Read the case. Based on the case and your class notes answer the questions that follow.

In October 2011 the company was named as one of the Top Ten Influential Enterprises on Chinese Management. The company was nominated, recommended, and reviewed by industry experts and independent advisors. It was the only industrial manufacturer to be named in the top ten.

China Zhongwang was recognized not only for its technology, leadership, and strategy, but also for the fact that its management practices were inspirational to other companies in China. Li Beibei, the director of public affairs of China Zhongwang, believed the award showed that the companys achievements went beyond its production and technology. It was being recognized for its innovative business culture, management practices, and broad vision.

The companys single principal shareholder, Liu Zhongtian, is a self-made billionaire, with a net worth of US$1.9 billion. In his own words, the companys rapid growth has been a result of perseverance and determination.

As a result of its long-held desire for the business to become a world-class international producer, the company has initiated a shift toward high-end, high-value-added products. The business has expanded not only by increasing its production capabilities, but also through expansion. This expansion has allowed it greater dominance in the domestic Chinese market, as well as the export market.

China Zhongwangs core values are fivefold. First, it is to add value and grow alongside its customers, and second, to develop its own talent, particularly in relation to innovation, teamwork, and the pursuit of excellence. Third, China Zhongwang wants to create sustainable earnings growth and reward investors and shareholders. The fourth core value is to be a responsible corporate citizen and to do business with integrity, which extends into supporting charities and community events. Finally, it is to establish a business that is trusted by customers and to retain and develop key employees to push the business forward into the future. The company also professes customers first philosophy. Employee training focuses on responding to customer requirements and changing market needs in order to achieve high levels of customer satisfaction.

The aluminum business has had to position itself carefully and respond to the demands of the external environment. Rather than react to environmental issues, business such as Zhongwang have taken immediate steps to ensure that they cut down on energy use and reduce waste. Globally, the aluminum industry can boast that aluminum is the most commonly recycled meta in the world. Clearly, this approach permeates enterprises such as Zhongwang as part of its overall commitment to social responsibility.

Zhongwang is committed to providing education for its workers. Employees are enrolled in educational program with the Liaoning Mechanical and Electrical Engineering School. The training program is not only designed to improve the skills of the employees for the business, but also to improve their overall life and career chances.

China Zhongwang was listed on the main board of the Hong Kong Stock Exchange. It was a major turning point for the company. Not only did it mean greater access to potential investment, but it also meant greater scrutiny. The business enjoyed a high rate of growth of about 24 percent per year over the past five years. China Zhongwang now has huge opportunities for market expansion. In retaining its core values of commitment, diligence, responsibility, and innovation, the business has become a major developer and manufacturer of high-quality aluminum products in the world, and at the same time reflects thoughtful response to demands from the external environment.

Questions:

1. What are China Zhongwangs corporate values? How do you think these values influence the way employees do their work?
2. Using the companys corporate values, describe the organizational culture. Is the organizational culture weak or strong? Explain.
3. How did the companys organizational culture develop, and how has it been maintained?
4. The right culture with the right values will always produce the best organizational performance. What do you think of this statement? Do you agree? Why or why not?