Founder's Group Diversification

By: F. Warren McFarlan, Donghong Li and Chuanjiang Mao

Format:Print
| Language:English

Abstract

Founder Group's Chairman of the Board, Wei Xin, made adjustments to the company portfolio in 2010. Established in the mid-1980s, Founder is the industry leader for Chinese laser typesetting systems and was once the second largest PC manufacturer in China. It is also the largest university-based enterprise in China. After twenty years of development, Founder has achieved annual revenue of 47.5 billion RMB, with business in IT hardware and software, pharmaceuticals, medical care, finance, real estate, steel, trade, education, mining, fine chemicals, storage, etc. It has undergone highly unrelated diversification. Chair of the Board, Wei Xin, wants to ensure Founder's sustained growth. To this end, he must consider Founder's portfolio structure for the future.