Instructor’s Manual Abstracts
Vol. 2, Issue 1 IM Abstract: Fuxin Mining Machinery Inc.: Time to Reshape for the Future
Lifeng Geng
Case Overview
This case study offers a comprehensive examination of the hurdles encountered by a family-owned enterprise during a period of rapid expansion. Fuxin Mining Machinery Inc. (FMMI), under the stewardship of its owner, Li Sr., initially adopted a personalized approach to organizational structure, coordination/control mechanisms, and promotion/reward systems. The way Li Sr. managed the firm was based on his experiences and his entrepreneurial instinct. Initially, this management style was smooth and successful. However, as FMMI underwent significant growth, Li Sr. confronted the challenge of stretched time and energy resources, necessitating a reassessment of the firm’s management efficacy. Recognizing the imperative for change, he grappled with uncertainties regarding how and where to start the reforms.
Following six years of academic pursuit at a prestigious Canadian business school, and four years of professional experience in a prominent Canadian bank, Li Sr.’s son, Peter Li, returned to China to attend to the needs of his aging parents and assume a leadership role within the family business. Armed with the knowledge and skills acquired during his tenure in Canada, Li Jr. embarked on a quest to leverage his professional experience and educational background in reshaping FMMI to ensure its sustained growth and prosperity.
Learning Objectives
By working through this case, students should be able to
- Assess and evaluate the organizational structure of a private entrepreneurial company in the mining equipment industry and how it had to be modified as the company grew.
- Apply the concept of span of control to a private entrepreneurial company in the mining equipment industry.
- Assess the business level strategy of a private entrepreneurial company in the mining industry and evaluate how to position the company against its competitors.
- Interpret analytical results and develop a final recommendation regarding the future of a private entrepreneurial company in the mining industry, including the recommended organizational structure to go forward.
Course Suitability
This case was tailored for undergraduate and MBA-level courses or modules in strategic management, entrepreneurship, and organizational design. Ideally suited for deployment in the latter part of these courses, the case could serve as a catalyst for engaging discussions centered on key topics such as organizational structure, span of control, horizontal differentiation, vertical differentiation, and centralization vs. decentralization.
Recommended Reading
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Eisenhardt, K. M. (1985). Control: Organizational and economic approaches. Management Science, 31(2), 134–149.
Galbraith, J. R. (2012). Designing organizations: Strategy, structure, and process at the Farnsworth Group. Jossey-Bass.
Hattrup, G. P. & Kleiner, B. H. (1993). How to establish a proper span of control for managers. Industrial Management, 35: 28–30.
Hill, C. W. L. & Schilling, M. A. (2024). Strategic management: Theory & cases: An integrated approach, (13th ed.). Cengage.
- Chapter 12: Implementing Strategy Through Organization
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Urwick, L. F. (1974). Graicuna and the span of control. Academy of Management Journal, 17(2): 349–354.
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