Case | HBS Case Collection | December 2011 (Revised December 2012)

Chairman Zhang and Broad Group: Growth Dilemmas

by Christopher Marquis, Nancy Hua Dai and Lynn Yin

Abstract

Zhang Yue, founder and chairman of Broad Group, had developed a series of innovative products aimed at solving China's environmental problems. Broad Group's products, services, and management were guided by values that prioritized morals, responsibility, environmental protection, and energy conservation over company growth and profit. Zhang's current focus was Broad Sustainable Building (BSB), a unique prefabricated building technology that was significantly more environmentally friendly than traditional building methods, as well as much less expensive. In order to obtain the capital and talent that BSB's development required, Zhang realized he may need to publicly list the company, despite publicly saying he never would do so. Would scaling the new businesses result in compromises to the mission and values that guided the company? If so, was the overall environmental impact from the new building technology worth the cost?

Keywords: Growth and Development; Strategy; Environmental Sustainability; China;

Citation:

Marquis, Christopher, Nancy Hua Dai, and Lynn Yin. "Chairman Zhang and Broad Group: Growth Dilemmas." Harvard Business School Case 412-095, December 2011. (Revised December 2012.)