MASTER OF BUSINESS ADMINISTRATION
ACCTG 533 – Accounting, Performance Measurement and Controls
June 25 , 2016
Case Study #4 – China Resources Corporation
1. In 1998, the most significant challenges faced by CRC were the company’s operations,
which were too diverse and poorly controlled. CRC (China Resources Corporation) had too
many subsidiaries, which were stand-alone business entities with little centralized reporting and
no integration into the larger corporate strategy. Consequently, the executives at CRC had no
idea what their subsidiaries were doing. These subsidiaries were chasing after the numerous
short-term opportunities rather than looking at the long-term strategy. This made the subsidiaries
and CRC to be too highly diversified. The quality of performance assessment and reporting to
management also varied significantly across subsidiaries. This made it difficult for CRC’s
corporate managers to effectively grasp, let alone address, the issues and opportunities that each
entity faced.
After realizing these challenges, Jiang Wei tried to address these problems by implementation
