth
and
more
* c o m p r e h e n s i v e u n d e r s t a n d i n g o f the e v o l u t i o n and
r e v o l u t i o n p r o c e s s e s of s u c c e s s f u l o r g a n i z a t i o n .
27
2.0
Methodology
Q u a l i t a t i v e L o n g i t u d i n a l Survey
As
Cummings
cannot
i s
longitudinal analysis
organization
of
history‘
individual
l i k e l y t o e n r i c h our perspectives
organizations
^ interesting
and
lead
to
easier
theoretically
to
(24)
A g o o d measure o f g r o w t h
recognize
through
real
examples t h a n t o f o r m u l a t e i n a vaccuum.
there
on
conceptualizations of effectiveness
and i t s e t i o l o g y . '
i s
1
argued,
be u n d e r s t o o d a p a r t f r o m t h e i r
Intensive
cases
(1977) h a s
are
so
many v a r i a b l e s
to
life
Indeed
consider
i n
c o m p a r i n g one r a p i d g r o w i n g company w i t h a n o t h e r
that
i s
t h e m o s t s a t i s f a c t o r y method o f e v a l u a t i o n
often
company 1 s
a
vertical
progress
as
one f
i.e.
an
measuring
accomplishment
a
i n
itself .
A qualitative longitudinal
this
study
b e c a u s e i t i s more
cross-sectional
research.
be
to
the
comparative
dynamic
and
than
quantitative
T h i s i s not t o say that nothing i s t o
learned
only
survey i s adopted i n
from the l a t t e r k i n d
t h a t there are v e r y apparent
what c a n b e l e a r n e d .
comparative,
of
research,
limitations
I n v e r y broad
terms f
q u a n t i t a t i v e p a r a d i g m assumes
28
implicity
processes
effects
that
organizational
developmental
are either irrelevant o r
are
randomized
organizations•
out i n
that
a
their
sample
of
A g i v e n s a m p l e of o r g a n i z a t i o n s
is l i k e l y to i n c l u d e s o m e v e r y y o u n g o n e s ,
m i d d l e aged o n e s f
some
s o m e s e n i o r - c i t i z e n oties f and
some
elderly ones.
T o include them all in the
same
sample of organization implicitly
assumes
that t h o s e d i f f e r e n c e s a r e u n i m p o r t a n t f and s u c h
an assumption definitely does not seen
It
tenable.
is o b s e r v e d t h a t s o m e r e s e a r c h e r s h a v e
organizational
age
analyses.
this
applauded
possible
But
because
variable
procedure f
e f f e c t s of t i m e f
little
a
of its
wholly satisfactory.
very
as
used
in
while
recognition
their
to
of
does not seem to
be
the
be
Chronological age m a y have
to d o w i t h where
an
organization
i s g o i n g o r w h e r e it h a s b e e n . C a l e n d a r time a n d
organization time are not necessarily identical•
Another drawback to quantitative research is its
over
e m p h a s i s o n t h e i m p o r t a n c e of
and e m p i r i c a l e v i d e n c e ;
central
role
reproducibility
researchers
and
of
andr
objectivity
its proccupation on the
veriflability
and
hence f a tendency for
n o t to t r u s t t h e i r
own
intuitions
judgements b u t instead to rely o n the tools
of
s c i e n c e f o r e x p l a n a t i o n s o f t h e phenomena o f
interest
which
perspectives
place
often
on
negative
result
i n
organizations
ahistorical
and
generally
values on h i s t o r i c a l
analysis
and i n - d e p t h d e s c r i p t i v e c a s e s t u d i e s .
In
the
belief
studied
by
enterprising
investigate
that
enterprise
analysing
people,
the
i t
can
best
be
achievements
i s
of
proposed
to
t h e growth concept v i a a s o l i d c o r e
of q u a l i t a t i v e research i n t o the e a r l y
difficulties
and
triumphs o f a
history,
rapid
growth
company i n Hong K o n g .
S e l e c t i n g t h e Winner
The
Winner
《 求 i f ? 食 ^I
that
new
Food
喵 a
Products
d
)
Limited
has s p e c i a l
are considered e s s e n t i a l i n the
enterprise•
young,
but
The company is
has
passed
company
qualities
study
of
comparatively
through
the
early
vulnerable stage into reasonable security,
firm
is
still
evolving and expanding
s t i l l s t r o n g l y a f f e c t e d b y the i n i t i a l
It i s
is
impetus•
fresh enough and sufficiently advanced to
present
early
and
the
a s o u r c e of s i g n i f i c a n t f a c t s a b o u t t h e
stages of
successful
little or nothing,
30
they
enterprise *
have forced
From
their w a y
into
the
ranks
contributed
through
of
business.
something
new
to
They
the
economy,
e i t h e r a n e n t i r e l y new k i n d o f
or idea,
product,
better
have
product
o r i m p r o v e m e n t on an e x i s t i n g t y p e
the
way
problem.
development
o f a new
of selling a solution
They
have
perceived
market,
for
"an
created
a
demand
or
a
old
opportunities
where o t h e r s w o u l d h a v e s e e n o n l y o b s t a c l e s
《either
of
won
f
sales
and
from
strongly entrenched rivals.
2•3
The Approach
Because
author
of
can
the
v e r y important fact
only b e involved w i t h
that
the
the
subject
o r g a n i z a t i o n a t a c o u p l e of p a r t i c u l a r p o i n t s i n
time,
care
has b e e n taken to avoid considering
the organization context as a g i v e n quantity• It
is
well established that in every organization,
there
is a r i c h f a b r i c of
normsf
values,
m y t h s that h e l p t o s h a p e a n d d e t e r m i n e
in
the
been
ideas
organization•
focused
and
developed,
development
structure,
Attention has
o n the questions of
structures
and
may
what
and
on the
31
from,
behavior
therefore
where
these
how
they
implication etiology
have for
process
strong emphasis
came
and
present
and
growth.
There
behavioral
view
and
future
is
a
which
incorporates
individual
the entrepreneurial focus
founder,
behaviour
than
ecological
c e n t r e s more on
his
traits)
by
decisions,
firm,
and
new
town office
with
the
personnel.
The
have
also
been
not only to see production and service
action,
but
a l s o t o f e e l the p u l s e of
which is a n indicator of the
management.
elicit
alternative
talks lengthy discussions
the
of
the
The study is based o n visits to
factory
business,
the
activities i n creating
and other company
visited,
on
identifying
entrepreneur
in
and
c o n d i t i o n s t h a t may q u a l i t a t i v e l y
organizations•
the
the
and i n f l u e n c e t h e s u c c e s s o f
events,
^
his
perspective
environmental
shape
on
(but
on
Interviews
were
quality
designed
to
and d e m o n s t r a t e t h e d o m i n a n t f e a t u r e s i n
e a r l y g r o w t h and t h e u n o x t h o d o x w a y s a d o p t e d
exploit opportunities a s they arose.
the
the
research,
generous
to
Throughout
I r e c e i v e d a p a t i e n t h e a r i n g and
cooperation
from
heads
revelations
of i d e a l s and p h i l o s o p h y b e h i n d t h e
course
of p r a c t i c e ,
of
lessons
were
the
Of
venture,
value
of
business.
business
particular
the
learnt
a n d of o r i g i n a l
the
in
ideas
the
on
management and service.
It i s w e l l u n d e r s t o o d t h a t r e s e a r c h that
32
relies
on
data
collection
participants
from
runs the r i s k o f
organizational
personalization,
A s i n g l e time s l i c e p a r t i c i p a t i o n ,
that
some
informants
relatively
temporary
organization l i m i t s ,
responses
are
《life
and t h e f a c t
themselves have
affiliation
only
with
i n some ways r
interpret
People
organizational
and e v e n t s i n a t r u n c a t e d f a s h i o n .
whenever
possible,
the
the-kind of
t h a t are l i k e l y t o be given.
bound t o s e e a n d
a
cross
Thus,
checking
on
perspectives
of o r g a n i z a t i o n m e m b e r s
has
been
deliberately
carried out to observe issues from
different perspectives.
2.4
L a y o u t of S t u d y
The model developed i n this study to explain the
creation
and
rapid
growth
processes
of
s u c c e s s f u l o r g a n i z a t i o n is a c t u a l l y d e r i v e d f r o m
a
repetitive
consolidation
inferences
recourse
of
and
to
and
reciprocative
thoughts
conclusions
this
made
vigorous literature
a n a l y s i s of c a s e s t u d i e s •
of
and
studyr
the
base
findings
only
of
with
after
searches
and
Having stated the aim
relevant
associated
l i t e r a t u r e and t h e m e t h o d o l o g y e m p l o y e d i n d o i n g
the
research,
it
33
is
proposed
in
the
next
c h a p t e r , t o r e v i e w t h e twenty y e a r s c a s e h i s t o r y
o f t h e W i n n e r F o o d P r o d u c t s L i m i t e d Company. T h e
various
aspects o f creation,
r a p i d growth
and
e a r l y developmental processes o f t h i s s u c c e s s f u l
organization
will
t h e n be a n a l y s e d i n
detail
and w i l l b e c o n c e p t u a l i z e d b y means o f aj- m o d e l .
A
summary
covering
major
issues
presented i n the concluding chapter
•
some
broad
guidelines
and
management and future research•
34
f
will
be
followed by
implications
for
3.0
The Case H i s t o r y
3•1
Founder1 s Pre-Formation Exposure
Winner
Food Products Limited is one of the rare
cases of individual effort being sponsored b y
textile
industrialist.
Xiamen
and
practitioner.
Saint
is
the
Harry
son
of
a
and
started
his
born
medical
studied C h e m i s t r y at
John's U n i v e r s i t y of Shanghai*
after his graduation,
the
(土 ；，虞钱•^孟）was
Company, M r . H a r r y Wong
in
F o u n d e r …of
The
a
the
Shortly
h e returned to H o n g
career
at
Amoy
Kong
Industries
(International) Limited which, at that time, w a s
one
of the b i g g e s t food
fresh
have
graduate,
been
various
given
manufacturers.
As
H a r r y was fortunate enough
the opportunity
departments•
It
was
to
interest
and
experience
in
such
nourishing environment that H a r r y developed
strong
to
work
under
a
a
his
in
food
processing and the associated technology•
After 8 years of heterogeneous training at A m o y ,
Harry
moved b a c k to chemistry and joined
Carbide
manager,
selling
in
Asia
Limited.
Harry
was
Acting
given
as
Union
marketing
exposure
to
U.S.
techniques w h i c h added to h i s k n o w l e d g e
marketing.
Harry
did
not
stay
in
the
chemistry field for v e r y long and 3 y e a r s later'
35
because
of
his
processing,
innate
Harry
attraction
to
food
r e t u r n e d t o Amoy a n d
spent
most o f h i s t i m e a n d e f f o r t i n r e s e a r c h •
Despite his hard work and
ingeneous
innovative
Harry1s
devotedness f
capability
was
never
d i s c o v e r e d in h i s l o n g s e r v i c e s w i t h A m o y .
though
he
w a s i n v o l v e d at
the
policy
Even
making
l e v e l of m a n a g e m e n t and h a d a n i m p o r t a n t r o l e t o
S p l a y , t h e c o m p a n y w a s c o n t r o l l e d b y a b o a r d , and
policy matters were based o n corporate decisions
rather
than
talented
o n t h e r e s p o n s i b i l i t y of a
personality.
Team
effort
c o m p r o m i s e as w e l l a s c o o p e r a t i o n .
single
required
During
his
second stay in Amoy, a number of power struggles
occured
and t h e s e l e d t o u n u s u a l h a n d i c a p s
frustrations.
had
Disappointed that his advancement
not kept pace w i t h his contribution to
company,
close
Harry
in
the
the
r e s i g n e d and w a s i n v i t e d b y h i s
f r i e n d and c l a s s m a t e to w o r k
manager
and
famous
Shui
as
Hing
general
Department
Store.
Harry
spent 5 years i n Shui Hing,
visions
b a c k t o w a r d s m a r k e t i n g and
I n h i s c o u r s e of w o r k ,
all
the
shifting h i s
Harry was able to
marketing essence such
behaviour,
pricingr
36
management•
as
packaging,
grasp
consumer's
promotion,
advertising,
lucky
m e r c h a n d i z i n g and t h e l i k e and was
enough
t o have t r i e d o u t
his
marketing
philosophy i n a s e r i e s o f expansion
Harrys
programmes.
s u c c e s s i n S h u i K i n g b r o u g h t him a good
income and a p r i m e p o s i t i o n •
at that time f
H i s only a m b i t i o n
according to Harry,
w a s to
make
Shui H i n g better to m a k e himself better.
Harry
had never imagined that h i s
and
expertise
heterogeneous
in
food
exposure
in
technology,
business
aggressive
marketing
constantly
watched and appraised^
H a r r y 1 s happy,
intelligence
achievements
his
and
his
were
being
Before long,
comfortable and u n a m b i t i o n s life
in Shui Hing w a s agitated b y circumstances.
His
dear
Hin
(
old
^
who
friend
J： # 1f
1
Mr.
)an
Chou
established
Man
industrialist
h a d observed h i m for over ten y e a r s finally
approached h i m and initiated discussions on
the
possibility
Mr,
Chou
of a joint venture
reckoned
potential
that
there
business.
would
be
in the food industry which,
m o m e n t was rather b a c k w a r d .
great
at
D e s p i t e M r . Chou f s
great enthusiasm and joint venture offer,
turned
down
employment
the
proposal
because
stability and enduring
w i t h the owner of Shui H i n g ,
37
that
of
Harry
his
relationship
3•2
T h e S p r i n g of E n t e r p r i s e
H a r r y1 s
refusal did not discourage
e x p e c t a t i o n s of h i m .
Department
O n e y e a r later,
changed
hands.
Shui Hing
The
event
the second h a l f of H a r r y f s l i f e as
changed
Chou
Store
Chou1s
Mr.
called
and
re-offered
his
Mr.
proposition.
H a r r y w h o felt c o m p e t e n t that h e could start the
kind
of b u s i n e s s for w h i c h h e w a s q u a l i f i e d
《background,
security
experience
of
and
abiliyf
t h e b i g f i r m to
left
exploit
his
by
the
own
i d e a s at the age of 45.
It
w a s 1968,
s h o r t l y a f t e r the H o n g K o n g riot,
w h e n H a r r y agreed o n t h e p a r t n e r s h i p
when
the
ways
most
remained
intentions
o u t l o o k for n e w v e n t u r e w a s
unpromissing.
inhabitive
there
time
in
many
conditions
were
general
for the i n d u s t r i a l i s t t o p u m p
o u t of the C o l o n y .
The original
objective
the p a r t n e r s h i p v e n t u r e w a s to u t i l i s e
Kong
as
money
T h e business was focused o n
e x p o r t f r o m the start•
of
and
Economic
a
a b a s e to e x p l o r e f r e s h s c o p e in
Hong
food
p r o c e s s i n g and to i n d u s t r i a l i z e C h i n e s e food for
overseas production.
20-80
basis with Mr.
T h e joint v e n t u r e w a s o n a
Chou acting as
and m a jority s h a r e h o l d e r .
financier
Harry was given his
e q u i v a l e n t s a l a r y that h e last r e c e i v e d i n
Hing
plus
an
incentive bonus of
38
20%
on
Shui
net
annual
profit.
The
payout
capital
was
HK$500r000.00 w i t h a n o t h e r
guaranteed 2 m i l l i o n
cash
back
facilities
calculated
profit
1
on
at
the
zero c a p i t a l
Profit
base1
(i.e.
after prevailing interest) i n
was
net
order
to
demonstrate the a c t u a l e x e c u t i v e e f f o r t .
was
mutual
should
《ground
be
u n d e r s t a n d i n g t h a t t h e new
given
and
Mr.
enough t i m e t o
Chou
expected
get
no
venture
off
return
i n v e s t m e n t for the f i r s t t w o y e a r s w h i c h
a
little
bit of H a r r y r s t e n s i o n in
the
his
on
lifted
first
plunge•
19 6 8 W i n n e r F o o d P r o d u c t s L i m i t e d O w n e r s h i p S i t u a t i o n
80%
Chou' M a n
20%
Harry
Wong
+ 20% p r o f i t
sharing.
salary
HK$2 million cash back u p from Chou M a n H i n
39
The
new v e n t u r e s t a r t e d a s a d e p a r t m e n t o f
Chou s p r i v a t e company•
Mr.
H a r r y set u p a r e s e a r c h
l a b o r a t o r y at the k i t c h e n of the t e x t i l e f a c t o r y
canteen
memu
as
a m e a n s of d e v e l o p i n g
He
recruited
a chef
frozen
with whom he
a c q u a i n t e d from h i s d a y s in A m o y and a
was
research
staffer w h o w a s h i s i m m e d i a t e a s s i s t a n t in
Hing.
food
Shui
H e r e w a s the b e g i n n i n g of h i s i n n o v a t i v e
team.
The
cost
this
of r e s e a r c h p o s e d s e v e r e
small
first
science-based
one
showed
or
profit
absorbed resources.
not
business,
two months,
neither
strains
the
nor
new
growth.
For
imagination
creative,
thinking,
It
Being
a man
began
of
tremendous
and
to e x p l o i t a
innovative
marketing
n i c h e in the food i n d u s t r y that o t h e r s w e r e
on
the
hope
for
the v e r y e m b o d i m e n t of
entreprenurial
capturing
only
The situation was certainly
and d r i v e ,
Harry
the
endeavour
i n line w i t h H a r r y ' s d e e p r o o t e d q u e s t
self-sufficiency.
in
to
contributing
not
to
o v e r h e a d expenses•
The Instant Noodle
F o r the coining f e w m o n t h s f H a r r y h i m s e l f s p e n t a
great
deal
of time h u n t i n g i n t h e
40
market
for
suitable
products.
becoming
a
conventional
would
He
was n o t i n t e r e s t e d
manufacturer
item-
perform
of
yet
He wanted a
that
a s o c i a l l y useful function
and
and w i t h o u t f r i l l s ,
for
consumer's
A p r o d u c t t h a t was a t t r a c t i v e
economical
another
product
perhaps f i l l a l o n g s t a n d i n g need i n
desire.
i n
f
- simple
c a p a b l e o f p r o d u c t i o n a t an
p r i c e y e t w h i c h l e f t s u f f i c i e n t room
efficient
selling.
Harry
focused
on
o r i e n t a l f o o d a s h e b e l i e v e d h e was a n e x p e r t i n
the
field
unlikely
and t h a t f o r e i g n
compete*
analysisf
and
competiters
A f t e r thorough
could
search
and
h e somehow drew t h e r i g h t c o n c l u s i o n s
discovered
his
potential
star
the
i n s t a n t noodle•
There
are
six
major
reasons
that
supported
H a r r y 1 s choice o n this relatively n e w food :
Noodle
一
f o o d demanded b y t h e A s i a n s a n d h e n c e i t h a d
a g u a r a n t e e d mass m a r k e t •
-
The
product was new to customers and
would
induce definite attractions.
-
C o n v e n i e n c e food r e p r e s e n t s a g l o b a l t r e n d .
-
As
a packaged product,
41
the instant
noodle
had f a i r l y l o n g s h e l f l i f e
(9 months) a n d i s
l i k e l y t o be welcomed b y r e t a i l e r s .
“
T h e
sale
price of Doll instant
noodle
at
t h a t t i m e was 60 c e n t s a n d t h e c o s t was o n l y
30
cents.
T h e p r o f i t m a r g i n was a s h i g h a s
50%.
*
"
The
”
o u t l a y o n a n a d e q u a t e s t o c k was
within
t h e means o f t h e s m a l l e s t s h o p k e e p e r .
Instant
noodle
Co.,
Ltd.
only
a
noodles
local
number
of
In mid 1968f
Japanese
Nissin
there were
imported
instant
o n sale in the market and there w a s
Japanese
the
i n Japan•
made
pose
was f i r s t i n t r o d u c e d b y
instant
at
noodles
available.
that time were not b i g
no
The
enough
to
t h r e a t s t o t h e c o m p a n y and H a r r y f e l t that
growing
market
should
be
good
for
two
companies•
The
immediate task that Harry had to d o w a s
differentiate
The
company
his
at
manufacture
its
There
also
was
packaging.
endeavour
For
product from
that time
own
was
noodle
the
the
Japanese.
too
small
cakes
insufficient
for
first 6 months,
instant noodle manufacturer in Japan.
the
a
to
sale.
experience
brought noodle cakes from
42
to
in
new
leading
The fact
that
the
e s t a b l i s h e d and s u b s t a n t i a l
manufacturer
modified
was w i l l i n g t o
instant
precariously
noodle
entrust
Japanese
supplying
i n t h o s e days
b a s e d a company was a
to
so
tribute
to
H a r r y ' s powers o f s a l e s m a n s h i p a n d c o n f i d e n c e i n
his plan.
-
H a r r y b e l i e v e d t h a t t h e c u s t o m e r ' s b e h a v i o r must
be
understood
and t a c k l e d t o h i s
satisfaction
b e f o r e s e l l i n g c o u l d b e g i n and r e g a r d e d
as
a
top-level
attention
to
concern• .
was
was
little
m a r k e t i n g i n a l l b r a n c h e s of
f o o d i n d u s t r y a n d trade,
who
There
selling
the
and t h a t w a s w h y H a r r y
willing to put the extra
effort
into
selling goods made headway against the apathetic
majority.
Marketing
is
a
product
of
i m a g i n a t i o n , i t c o m e s f r o m . a n a b i l i t y t o s e e the
customer's
n e e d s a n d p r o b l e m s f r o m h i s p o i n t of
view.
H a r r y ' s u n i q u e s e l l i n g p r o p o s i t i n w a s to
create
better value t o customers•
three
product
strategies
to
gain
He
derived
customer's
attention :
-
He
indtroduced
instead
of
a bigger noodle
t h e n o r m a l 85g
cake
Japanese
lOOg
type,
indented i n the middle to faciliate cracking
and advocated that h i s instant noodle
serve 2 bowls.
43
could
“
H
e
m o d
ified
t h e s o u p f l a v o r a n d made
the
t a s t e more C h i n e s e .
To
r e i n f o r c e the
he
included
1
2 bowls
2
types
per bag'
of
image,
soup
packs
(pork/chicken) i n each bag o f i n s t a n t noodle
so
that
customers d i d n o t need
to
decide
which t y p e t o buy a t p u r c h a s e and c o u l d even
save
one
pack o f soup
purposes.
Retailers
for
other
also
cooking
favoured
this
a r r a n g e m e n t a s t h e y n e e d e d t o s t o c k o n l y one
type o f i n s t a n t noodle f o r s a l e .
Harry
knew w e l l t h a t h i s t a s k was n o t t o s u p p l y
a demand b u t t o c r e a t e a w a r e n e s s o f a
other
words f
launching
He
the product.
He a d o p t e d
Doll
aggressive
:
inaugurated a simple,
(the
i n
t o arouse p u b l i c ' s i n t e r e s t while
promotion s t r a t e g i e s
-
need,
outstanding
brand》 w h i c h h e
considered
logo
was
e a s y t o r e c a l l a n d r e m e m b e r . Indeed t h e D o l l
logo
captured m u c h of the target
attention
it
was
also
of
segment1s
(the c h i l d r e n and the y o u t h ) , b u t
interesting to note
that t h e
provided much restraint to the
new
products
for
different
logo
naming
market
segments at the later stage of the company's
development.
44
He
i n i t i a t e d b o l d and i n t e n s i v e a d v e r t i s i n g
v e n t u r e s i n t e l e v i s i o n (TVB was l a u n c h e d
i n
the
and
same
year
as
the
company)
m o n o p o l i s e d 15 m i n u t e s p r o m o t i o n t i m e
night
every
1
a t t h e v e r y p o p u l a r prograiaxae
Yourself Tonight1.
He
painted
the
outstanding
dressed
Enjoy
„
delivery
logos
and
vans
with
bright
the
colours,
the d r i v e r s i n d e c e n t u n i f o r m s
utilised
the
vans
as a
mobile
and
promotion
v e h i c l e s to b u i l d u p a g o o d c o r p o r a t e i m a g e .
Harry
promoted
instead
of
understood
pull•
directly
at
to
the p o i n t of
the
sale
public
because
he
he would benefit more from consumers
Moreover,
he
did
not
like
to
be
controlled by the stores.
Harry
was
very
m u c h a w a r e of
the
part
that
c h a n c e p l a y e d i n b u s i n e s s b u i l d i n g , and h o w thin
the
He
l i n e o f t e n w a s b e t w e e n s u c c e s s and f a i l u r e knew
that h e m u s t a c h i e v e c o v e r a g e
launch.
days.
that
Supermarkets
There
were uncommon
at
in
those
were roughly some 3500 stores
t i m e and H a r r y s p e n t a full w e e k ,
address
45
and f r o m t h i s h e
at
walking
t h r o u g h n e a r l y e v e r y s t r e e t to find o u t a l l
retailers1
the
the
developed
c o n t a c t s f o r a wide r a n g e o f o u t l e t s . He h a d p u t
great d r i v e i n t o g e t t i n g the r e t a i l e r s t o
stock
up i n adequate q u a n t i t y d u r i n g t h e l a u n c h p e r i o d
and
offered
delivery.
affected
up
on
the
by h i s p r e v i o u s e x p e r i e n c e i n
those
were
50% d i s c o u n t on
first
H i s method o f s e l l i n g was v e r y
soft drinks.
i n
to
much
selling
W h i l e c r e d i t s e l l i n g was t h e norm
d a y s ( o n l y c i g a r e t t e and s o f t
cash s a l e } ,
he c r e a t e d t h e
drinks
cash
van
w h i c h s e r v e d b o t h s e l l i n g and c a s h c o l l e c t i o n a t
one
single transaction.
with
2
cash vans,
Harry's friends.
was
two-fold :
liquidity
which
venture,
and
The
plus 2
company
started
trucks loaned
from
The a d v a n t a g e o f t h e c a s h v a n
i t a v o i d e d b a d d e b t and e n s u r e d
administration
was
i t
much n e e d e d
minimized
effort
as
by
the
new
selling
the
and
driver
now
p e r f o r m e d two j o b s .
Harry
had
always
a
strong
sense
of
public
relations.
He
get
a w a r e n e s s was t o c o n t r i b u t e t o
the
The company d e d i c a t e d a g r e a t
deal
public
community.
c o n c l u d e d t h a t t h e b e s t way
o f e f f o r t t o o r g a n i z i n g v a r i e t y shows,
parties,
fund
gatherings
etc.
Council
and
raising
new y e a r
campaigns,
i n association with the
the K a i
46
Fong
to
Associations.
beach
Urban
The
promotion
programmes
response
and
publicity.
achieved
generated
The
Doll
a
tremendous
great
deal
n o o d l e image
of
penetrated
minds o f t h e mass p u b l i c w i t h i n v e r y s h o r t
time
frame•
Although
the
concentration
small
demanded
it
t u r n e d out
to
be
great
half of t h e i n s t a n t n o o d l e market-
the
started
effort b e g a n to
to
mobilize
late
bring
in
1969
financier1s
textile factories
There
As
results,
resources
production
in
for
one
soon
Harry
his
own
of
the
in Tsuen Wan
order to overcome the often unreliable
of
a
the
W i n n e r Food P r o d u c t s L i m i t e d c a p t u r e d
w a s a r e a d y - m a d e d e m a n d at the d o o r s .
as
extreme
of r e s o u r c e s and e f f o r t from
venture
success.
over
launch
in
shipment
the J a p a n e s e n o o d l e c a k e s t o m e e t t h e
large
generated demand.
I n s t e a d of s t a r t i n g u p s o l e l y on h i s o w n F
offered
20%
of
shares
Harry
(equivalent
to
a p p r o x i m a t e l y H K $ 8 0 f 0 0 0 at that t i m e ) of the n e w
product
line
counterpart
Japanese
and
to
previous
a n o t h e r of 2 0 % s h a r e s
Japanese
to
the
t r a d i n g h o u s e a s a g r a t i t u d e for t h e i r
previous support.
supplied
the
flour,
T h e s e two p a r t n e r s in r e t u r n
o i l and p a c k a g i n g m a t e r i a l
47
to
t h e new v e n t u r e i n t h e e a r l y days o f p r o d u c t i o n .
20%
Japanese
Trading
House
20%
Japanese
N o o d l e and
f l o u r Manu^
Xfacturer/
The b i g achieveinent i n
i n s t a n t noodle had
the
o f m u s c l e and w i t h i n
one
research
was
new v e n t u r e a l o t
year,
the
developed
right.
original
by
department
Harry i n t o a business i n i t s
R e a l i z i n g i t s growth
given
potential,
own
Harry
r e g i s t e r e d Winner Food P r o d u c t s L i m i t e d i n 1969.
Subsequently f
more
c a s h vans were added and
a
k e e n s a l e s f o r c e was e s t a b l i s h e d t o s u p p o r t q u i c k
delivery.
An e l e m e n t a r y o r g a n i s a t i o n s t r u c t u r e
began t o e v o l v e .
48
196 9 E s t i m a t e d O r g a n i z a t i o n Chart-
Chou Man H i n
H a r r y Wong
Sales
i n charge
B e t t y Lam
Accountant
Chief
Assistant
3•3
T h e Good Old Days
Harry
fathered the n e w venture and implanted in
h i s team a habit of creative thinking about
the
work
and
which
improvements
resulted
beyond
in a flow
anything
of
ideas
that
achieved b y a formal organization.
could
be
H e offered a
p o o l of disciplined m i n d s to d r a w u p o n w h i c h set
the
pattern
company•
of w o r k and thought
for
new
Harry liked to train employees to his
o w n standard r
rather than trying to inold people
w h o h a d learnt their trade elsewhere.
that
the
people
were
49
naturally
Believinq
creative r
Harry
organized
the
business
i n such a
creative
way
energies.
as
release
these
The
feature
o f t h e company was t h e f o r m a t i o n o f
to
main
an
almost
autonomous g r o u p o f a r o u n d 30 p e o p l e who
shared
f u l l responsibility for a l l
activities,
f r o m d e s i g n and m a n u f a c t u r e t o c o s t
sales
and s e r v i c e .
seemed
The
was
company
a p p r o a c h a b i l i t y o f t h e man a t
an
initimacy.
was
The s m a l l d y n a m i c
a b l e t o a t t r a c t and h o l d a g o o d t y p e
staff.
head
accounting,
important f a c t o r
i n
workmate
another t r a n s q u i l i s i n g element.
company 1 s e a r l y d a y s ,
of
From
the
m o r a l e a n d o p t i m i s m among
t h e employees was h i g h .
warmth
the
maintaining
i n f l u e n c e o f a man 1 s
The
of
Loyalty thrived i n the
t h e w e l l managed
small
firm.
The
e x c i t e m e n t o f b u i l d i n g up a b u s i n e s s f r o m l i t t l e
more
than
n o t h i n g communicated i t s e l f
ranks,
and h e l p e d p r o d u c e a w o r k i n g
which
the
employee
more
found
imaginative
enjoyable-
tangible things
communal
and
It
to
a l l
atmosphere
independent
was
to
less
t h e g u s t o a t t h e t o p and t h e
f e e l i n g i n the ranks t h a t the
quality
o f t h e company 1 s s p i r i t was d u e .
3.4
The I n v e n t i v e F i r m
The
pace
of
growth
by
the
exigencies o f the technical revolution that
the
50
was
reinforced
n e w
v e n t u r e was g e n e r a t e d .
factor
in
The most
t h e e a r l y y e a r s was t h e l a r g e
and v a r i e t y o f r e s e a r c h p r o j e c t s ,
the
alarmina
seen
range
against
v a s t area o f inexpericence i n the
company.
One o f H a r r y 1 s v a l u a b l e a s s e t s was h i s t e c h n i c a l
mind
that
process
could
interpret
scientifically*
manufacturing
food
production
His f a m i l i a r i t y
tnachines
and i n g e n u i t y i n
with
their
employment h a d l e d h i m t o p i o n e e r t h e c o n c e p t o f
automation
in
food
manufacturing•
Harry
r e c k o n e d that it w a s p o s s i b l e to a c h i e v e a
production
by
c a p a b i l i t y and p r o l o n g e d s h e l f
applying
traditionalf
products
modern
Chinese
food
giving
thus
popular,
these
H i s first f o c u s w a s . o n
Chinese
production*
the
sprouts
He
two
product
capable
the
to
resources
of
of
a
mass
d i s c o v e r e d that the p r o d u c t i o n
essential
ingredients
and s p r i n g r o l l p a s t r y
activity
design
to
roll which h e perceived was very much
popular
of
technology
life
a n e w profile as mass-distribution and
c o n v e n i e n c e items•
spring
mass
which
skill
h e could
in
and p r o c e s s i n g .
bean
could be
apply
the
production,
W i t h t h i s in
an
firms
equipment
mindP
he
w e n t t o the v a r i o u s o v e r s e a s C h i n a T o w n s t o seek
i n f o r m a t i o n and w h e n e v e r p o s s i b l e f
51
to e s t a b l i s h
l i n k s w i t h the r e s t a u r a n t managers.
Much o f t h e i n v e n t i v e t a l e n t o f t h e f i r m i n 1969
was
s p e n t i n a d a p t i n g s t a n d a r d machines t o non-
standard
purposes.
modifying
needs f
the
or
This
machine
by
was done
to
suit
discovering
combining o r u s i n g machines.
new
venture
bean
the
new
machinery
of various
m a c h i n e s were s o l d ,
ventures•
of
for
the
automatic
spring
roll
capacities.
The
franchised or held i n joint
Franchise
Winner1s
with
specific
I n l a t e 1969,
registered patents
by
methods
s p r o u t growing machinery and
pastry
either
operations were
special
formula
supplied
ingredient
to
e n s u r e the b e s t s p r i n g r o l l p a s t r y in the w o r l d .
Frozen
pastry
was
also
Statesr
Canada
achieved
brand leadership.
reach
over
production
and
and
sold
5 0 0 r 000
Australia
bags
the
where
United
it
had
(Sales v o l u m e
per
once
month)
and m a r k e t i n g of s p r i n g r o l l
The
pastry
b e a n sprout growing machinery was a classic
example
of
popularizing
the d u a l
Chinese
corporate
objectives
food i n t e r n a t i o n a l l y
making
the p r e p a r a t i o n of
dishes
less time c o n s u m i n g .
step
to
traditional
In Harry1s
of
and
Chinese
first
to g o i n t e r n a t i o n a l h e m o v e d h i s o f f i c e t o
a m o r e convenient l o c a t i o n in H o n g k o k i n 1 9 7 0 .
52
S o l i d C a s h Base
The company,
did
b e i n g s o l i d l y based, a t t h e
start,
n o t s u f f e r f r o m any f i n a n c i a l c r i s i s i n t h e
formative
years•
Other
than
c a p t i a l at the v e r y b e g i n n i n g ,
the
paid-out
t h e n e w offshoot
r e c e i v e d little n u r s i n g from the p a r e n t c o m p a n y ,
A n n u a l profits w e r e around H K $ 5 0 0 , 0 0 0 (i.e. 1 0 0 %
r e t u r n o n investment)•
It managed to make
way
been
as
if
it
undertaking•
by
had
independent
A i m e d at controlled g r o w t h , guided
a c c u r a t e figures,
their
an
its
bankers
t h e y h a d b e e n frank
and w o n their t r u s t
f a i t h f u l l y to their f i n a n c i a l
by
with
keeping
commitments•
The
b a n k s showed c o n f i d e n c e in, the m a n a g e m e n t of the
company.
loans
They
even
nothing
at
to
a time w h e n
show
leadership.
in
granted considerable
except
the
business
quality
had
of
its
T h e r a t e of t h e c o m p a n y ' s e x p a n s i o n
so many directions was maintained despite
policy,
adequate
was
consistently
fuXfiledf
r e t u r n to t h e v e n t u r e
achieved
control.
by
the
most
giving
partner.
stringent
an
This
budget
any
y e a r 1 s programme
was
yet
each
a c c o m p l i s h e d w i t h i n the y e a r .
much
of
a
T h e b u d g e t w a s n e v e r e x c e e d e d in
circumstances,
and
the
unsecured
The system
owed
of its s u c c e s s to t h e q u a l i t y of t h e
team
Harry's
firm b e l i e f i n
53
self
sufficiency.
Cash
g e n e r a t e d f r o m n o o d l e s a l e s was
Annual
sales amounted to over $4
increase
in
rapidly
million.
An
m a r k e t share w a s envisaged in
the
growing market.
supplementd
enormous•
by
short
The retained
term
bank
profits
loans
and
“
o v e r d r a f t s w e r e adequate for g r o w t h ,
Vecorn O i l
Gaining
and
s t r e n g t h and s t a b i l i t y f r o m i t s
machine s a l e s ,
H a r r y embarked o n
p r o d u c t d i v e r s i f i c a t i o n i n 1971.
theme f
Harry
backward
consumer
which
Following the
industry
needs•
to
satisfy
changing
H e recognised that
corn
less cholesterol would
oil
likely
to the i n c r e a s i n g l y a f f l u e n t p u b l i c
market
Soon
another
the
were becoming m o r e health conscious.
oil
further
determined t o r e v i t a l i z e
containe d
appeal
noodle
who
T h e edible
at that t i m e w a s d o m i n a t e d
and H o p H i n g and w a s v e r y m u c h
by
Lam
saturated.
O n the contrary, t h e c o r n o i l m a r k e t w a s t o t a l l y
unexplored.
on
high
H a r r y d e c i d e d to b a s e h i s
quality
purposedly
rather than
packaged
his
low
corn
product
price•
oil
in
He
neat
t r a n s p a r e n t p l a s t i c c o n t a i n e r s i n s t e a d of in the
dull
conventional
demonstrate
product•
the
metal
purity
Intensive
54
tin
and
in
order
clarity
of
promotion programmes
to
his
were
launched t o stiiuulate sales•
expectation,
beneficial
But out of H a r r y ' s
V e c o r n O i l d i d not s e l l w e l l .
The
properties of cooking w i t h c o r n
oil
w e r e t o o subtle to b e appreciated b y the C h i n e s e
housewives
at
that time but
Harry
accurately
f o r e s a w the spread of the international t r e n d .
After
one
year
redefined
of
market
research,
his p r i m i n a r y target
Harry
customers.
He
,
、noticed
in
that the specialized p r o d u c t o n l y
t h e m o r e limited m a r k e t and h e
his
merchandizing
effort
on
h o u s e w i v e s in small families.
undertaken.
media
were
searched and cooking
initiate
business
acumen
barriers
with
Suitable
from
schools
trials.
This
Vecorn becoming
a
were
solid
finally break through all
vital
the
sales
which had
1 % to 2 5 % of all o i l s a l e s
in
the
‘ -
c o o k i n g category.
3.7
young
advertising
f o r c e in the g r o w i n g c o r n o i l m a r k e t ,
grown
all
Person to person
were
to
focused
educated
sales
sponsored
sold
Overseas Venture
Overseas
venture
e x p a n s i o n was f o r c e d u p o n t h e
by c i r c u m s t a n c e s .
growing
In parallel to
l a u n c h i n g o f V e c o r n O i l i n 1971 a n d 7 2 ,
the
Winner
j o i n t - v e n t u r e d w i t h one o f Mr* C h o u ' s f r i e n d s i n
55
Germany
and s t a r t e d o v e r s e a s f o o d m a n u f a c t u r i n g
i n Hamburg.
The p a r t n e r s h i p v e n t u r e
priminary
a i m e d a t p r o d u c i n g f r o z e n f o o d , s p r i n g r o l l s and
boilable
bags
canteens•
Winner w a s to provide p r o d u c t i o n idea
and
for
food
institutions
technology w h i l e the local p a r t n e r
r u n the business.
frequently
studying
to
Europe
import
noting
was
to
Winner's personnel travelled
during
regulations
c o n d i t i o n s at first h a n d r
agents,
and
the
that
period,
and
economic
m e e t i n g c u s t o m e r s and
curious
preferences
for
c e r t a i n foods in different countries.
T h e venture was a mistake.
r i g h t from the beginning,
Despite steady sales
the oversea
business
was
n o t profitable and W i n n e r d i s c o v e r e d w i t h i n
the
following y e a r or t w o that it w a s
not
the
m o s t s a t i s f a c t o r y w a y to expand o v e r s e a s :
Firstlyf
creative
it had n o t b e e n e a s y to find
staff•
complicated
The
problem
suitable
had
been
b y the n e e d to r e c r u i t m e n w h o w e r e
a b l e to c o m p e t e o n a n i n t e r n a t i o n a l
plane•
No
e x e c u t i v e preferred t o b e p o s t e d t o o v e r s e a s and
third
grade
staff
made
the
grade.
Secondly,-
scholar
than a business man.
much
ideas
of
seventh
the l o c a l p a r t n e r w a s m o r e a
costing
56
venture
and
He did not
had
made
have
trival
m i s t a k e s i n f i n a n c i a l management.
T h i r d l y , the
venture
was
point•
It
locals •
Fourthly,, it w a s extremely d i f f i c u l t to
market
did
at
together
operated without a unique
not p o s s e s s a n e d g e
such
with
fluctuation
great
double
made
over
distance.
taxation
the
selling
All
and
venture
the
these
currency
economically
unviable.
The
Cardiff
noodle
factory
similar difficulties.
did
encountered
The trading house simply
n o t understand the b u s i n e s s and m a d e
mistake
With
that
the
locals w o u l d
have
every
avoided.
t h e p r e v a i l i n g p r o s p e r i t y in H o n g K o n g
1973,
the
also
In
Winner gradually trimmed and consolidated
overseas
business
and
refocused
their
a t t e n t i o n o n the H o n g K o n g m a r k e t .
Fast Food Outlets
Winner
one
a t t e m p t e d t a k e o u t s t o r e s i n 1 9 7 2 and a t
stage had 6 fast f o o d o u t l e t s at
locations
The
in K o w l o o n and the
business
talent
is
New
direction was right
more
in
than
supervising n u m e r o u s
fast
food
different
Territories.
but
Harry's
manufacturing
business did not
small
rather
outlets.
sustain.
In
The
1974
Winner
closed
a l l t h e o u t l e t s and
decided
to
withdraw from the f o o d s e r v i c i n g s e c t o r .
S p r o u t _ a n d Bean C u r d M a n u f a c t u r i n g
In
1974,
Winner
experienced
mechanical
joint-ventured
with
an
bean s p r o u t p r o d u c e r and s e t - up
bean
sprout manufacturing p l a n t
in
S h a t i n t o c a t e r f o r t h e l o c a l mairket demand
to
f u r t h e r experimental research.
a
and
I n t h e same
y e a r . Winner s t a r t e d another p l a n t f o r bean c u r d
manufacturing•
F i r s t S t e p in China
Winner
a l s o m a d e false m o v e s
from w h i c h
quickly
retreated.
market,
following C h i n a ' s o p e n d o o r
1975,
Winner
O n their entry into the PRC
policy
a
short
Chinese
supply
cut to
success
in
business b e c a u s e C h i n a h a d an
of r a w m a t e r i a l f
and
technical
straight
limited
to
assistance,
product
certain
Originally
export
areas
compensation
purchase.
58
abundant
cheap labour and land
C h i n a trade o n l y aimed at
was
China
traditional
w h i c h H o n g Kong w a s severly l a c k i n g .
the
in
b e g a n their China trade b u s i n e s s .
H a r r y r e c k o n e d that good connections w i t h
were
they
The
business
such
trade
China
as
and
trade
b u s i n e s s however d i d n o t f l o r i s h .
In the f i r s t
p l a c e , t h e PRC C h i n e s e a t t h a t t i m e d i d n o t h a v e
knowledge
material
o f s a n i t a t i o n and e x p e r i e n c e
handling.
in
raw
T h e r e was no p r o p e r f r o z e n
food transportation.
Q u a l i t y c o n t r o l was p o o r .
P l a n s f o r e x p o r t were f u r t h e r c o m p l i c a t e d b y t h e
problem
of
severity
i n d i f f e r e n t c o u n t r i e s which
stringent
these
and
local
food
control
and
together with
laws
with
varying
demanded
standardization.
bureaucratic
All
inefficiency
e x t r a costs i n double handling
outweighted
a l l the intended advantages.
Being
a
company w i t h a w i d e
sacrified
their
immediate
long
term
gain i n
outlook.
the
objectives.
Winner
interest
The
of
company
continued a t r a d i t i o n o f a c t i v e p a r t i c i p a t i o n i n
the
good
C h i n e s e f o o d p r o d u c t i o n programme a n d t h e i r
relationship
immense
w i t h China
benefit
and
had
convenience
given
i n
them
their
subsequent e s t a b l i s h m e n t s •
3.11
G r a d u a l Shaping
The
value
of
the
reflected
in
the
subsequent
growth.
lessons
rate
learnt
of
been
company's
D e v e l o p m e n t of t h e c o m p a n y
i n t h e late 7 0 1 s h a d b e e n m o r e
59
the
had
cautious•
More
structured
management s t a r t e d i n 1976 and
was
followed by aggressive product
and
market p e n e t r a t i o n .
the
w o r l d were c l o s e l y
were
this
development
T e c h n c i a l changes
observed.
in
Refinements
c o n t i n o u s l y b e i n g made t o t h e p r o d u c t s
improve
There
to
t h e i r f i d e l i t y and a p p e a l t o customers•
was
a k e e n a w a r e n e s s of
the
increasing
i n t e r n a t i o n a l i s m of industry•
3.12
Nuts
Harry
firmly
required
believed
constant
attention-
operating
effort
and
anything
unremitting
H e t r u s t e d that i n n o v a t i o n ,
rather
than holding o n to what already existed w a s
best
means
company.
the
to
preserve
and
perpetuate
the
Harry again looked systematically into
innovative o p p o r t u n i t i e s i n
traditional
discovered
value
the
Chinese
food
the
unbranded
market and
that it w a s p o s s i b l e t o
he
soon
extend
the
and t h e shelf l i f e of m a n y C h i n e s e s n a c k s
b y b e t t e r p a c k a g i n g and h i g h e r q u a l i t y
Winner's
ability
to
identify
control•
peanuts
as
a
Chinese style snack had, since 1978P led them to
a dominant sales position.
over
Today
50%
of
Winner
roasted
sales in
is
the
Peanuts account
snack-nut
the o n l y o n e t o
peanuts in Hong Kong
60
market•
produce
of
a
to
dry
quality
f i t f o r a i r l i n e s t a n d a r d a s w e l l a s consumer a n d
institutional sales.
3.13
Further Acquisitions
I n 1978, Winner c o n t i n u e d t h e i r a c q u i s i t i o n p l a n
and
revitalized
manufacturing
accumulated
company
food
Manufacturing
modern
a long established
by
injection
knowledge
processes
fish
and
ball
of
their
technology.
were f o c u s e d u p o n
p r o d u c t i o n methods were a p p l i e d
to
and
the
o l d industry.
3.14
E x t e r n a l and I n t e r n a l C r i s e s
One
of
the
beginning
moves
disabilities
a
a t s h o r t i n t e r v a l s i f growth
in
location
expansion.
70's.
imposed
small
Much
which
of
with
was
rapid.
t e m p o r a r y p r e m i s e s were
did
not
allow
t h e company's
a r e a h a d been s c a t t e r e d .
struggle
very
was t h a t i t u s u a l l y l e d t o s u c c e s s i v e
F o r r e a s o n s o f economy r
taken
of
for
production
T h e r e was a c o n t i n u a l
cramped p r e m i s e s f r o m
the
The r e l a t i v e l y s w i f t r a t e o f g r o w t h
late
had
s p e c i a l s t r a i n s i n mamifacturing space-
Taking
t h e b e s t a v a i l a b l e w i t h i n i t s means
within
t h e l i m i t a t i o n imposed
Winner
planned
Industrial
by
and
environment f
t h e i r own p l a n t a t t h e
Tai
Po
C e n t r e i n 1979 w i t h a l o n g t e r m v i e w
61
t o allow f o r a l l l i k e l y expansion.
The
company s u f f e r e d i n two r e s p e c t s b e f o r e t h e
completion
limitBd
enough
of
the
new
.p l a n t .
Firstly,
nianufactuxing space f a i l e d
to
outputs t o c a t c h the r a p i d l y
the
produce
increasing
demand and Winner l o s t p a r t o f i t s n o o d l e m a r k e t
share
Co.
t o the growing g i a n t N i s s i n Manufacturing
S e c o n d l y f b e c a u s e r e f r i g e r a t o r s were s t i l l
u n p o p u l a r i n homes and f r e e z e r s were uncommon i n
most
retail
outlets,
successfully
products
embark
despite
technology•
Winner
on
their
Thirdly,
their
could
not
frozen
matured
food
frozed
food
and the m o s t p a i n f u l
of
all P W i n n e r confronted m a n a g e m e n t c r i s i s .
Just
as
every growing
company
firm
experienced,
in the ea rly d a y s w a s n o t i n a p o s i t i o n
to
b e as d i s c r i m i n a t i n g i n the c h o i c e o f
as
it
could
strongly
afford to b e
established
jobs t o offer.
help
their
companyr
it
and h a d m o r e
A l l along,
senior
when
staff
was
more
substantial
Harry had tried
people
to
grow
with
to
the
had p r o v i d e d o p p o r t u n i t i e s f o r a w i d e r
experience
demarcated
than one would get i n a m o r e sharply
firm,
and
offered
a d v a n c e m e n t for t h e t a l e n t e d .
not
the
simply
chances
But expansion was
a m a t t e r of p r o d u c i n g m o r e
62
of
of
the
same
kind
of
thing.
character
with
difference
of
The
growthf
scale
business
partly
demanded
changed
because
the
differences
i n
o r g a n i z a t i o n , b u t a l s o because t h e n a t u r e o f t h e
competition
f o r c e d t h e company t o
plan
changed l i n e s .
along
change
made
or
many
the
addressed.
of
those
of
big
and
rapid
the
a t l e a s t made i n e f f e c t u a l a
ways
in
which
they
old
good
had
been
A d i f f i c u l t moment a r r i v e d when some
who h a d b o r n e t h e h e a t a n d
pioneering
not
A period of
o b s o l e t e a g o o d many
concerns f
of
rethink
days had t o be t o l d t h a t
enough
sweat
they
f o r the bigger jobs
of
were
they
had
themselves c r e a t e d .
3•15
Systematic T r a n s f o r m a t i o n
Harry
k n e w it w a s time for h i m t o e x e r c i s e
innate
management
technical
ability
o r g a n i z e the c o m p a n y i n t o d i v i s i o n s i n o r d e r
to
framework
responsibility
He
age
for
delegation
executive
21 would have to b e replacedr
knowledge.
b y new learning,
of
development.
trusted that w h a t i n d i v i d u a l s h a d l e a r n t
refurbished,
to
and for
first
his
to
a
He
than
proceeded
provide
knowledge.
rather
his
or at
by
least
n e w skills,
new
Individuals would increasingly have
take responsibility for their own continuous
63
learning
and
relearning for
their
own
self-
d e v e l o p m e n t and f o r t h e i r own c a r e e r s .
i n order
to
creative
save
t h e f r e s h n e s s o f o u t l o o k and
enthusiasm
process,
from
being s t i f l e d
by
the
growth
H a r r y e n c o u r a g e d s e l f r e s p e c t and s e l f
enlargement o f t h e i n d i v i d u a l as c h i e f canons o f
staff policy.
He
further streamlined the hierarchy
to
better
offer
opportunities
the
structure
promising
f o r promotion
and
staff
discriminated
m a n a g e r i a l f u n c t i o n f r o m t o p management 1 s f o c u s .
Harry
b e l i e v e d t h a t he c o u l d c o n c e n t r a t e o n t h e
essentials
by
distractions
physical
of
boundaries
separation
routine•
between
He
general
from
recognised
directives
d e t a i l s , b e t w e e n p o l i c y and e x e c u t i o n .
to
learn
to
advise,
subordinates
executive
was
guide
and
brief
imposing
conditions
H e rarely gave orders•
controls
in
and
his
their
He discovered how little h e
n e e d e d in the b u s i n e s s o t h e r t h a n t o
and d i r e c t .
the
He began
and a p p r a i s e the o u t c o m e o f
effort.
the
he
preferred
think
I n s t e a d of
to
create
which controls were not
needed•
N o e m p l o y e e a n y w h e r e d o w n t h e l i n e ever r e c e i v e d
an
i n s t r u c t i o n w i t h o u t a t the s a m e
g i v e n a reason-
time
being
Though. c o m p a n y w e l f a r e w a s of a
64
high
order,
the
company
was
free
from
any
suffocating paternalism.
Planned
the
d e l e g a t i o n o f r e s p o n s i b i l i t y had
company
afflict
many
young
o f the growing
business•
saved
panics
that
management1s
Top
p r e o c c u p a t i o n in the c o m p a n y ' s s e c o n d p h a s e
effective
and
in
the
setting p a t t e r n of f u t u r e
policy had laid the
was
growth
foundation
of
a
l a r g e organization.
A
leading
position
attack.
Because
production
space
was
of
severe
and
hence
p r o d u c t i o n capacity.
unserved
for
always
vunerable
to
shortage
of
limitation
in
Winner had created a huge
sector in the r a p i d l y
their competitors,
growing
G i v e n m a n y of t h e g o o d
b a s i c designs in W i n n e r 1 s p r o d u c t s t h e y
time
had
in
b e e n equaled or p e r h a p s s u r p a s s e d b y o t h e r
producers
1980
market
and
improved
Winner
experienced a slip
back
81 b u t s o o n p i c k e d u p t h e i r l e a d
their
position against
the
in
and
awakened
competitors b y bettering their former best.
W h i l e w a i t i n g for t h e n e w p l a n t t o b e c o m p l e t e d f
Winner mobilized massive resources o n R & D
carried
out
business
healthy growth.
X-rays to
O n t o p of f u r t h e r
65
ensure
and
their
improvement
1987 O r g a n i z a t i o n C h a r t
BOARD OF DIRECTORS
CHAIRMAN
MANAGING DIRECTOH
GENERAL MANAGER
MARKETING
DIVISION
FRESH & DRIED NOODLE
DEPT.
1 ENG. DEPT.
->9
W31VCO
BEVERAGE PRODUCTION
DEPT.
•
H
i
•SWQ
J.NV704
TVD01
66
-•W3a
.LHOdxw
DglJIHXHVW
•ids
-529
•idwa
C3ZIJ.MMHVW
•SWQ
•Jldwa
FROZEN POOD
PRODUCTION DEPT.
1
MANUFACTURING
DIVISION
SNACK FOOD PRODUCTION
DEPT.
RESEARCH &
DEVELOPMENT
DIVISION
INSTANT NOODLE, OIL
& SOUPBASE PRODUCTION
DEPT,
ADMINISTRATION
DIVISION
i n p r o d u c t d e s i g n and q u a l i t y , t h e y c o m m i s s i o n e d
a
keen
marketing
team
changing market, t o c a r r y
to
exploit
the
out a n a l y s i s based on
p e r c e p t i o n o f change o f o p p o r t u n i t y ,
realities,
of
ever
o f t h e new
t h e c o n g r u i t y between what
most
p e o p l e s t i l l were q u i t e s u r e was t h e r e a l i t y and
what
had
every
a c t u a l l y become a
case
quality,
reality.
t h e r e had been s t r o n g
even
though
price
competition,
give
greater
competitors
business
new
this
emphasis
meant
instead
for
of
had
money
cheaper
on
sacrificing
and t h e p o l i c y h a d b e e n
value
X-rays
In
one 1 s
than
goods.
furnished
to
The
important
i n f o r m a t i o n needed t o d i s c i p l i n e i n n o v a t i o n :
i t
p r o v i d e d a systematic examination on t h e a r e a o f
change t h a t t y p i c a l l y o f f e r e d o p p o r t u n i t i e s
turned
into
innovation
from a p e r c e p t u a l
a vigorous conceptual r a t i o n a l
and
intuition
work.
It
d e f i n e d how much i n n o v a t i o n t h e g r o w i n g b u s i n e s s
required,
frame•
in
what a r e a and w i t h i n
M o s t i m p o r t a n t of all,
entrepreneurial
spirit
what
time
it generated an
throughout
the
entire
m a n a g e m e n t team*
The
p r o c e s s of i m p r o v i n g t h e c o m p a n y c o n t i n u e d .
Harry
regarded
evolution.
his
own
job
as
a
Having grown u p with the
67
state
of
business f
h e h a d b e e n , he s a i d , t o o i n t i m a t e l y i n v o l v e d i n
its
problems
professional
to
look
eye,
but
at
i t
with
a
he was t r y i n g
cold
hard
to
c u l t i v a t e enough detachment t o t u r n h i m s e l f f r o m
a n owner manager i n t o a p r o f e s s i o n a l m a n a g e r , no
doubt
in
preparation
f o r the
firms
eventual
s u c c e s s i o n and metamorphosis i n t o a c o r p o r a t i o n .
3.16
E s t a b l i s h m e n t o f Own P l a n t
In
enterprise,
better
to
travel
than t o a r r i v e •
which
had
hopefully
In
1982,
b e c o m e scattered o v e r
not
production,
a
number
factories,
had
one roof.
Substantial enlargement of
and
was
finally been concentrated under
premises
plant concided w i t h further i m p r o v e m e n t
production
product
methods.
sales f
streamlined.
which
With
the
production was
Rationalization
s c a l e production•
enabled
increase
mechanized
was
would not have been possible
economies
of
in
in
and
introduced
with
small
W i t h m a s s p r o d u c t i o n c a m e the
of s c a l e and the c u s t o m - m a d e f a c i l i t y
the v a r i o u s m a n u f a c t u r i n g p r o c e s s e s
to
achieve m a x i m u m p o t e n t i a l o u t p u t .
3.17
Frozen/Chilled Food
Another
excitement
frozen
food
w a s the bloosoming
development
68
an
area
of
the
which
transformed
from
an o l d s l u g g i s h t r a d e i n t o
an
imaginative
idea
a f t e r W i n n e r 1 s many y e a r s
of
deliberate search.
T h e r e was a p a r t i c u l a r mix o f
social,
economic
and p o l i t i c a l f a c t o r s e x i s t i n g i n t h e e a r l y 801s
that
together created a favourable climate
t h e d e v e l o p m e n t o f f r o z e n and c h i l l e d f o o d .
^
changed
attitude
items,
the
towards
frozen
development
convenients stores,
of
and
for
The
chilled
supermarkets
and
the a v a i l a b i l i t y o f f r e e z e r
d i s p l a y u n i t s , t h e i n t r o d u c t i o n o f t h e microwave
oven
a l l
and
the d e s i r e t o convenient cooking
added t o t h e r a p i d e x p a n s i o n o f t h e
food business.
advanced
had
frozen
The T a i Po P l a n t w h i c h u t i l i z e d
l i q u i d nitrogen freezing
process
and
t h e optimum f r e e z i n g p r o c e d u r e h a d h e l p e d W i n n e r
materialize
their
dream..
The r e s u l t was
c r e a t i o n o f t h e p o p u l a r f r o z e n d i m sum
which
products
n o t o n l y o f f e r e d immensed d i v e r s i f i c a t i o n
opportunities
The
the
but
also
export
possibilities.
development o f t h e f r o z e n and c h i l l e d
product
line
frontier.
had
brought
Winner
to
a
food
new
T h e y were n o t o n l y p u r s u i n g a t r e n d ,
b u t a n i t c i p a t i n g a w o r l d - w i d e demand•
3.18
P l a n n i n g for S u c c e s s i o n
When
the
business
69
further
advanced,
Harry
started t o plan f o r h i s succession.
y e a r s o f p e r s i s t e n t endeavour,
a
proprietory
had
interest
in
Through h i s
he had d e v e l o p e d
the
character
c r e a t e d f o r the b u s i n e s s which a f t e r a l l had
been o u t s t a n d i n g l y s u c c e s s f u l •
sense
as
well
There was
as sentiment in wishing-
c o n t i n u e in its o w n w a y .
sixties,
his
p r i m e life had been, taken in
what
on,
bringing
to
of
the
H e b e g a n to
h e r e a l l y w a n t e d to
b e l i e v e d in doing.
years
it
h e s u d d e n l y realized h o w m u c h
b u s i n e s s into the p r e s e n t r e a l i t y .
himself
good
When Harry approaches
his
ask
he
do
and
W h a t h e w a s w i l l i n g t o spend
if n o t the r e s t of h i s l i f e .
m a n y y e a r s of p l a n n e d o r g a n i z a t i o n
After
development,
the
y o u n g offshoot h a d a l r e a d y l e a r n t t o r u n o n
its
own.
Harry began to question his need
in
the company; h i s major, essential, i n d i s p e n s a b l e
c o n t r i b u t i o n that h e could still g i v e t o
t h e c o m p a n y 1 s continuous
Harry
ensure
g r o w t h and p r o s p e r i t y .
w a s one of the u n u s u a l e n t r e p r e n e u r s
who
w e r e opposed to the a d m i s s i o n of o u t s i d e c a p i t a l
i n t o t h e businessp
source,
but
n o t t h r o u g h i g n o r a n c e of the
as a d e l i b e r a t e
policy•
Through
h i g h turnovers i n c a s h s a l e s and banlc l o a n s , t h e
company
all a l o n g h a d m o r e t h a n e n o u g h f u n d s t o
s u p p o r t its g r o w t h •
70
H a r r y r e j e c t e d t h e i d e a of
o f f e r i n g s h a r e s t o t h e p u b l i c b e c a u s e he d i d n o t
want
to
impose
shareholders
company s
extra
which
long
obligations
might
term
have
to
the
impeded
development
the
plan.
He
n e i t h e r p r e f e r r e d t o r e t i r e i n o l d age i n f a v o u r
o f manageinent by h i s h e i r s .
However a t t r a c t i v e
t h e i d e a o f a f a m i l y b u s i n e s s may b e ,
Harry d i d
not consider i t n e c e s s a r i l y represented the best
of
a l l
p o s s i b l e forms
of
ownership.
staying
i n the t e c h n o l o g i c a l
trusted
what i s w e l l known t h a t t h e
large
scale
technological
would
corporation
development
virtually
Always
forefront
growth
along
of
Harry
f
of
with
modern
the
industry
wipe f a m i l y b u s i n e s s e s o u t
of
t h e ecomony.
On
t o p o f the urge
also
continuity,
Harry
wished i n p a r t i c u l a r t o safeguard t h e
and
s t a t u s o f h i s l o y a l employees f
them
or
towards
not
job
having
d e c l a r e d redundant o r l o s e t h e i r s e n i o r i t y
chances o f promotion
overriding
authority•
to n o m i n e e s of t h e
Harry's
f u l l y appreciated b y M r .
Chou.
worries
were
In 1 9 8 3 ,
they
d i d o n e act that surprised e v e r y b o d y ,
their controlling s h a r e s t o a m a j o r
enterprise,
reasons
for
Beatrice
they sold
U.S. global
Food Corporation•
s e l l i n g out w e r e m a i n l y
71
new
to
Their
avoid
i n v o l u n t a r y t a k e o v e r s , b u t a l s o t h e n e e d t o have
a l i f e a p a r t from the b u s i n e s s .
One n o t e w o r t h y
f e a t u r e about t h e n a t u r e o f c o o p e r a t i o n
between
W i n n e r and B e a t r i c e was t h a t t h e new v e n t u r e was
operated
without
small partner.
radical
loss
policy,
In
line
the
company 1 s
{ s t r u c t u r e was k e p t i n t a c t .
chairman
and
by
Harry
managing d i r e c t o r ,
with
Beatrice
inanageinent
M r . Chou r e m a i n e d a s
was
still
involved
t h o u g h no l o n g e r i n
with
operations
control
over
its
day
and r e s p o n s i b i l i t y f o r
its
to
Winner Food Products L i m i t e d Current•Ownership
Structure
72
u
8cm
% 0n
oha
Total paid
u p capital
20%
Harry Wong
HK$5,000,000
at
day
further
progress .
, 7 4 %
]
B.ea^rica
i
Fo.od
26%
Corporation
as
supreine
command and h a v i n g t h e f i n a l word o n p o l i c y ,
least
the
The a f f i l i a t i o n d i d n o t - impose
changes.
acquisition
of sovereignty
3.19
Beverages
The
other
company
r e a s o n s f o r Winner j o i n i n g
a
large
o f i t s own k i n d were t o s e e k a c c e s s
to
a n e n l a r g e d p o o l o f knowledge and e x p e r i e n c e , t o
technical
and
sales
f a c i l i t i e s and
to
wider
i n a r k e t s w h i c h H a r r y t h o u g h t w o u l d be much n e e d e d
for
corporate transformation.
After
joining
B e a t r i c e , Winner p a r t i c i p a t e d i n t h e c o m p l e x and
competitive
Hong Kong T e t r a p a k b e v e r a g e
market
i n 1984 and c r e a t e d t h e i r own s l o t w i t h a number
of
premium
drink,
well
Kut
drinks including
the c l a s s i c Ribenaf
Greenspot
D o l l soya d r i n k , as
as a s e l e c t i o n o f f l a v o r e d t e a s
h e r b a l and f l o r a l t e a 》 •
orange
(Wong
Lo
Marketing strategy
w a s intrumental in identifying n i c h e d b r a n d s for
these
segments.
renowned
Lo
Kut
Winner's acquisition
of
19th C e n t u r y C a n t o n e s e h e r b s h o p
w a s again a c o n c r e t e e x a m p l e
m a r k e t i n g perspicacity•
73
of
the
Wong
their
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74
2 0
H a r v e s t i n g M a t u r e PrndnrtA S H a r r yh a d
indicated,
an o r g a n i z a t i o n l i k e an
o r g a n i s m needed t o e l i m i a t e i t s w a s t e p r o d u c t o r
e l s e i t poisoned i t s e l f .
brand
name
to
Winner s o l d t h e V e c o r n
Lam Soon,
d i s t r i b u t o r i n Hong Kong,
the
leading
o i l
i n view o f t h e mature
inairket and i n t e n s i v e j t x v a l i r y .
2 1
Re-entering the China M a r k #
Winner's
China
long
on
the
Beatrice
of
established
relationship
other
had
hand
presented
the
Group w i t h an u n p a r a l l e l e d o p p o r t u n i t y
developing a food industry i n
output
with
had
been
China.
1
c l a s s i f i e d as
one
Food
of
the
p i l l a r s o f economic developinent. 1 a n d c o o p e r a t i o n
with
e x p e r i e n c e d W e s t e r n c o m p a n i e s was a
part
of
special
fewer
China1 s
econoinic
liberal
The
on
employment
their
codes ,
joint
up
cities
importation
unrestrictive
conimeirical
setting
z o n e s and open
restrictions
materialsf
since
policy.
vital
of
ineant
of
raw
currency
control,
conditions,
special
t a x b e n e f i t s © tc • .
venture
with
Beatrice
Winner
had
founded several b i g food m a n u f a c t u r i n g p l a n t s i n
China
and
had captured an attractive share
the d o m e s t i c food s u p p l i e s m a r k e t .
75
in
The
China1s
urgent n u t r i t i o n a l requirements o f
enormous
desire
young
for
easier
s c h o o l age p o p u l a t i o n
more v a r i e t y ,
food
better
preparation
affluent
working
evident
areas
of
change
one
of
literally
and
vast
and
growingly
c l a s s were some o f
of
the
quality
the
i d e n t i f i e d by the j o i n t v e n t u r e .
was
and
the
most
development
The new m a r k e t
potential.
The
p a r t i c u l a r attachment o f Chinese p e o p l e f o r good
food
was,
i n any c a s e ,
explosion
eating
a s o c i a l f a c t and
o f new w e a l t h and new
habits
represented
the
influences
a
i n
continuously
c h a l l e n g i n g t a s k t o t h e company.
3•22
Towards Maturity
Winner1s
g r o w t h b e c a m e m o d e r a t e i n 1 9 8 4 and
85
d u e to substantial r e s t r u c t u r i n g in t h e B e a t r i c e
Group.
focus
Frequent
at
the
resistance
problems•
controls
sole
headquarters
to
development.
interests
policy changes and short
caused
subsidary1s
the
Harry
felt
that
great
healthy
their
were submerged in the pool of
There
were
and p a p e r w o r k .
determinant
interests
had
of
intensified
Figures
results
term
and
own
corcimon
budgeting
became
the
long
term
were sometimes sacrified to boost
up
s h o r t term g a i n . T h e r e w a s n o t i c a b l e achieveinent
76
i n
1986
following
Beatrice's
recovery
s t a b l i z a t i o n o f corporate s t r a t e g i e s .
participation
in
and
Winner's
the Group's business had
led
themselves s t e a d i l y t o m u l t i n a t i o n a l s t a t u s .
In
l i n e w i t h the c o r p o r a t e growth, they i n s t a l l e d a
EDP
system
to
information
awareness
gather
and
analyse
marJceting
w h i c h p r o v i d e d them w i t h a
of
socio-economic
New
and
productive
areas
distribution
continued
implemented.
R & D a l s o had a m o r e i m p o r t a n t r o l e
than
of
trends•
growing
manufacturing
to
be
evaluated
ever a s food t e c h n o l o g y g r e w
sophisticated.
and
increasingly
Winner subsequently launched cup
n o o d l e s in accordance w i t h t h e
demand.
and
shifting
market
It a l s o created the 'fresh 1 c a t e g o r y of
noodles products which had a much extended shelf
life
in
contrast t o the 2 - 3
days
traditional
f r e s h n o o d l e s a v a i l a b l e in s p e c i a l l y s h o p s -
T o d a y as W i n n e r a p p r o a c h e s the end of i t s s e c o n d
decade
of
maintained
activity
its
hold
the
in
company
the
has
market
o u t s t a n d i n g r a n g e of p r o d u c t s i n a w i d e
of
from
flavors.
half
S i n c e its inception,
progressively
an
variety
over
It has
c h a n g e d t h e local e a t i n g
77
with
it h a s g r o w n
a million-dollar capital to
billion dollars worth coporation.
still
a
also
habits.
I t s c o n s i s t e n t breakthroughs i n technoloogy have
ensured
t h a t p r o d u c t development r e m a i n s
o f the f i e l d .
the
Harry
ahead
Through e v o l u t i o n and r e v o l u t i o n ,
company has undergone Hietainorphic c h a n g e s .
i s now n e a r h i s m i d - s i x t i e s and i s
about
t o r e t i r e • What remains unchanged is perhaps the
Winner
spirit,
the
corporate
committment
excellence and market preeminence«
19 87 Estimated Segment Contribution
Equivalent to
o v e r 45% of
local instant/
c u p noodle
market
35%
Instant
C u p & Fresh
Noodle
Snacks
10%
10%
Beverages
5%
40%
Frozen, Chilled. F o o d
and Private L a b e l
Items
78
Patent
Others
to
Some I n d i c a t o r s o f a-rnx^-h
T o t a l Employee
Sale Staff
1968
1973
1978
1983
1987
17
120
350
550
760
5
40
80
120
150
Manufacturing
Space
Turnover
HK$
( i n Thousand)
Overhead HK$
( i n Thousand)
P r o d u c t Items
2,500m
2
500 10,000
60
.3,400m :2
14,000m2
14,000rf
21,000
118,000
183,000
373
525
10,300
15,800
30
150
700
1,500
79
Major Events
1968 一 S t a r t o f R & D on F o o d
- Launching o f H I *
i n s t a n t noodles
( i m p o r t n o o d l e f r o m Japan)
1969 - F o r m a t i o n o f Winner Food P r o d u c t s L i m i t e d
- M a n u f a c t u r e o f own n o o d l e c a k e s
- C o n s i d e r a t i o n a u t o m a t i o n on f o o d
manuf ac t u r i n g
R e g i s t r a t i o n o f patents f o r automatic
b e a n s p r o u t m a n u f a c t u r i n g and
s p r i n g r o l l p a s t r y machines
1971 “ E m b a r k a t i o n on V e c o r n o i l
1972 - S t a r t o f o v e r s e a s j o i n t v e n t u r e
1973 - E s t a b l i s h m e n t o f f a s t f o o d c h a i n o u t l e t s
1974 - A c q u i s a t i o n o f b e a n s p r o u t and b e a n c u r d
m a n u f a c t u r i n g company
1975 - S t a r t o f C h i n a T r a d e
1978 - L a u n c h i n g o f 1 D o l l 1 n u t s
- A c q u i s a t i o n of f i s h b a l l manufacturing
company
- G r a d u a l management s h a p i n g
1980 一 Management c r i s i s
“ L a c k o f manufacturing space
一 s l i p - b a c k due t o k e e n c o m p e t i t i o n
1982 - E s t a b l i s h m e n t o f own p l a n t i n T a i Po
- S t a r t of frozen/chilled food
一
1983 - S a l e o f c o n t r o l l i n g s h a r e t o
Food C o r p o r a t i o n
一 S t a r t o f T e t r a p a k d r i n k s and
- S a l e o f V e c o r n b r a n d name t o
Beatrice
beverages
Lam Soon
1984 - R e - e n t r a n c e t o C h i n a m a r k e t
1985 _ B e a t r i c e g r o u p r e s t r u c t u r i n g
1986 - L a u n c h o f cup n o o d l e s
1987 - L a u n c h o f non-MSG added n o o d l e s
80
4• 0
Systemmatic Analysis
Enterprise
like
proportionate
provides
person f
is
to
heroism
is
not
the s i z e of the
vivid
necessary
action•
The
case
learning about the e n t r e p r e n e u r o n
a
h o w h e starts and d e v e l o p s a b u s i n e s s , h o w h e
helped
or h i n d e r e d b y the
of
the
a l s o g i v e s a n e x a m p l e of
the
c a t a l y t i c effect that a s m a l l b u t d y n a m i c e n t r a n t
can
environment•
The
case
circumstances
t
havfe
on
an
visualizes
rapid
originally
and
growth,
static
manifests
and
how
its
it
industry,
secret
faces
how
formula
the
it
of
problem
of
i n s t i t u t i o n a l i z a t i o n sequential t o r a p i d g r o w t h .
Throughout
the
research
process,
the
enterprise
a s s e m b l e d m o s a i c s of m i s s i n g
challenge,
change,
purpose
the
of g a i n i n g
critical
survival,
elements
of
p r o g r e s s and d i s t u r b a n c e . F o r t h e
a more thorough understanding
issues
growth
dynamic
and
on
organization,
develompent,
the
on
creation,
series
of
o b s e r v a t i o n s and f i n d i n g s g a t h e r e d from t h e c a s e s t u d y
were
streamlined
and
organized
under
four
basic
l e a r n i n g blocks, w i t h r a t i o n a l e s s u p p o r t i n g the s t a t e d
j u d g e m e n t d i s c u s s e d and a m p l i f i e d in e a c h b l o c k .
81
Learning Block 1 : O r g a n i z a t i o n which
distinct
DEVELOPMENT
OF SEED
IDEA
intrinsic
preneurial
better
(Entrepreneurial
Excellence)
possesses
entre-
qualities
has
chance o f s u c c e s s
a
in
g e t t i n g o f f the ground.
SPRING
No
doubt t h e s u c c e s s o f b o t h
people
is
shaped
environmental
and
by
organization
and
combination
of
factors•
The
a
internal
objective h e r e is not to a r g u e o n their r e l a t i v e
importance p
b u t t o i d e n t i f y the e x t e n t o f t h e i r
influences to organization s u c c e s s .
Because
one
an organization is normally started
man going his own way,
organization
founder
by
a n a p p r a i s a l of t h e
and
his
values
and
objectives is g e n e r a l l y c o n s i d e r e d n e c e s s a r y f o r
the
understanding
developed.
crucial
The
role
of
of
case,
person
enterprise
he
the
entrepreneur
is
to business s u c c e s s at
p h a s e of t h e e n t e r p r i s e .
the
the
who
the
the
pioneering
A s it is i n d i c a t e d b y
e n t r e p r e n e u r is b o t h
the
c o n t r i b u t e s to the u n i q u e
seed characteristics and t h e b u s i n e s s
idea
business
executor.
M a n y of the o r g a n i z a t i o n a t t r i b u t e s a t t h e f i r s t
generation
entrepreneurs
of
business
individual
are
related
personalities,
are either a n i n t u i t i v e e n t r e p r e n e u r i a l
82
to
the
which
flair,
largely
subsconscious
feelings1f
or
and
composed
1
of
gut
t h e more c u l t i v a t e d autonomy and
entrepreneurship
that
emerges
during
his
on
in
the
going busines practice•
Winner
achieved above average standard
various
business
formation
ordinary
which
dimensions
enabled
it
in
to
mediocre competitors.
broad business discipline.
its
early
surpass
the
Seen under
the
Winner possesses the
following entrepreneurial q u a l i t i e s :
4.1.1
Organization
1
Mission1
: Entrepreneurial
Drive
As
discussed
case,
at t h e b e g i n n i n g
there
imposed
are
by
actions
obvious
employment
of
the
limitations
and
employees
are often circumstanced
by
an
environment that i s n o t of t h e i r m a k i n g .
Harry
who
values
itself
the
is d e f i n a t e l y t h e k i n d of p e r s o n
independence as an
end
in
and w h o w o u l d p r e f e r f r e e d o m
to
possibility
of
larger
reward as a subordinate.
H a r r y h a s c o m m e n t e df
business
financial
After all,
as
starting o n e 1 s own
is n o t n e c e s s a r i l y t h e e a s i e s t
w a y t o m a k e a l i v i n g , n o r is i t t h e m o s t
remunerative•
83
Harry b y and large,
like
most
entrepreneurs,
is
impatient
w i t h r e s t r a i n t s and t e n d s t o work b e t t e r
on
his
own
instruction -
initiative
than
His
motive
basic
under
for
s t a r t i n g a b u s i n e s s i s n o t t h a t o f power*
and f o r t u n e
f
b u t s h e e r i n d e p e n d e n c e . The
circumstantial
pressure
towards
independent e n t e r p r i s e i s v e r y s t r o n g i n
the
case.
The
independence
deeply
and
impulse
self
to
seek
sufficiency
i s
rooted i n Harry1s character
security
is
of l i t t l e interest t o
him
u n l e s s i t i s o f h i s own m a k i n g .
But
independence i s n e v e r t h e s o l e
of Harry's enterprise•
an
a
The pressure
end
of
idea striving f o r e x p r e s s i o n i s a l s o
powerful i n c e n t i v e .
Harry
obviously
h a s an u n s c r a t c h a b l e i t c h t o t r y o u t n e w
ideas.
H e w i s h e s t o b e free s o t h a t
he
can accomplish something h e h a s in m i n d ,
e i t h e r t o p r o m o t e an
idea,
m a r k e t or to i m p r o v e
a n e x i s t i n g t y p e of
product or service,
His major reward in
having
of h i s o w n
pleasure
a
business
to develop a
that h e t a k e s i n t h e
is
the
products
t h e m s e l v e s and t h e r e is a n a t u r a l d e s i r e
84
eventually
to
enjoy
the
cumulative
fruit.
The i m p u l s e towards c r e a t i v e
can
remain
enterprise
quiescent t i l l released
by
circumstance• The releasing mechanism in
this
c a s e w a s initiated b y a c h a n g e
Amoy1s
ownership
activated
by
structure
the
in
and
decisive
was
impulse
generated from an external s o u r c e .
Yet,
H a r r y claimed that it is not e a s y f o r a n
employee
to exploit
(particularly
and
to
such sudden change
an e m p l o y e e a t h i s
seniority) and c o u r a g e is
accept
the
will-power
which
a
challenge•
required
Courage
that g i v e s a m b i t i o n
business
level
would
is
without
never
have
started.
Besides
the
initiate .i
important
preliminary
Harry
ambition
to
also
has
the
more
to
get
onf
to
complusion
enlarge and and to e s t a b l i s h a b u s i n e s s ,
and
t o d o s o at a f a s t e r p a c e b u t
unmistakable
new
firm
is
success.
with
T h e g r o w t h of
certainly willed
by
a
the
entrepreneur w h o m u s t n o t b e
content
to
85
remain
small,
however
restricted
his
field,
he must a i m
to
become a l e a d e r .
Production
Aspect
: Intellectual
Knowledge
As H a r r y h a s r e p e a t e d l y e m p h a s i s e d ,
needs
t o know t h e b u s i n e s s b e f o r e h e o r
she can
s u c c e e d . One a s p e c t o f k n o w i n g
the business i s t o possess
knowledge
venture
its
produces
T h e r e i s l i t t l e hope f o r
t h a t i s not based
experience
cannot
intellectual
on how t h e b u s i n e s s
and f u n c t i o n s .
a
one
of
business o r
on
solid
craft•
expect luck a l o n e t o p u t
feet-
Accordingly
entrepreneur
educated
man
to
It
it
Harry,
may
not
need
to
in
the
academic
on
the
be
an
sense•
E d u c a t i o n is n o t n e c e s s a r y a h e l p t h o u g h
Harry
fully
acknowledged
that
his
university education faciliated a
deal
of
his progressive
apprehension
principles*
training
learning
general
and
business
O n the other hand, craft o r
often
business
guides
strategy,
commitment
much
of
great
the
Harry,s
of
strong
to the food business relates
t o h i s m e n t a l and m o r a l
86
choice
stimulant
d e v e l o p e d d u r i n g h i s d a y s w i t h Amoy. H i s
unusual s c i e n t i f i c approach t o
business
however i s due t o h i s c h e m i s t b a c k g r o u n d
and
h i s e x p o s u r e a t S h u i H i n g and U n i o n
Carbide,
The
degree
required
varies
of
in
technical
the
leading
knowledge
personality
w i t h t h e n a t u r e and p u r p o s e
the business.
H a r r y commented t h a t
of
the
t e c h n i c a l knowledge i n v o l v e d i n t h e f o o d
business
i s
perceives
how much a m a n knows about
subject
pretty
fundamental•
is l e s s i m p o r t a n t t h a n
He
a
knowing
what to do with his knowledge. Other m e n
m a y know more than him,
labours
turn
so
all
but may b e none
a s s i d u o u s l y as h e
that
he
knows
does
to
to
useful
practical purposes. Harry certainly also
accumulates h i s k n o w l e d g e i n the
of
course
h i s o w n p r a c t i c e as o t h e r m a n a g e r i a l
candidates d o .
established
facilitated
Nevertheless,
experience
him
in
in
his
well
food
has
exercising
better
judgement t h a n t h e m a j o r i t y a n d h a s m o r e
l i k e l y a v o i d e d f a t a l errors•
87
H
3
Financial
Aspect :
Financial
Supports
and F o r e s i g h t
The c a s e o f Winner d e m o n s t r a t e s t h a t new
and s e l f c o n t a i n e d e n t e r p r i s e s need
always
the
s t a r t on t h e s o l e i n i t i a t i v e
founder,
sponsored
Harry
his
but
by an
c a n be
established
1
b o s s 1 Mr*
Chou Man
he
Hin,
business
deserves
study.
its
M r . Chou d e f i n i t e l y
mention in
this
is actually a textile
production•
industrialist
major shareholder of a
conglomerate corporation•
Mr.
a
M r . Chou does not have
hands-on experience in food
Harry,
to
w a s described b y H a r r y as
business genius.
the
without
s u p p o r t s , he
and n u r t u r e d i t
particular
He
to
would n o t have s t a r t e d h i s
present prosperity•
and
business.
always e x p r e s s e d h i g h r e s p e c t
claimed,
He
of
successfully
whose f i n a n c i a l and m e n t a l
own
not
Chou
listed
According
to
h a s special talent in
doing business, in the sense that h e c a n
identify the profitable industry a n d h a s
good
judgement
recruiting
in
spotting
the right person to
and
execute
the business o n his b e h a l f . A l t h o u g h M r .
Chou
essentially
88
only
functions
as
financier
acts
to
have
Harry
Winner,
perhaps
in
his
philosophy.
kept
track
performance
also
has
staff
in
his
distinctive
subtly
influenced
management
Like
on
style
and
Mr.
Chou who
has
Harry's
behavior
and
f o r over
10
yearsv
great patience i n
development.
Harry
monitoring
He t r u s t s h i s s t a f f
much t h e same way a s
Mr.
Chou
has
p l a c e d a b s o l u t e t r u s t i n him. Throughout
the
company h i s t o r y ,
Mr.
Chou h a s n o t
a p p o i n t e d a s i n g l e man t o c h e c k
the
company 1 s
absolute
moves.
Harry
against
i s
given
f r e e hand t o r u n h i s b u s i n e s s .
W h i l e H a r r y has r e p e a t e d l y e x t e n d e d
g r a t i t u d e towards M r .
in
him,
belief1
he
his
Chou's confidence
i s aware t h a t t h i s
1
total
i n h i s s u b o r d i n a t e would
have
been r i s k y w i t h o u t t h o r o u g h knowledge o n
t h e p e r s o n 1 s c h a r a c t e r and c a p a c i t y .
M r . Chou1s s u c c e s s i n t h i s j o i n t v e n t u r e
business
suggests
an
interesting
c o r o l l a r y : p e r h a p s one d o e s n o t n e e d t o
1
know1
the business t o s t a r t
with;
l o n g a s one knows how and where t o
h i s partners f o r the business.
89
as
find
Some
initial
starting
capital
a business•
pointed out,
how
i s
much
essental
H o w e v e r as
i n
Harry
initial capital f n o m a t t e r
and h o w s e c u r e it i s
at
the
b i r t h stage of enterprise, is n o t a l o n g
term g r o w t h guarantor b e c a u s e m o n e y w i l l
not
expand
by
itself.
Organization
r e l i e s o n the e n t r e p r e n e u r 1 s
shrewdness
i n m a k i n g u s e of the initial c a p i t a l and
his
skill
money.
the
in
handling
resources
of
H a r r y had u s e d u p n e a r l y h a l f of
initial capital b e f o r e
launching
because
he
started
h i s D o l l instart n o o d l e .
h e is m i n d f u l
of
money r
Yet
cash
f l o w and financial control, h e s p e n t h i s
money
be
o n areas in w h i c h p r o f i t s w e r e t o
generated
evaporation
of
and
avoided unnessary
his
limited
starting
capital.
It
is to a c e r t a i n e x t e n t t r u e t h a t t h e
k i n d of b u s i n e s s e s t h a t a r e o p e n t o
new
coiner a r e l i m i t e d b y h i s
and
t h e n a t u r e of t h e
entrepreneurs
activity
that
impossible
90
will
is
demands
resources
industry.
tend t o
his
Small
choose
not likely
on
the
to
an
make
resources•
Nevertheless,
preferable
i t
to
would
choose
be
more
a product
or
a
s e r v i c e t h a t c o u l d be s t a r t e d on a s m a l l
s c a l e i n modest p r e m i s e s , b u t c a p a b l e o f
being
built
up b y s i m p l e
l a r g e e x p a n s i o n and
stages
into
mechanization.
The
D o l l i n s t a n t noodles serves as a t y p i c a l
example o n s u c h c l a i m :
Winner i m p o r t e d
i n s t a n t noodles from Japan a t the
s t a g e o f l a u n c h i n g a n d was
self-produced
early
subsequently
and m e c h a n i z e d a s
demand
and m a r k e t g r e w .
Harry
also
believes
that
lack
of
f i n a n c i a l f o c u s c o u l d be a t h r e a t t o t h e
r a p i d l y g r o w i n g new v e n t u r e •
If t o d a y 1 s
products
continuing
do
not g e n e r a t e a
and large revenue stream, the e n t r e p r i s e
w i l l not b e able t o m a k e t h e s u b s t a n t i a l
investement
deliberate
margin
in
tommorrow.
selection
products
non-credit
in
Harry's
high
profit
and his insistence
s e l l i n g at t h e
early
on
stage
had fostered the company w i t h accessible
reserves
a d e q u a t e for a l l t h e g r o w t h i t
had contemplated.
It
is a w e l l k n o w n fact t h a t
91
financing
i s
a
vote
management.
of
The
confidence
case
i n
the
reinforces
the
b a n k e r 、 c o n c e r n s o n Winner, s q u a l i t y of
management
over
which h a d
all
Confidence
by
taken
other
precedence
considerations.
m u s t b e kept in g o o d
frankness in s u p p l y i n g f a c t s a n d
strict adherence to p r o m i s e s .
emphatic
on
cooperative
the
and
on
the
by
is
keeping
b y providing
regular information about t h e
activities；
Harry
the i m p o r t a n c e of
h i s bankers in the p i c t u r e
out
repair
company1s
need
for
a
a t t i t u d e i n o r d e r t o smooth
difficulties
of
negotiation
w i t h banks k
I n n o v a t i o n A s p e c t : C r e a t i v e Imacrination
The
importance o f the
cannot
be
qualities
creative
overlooked.
The
of Harry are o f t e n
factor
uncommon
reflected
i n t h e uncommon c h a r a c t e r o f what h e h a s
offered
through
his
business.
Harry
r e f l e c t e d that successful entrepreneurs,
whatever t h e i r i n d i v i d u a l m o t i v a t i o n
b e i t money,
power,
desire
fame
for
curiosity,
and
o r the
recognition
s h o u l d t r y t o c r e a t e v a l u e a n d t o make a
92
contribution.
simply
From
to
the
easily
to
Harry
is
not
f o l l o w what a l r e a d y
case
history,
i t
exists.
could
d e t e c t e d t h a t he always
and
different
satisfactions
convert a material i n t o a
be
attempt
c r e a t e new and d i f f e r e n t v a l u e s
new
to
content
r
resource,
combine e x i s t i n g r e s o u r c e s i n a
and
to
or
new
and more p r o d u c t i v e c o n f i g u r a t i o n .
H a r r y f i r m l y b e l i e v e s an e n t e r p r i s e i s a
creative
well
as
activity,
i t needs
adroitness
in
ideas
strategy
as
and
t a c t i c s . The i d e a s may n o t be c o m p l e t e l y
originalr
i n
b u t o r i g i n a l i t y w i l l b e shown
a d a p t i n g them t o
reckons
that
new
idea
purposes.
may
come
He
more
a b u n d a n t l y t o some minds t h a n t o o t h e r s ,
not
o n l y because o f an i n n a t e
faculty,
but
perspicacity
invisible
Harry's
to
also
creative
because
i n s e e i n g what h a s
others•
The
of
proved
secret
of
i n t e l l e c t u a l g r o w t h is p o s s i b l y
d u e to h i s w i l l i n g n e s s to k e e p h i s
mind
and
have
eyes
open.
commented :
persevering.
93
A s his
collegue
"He w a s sober, d e l i g e n t a n d
Where
others saw nothing r
he d e t e c t e d a n a l o g i e s ,
differences
and
p e c u l i a r i t i e s which s e t him t h i n k i n g . "
Winner1s
recent
'non-MSG
clearly
introduction
added D o l l i n s t a n t
of
the
noodle
an o f f - h a n d i n d i c a t i o n o f
i n
such
H a r r y 1 s q u a l i t y . He i s q u i c k i n g r a s p i n g
i d e a s and i n t e r p r e t i n g
others
trends,
while
are s t i l l busy a r g u i n g the
cost
o f a d d i n g MSG t o f o o d , H a r r y was a b l e t o
prepare
the
advance,
non-MSG added
product
in
and t o t r i g g e r o f f s u p p l y when
demand becomes a p p a r e n t •
W h e r e as creativity m a y b e g i f t e d , H a r r y
without
hesitation
considered
innovation as h a r d f o c u s
work
making
a
deligence,
on
commitment.
He
very
and p u r p o s e f u l
great
demand
persistence
on
there must
be
v e r y few successful e n t e r p r i s e s that
do
not
absorb
belives
and
on
m a j o r i t y of
the
founder's
life, A m a n m u s t p l o u g h h i m s e l f i n t o t h e
business•
any
H e must b e prepared to suffer
privations
inflict
recalled
signing
as
that t h e
the p r i c e
of
business
success.
may
He
that h e w a s d e e p l y a b s o r b e d i n
o n e of t h e m a j o r
94
contracts
in
E u r o p e when h i s w i f e gave b i r t h t o t h e i r
child.
Also
demonstrated
effective
by
when
canalizes
all
single goal,
the
the
the
entrepreneur
h i s energies
and a d m i t s no
u n t i l i t i s achieved.
case,
towards
a
distraction
The g r e a t s u c c e s s
o f Winner F o o d P r o d u c t L i m i t e d s e e m i n g l y
owes
very
product
highly
much
and
t o the
step
by
step
market d e v e l o p m e n t b y
motivated
but
its
unsophisticated
entrepreneur.
Oraaniztion Aspect
:
Leadership
and
Management
Besides
creativity
and
Harry
is
also
gifted
which
i s
one e s s e n t i a l o f
Harry
agreed
without
t h e human e l e m e n t ,
of
leadership
for
leadership
enterprise.
hesitation
a n d management) ’ i s
of
Having
worked
started
his own businessr
preponderant
in
big
and
95
the
importance•
companys
Harry
leadership m a y well both
needed
that
(that i s the q u a l i t y
factor
that
imagination,
and
feels
be
have greater impact o n
more
the
small entrepreneurial organization
than
i t has i n t h e b i g 'inanaged 1 o n e . B e c a u s e
every
new
venture
challenges,
and i t
i t
presents
different
has d i f f e r e n t
has t o guard a g a i n s t
degenerative
different
tendencies•
entrepreneur
confidence
problems
must r e l y o n h i s own
balanced
r
discretion.
Maybe
best
in
even
temper.
self
b y judgement
judgement
an atmosphere o f c a l m
Harry
i s
and
operates
and
of
enthusiastic,
seldom e x c i t a b l e o r i m p a t i e n t .
Without exception,
small
evolving
different
its
business,
problems,
constraints
at
Winner,
like
other
also
faces
limitations
from t h e s o l e
commencement
and
entrepreneur
r
The
man
who
f o u n d e d t h e b u s i n e s s and b u i l t i t a l m o s t
always
ends
embittered
and
up
on
the
outside,
disenchanted•
Harry
k n o w s for s u r e t h a t u n l e s s a n e w v e n t u r e
develops
i n t o a n e w b u s i n e s s and
sure
b e i n g 'managed',
of
survive
no
matter how
e n t r e p r e n e u r i a l idea,
a t t r a c t sf
makes
it w i l l
brilliant
not
the
h o w m u c h m o n e y it
h o w g o o d its p r o d u c t s o r e v e n
96
how g r e a t t h e demand o f them.
Seeing
t h a t t h e team c a n n o t
overnight,
Harry
be
formed
started to build
top
management
team much e a r l i e r
the
v e n t u r e r e a c h e s t h e p o i n t where
must have o n e .
"Behind
every
successful
is
shared
with
i t
him
i s
a
Harry confesses t h a t
:
h i s understanding
worries ？ the
a l l
the
one
wife
joys
of
who
and
o t h e r i s h i s most h e l p f u l
immediate a s s i s t a n t M r s .
i s
man
i s f o r t u n a t e t o have two
course
than
L i k e t h e good o l d s a y i n g
s u c c e s s f u l woman",
he
his
B e t t y Lam
h i s a p p o i n t e d crown p r i n c e s s t o
who
his
D o l l Empire.
Betty
recapitualated
that
she
has
f o l l o w e d Harry s i n c e she l e f t s c h o o l and
has
spent
company.
time
her
Originally,
worker
Store.
at
i n
trades.
chemistry
Hing
Department
Betty started
as
than
background
97
the
and
H a r r y i n v i t e d h e r t o work
Winner
Other
i n
b y h e r h a r d work
h i s new s e t t i n g .
career
youth
B e t t y was a p a r t -
Shui
Impressed
intelligence,
in
entire
a
her
her
jack-of-allhigh
which
school
slightly
relates
had
t o the f o o d r e s e a r c h work,
1
t o l e a r n a l l the business
she
tricks1
f r o m s c r a t c h . Her r o l e was u n d e f i n e d a n d
ranged from f e a t u r i n g i n t h e
television
a d v e r t i s i n g show t o o r g a n i z i n g p r o m o t i o n
programmes
at
beaches.
housing
Betty
disciplined
i s
worker.
estates
and
quick
and
a
While
others
have worked a c c o r d i n g t o what t h e y
toldr
she
may
were
i s always r e a d y t o i n t e r p r e t
t h o u g h t s and d i r e c t i v e s f r o m H a r r y . From
pure ideas o r concepts r
she i s a b l e
to
t r a n s l a t e them i n t o p l a n s , a n d m o r e o v e r ,
implement
plans
actions.
Harry
achieved
the
into
synchronized
s a i d he w o u l d n o t
speed
of
have
organization
development w i t h o u t B e t t y ' s
assistance.
Indeed t h e r o l e o f implementor cannot be
overlooked
growth c a s e .
i n
this
successful
rapid
Y e t maybe a t t e n t i o n h a s t o
be f o c u s e d on t h e f a c t t h a t Winner
been
successful
people
whom
they
u n d e r s t a n d them,
and
only
when
have
they
understand
and
use
who
p e o p l e whom t h e y t r u s t
who i n t u r n know how t o g e t
done i n t h e e x i s t i n g
business;
things
people,
i n o t h e r words w i t h whom one c a n w o r k a s
98
partners•
There
were
obviously
cases
w h e r e the new recruit could n o t a d a p t t o
t h e organization system and cliinate
hence
failed to perforin.
manager
of
The M B A
and
shop
the fast food o u t l e t s is
a
classic example w h e r e p o t e n t i a l b u s i n e s s
could h a v e been spoiled b y an u n s u i t a b l e
candidate.
and
Teams based o n m u t u a l
trust
mutual understanding take y e a r s
build
up.
Nonetheless,
to
the e x t e n t
of
b e n e f i t for good organization m a n a g e m e n t
undoubtedly worth a great d e a l m o r e t h a n
t h e time and effort involved.
4.1.6
M a r k e t i n g Aspect : Intuitive A w a r e n e s s
The
progress
of a n e n t e r p r i s e
depends
u p o n the quickness of its l e a d e r t o
to
the
point
or
opportunity.
The
better
speed
in
to
detect
Winner，s
an
entrepreneur m u s t
of
manoeuvre
originality of thought than t h o s e
established
get
businesses
success
bar
depends
and
whose
the
on
be
way.
Harry s
ability to g r a s p b u s i n e s s o p p o r t u n i t i e s His
market
intuitive
capture
awareness
power
natural
readily allows h i m
potential
99
and
product
and
to
market
possibilities.
B e c a u s e t h e e s s e n c e o f econoinic a c t i v i t y
is
t h e commitment o f p r e s e n t
to
future
expectations
u n c e r t a i n t y and r i s k ,
take
this
means
a willingness
c h a n c e seems t o be t h e e s s e n c e
entrepreneurs.
agree
that
takers.
a
resources
However,
will
more
for
risk
taking,
risk
Harry
conservative
only accept calculated
risk.
i t i s d o u b t f u l whether t h e r e i s
l u c k t h a n judgement i n any o f
successful
been a l u c k y
Perhaps
the
launches i n t h e Winner c a s e .
B u t one t h i n g i n c e r t a i n ,
have
are
Whereas e n t r e p r e n e u r s must h a v e
b e l i e v e s t h a t he i s r a t h e r
Indeed,
of
Harry does n o t
entrepreneurs
propensity
and
to
i t could
shot i n every
not
case.
Winner1s s c i e n t i f i c approach t o
r i s k assessment has had a l a r g e r p o r t i o n
of
by
success than the b a s i c gut
the
judgements r
deduction
reaction
entrepreneur.
Intuitive
confirmed
the
by on
and d e c i s i v e
the e n t e r p r i s i n g amateur.
action,
spot
guided
Specifically,
i t i s b e t t i n g o n o n e ' s judgement, n o t o n
one•s fate.
100
Learning B l o c k 1
101
Learning Block 2
The
success
organization
SUMMER
an
depends o n
the
of
its
PRODUCT/MARKET
INTERFACE
receptivity
(Receptivity to
Environment)
products/services
in
its
c o n t e x t u a l environment•
It
is w o r t h pointing out that g i v e n that W i n n e r
has
the
qualities
afore-mentioned
which enhance i t s c h a n c e of
off the ground,
launching
entrepreneurial
it has
all
getting-
not achieved success i n
of its p r o d u c t s .
The answer
to
this is r e a d i l y u n d e r s t a n d a b l e : e v e n w h e n i t i s
b a s e d o n m e t i c u l o u s analysis r e n d o w e d w i t h c l e a r
focus,
and c o n s c i e n t i o u s l y m a n a g e d ,
still
suffers
from u n i q u e
risk.
innovation
Bringing
an
innovation successfully to m a r k e t a f t e r a l l l i e s
n o t in its novelty,
its
cleverness.
market
than
place.
its s c i e n t i f i c
content, or
It lies i n its s u c c e s s i n
There is nothing more
the
dangerous
to b e p r e m a t u r e in e x p l o i t i n g a c h a n g e
perception.
In
the first place,
a
good
in
many
of what l o o k like c h a n g e s i n p e r c e p t i o n m a y t u r n
out
to
within
b e short-lived fads•
a
apparent
year o r two.
firm
A n d it
is
not
go
always
w h i c h i s fad and w h i c h is t r u e c h a n g e .
Furthermore,
the
T h e trend m a y
has
a premature start,
accumulated
either
enough
before
capital
or
experience,
o r b e f o r e t h e market c o n d i t i o n s a r e
most p r o p i t i o u s w o u l d l e a d t o f a i l u r e , a s W i n n e r
has i l l u s t r a t e d i n i t s overseas expansion,
food o u t l e t establishment
fast
and i n t h e l a u n c h i n g
r
o f Vecorn o i l .
In
most
innovation
receptivity
i s
partly
a
gamble a n d t h e odds a r e unknown. T h e r e i s n o way
to
eliminate
the
r e s e a r c h does
research
element
n o t work.
on
of
risk.
One c a n n o t
something
Market
do
market
genuinely
new.
N e v e r t h e l e s s , i n n o v a t i o n i s a n e f f e c t i n economy
and
society•
It
is
a
change
in
process.
Innovation is b o t h conceptual and p e r c e p t u a l . It
is
therefore
essential for the c o m p a n y
close to the m a r k e t ,
indeed
be
focused o n the market, and
market driven.
product
to
It mtist b e a w a r e t h a t
i s d e f i n e d b y the c u s t o m e r ,
a
not b y the
producer• H a r r y always e m p h a s i z e s t h e i m p o r t a n c e
of
people
spend
time
w h o are r u n n i n g the n e w
outside
:
in
the
venture
market
to
place,
looking and l i s t e n i n g . T h i s firm b e l i e f i s s t i l l
well maintained in the company today :
key personnel
year
to
technology•
Winner's
a r e sent o v e r s e a s a t l e a s t o n c e a
learn
the
most
Moreover,
up
market
to-date
research
analysis h a s b e c o m e t h e c o m p a n y ' s r o u t i n e .
103
food
and
The g r e a t e s t d a n g e r f o r new v e n t u r e i s t o
better
than
therefore
the
needs
customer.
to
work
'know
Organization
continuously
on
c h a l l e n g i n g i t s e l f i n r e s p e c t t o t h e u t i l i t y and
value
to
that i t s products o r services
customer.
customers.
Instant
Business
contribute
are not paid t o
They a r e p a i d t o s a t i s f y
noodle
is
a
reform
customers.
g o o d example
of
a
new
e n t e r p r i s e p e n e t r a t i n g new m a r k e t s . I t / s s u c c e s s
i s
achieved by going d i r e c t l y t o the
who
i s
receptive t o products
that
customer,
promise
a
r e d u c t i o n o f t i m e and c o s t i n p r o v i d i n g m e a l s .
Successful
field
i n
because
the
i n n o v a t o r s t e n d t o be c l o s e
which
they
innovate •
his
of
may
to
be
opportunity.
Harry's innovative ideas derived
intimacy
feels
This
the
the m o r e o n e is f a m i l i a r w i t h t h e a r e a ,
m o r e h e o r she is a l e r t e d
Most
to
with
food.
N e v e r t h e l e s sf
that it is not a l w a y s n e c e s s a r y
for
from
Harry
the
innovator to s e e t h i n g s f r o m within? a o n c e i n a
while
outsider
and b e n e f i c i a l •
the circle,
misses
consists
approach m a y b e m o r e
objective
If o n e r e s t r i c t s h i m s e l f w i t h i n
one probably only sees the wood and
the
of
forest.
the
Systematic
purposeful
and
innovation
organized
r e s e a r c h for c h a n g e s r and o f s y s t e m a t i c a n a l y s i s
104
of
t h e o p p o r t u n i t i e s s u c h changes may o f f e r f o r
e c o n o m i c and s o c i a l i n n o v a t i o n . The e n t r e p r e n e u r
should
therefore
always
search
for
change,
r e s p o n d t o i t and e x p l o i t i t a s an o p p o r t u n i t y .
Winner a l s o e x p l o i t s the s u c c e s s o f
its
series
of
acquisition
of
others•
In
existing
food
m a n u f a c t u r i n g plants (like f i s h b a l l , b e a n c u r d ,
bean
sprout,
perfects
market
the
noodle
etc,),
lacking.
kitchen
or
either
in
In
addition,
some
and
food
serves
as
well known brands
Birdseye p
expanding
it
7-11P
has
producer/outlets.
central
shops
Coral
and
these
rapid
As has
been
stressed
many
products
from the v i e w p o i n t of t h e c u s t o m e r
either
times.
still
and
Cafe d e
facilitated
the
creatively
and supplies s o m e t h i n g that i s
to
as
it
product o r finds a n i c h e
f o r a n existing p r o d u c t f
initiates
(such
fresh
something
W i n n e r always
that t h e c o m m u n i t y
looks
does
at
:
not
k n o w it n e e d s r b u t w i l l w a n t w h e n it h e a r s a b o u t
it;
or s o m e t h i n g that f u l f i l s a k n o w n a n d s t i l l
unsatisfied
upon
need;
existing
or something
that
g o o d s and s e r v i c e s i n
improves
a
market
that b e l i e v e s i t s e l f t o b e w e l l s e r v e d .
The critical problem in this perception
105
- based
innovative
firm
undoubtly
some
however i s
impatience
timing.
There
f o r Winner
i s
to
get
started* But impatience, w h i l e a v a l u a b l e motive
f o r c e , . i s a l s o a b l i n d one• W i n n e r w a s e a r l y i n
its launching of V e c o r n oil,
in its C h i n a t r a d e
b u s i n e s s and in its frozen food developut'ent.
In
e a c h case, the company w a s a b l e to see e i t h e r a n
existing
new
demand or an o p p o r t u n i t y to
one.
It
also
create
has some knowledge
of
a
the
c o m p e t i t i o n it would have t o face. W h a t it c o u l d
n o t k n o w is the likely r e c e p t i v i t y of the m a r k e t
t o w h a t it h a s
to o f f e r P
the time lag
o f f e r and the acceptance,
advancement
and
required
successful
for
between
a n d the t e c h n o l o g i c a l
infrastructural
launching.
supports
Anything
g e n u i n e l y n e w creates m a r k e t s that n o b o d y b e f o r e
even
to
imagined.
overcome
could
The pioneer therefore often h a s
the conservatism of
sometimes
only
change
markets
very
that
little
in
centuries .
Yet
waiting
changes
the
has its risk
i n perception,
too.
In
exploiting
one has to b e first
m a r k e t and d i r e c t i m i t a t i o n d o e s n o t
in
work.
T h e launching of a p r o d u c t is t h u s o n l y a p a r t l y
controlled g a m b l e ,
and t i m i n g is n o t a l w a y s
on
one1 s own choice. Orgainzation representing good
106
i d e a s may n o t s u c c e e d u n l e s s t h e t i m e h a s
Certainly
experts
hindsight
can
t e l l us
a r e r i g h t o r wrong i n t h e i r
of receptivity.
whether
come.
the
assessment
B u t maybe f o r e s i g h t c a n a l s o b e
lengthened with experience•
107
？
^
O
O
C
T
H
/A
H
K
J
^^HTewAce
<K«c«^tivity
108
Learning Block 3 : Organization
can
achieve
r a p i d g r o w t h i f i t manages t o
AUTUMN
FORMULA TO
GROWTH
r e a l i z e and implement one
{Cognitive
Realization)
1
the
formulae'
success.
to
to
of
business
Organization
tends
r e p e a t t h e same '-formula ‘
i n subsequent growth
because
of organization learning.
T h i s l e a r n i n g b l o c k i s d e r i v e d f r o m Simon
current
research
purpose
of
development
this
of
(c.f-
section
section i s
to
Tam* s
1.2.3) .
discuss
W i n n e r ' s growth f o r m u l a i n
The
the
the
course of i t evolution.
As
was
original
explore
mentioned i n an
chapter,
i d e a f o r f o u n d i n g t h e b u s i n e s s was
fresh
s c o p e i n f o o d p r o c e s s i n g and
i n d u s t r i a l i z e Chinese
A l t h o u g h i t was r
develop
earlier
frozen
production,
the
to
to
f o o d f o r mass p r o d u c t i o n .
i n the f i r s t p l a c e ,
food
menus
for
meant
to
overseas
t h e b a s i c s e e d i d e a s have n o t ruled,
o u t H a r r y ' s i m a g i n a t i o n on r e l a t e d a s p e c t s .
Winner1s
great success i n the launching o f
the
D o l l i n s t a n t noodle had cause Harry t o r e a l i z e a
way o f appiroachiixg t h e b u s i n e s s r e a l i t y : I t was
possible
and
to
market
mechanize C h i n e s e f o o d
them o n
109
mass•
Harry•s
production
subsequent
experxinentation
on
production
as f o r the
spring
(such
machine
'A-ha!1
sprout
and
T h e r e was c l e a r l y a
experience "At
r e c a l l e d , "as
was
beaxn
and
r o l l p a s t r y equipment) was h i s t e s t i m o n y
t:o h i s c o g n i t i v e a b i l i t i e s .
big
design
one
time,"
Harry
t h e demand f o r s p r i n g r o l l p a s t r y
s o b i g t h a t o u r machine f u n c t i o n e d
like
a
money p r i n t e r . "
This
the
r e a l i z a t i o n enabled Harry t o c a p i t a l i z e on
business context w i t h i n which t h e f i r m
was
embedded
and Winner t o o k - o f f .
Because t h e i d e a
was
successful
reward
so
substantial
for
and
the
the
firm,
Harry
was
so
tended
to
reapply
t h e same c o r e f o r m u l a i n W i n n e r 1 s l a t e r
growth.
Despite i t s variations i n manifestation
Harry's
subsequent
persist
i n t h e same f o r m .
innovative
around the f o l l o w i n g i s s u e s
« The
food
product
His formula
ideas
centres
:
is c o m m o n but t y p i c a l l y C h i n e s e
in
nature.
- T h e industry
producing
such
food
items
is
generally backward•
_ The
food
items can
produced o n mass.
110
be
industrialized
and
-The
quality
improved
of
such
by
food,
items
standardization
can
and
be
the
a p p l i c a t i o n o f advanced f o o d t e c h n o l o g y .
Strong
一
p r e d i c t a b l e demand i n t h e f u t u r e •
-The
supply
of
such
food
items
add
to
consumer•s convenience•
Winner' s
achieveinent
in
automating
the
food
manufacturing processes have popularized Chinese
food
and
have
made
the
preparation
traditional Chines e d i s h e s less
In
other
words,
reforming
of
a
it
time-consuming•
created
demand
by
traditional p r o d u c t s to m e e t t h e n e e d
changing
world•
innovation
in
subsequent
history
1
has
of
a
long
It
is
an
neglected
example
field.
of the firm s h o w s
of
The
how
one
i n v e n t i o n 1 can lead to m a n y o t h e r s b y a k i n d of
chain
reaction
environment
is
of
ingenuity
favourable
to
provided
the
birth
the
and
d e v e l o p m e n t of i d e a s .
The
i n t r o d u c t i o n of V e c o r n o i l in 1971,
not
successful
another
of
principle.
at the
Winner1s
Edible
oil
beginning,
advances
is a n o l d
is
on
clearly
the
industry
s t a b l e d e m a n d . Y e t c o r n o i l is a f r e s h
111
though
same
in
approach
de
to
healthy
cooking which proves
to
be
under
g r a d u a l l y g r o w i n g demand.
The
curdf
series
bean
of acquisitions
sprout,
of
existing
bean
f i s h b a l l and f r e s h n o o d l e
p l a n t s f r o m 1974 t o 78 was an a c t i v e a p p l i c a t i o n
of
Winners
formula
mechanization
of
on
standardization
coitimon
Chinese
Winner1s
which
further
led
to
on
improving
quality
and
extending s h e l f - l i f e o f
unbranded
traditional
Chinese
focus
food
and
food
Winner1s
items.
a c h i e v e m e n t s i n t h e s n a c k s and p e a n u t m a r k e t a r e
further
methods
examples o f how modern mass
can
industries.
the
be
to
traditional
The s u c c e s s however d o e s n o t l i e i n
technology
convenience
applied
production
itself,
but
and hence g r e a t e r
on
the
quality,
value f o r
money
t h a t t h e p r o c e s s engenders*
Winner*3
launching
o f f r o z e n f o o d and
chilled
f o o d i n 1982 f u r t h e r r e i n f o r c e d a n d e x t e n d e d t h e
1
formula' idea.
sluggish
O t h e r t h a n t r a n s f o r m i n g an
trade i n t o
an imaginative
old
business,
W i n n e r 1 s advancement i n f r o z e n / c h i l l e d f o o d h a v e
s p a r k l e d tremendous g r o w t h p o t e n t i a l i n t e r m s o f
its
product
proliferation
internationalization.
new
frontier :
I t has pushed i t s e l f t o a
From d i m sum t o p r e f r i e d ,
112
and
from
f a s t f o o d t o p r e c o o k e d d i s h e s , i t i s now p o s s i b l e
for
Winner
mass
t o repeat the
manufacturing
frozen/chilled
concept t o
the
food
making
of
d i f f e r e n t c a t e g o r i e s o f f o o d i t e m s and d i f f e r e n t
style
from
of
Chinese c u i s i n e s t o c a t e r f o r
different
geometrically
parts
of
the
demand
world.
expanded t h e p r o d u c t
It
and
has
market
possibilities.
Winner's involvement i n the Tetrapak business i s
a g a i n b a s e d on f o r m u l a s o p h i s t i c a t i o n .
illustration
applied
to
on how a d v a n c e d t e c h n o l o g y c a n
a
mass
product
t r a d i t i o n a l Chinese d r i n k s ,
and
soya d r i n k ) .
facilitates
I t i s an
i n
the
of
(such as h e r b e l t e a
The c o n v e n i e n t p a c k a g i n g a l s o
product d i s t r i b u t i o n
popularization
area
be
of
the
and
enhances
otherwise
jaded
t r a d i t i o n a l Chinese products.
W h i l e i t i s o b v i o u s t h a t Winner h a s r e p e a t e d i t s
'formula' i n the establishment o f i t s
product
i t
l i n e categories,
i t i s a l s o noted t h a t
h a s r e f i n e d and s o p h i s t i c a t e d i t s
w i t h i n a product l i n e category.
of
different
'formula'
The development
D o l l i n s t a n t n o o d l e i s a good i n d i c a t i o n
of
s u c h a n a p p l i c a t i o n . From i t s b a s i c d e v e l o p m e n t ,
i n s t a n t noodles o f d i f f e r e n t f l a v o u r s have
added.
Winner
been
has f u r t h e r d e v e l o p e d t h e p a s t e
113
form
soup
p a c k and h a s
extended
its
product
c a t e g o r i e s t o i n c l u d e ' M i f u n 、 C u p n o o d l e , fresh
noodle
and
Judging
it
n o w the n e w n o n - M S G
added
noodle.
from W i n n e r 1 s p a s t p r o d u c t d e v e l o p m e n t ,
can
be
nutrition
deduced
conscious
that
Winner
and r e a d y t o
is
always
satisfy
the
e v e r changing consumer n e e d .
Moreover,
concious.
Winner
The
is
community
and
recent food p o i s i o n i n g
i n d u s t r i a l estates h a v e f
for e x a m p l e ,
r e p o n s e s w i t h i n the c o m p a n y .
event
news
at
tiggered
During the period
o f r e s e a r c h , the firm w a s engaged i n h e a v yR & D
o n the p o s s i b i l i t y of m a s s f e e d i n g .
investigation
will
very
be
much
positive,
benefit
Should this
the working
from
the
class
service
w h i c h in turn w i l l lead t o g r e a t a d v a n c e m e n t i n
W i n n e r ' s f u t u r e development•
114
Learning Block 3
DtVeLOPHENT
orID以SEED
(Cntr*pr*n«uri«l
SKC»ll«nc«)
WIHTKft
WOUCT/MAItK
INTEMA
'CK
(Xacaptivlty to
• T h e 'A-haI' Experience
• Formula Implementation
• Formula Repetition
春Formula E x t e n s i o n
參F o r m u l a S o p h i s t i c a t i o n
• F o r m u l a Refinement
115
Learning Block 4 : Rapid
organizational
will
.
organization1s
strain
ORGANIZATION
METAMORPHOSIS
existing
^ .
transformation)
together
growth
structure •
with
This
increasing
severity i n c o m p e t i t i o n
WINTER |
initiate
the
will
organizational
transformation p r o c e s s .
A
healthy
minded
business
growth.
the
business must grow,
must
Growth
essential
control
of
and
accept
the
a
healthy
strain
of
is among the h a z a r d s as w e l l as
aims
of
a
new
growth
is
one
business,
of
most
and
solid
achievements of m a n a g e m e n t .
The
first
the
b u s i n e s s h a s g r o w n b e y o n d the
one
man
load
business transformation begins
become
shoulders
overlaps
capacity
t o hold a l l the s t r i n g s and t h e
has
to
support•
that
consequence
too g r e a t
This
of growth;
of
for
its
g r o w t h and
when
one
total
pair
phase
in
problem
their
of
of
part
are
a
satisfactory
solution makes continued expansion possible• T h e
duration
of
the
vunerable
phase
varies
in
d i f f e r e n t cases, a c c o r d i n g t o the k n o w l e d g e a n d
competence
the
market,
adequacy
of the e n t r e p r e n e u r ,
the nature
t h e character o f the p r o d u c t ,
of the f i n a n c i a l b a c k i n g ,
116
the
of
the
chance
occurence
of
an
unexpected
advantage
u n p r e d i c t a b l e adverse event•
of
organization,
when
a
It spans a
and
strain
of
increasing size and
organic processes,
happens f
period
is
strong
withstand
the
responsibility.
the first o r g a n i z a t i o n s h a p i n g i s
r a r e l y sudden and d r a m a t i c .
all
which
resilient enough to
Nevertheless,
an
a testing time for m a n a g e m e n t
structure m u s t arise
enough
or
but
clearly
It is g r a d u a l f l i k e
imperceptable w h i l e
it
defined
in
when
seen
perspective.
Successful
growth
delegation.
The
depends
capacity
upon
for
effective
growing
up
is
d e t e r m i n e d b y the w i l l i n g n e s s of its c o n t r o l l i n g
personality
to g r o w w i t h it•
He must learn the
art of delegating effectively t o o t h e r s m a n y
of
the jobs that h e h a s long b e l i e v e d n o o n e c a n d o
except
himself•
common
transitional
business.
It
The
Reluctance
to delegate
feature of
every
a
growing
r e a s o n is r e a d i l y u n d e r s t a n d a b l e
is n o t e a s y to d i v e s t oneself of
one
h a s fulfilled s u c c e s s f u l l y for
and
to
switch
is
from small
duties
many
thinking
to
years
large
thinking.
Yet
staff
timing.
As
d e v e l o p m e n t is a m a t t e r of
revealed from t h e
117
case,
skillful
premature
delegation
scale
of
r e s p o n s i b i l i t y may
small
t a l e n t s i n p o s i t i o n s t h a t w i l l soon
men w i t h a l a r g e r v i e w ,
i s
place
retarded
or
the
a
need
and e i t h e r t h e b u s i n e s s
man
must
be
Delegation
is
business•
Timing
is
important
managerial
action,
and
policies
replaced.
continuous process
in
every
in
every
have
to
be
correlated in s e v e r a l d i m e n s i o n s .
In
addition
to o v e r c o m i n g
the
aforementioned
‘ i n t e r n a l f r i c t i o n s 1 caused by the r a p i d
process,
the
company
has
to
face
f r i c t i o n 1 as w e l l ( i . e . competition)
innovative
first.
g r e a t d e a l o f energy,
up
'Pioneering
The i n n o v a t o r
Number
two
blank walls,
on
disabilities;
he
a
i n coining
i ntrial
and
hand
escapes
the o t h e r
but
spends
money and t i m e i n more o r
b l i n d l y searching f o r the path,
against
the
A leading position i s l i a b l e
p a r t i c u l a r hazard.
less
'external
pay 1 a n d t h e r e i s no s a f e t y i n b e i n g
don't
to
growth
knows for
error•
these
certain
n u m b e r o n e h a s arrived and e x a c t l y w h e r e h e
that
is.
T h e larger, w e l l e s t a b l i s h e d and s u c c e s s f u l f i r m
might
to
u n d e r s t a n d a b l y h o l d b a c k and a l l o w o t h e r s
t a k e t h e s e r i s k s as they
well
placed
strength
are
strategically
i n t h e s e n s e that t h e i r
size
and
enables them to acquire inventions and
118
develop
them r a p i d l y when t h e i r
potentialities
have been f u l l y e s t a b l i s h e d .
Invention
can
take
place i n
the
substantial material resources f
cannot.
absence
b u t development
I t i s l o g i c a l t o expect therefore
while
the
inventions,
small
man
may
of
produce
that
important
t h e i r development w i l l n o r m a l l y
be
u n d e r t a k e n b y l a r g e c o m p a n i e s . S y s t e m a t i c R&D i s
therefore
of
utmost
g r o w i n g company.
specialization,
improvement
quick
in
importance
to
a
rapid
I t must c o n t i n o u s l y compete b y
by
innovation,
and
q u a l i t y and v a l u e .
I t must
t o s e e t h e p o s s i b i l i t i e s o f new
by
be
material
a n d methods f q u i c k t o d e t e c t t r e n d s , a n d p r e p a r e
to
take
totally
then
advantage o f changes•
R
it
& D focused,
will
succeed
If
it
if n o t m a r k e t
only
in
is
not
driven,
creating
an
useful,
but
o p p o r t u n i t y for the c o m p e t i t o r s •
A
powerful punch may sometimes b e
t h e ability t o a b s o r b b r u i s e s i s a l s o e s s e n t i a l •
Whereas
actr
a company should b e optimistic
it
earth.
must
also
b e realistically
M a k i n g m i s t a k e is u n a v o i d a b l e ,
in
its
down
to
but
one
must admit o n e 1 s mistake with a good grace. Face
saving
may
business,
b e needed in politics,
however
i t could b e a d a n g e r o u s form of
119
in
self
indulgence.
has
It
must b e p o i n t e d o u t t h a t W i n n e r
made f a l s e moves i n t h e i r c o u r s e o f
《for
example
in their o v e r s e a s
growth
expansion
and
their first e n t r y to C h i n a ) f y e t e v e r y t i m e t h e y
were
able to identify t h e f a u l t s
and
retreive
t h e situation b e f o r e t h e m i s t a k e s b e c a m e f a t a l .
Building
single
a
top
management team
is
thus
most i m p o r t a n t s t e p in e n s u r i n g
the
healthy
g r o w t h . Whenever p o s s i b l e it is w i s e to p l a n for
continuity
and
expansion in the very
earliest
stage of a n e n t e r p r i s e . It d o e s r e q u i r e t h e w i l l
on
the
part
rather
than
himself.
resource
1
to
The
keep
and
The
on
build
running
a
team
everything
founder has to learn t o become a
person
helpers1.
alive
of the f o u n d e r t o
rather
firm
than
a
'star'
spirit c a n o n l y
b e made more durable
by
be
with
kept
structured
organization•
Somehow
the
organizational
founder
must
fashion
d e s i g n and c r e a t e a n
atmosphere
in w h i c h the u n i q u e i d e a s c a n b e r e i n f o r c e d
understand
other
i n r e l a t i o n to p a s t
innovative
structure,
c o n t r o l sf
as
attempts. The
well
an
experience,
and
or
organizational
a s the r o l e s a n d t a s k s
must gradually take form.
Rules
it
and
p o l i c i e s must, b e e l a b o r a t e d t o c o v e r i s s u e s t h a t
120
become b e t t e r u n d e r s t o o d .
An o r g a n i z a t i o n
norm
must be e n c o u r a g e d t o g o v e r n d e c i s i o n m a k i n g a n d
behavior‘
largely
be
In
o t h e r words,
the
institutional,
u n w r i t t e n s i d e o f t h e o r g a n i z a t i o n must
developed
process•
along wih
The
formal
structure
"entrepreneurial
and
excellence
characteristics" need therefore to transcend,
a corporate level.
a
to
T h e y m u s t b e changed i n s u c h
w a y that t h e values and ideals of the f o u n d e r
a r e embedded in the r e a l i t y of the organization«
Needless
to
say,
enterprise
is
the
sustained
its
most
force
outstanding
characteristic.
The
speed
Winner1s
has
been due in part
growth
timeliness
which
and
it is based,
m a n a g e m e n tf
budgetary
Harry's
and
o r i g i n a l i t y of
the
in
such
c o n t r o l and p r o d u c t
important
James
role
solidity
to
the
idea
upon
in
Wong,
matters
has played
Winner1s
as
deversification.
a
very
organizational
transformation
process.
being
u p in J a r d i n e M a t h e s o n a n d
brought
of
b u t n o less to t h e s k i l l of
particularly
son,
of
A s a MBA graduate
and
Co.,
L t d . , James h a s a p p r o a c h e d h i s f a t h e r 1 s b u s i n e s s
b y a g o o d i n t r o d u c t i o n of s o m e d i r e c t i o n a l s h i f t
t o the r a p i d l y g r o w i n g c o m p a n y philosophyr
advanced
although
may
His
b e viewed as
a n d s o p h i s t i c a t e d to the
121
management
a
bit
transitional
organization,
towards
a
has
for
dominance
their
of
and c o r p o
Winner‘s
to
rate
success
t h e i r m a r k e t must
attitude
research,
the
company
new p e r s p e c t i v e and h a s e n s u r e d
competitiveness
reasons
definitely led
to
innovation
selling
and
identity.
and
be
its
The
continued
sought
and
in
product
marketing
,
to
e x p a n s i o n , s t a f f t r a i n i n g , management p o l i c y a n d
most
important
depersonalization
of
a l l
and
to
their
transcendence
entrepreneurial excellent qualities•
122
systeiaatic
of
the
Learning B l o c k 4
123
5.0
Conclusion
Sumxnarv
of
Findings > the
Four
Seasons C y c l e
A p p r o a c h and F u r t h e r L e a r n i n g s
The
objective
conceptualize
processes
impetus
why
of
of
the
this
creation
successful
and
start
The
out
rapidly
from
and how do t h e y manage t o k e e p
Through d e t a i l e d
the r e l a t e d l i t e r a t u r e s ( c . f .
and
to
developmental
t o p e r s u e on t h i s s t u d y i s t o f i n d
with t h e i r success.
on
i s
organizations.
some s m a l l f i r m s c a n grow s o
their
a
reserch
up
appraisal
section
1-2)
thorough q u a l i t a t i v e l o n g i t u d i n a l survey on
s u c c e s s f u l company (The W i n n e r F o o d
Limited)
achieved
《c.f.
to
Chapter
i d e n t i f y four
a s p e c t s . *In short f they are
3)
the
author
important
has
learning
:
Learning Block 1 : Organization
distinct
which processes
intrinsic
preneurial
better
Products
entre-
qualities
c h a n c e of s u c c e s s
has
in
the giround«
* D e t a i l s of t h e l e a r n i n g b l o c k s a r e d i s c u s s e d i n C h a p t e r 4 .
124
L e a r n i n g B l o c k 2 : The
success
organization
an
depends o n
receptivity
of
the
its
products/services
in
its
contextual environment.
Learning Block 3 : Organization
can
achieve
r a p i d g r o w t h i f i t manages t o
r e a l i z e a n d i m p l e m e n t one
1
the
formulae'
success.
to
to
business
Organization
r e p e a t t h e same
i n subsequent growth
of
1
tends
formula1
because
of organization learning.
Learning Block 4 : Rapid
organization
will
growth
strain
organization1s
the
existing
s t r u c t u r e • This together with
increasing
severity
in
competition will initiate the
organizational transformation
process .
T h e four l e a r n i n g b l o c k s a r e d e v e l o p e d
serve
as a basic
through
deduction.
They
vehicle
to
understand
the s u c c e s s f u l o r g a n i z a t i o n c r e a t i o n
and developmental processes. Each learning b l o c k
125
The Four Seasons C y c l e Model
ORGANIZATION
METAMORPHOSIS
DEVELOPMENT
OF SEED
IDEA
(Purposeful
Transformation)
(Entrepreneurial
Excellence)
WINTER
SPRING
-AUTUMN
SUMMER
PRODUCT/MARKET
INTERFACE
FORMULA TO
GROWTH
•
(Cognitive
Realization)
(Receptivity t o
Environment)
126
t o u c h e s on d i f f e r e n t o r g a n i z a t i o n ,
aspects.
Yet
t h e y a r e n o t d i s c r e t e f r o m one a n o t h e r . The f o u r
learning
a
b l o c k s c a n i n f a c t b e amalgamated i n t o
useful
management p h i l o s o p h y and
the
whole
i d e a i s c o n s i d e r e d t o be b i g g e r t h a n t h e sum
of
i t s parts.
Like
mankind
who
repeatedly
d i f f e r e n t seasons i n a y e a r ,
go t h r o u g h t h e s p r i n g p
cycle.
The
valuable
four
organizations also
summer f autumn a n d w i n t e r
seasons metaphor
insight
organizations :
experiences
to
our
provides
understanding
a f i r m gathers i t s strength
a
on
i n
s p r i n g , implanting i n the organization seed i d e a
the
basic
entrepreneurial
characteristics
which a l l o w the seed t o f l o r i s h
a n d grow when t h e t i m e
the
excellence
comes. Summer r e p r e s e n t s
g o l d e n s e a s o n when t h e e n v i r o n m e n t
the
seed
idea.
The
becomes
receptive
to
successful
launching
i n summer b r i n g s f r u i t i n t h e autumn•
D u r i n g the t i m e of h a r v e s t , t h e e n t r e p r e n e u r m a y
suddenly
realize
achieve a cognitive
from
breakthrough
the p r e v i o u s l e s s o n s t h a t b y
r e p l a n t i n g of t h e s e e d in a s i m i l a r
may
be
before
go
able to get another
big
harvest.
h e c a n r e a p p l y h i s 'formula" f
through
winter
127
whence
he
season,
will
and
the
he
But
he has to
need
to
organize
and a r r a n g e more men t o p l o u g h and
to
seed i n order t o achieve a b e t t e r h a r v e s t i n the
y e a r s t o come•
fight,
or
M o r e o v e r , b e m a y n e e d t o extend,
guard against others on the
f a r m land available for p l a n t i n g .
to
survive
in
competition
If h e m a n a g e s
with
s u c c e e d s in r e s t r u c t u r i n g h i s o w n
he
limited
others
and
organization,
w i l l b e a b l e t o transcend t h e b o u n d a r i e s
entreprenuership
and b e c o m e a c o r p o r a t e
of
entity
with concommittant expansion of business.
The
four
rigidly.
the
same
possess
seasons metaphor must
not
be
taken
F i r s t l y e a c h s e a s o n n e e d n o t last
duration.
Some firms,
for
entrepreneurial excellence
at their formation,
for
example,
immediately
while other firms m a y
take
y e a r s to b u i l d u p t h e s e e s s e n t i a l q u a l i t i e s . T h e
s a m e argument applies t o r e c e p t i v i t y ,
realization
Some
firms
and
organization
cognitive
transformation.
m a y get stuck i n one
season
while
others may die before living through o n e cycle.
Secondly, the fact that o n e s u r v i v e s t h r o u g h o n e
season does not necessarily m e a n one is
automatically
to the next.
For example,
which possess germs of excellence
but
n o t s u f f i c i e n t c o n d i t i o n s for
128
brought
firms
are necessary
organization
success•
As
an
analogy,
not
every
firm
of
excellence c a n catch the express w h i c h r i d e s t h e
rapid
g r o w t h trajectory.
misled
Some could h a v e
b y t h e obscure w e a t h e r w h i l e o t h e r s
h a v e lost p a t i e n c e in their w a i t i n g .
who
have
waited until dawn,
exhausted
them
impetus
crowd*
they
those
could
to
fight
with
have
or
1
the
There may well be cases
train i s available but the tracks
connected,
the
For
may
s o m u c h of their e n e r g y that it m a k e s
lose
arrived1
the
been
just-
where
are
not
c a s e s w h e r e the l a t e a r r i v a l
train i n v a l i d a t e s the t i c k e t s .
of
Timing
and
s e n s i t i v i t y t o t h e external environment a r e t h u s
of
paramount
survival.
insight
happen
The
and
importance
to
organization
p i o n e e r m u s t h a v e the
a b i l i t y to a n t i c i p a t e
i n t h e future,
necessary
what
to b e inclined
calculated
risk
and
to
be
instinctive
judgement o n e a c h of h i s
would
to
able
take
to
make
strategic
moves.
Thirdly,
cycle,
although
each
season
the
four
seasons
may overlap with
(There are p l a c e s i n t h e w o r l d w h i c h
fewer
come
others.
experience
than four seasons！) F o r e x a m p l e ,
does n o t need t o r e o r g a n i z e i t s s t r u c t u r e
time
in
a
firm
every
a s t r a t e g i c f o r m u l a i s implemented as l o n g
129
as
i t s s t r u c t u r e i s adequate f o r f u t u r e
growth
and d e v e l o p m e n t . On t h e c o n t r a y , a n o r g a n i z a t i o n
cannot
by-pass
a
season
without
thorough
a n a l y s i s on i t s n e c e s s i t y • B u s i n e s s e s exist i n a
dynamic
enviroximent
moderated
which
is
b y ecological forces.
constantly
The success of
the o r g a n i z a t i o n ' s p r o d u c t s o r s e r v i c e s
depends
v e r y m u c h o n t h e i n t e n s i t y of r e c e p t i v i t y o f the
everchanging
socio-economic,
technological
conditions.
firm
realizes
undependable
its r a p i d
political
E v e n g i v e n that
growth
environment
formula,
may
not
guarantee the speedy growth record.
population,
education,
and
the
the
always
Changes
income f
in
beliefs f
attitudes, v a l u e s , life s t y l e e t c . n o r m a l l y c a l l
for
different
product
demands.
b r e a k t h r o u g h s could r e n d e r
previous
obsolete many of the
i n v e n t i o n s and t h e s h i f t i n g
scene may also mutate favoritism.
ever
changing
successful
against
Technological
ecological
political
O n top of the
continuum,
business enterprises have to
their competitors.
the
strive
Competition evolves
in parallel to product development and
normally
intensifies as the p r o d u c t m a t u r e s . T h e s e v e r i t y
of
competition usually retards the organization
rapid
growth
process
130
and
unless
the
organizations
have
these r e a l i t i e s ,
planned
t o cope
with
a l l
they can hardly maintain t h e i r
g l o r i o u s p a s t achievements.
Fourthly,
harvest
does
not
necessarily
p r o f i t and w i n t e r i s n o t always
does
not
necessarily
rewards,
but
worries.
over
The
i t
gloomy.
bring
greater
certainly
mean
Growth
material
multiplies
the
power o f a m a n ' s p e r s o n a l c o n t r o l
h i s business i s i n inverse
proportion
to
i t s s i z e . R a p i d g r o w t h i s more t h a n e n l a r g e m e n t •
It
changes
overall
the
proportions
dimensions
critical
of
the
as
well
as
the
undertaking.
The
f a c t o r i n g r o w t h is n o t l i m i t e d t o t h e
e n l a r g e m e n t of p r o d u c t i v e c a p a c i t y , l a b o u r f o r c e
and sales,
handles
b u t t h e w a y in w h i c h t h e
management
the o r g a n i z a t i o n a l c h a n g e s e n t a i l e d . A n
enterprise
e m e r g e s f r o m its a d o l e s c e n c e w h e n it
ceases
be a one man business and
to
hierarchy
of
Lievegoed
delegation.
conceived
organizations'
in
the
Just
become
a
as
Bernard
1
developing
of
sixties,
man
and
organizations, h e claimed, h a v e a time to learn,
a t i m e to e x p a n d ,
excelling
so
at
and a time to grow
wise.
at one stage is different from
another.
performance,
Excellence,
or
So
doing
outstanding
is acquired i n culmulative stages.
131
Unless a business r e a l i z e s the p o t e n t i a l o f each
stage i t cannot f u l l y e x c e l .
Successful
organizations
progressive
grows,
metamorphic
unfolding
structure
can
developing
changes•
A
longer
be
a
company
face
business
original
maintained.
from the p i o n e e r i n g t o
transformation,
the
In
managed
often undergoes
a
and u s u a l l y a c r i s i s t o g o w i t h
A s c i r c u m s t a n c e s changes,
his
to
to a p o i n t w h e n the
no
organization,
it.
have
enterprise
lose
their
t h e p i o n e e r f and
i n n o c e n c e and t h e
spontaneous e n t h u s i a s m and i n s t i n c t i v e j u d g e m e n t
that
goes with it.
If the o f f s h o o t is a b l e
m a k e the transformation,
moment
have
and t h i s i s o f t e n
when most successful young
failed,
director.
involved
in
everything
presence
improvised
organization
allow
take
There
organization
H e is n o l o n g e r
all of the
becomes
to
the
a
as
His
important
to execl from
professionally
enterprise
deeply
time•
more
symbolically than physically. Y e t
an
the
the e n t r e p r e n e u r s h i f t s t o a c t a s
managing
continuing
to
must
inanaged
purposefuly
the d e p e r s o n a l i z e d m a n a g e d o r g a n i z a i o n t o
over
are
transition
from
the
personalized
inevitable
crises
enterprise.
during
process as the architects of
132
this
change
c r e a t e chaos i n t h e o l d s t r u c t u r e . N e v e r t h e l e s s ,
this
painful
emergence
process
paves t h e
o f a more complex
way
for
the
organization,
one
t h a t i s capable o f undergoing f u r t h e r e v o l u t i o n .
Without
this
successful
radical
revolution,
organization
may
the
grow
once
rigid
and
gradually disintegrates»
Finally,
different
organization
continent
seasons m a y c o e x i s t
i n as m u c h the s a m e w a y a s a
m a y at o n e time e x p e r i e n c e
climatic
in
conditions
in
an
vast
different
its
different
g e o g r a p h i c a l areas• A s an o r g a n i z a t i o n g r o w s , it
may
h a v e e x t e n d e d i t s p r o d u c t lines and a t
one
moment,
involved
different
product
in different moves.
lines
H e n c e it
may
is
any
be
not
surprising
to find the c o e x i s t e n c e o f m o r e t h a n
one season
at o n e t i m e . G i v e n t h i s is t r u e , t h e
stage
concept
may
then
be
considered
i n s u f f i c i e n t as it h a s n o t allowed f o r s t a g e s i n
parallel.
Reasearch
Achievements ,
Limitation
and
Implication for Future Research
The
four s e a s o n s c y c l e a p p r o a c h s u g g e s t s a
new
way
in
and
looking
development.
at o r g a n i z a t i o n
It
takes
133
on
a
creation
more
balanced
viewpoint
on the e x i s t i n g h i g h l y
complementary
c o n c e p t s , m a k i n g i t p o s s i b l e t o merge a n d e x t e n d
the
boundaries
of
the
various
established
t h e o r i e s . I t has i n c r e a s e d t h e v i s i b i l i t y o f t h e
rapid
growth
richer
the
trajectory
and has
provided
and more c o m p r e h e n s i v e u n d e r s t a n d i n g
evolution
and
revolution
prosesses
a
of
of
successful organizations•
Nevertheless,
it is a d m i t t e d that t h e
research
h a s at least the f o l l o w i n g l i m i t a t i o n s :
Firstly,
sample.
one company definitely does not make a
H e n c e f i n d i n g s in t h i s r e p o r t c a n n o t b e
interpreted t o h a v e s t a t i s t i c a l s i g n i f i c a n t .
would
c e r t a i n l y b e b e n e f i c i a l if m o r e
It
similiar
research could b e carried out o n different types
of
organizations
to
verify
and
add
to
the
findings .
Secondly,
different
different
1
organization
f o r m u l a e 1 of s u c c e s s .
may
This
have
research
so far has identified only o n e of these formula.
It
w o u l d b e h i g h l y v a l u a b l e if f u r t h e r r e s e a r c h
could
be
persued
to
categorize
the
various
possible formulae•
Thirdly,
it is w i t h m u c h regret that because of
134
the
pressure
conduct
of
time P
limited
the
not
surveys f
having
too
substantiate
the
majority
can
i n t e r v i e w s and v i s i t s
o r g a n i z a t i o n under s t u d y .
longitudinal
author
only
to
the
L i k e most q u a l i t a t i v e
t h i s study s u f f e r s
much
priminary
findings•
from
data
to
Moreoverr
the
of t h e d e d u c t i o n s a r e d r a w n f r o m
analysis
of
interviews
data
and
collected
there
may
through
be
personal
chances
of
m i s i n t e r p r e t a t i o n and p e r s o n a l i z a t i o n .
Fourthly,
although
the
four
seasons
cycle
a p p r o a c h is r e a s o n a b l y s e l f - c o n t a i n e d f it is n o t
meant
to b e r e s t r i c t i v e .
T h e r e could
well
be
m o r e 'seasons 1 in a c y c l e and f u t u r e r e s e a r c h t o
explore
o t h e r a s p e c t s of o r g a n i z a t i o n
creation
and d e v e l o p m e n t w o u l d p e r h a p s s h e d m o r e l i g h t o n
this p r e l i m i n a r y framework•
135
The F o u r S e a s o n s C y c l e M o d e l
• Internal Friction
- T h e Consequence of
Growth
- T h e B e a u t y of D e l e g a t i o n
- T h e A r t of Sta£C
Developmenc
• External Friction
1
Pioneering doesn
• Organization Mission
(Entrepreneurial D r i v e )
Production Aspect
(Xntell#ctuaX Knowledge}
• Financial Aspect
(Financial S u p p o r t s a n d
Foresight)
Innovation Aspect
(Creative I m a g i n a t i o n )
• Organization Aspect
(Leadership a n d H a n a g e "
nant)
i Marketing Aspect
{Intuitive A w a r e n e s s )
- T h e Demand of R&D
- T h e P r o b l e m of C o m p e t i t
ion
T h e Transcendence of
Corporate Spirit
po>*ful
nsforM
rOMUtA TO/
CIKMTH •
T h e 'A-hai * E x p e r i e n c e
Formula Implementation
Repetition
Extension
Sophiatleation
ReCinenent
The Temptation
Prematura Exploitation
The Importance o£ HarketFocused Innovation
T h e E s s e n c e of A d d e d Valuta
The Advantage o f Being
Close to the Field
T h e P e r c e p t i v i t y of C h a n g e
as Opportunity
The Significance of Good
Timing
136
6•0
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