- Business Plan Competition
- Knowledge Transfer
- Education Programs
- Entrepreneurship For Design & Creative Business
- Entrepreneurship Webinar
- MGNT6020 - Social Entrepreneurship and Impact Investment
- EYE Program
- Service Leadership
- About us
Service Leadership Initiative at CUHK
By the Memorandum of Understanding between the Victor and William Fung Foundation and The Chinese University of Hong Kong of 16 March, 2012, CUHK undertook to "…structure an academically sound general education course on service leadership … consistent with the HKI-SLAM Curriculum Framework's overarching education goals." And to "… produce locally sourced, globally applicable, current … video-enhanced cases…" to be used in the course. This webpage presents an introduction to the General Education Course and the video-enhanced cases.
General Education Course Service Leadership in an Uncertain Era
Abstract and Paper
China Merchant Bank : Business Model Transformation
CISCO : Cloud-Based Education in China
Constellation : The Distribution of Minibonds
Diamond Cab : Investment of a Venture Philanthropy Fund
Serving the CUHK : Leadership Challenges for Professor Joesph Sung
WebOrganic : Creating a Blue Ocean for a Social Cause
|China Merchant Bank : Business Model Transformation|
The case places students in the role of Dr. Ma Weihua, Chairman and CEO of China Merchants Bank (CMB), the sixth largest bank in China and the largest non-state owned enterprise bank in China as he attempts, in late 2012, to transform that banking model from a traditional balance sheet orientation of asset and liability management to a transactions based, fee intensive model.
The case provides students an exercise in setting bank strategy in the context of maintaining capital adequacy in an environment of rapid growth and requirements to maximize shareholder returns. In doing so, it requires students to assess the relative performance of CMB and the effect of that performance on the value of its franchise. Students are also asked to assess the style of leadership of Ma and the importance of culture on the development of commercial banking.
|CISCO : Cloud-Based Education in China|
Cisco and Cloud-Based Education in China describes Cisco’s plan for entry into the cloud education business in China through the design and marketing of an in-classroom device, Sunbird, from the point of view of Ms. Aglaia Kong, the new Vice President and Chief Technology Officer of Enterprise Networking Group, Cisco Greater China. The Case introduces students to Cisco’s traditional horizontal product based business and asks them to assess the potential for entry into the new business, using a vertical, industry service vice oriented approach, within a country where Cisco has substantial presence, but where that presence is largely unrelated to the new business opportunity.
|Constellation : The Distribution of Minibonds|
The case places the students in the role of Winston Kwok-keung Auyeung, Managing Director of Personal Banking for Bao An Bank of Hong Kong. Winston Kwok must decide whether or not Bao An should become a retail distributor for an innovative financial product, minibonds, to his “gold customers” -- i.e., customers with HK$250,000 (approximately US$32,000) in bank deposits and/or securities in brokerage accounts with Bao An bank. Minibonds were a risky structured investment using special purpose vehicles (SPVs) which purchased riskless securities and issued credit default swaps (CDSs). Each dollar of minibond issued eight dollars of seven year credit default swaps. Each credit default swap was a bet that a reference party will not default on its debt. The reference parties in the minibonds – globally recognized, highly respectable global banks and investment banks – had probabilities of default individually that were extremely low; however, the chance that any one reference party would default in at least one of the seven years was substantial. This substantial risk was priced and the price allowed the bonds to offer attractive “interest” to investors.
Winston Kwok had to decide whether or not to distribute the minibonds to his customers. Competitors were selling them and customers appeared to be comfortable with financial risk. Winston had serious concerns that, if he did decide to sell the minibonds, they should be sold in a manner consistent with putting the interests of the customer first. In deciding the issue, Winston Kwok had to consider not only matching the risk appetite of clients but also the ability of clients to understand the complexities of the minibonds. He had to also confront the potential conflict of interest in distributing minibonds through his sales team, in view of the possible inability of clients to understand the difference between a bank deposit and a structured investment vehicle. To the extent that customers relied solely on the advice of his sales team to purchase investments which they do not understand, the bank risked incurring liability detrimental to its profitability and future reputation.
|Diamond Cab : Investment of a Venture Philanthropy Fund|
Wheelchair users are usually disabled, ill or elderly adults and they experience transportation difficulties in most cities. Given the trend in some locations towards increased wealth, longer life spans, and more egalitarian norms, wheelchair users and their families are requesting better, more frequent and more versatile services that traditional social welfare cannot provide. Governments and non-government organizations (NGOs) are bound by laws, limited in resources, and constrained by lack of ideas. They are concerned with the fairness, formality and openness of the laws and guidelines meant to protect the disadvantaged and the general public, but these same rules sometimes obstruct them from providing the necessary services. Worse still, vested interests exacerbate the situation and prevent reforms. In Hong Kong, this situation enables cargo vans to earn extra money by providing illegal transportation. The police and government officials are aware of this illegal activity, but often choose to ignore it. They know that such vans fill a service gap created by the deficit in public service. The problem is that illegal services cannot be allowed to develop to meet increasing demand, even if they are successful. Such services create unfair competition for legitimate service providers, provided that such players exist.
Diamond Cab (DC) Ltd. is a social enterprise in Hong Kong. The DC case is valuable to social entrepreneurship students for two reasons. The first is the firm’s social innovativeness. The founder and chief executive officer of DC, Doris Leung, navigated through unfriendly, potentially perilous legal and marketing obstacles to develop a workable business model. The effort illustrates how social entrepreneurs may innovate services for modern cities and overcome difficulties in “preparing the market” for socially innovative services/products. The second reason is that Social Ventures Hong Kong (SVhk) has nurtured DC and invested in it. SVhk is a venture philanthropy fund proclaimed by its founders and investors as a future model for investing in and developing social enterprises. The purpose, structure and operation of SVhk are different from those of conventional venture capital funds and other social venture funds.
DC initially operated with a small fleet of taxis and survived its first test in the market. Although its operation was small and its financial situation was barely “in the black,” DC quickly attracted plenty of local and international attention. This attention speaks to the social impact of DC. However, the business environment quickly changed, and DC’s plan for post start-up expansion has not materialized. DC is stuck and in need of new business direction or capital. Meanwhile, SVhk must face reality and decide if it should continue supporting DC, wait, or give up on DC. If DC does not work even after considerable efforts have been made, then SVhk must certainly evaluate DC’s fundamentals. Depending on the focus of the instructor, students can learn social entrepreneurship from the perspective of either the social enterprise or the investor in this case.
|Serving the CUHK : Leadership Challenges for Professor Joesph Sung|
This case focuses on the leadership of a new vice-chancellor (VC) and the development of The Chinese University of Hong Kong (CUHK), a major research university in Hong Kong. It provides a vehicle for analyzing a university besieged by a plethora of issues when the new VC took up his duty in 2010, such as freedom of expression by the students arising from the Goddess of Democracy incident, change of language policy and issues with a new sister campus in Shenzhen, China. There was disharmony and mistrust between the university management and stakeholders. And externally, the university had encountered a series of education reforms and budget cuts by the government. All these issues posed challenges to the new VC, Professor Joseph Sung, a physician and world-renowned gastrointestinal scientist and researcher. The VC had to exercise his leadership in serving the university, setting strategy and heal the wounds between the university management and its stakeholders.
The case requires students to assess the mission and social responsibility of a university in a challenging environment. In a world of limited resources, it presents dilemmas that involve tradeoffs. Should a university be run like a business or used to enhance socio-cultural values and economic development and competitiveness of a society? What was the appropriate balance between research and teaching? How should the tension between maintaining local traditions be balanced against the needs of globalization?
|WebOrganic : Creating a Blue Ocean for a Social Cause|
Erwin Huang builds WebOrganic by focusing on the value it can create in the marketplace. With an end goal to level the playing field, he manages to pull off a service package that offers a top device, the fastest network in town, and a low price that the poorest cohort can afford. Staying on top of his social mission to give “hope, chance and choice” to underprivileged students, Huang manages to bridge the digital gap one computer at a time. During the process, he creates an uncontested market space within an e-learning market that is still in the making. He is swimming in the dynamic waters of a blue ocean. But building a company on a new market with a social mission on his shoulders is no small feat. As Huang encounters resistance from educators and parents, he works towards changing the overall sentiment to spur demand for his products.
This case is about creating a blue ocean in the overlapping zones of the computer and internet services retail market and a growing e-learning market. The case explores ideas pertaining to the design, creation and execution of a blue ocean strategy, including topics such as value innovation, the four actions framework and tipping point leadership. The case also touches on concepts of strategic relationship management and social entrepreneurship. Finally, through the eyes of Huang, students can grasp an understanding of the rationale behind running a social enterprise.