Case Name :      Kanzen Berhad: A Proposed Joint Venture with Pacific Dunlop Ltd.

Authors :           Donald J. Lecraw, Boon Lim

Source :             Ivey Publishing

Case ID :            97G004

Discipline :        Business & Government Relations

Case Length :    17 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In July 1992, Mr. Eu, director of Kanzen Berhad (KB), Malaysia, must decide whether to recommend to the company’s owner and CEO to accept the offer of Pacific Dunlop Ltd. of Australia to form a joint venture in which Pacific Dunlop would buy 30% of KB’s holdings in six subsidiaries in the mattress and bedding industry for RM$28 million. Since its founding in 1978 as Dreamland, KB had been growing rapidly and had been quite profitable. Mr. Lim, however, had plans for expansion into other businesses in Malaysia and, especially, in China. As well, Pacific Dunlop had product and process technology, additional brand names, and management expertise that had the potential to increase the success of KB’s subsidiaries.