CSCEC: Transformation and Development

Case Solution

F. Warren McFarlan, Donghong Li, Hong Zhang
Tsinghua University ()

In 2001, CSCEC, China’s largest residential construction company, welcomed its new CEO, Wenjie Sun, who was president of China Overseas, a Hong Kong-listed subsidiary of CSCEC. Over the next 9 years, Sun sought to advance the transformation and development of CSCEC into a highly competitive company with a bureaucratic nature, which is listed on the Shanghai Stock Exchange of A Share and joins the ranks of the Fortune 500. In 2010, Sun retired at the age of 64 and Jun Yi, Sun’s close associate, took over the top position. In the immediate aftermath of Yi’s successor, he did his best to advance the transformation and development of CSCEC into a new era. Yi expected CSCEC to continue to improve over the next 5-10 years of his tenure. It began to make adjustments related to the strategic objectives and the development trajectory of the company, its structure and business mix, its business models, internal management controls, etc. CSCEC’s own operating conditions had changed significantly compared to 10 years ago, as had the external business environment. Given these circumstances, Yi pondered these questions: Were CSCEC’s strategic actions appropriate? What new steps need to be taken in the next step?

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