Xiamen, trading company with 40 employees
- Almost no sales despite 8 years of business in China,
- Running out of money trying to generate business.
- Interviews revealed that the sales team had other interests, and used the brands to open doors for their own business, run through guanxi.
- Sales manager, a highly trusted employee, turns out to be controlling the parallel business.
- G.M., participating in starting the company, takes no action on the situation.
- Sales team was removed (not replaced), and the business and organisation was consolidated.
- Immediately improvement of sales (with no sales team) as client requests now came through.
- Consolidating the value, owner avoided having to invest further, and the company became profitable within a short time.
- Owners decided in disappointment to sell the company after one year, and succeed after a thorough clean-up process.