Case
Teaching Notes
Supplementary Resources
Abstract
BNBM is a state owned Chinese enterprise that manufactures gypsum boards for the construction industry. The case examines the creation of ‘home culture’ where BNBM cultivated a culture where the employees viewed the organization as their home.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Appendix 1: Deng Xiaoping Inspecting BNBM’s Experimental Site for New Building Materials
In 1979, late Chinese leader Deng Xiaoping, accompanied by Vice Premier Gu Mu, inspected the site of an experimental building of new building materials in Beijing.
Source: Internal information of BNBM
Appendix 2: The BNBM Monthly and Published Books on Corporate Culture
The BNBM Monthly is still published monthly, with enthusiastic staff contributing their articles.
Source: Internal materials of BNBM
Appendix 3: Changes in the Organization Chart During the Reform
Source: Internal materials of BNBM
Three large-scale organizational adjustments and management innovations
2005 | Organizational adjustment characterized by “specialization + synergy” |
2012 | The “focus + young” organizational adjustment for the gypsum board business with emphasis on regional and frontline companies |
2014 | Full implementation of in-depth management integration and transformation into a “customer-oriented” organization, full integration of marketing team and full coordination of production resources |
Source: Internal materials of BNBM
Appendix 4: Values and Cultural Concepts of BNBM
Top-left: A Garden-like Plant; Top-right: The Stone of “Human Harmony”; Bottom-left: Staff Apartment
BNBM practices its corporate culture, promotes the core values of “innovation, performance, harmony, and responsibility” and the behavior code of “respect, gratefulness, humility, and decency.” The company carries on and develops the cultural idea of “dedication to the plant, honor in performance, innovative growth, and humanistic care”.
Source: Internal materials of BNBM
Appendix 5: “Six-Star Benchmark Company”
In 2016, 11 regional companies were entitled “Six-star Benchmark Companies”, an 83% increase over 2015.
Source: Internal materials of BNBM
Appendix 6: BNBM Innovation Conference 2011
Source: BNBM website
Appendix 7: Business Indicators Displayed at the BNBM Exhibition Hall (1997–2016)
Scale of Gypsum Board Business: From 40 Million m2 in 1997 to 2.13 Billion m2 in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the remaining years are at a gap of 3 years. The y axis is scaled from 0.00 units to 25.00 units with a gap of 5 units. A legend shows that 1 unit = 100 mm square. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1997 | 0.40 |
2001 | 0.40 |
2004 | 0.50 |
2007 | 4.80 |
2010 | 10.00 |
2013 | 17.00 |
2016 | 21.30 |
Total Assets: From RMB 700 Million in 1997 to RMB 14.3 Billion in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 200.00 units with a gap of 50.00 units. A legend shows that 1 unit = RMB 100 m. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1997 | 5.00 |
2001 | 25.00 |
2004 | 40.00 |
2007 | 60.00 |
2010 | 75.00 |
2013 | 110.00 |
2016 | 150.30 |
Asset-Liability Ratio: From 34% in 1997 to 27% in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 15.00% to 65.00% with a gap of 10.00%. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Percentages |
1997 | 34.00 |
2001 | 33.00 |
2004 | 47.00 |
2007 | 63.00 |
2010 | 55.00 |
2013 | 47.50 |
2016 | 27.00 |
Total Profit: From RMB 100 Million in 1997 to RMB 1.7 Billion in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 20.00 units with a gap of 5 units. A legend shows that 1 unit = RMB 100 m. The data represented by the graph, with approximate values, are tabulated as follows:
Year | Units |
1997 | 1.00 |
2001 | 0.80 |
2004 | 0.50 |
2007 | 2.50 |
2010 | 6.00 |
2013 | 14.00 |
2016 | 17.00 |
Net Profit: From RMB 93 Million in 1997 to RMB 1.5 Billion in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 15.00 units with a gap of 5 units. A legend shows 1 unit = RMB 100 m. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1997 | 0.93 |
2001 | 0.80 |
2004 | 0.50 |
2007 | 2.50 |
2010 | 6.00 |
2013 | 14.00 |
2016 | 15.00 |
Net Profit Attributable to the Owners of BNBM: From RMB 93 Million in 1997 to RMB 1.17 Billion in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 15.00 units with a gap of 5 units. A legend shows 1 unit = RMB 100 m. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1997 | 0.9 |
2001 | 0.8 |
2004 | 0.8 |
2007 | 2.00 |
2010 | 4.00 |
2013 | 9.00 |
2016 | 11.70 |
Net Cash Flow From Operating Activities: From RMB 63 Million in 1998 to RMB 1.7 Billion in 2016
In the graph, the x axis is scaled from 1998 to 2016. After 1998 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 20.00 units with a gap of 5 units. A legend shows 1 unit = 100 m yuan. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1998 | 0.63 |
2001 | 0.63 |
2004 | 2.50 |
2007 | 1.00 |
2010 | 9.00 |
2013 | 15.50 |
2016 | 17.00 |
Accounts Receivable Turnover (Times): From 4.8 in 1997 to 42 in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 50.00 units with a gap of 10 units. A legend shows 1 unit = times. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1997 | 4.8 |
2001 | 5.0 |
2004 | 4.6 |
2007 | 18.0 |
2010 | 9.00 |
2013 | 24.00 |
2016 | 42.0 |
Percentage of the Balance of Accounts Receivable in the Year’s Operating Income: From 22.6% in 1997 to 2.3% in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00% to 25.00% with a gap of 5 units. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Percentages |
1997 | 22.60 |
2001 | 21.50 |
2004 | 16.00 |
2007 | 12.50 |
2010 | 4.00 |
2013 | 3.00 |
2016 | 2.30 |
Earnings Before Interest and Tax (EBIT): From RMB 97 Million in 1997 to RMB 1.75 Billion in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 20.00 units with a gap of 5 units. A legend shows that 1 unit = RMB 100 m. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1997 | 0.97 |
2001 | 1.00 |
2004 | 0.98 |
2007 | 4.00 |
2010 | 7.00 |
2013 | 16.00 |
2016 | 17.5 |
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA): From RMB 110 Million in 1997 to RMB 2.15 Billion in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 25.00 units with a gap of 5 units. A legend shows that 1 unit = RMB 100 m. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1997 | 1.10 |
2001 | 2.00 |
2004 | 2.25 |
2007 | 5.00 |
2010 | 8.00 |
2013 | 18.00 |
2016 | 21.50 |
Economic Value Added (EVA): From RMB 72 Million in 1997 to RMB 1 Billion in 2016
In the graph, the x axis is scaled from 1997 to 2016. After 1997 the next year is 2001 but the years following 2001 are at a gap of 3 years. The y axis is scaled from 0.00 units to 15.00 units with a gap of 5 units. A legend shows that 1 unit = RMB 100 m. The data represented by the graph, with approximate values, are tabulated as follows:
Years | Units |
1997 | 0.72 |
2001 | 0.62 |
2004 | −0.80 |
2007 | 0.72 |
2010 | 4.00 |
2013 | 9.00 |
2016 | 10.00 |
Source: Internal materials of BNBM
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved