Case Study Analysis on Digital Transformation Challenges Faced by Dalian Leasun Food Company Limited

This case study analysis focuses on the challenges faced by Dalian Leasun Food Company Limited while implementing digital transformation practices. It evaluates the impact of digital transformation activities on performance of an organisation in regards with canned food industry. The report includes a literature review, analysis of the current position of the organisation, and strategies for overcoming challenges in implementing digital practices.

Case Study Analysis

EXECUTIVE SUMMARY
This project summarises of case study analysis which is based on Dalian Leasun Food Company
Limited which is situated in China. This also depicts an understanding of problems faced by
them while moving for digital transformation. It also evaluate differentiated concepts in
relevance with the case in an effective manner.

Contents
EXECUTIVE SUMMARY ............................................................................................................2
CHAPTER 1 ...................................................................................................................................4
Introduction to Case Study ..............................................................................................................4
CHAPTER 2....................................................................................................................................5
Case Brief: Description of the situation ..........................................................................................5
CHAPTER 3....................................................................................................................................6
Literature review..........................................................................................................................6
Analysing the concept of digital transformation .........................................................................6
Ascertaining the challenges which are met by organisational managers in transforming
operations digitally ......................................................................................................................6
Providing effective strategies for overcoming the challenges in implementation of digitalised
practices ......................................................................................................................................7
Research Methodology ..............................................................................................................8
CHAPTER 4....................................................................................................................................9
Assessment of current position facing by selected organisation ................................................9
CHAPTER 5..................................................................................................................................10
Limitations of the research ........................................................................................................11
Scope for further study ..............................................................................................................12
REFERENCES .............................................................................................................................13

CHAPTER 1
Introduction to Case Study
Digital transformation can be understood as integration in relation to virtual technology
in regards with business practices which help in delivering values to customers (Schallmo and
Williams, 2018). It helps in increase efficiency, improving business agility as well as providing
value to stakeholders in an effective manner. For understanding the aspects and issues in relation
to digital transformation, case study of Leasun has been taken into consideration.
Problem statement of this case study is that Lin Nan, chairman for Leasun is confused about the
future digital transformation practices for making the organisation more competitive. However,
managers of Leasun are determined to undertake digital transformation for increasing their
online sales in a significant manner.
Research aims and objectives
Aim:
To evaluate the impact of digital transformation activities on performance of an organisation in
regards with canned food industry. A case study of Leasun is taken into account.
Objectives:
To analyse the concept of digital transformation
To ascertain the challenges in adoption of digitalised practices
To provide effective strategies for overcoming the challenges faced by an organisation in the
process of digital transformation
Structure of the report
Chapter 1- In this chapter introduction of the concept of digital transformation is described. It
also comprises of a problem statement, aims and objectives in regards with presented case study.
Chapter 2- In this chapter, description of the case study is discussed in a strategic manner which
defines challenges faced during digital transformation in selected company.
Chapter 3- In this chapter, problem statement is described in an effective manner. It also consists
of literature review and techniques for analysing the case study.
Chapter 4- In this chapter, an assessment is included which is derived from application of the
theories and concepts from previous section.

Chapter 5- This chapter encompasses of a suitable solution which will be best fit for adopting
digital transformation. It also comprises of recommendations, action plan as well as limitation of
the research.
CHAPTER 2
Case Brief: Description of the situation
This case study is based on a company called Leasun which deals in canned food
manufacturing business situated in Northeast China. China is considered as largest producers of
canned food from 2014 to 2016. Consumption rates in regards with canned food products in
China is low in comparision to other countries which create an opportunity for organisations like
Leasun for growth. Canned food industry in China is unstructured which majorly consists of
small organisations with low production as well as few dominant brands.
Leasun has transitioned itself from labour intensive towards information based automated
establishment. Being an innovator in industry, Leasun had developed caning machine as well as
advanced production lines in an effective manner. For meeting the issues in regards with
seasonlity of raw materials, managers of Leasun had set up fish canning line which ensures
health as well as taste in their products. In 2015, with increased competition, Leasun faced
sluggish growth rates. Traditional distribution networks which are practised by managers of
Leasun poses problems in reaching to end consumers in a fast manner. This has also created
inventory backlog at Leasun. Apart from this, they also face constraints in form of high
promotional fees as well as rising labour costs in a significant manner. In 2015, Lin Nan detect
an opportunity to overcome from the issues of traditional distribution networks with the use of
social media platform WeChat. Managers of Leasun have evolved that use of digital channels
help them to reach to massive population on an instant basis. This will also help them to build
accurate customer profile, lowers the cost of managing of large distributors and many more.
Leasun had began their digital transformation practices on focusing on customer-oriented
virtual platform as well as digitalised internal operations. It gets involved in e-commerce
business, adopting digital data technologies as well as data mining. For adapting to new digital
technologies, Leasun has also revised their organisational structure as well as culture. However,
extensive changes can be overwhelming for managers as well as employees of Leasun. For

future developments, Lin Nan was confused due to different opinions of senior management
team members in an effective manner.
CHAPTER 3
Problem statement and plan of analysis
Literature review
Literature review can be understood as written overview in regards with major writings
of varied reliable sources in context to selected topic (Booth and Et. Al., 2021). It concludes
information from scholarly articles, books, journals and other relevant sources for performing the
specified research in an effective manner. It is considered as important as it help researchers to
gain understanding about existing research as well as debates in relevance with particular topic
or area.
Analysing the concept of digital transformation
According to the viewpoint of Gong and Ribiere (2021) digital transformation can be
described as a process through which organisations embed varied technologies across business
practices for driving fundamental change. Organisations introduce artificial intelligence as well
as cloud computing for enhancing their customer experience and redesigning supply chain in an
effective manner. Digitalisation process led to change varied business practices which required
provide proper training to employees regarding software. Digital transformation practices puts
technology in central view of business strategy in an effective manner.
Whereas as per Sousa and Rocha (2019) digitalisation is a practice which aid
organisational managers in changing their traditional methods for providing greater value to
varied stakeholders in an effective manner. Digitalisation help organisations in optimizing their
existing process, practice collaborative practices as well as enhance their performance in an
effective manner. It also help in securing recording information of customers, employees,
distributors and other related aspects in relation to business practices.
Ascertaining the challenges which are met by organisational managers in transforming
operations digitally
According to Kaushik (2022) challenges and problems are the part of business which
makes organisation more competitive. It triggered the strength and capabilities of organisation
which helps to manage different types of problems in organisation. The concept of digitalisation

is one of the important and valuable aspect for any business because the application of new and
advancement technology helps to grab different types of opportunities in market. There are
different types of challenges are present which can be faced by organisation. The first problem
which is faced by company is problem of budget which is arises due to lack of funds in
company. The application of technology is one of the costlier process of business under which
company has to bear huge expenditure. It is required by organisation to have strong financial
soundness which makes them more comfortable on market.
According to Rehmani (2022) The exponential growth of software applications has made
it easier for companies to purchase new software and has increased the need for effective usage
and adoption. It becomes important for any organisation to deal with number of problems which
makes possible the adoption of new technology. The lack of resources is the major problem
which is faced by company due to achievement of their technological goals. This challenge
creates many problem for organisation because availability of resources is general requirement
of any business while adopting new technology in market.
Providing effective strategies for overcoming the challenges in implementation of digitalised
practices
According to White (2022) It is important for management of company to find solution of
different challenges faced by them while implementing the digital aspect in their organisation.
Motivation of employees is one of great solution of challenges faced by company. It is important
for an organisation to develop different employee benefits programme which helps to motivate
employees towards organisation. It enables the company to minimise the resistance from
employee side while implementing changes in company. The improvement in organisational
culture can also be important measure. It should be important for all managers of organisation to
develop equality in organisation which helps to motivate employee towards the changes.
According to Nelson (2022) it is important for managers of organisation to have effective
concerns about different challenges faced by company so that it becomes easy to make effective
way of success for organisation. Enhancing E-commerce channels can be effective solution for a
problem of digital practises. The development of online selling platform for organisation enables
the organisation to sell their products online. There are many benefits are present for this solution
is that revenue of organisation increase by huge number. The profit margins of organisation are
also increase by huge number due to direct selling of products to customers. It helps the

management to overcome from number of problems faced by them while implementing digital
practises.
For motivating thier employees, managers of Leasun have adopted motivational strategies which
is based on Maslow theory of hierarchy needs theory. Maslow has propounded five levels of
needs which are based on hierarchy comprises of phycological, safety belongingness,esteem ans
self-actualization desires in a strategic manner. In this phycological needs covers providing job
security, stable income in an effective manner to employees. In regards with safety needs,
employees should be given flexible working environment. In context to social needs, employees
should be provided proper support from superiors in an effective manner. For satisfying esteem
needs, employees should be provided recognition and praise on timely basis. In self-actualization
phase, employees are provided with opportunities for getting success in their life.
Digital transformation theory is based on developing four areas in regards with business
operations such as process, business model, domain and cultural basis (Vukšić, Ivančić and
Vugec, 2018). Managers of Leusan focuses on enhancing their process and business model by
adding digitalised resources in their practices in an effective manner. In process-driven
strategies, organisations focus on changing or modifying their operations and practices. Leasun
has developed their operations which consists of e-commerce platform, modernising their
traditional methods of distribution, enter into collaboration with distributors as well as social
media platforms in an effective manner.
Research Methodology
Research methodology can be understood as practice which is undertaken by researchers
for performing a specified research in an effective manner (Bairagi and Munot, 2019). Research
methodology in context to particular research is mentioned below:
Research philosophy- It is considered as a belief regarding which type of data should be
collected, analysed as well as used for carrying out a specified research (Ledford and Gast,
2018). For conducting this research, interpritivism method is taken into consideration. This
method is chosen for this research as it provides flexibility and enhance understanding of
researchers in an effective manner.
Research approach- It is a procedure which is selected by researchers for collecting,
analysing as well as interpreting data in an effective manner. For this research, inductive aspect

is taken into account. This has been chosen as it helped in collecting data from case study on the
basis of observation.
Research strategy- It is a systematic action plan which provides direction to thoughts of a
researcher in an effective manner (Bresler and Stake, 2017). For this particular research, case
study of chosen organisation is undertaken as it help researcher in capturing wide data sets in a
strategic manner.
Research choice- For conducting this research, qualitative method is considered as it
provides thorough information regarding a specified topic to readers in an effective manner.
Data analysis- It is a process which is applied for evaluating data sets in a systematic
manner with the aid of statistical and logical techniques (Reis and Et. Al., 2018). For carrying
out this research, qualitative data is gathered through using secondary sources. It provides
reliable information regarding the chosen topic in an effective manner.
Time horizon- It can be understood as time taken by researchers for conducting the
research. For carrying out this specified research, cross-sectional technique is taken into
consideration as it is considered as accessible to readers in a more effective manner.
CHAPTER 4
Analysis and Findings
Assessment of current position facing by selected organisation
It has been analysed that digital transformation is a complex process which needs proper
planning while implementing at workplace (Bonnet and Westerman, 2021). It has been found
that challenges faced by Leasun comprises of allocation of budgets, overwhelming employees
and lack of resources and capabilities. By using this motivational theory, senior management
team have detected motivational force of personnel which can help them to make employees
adaptable for implementing digitalised practices in an effective manner. It has been discovered
that digital transformation is considered as helpful as it help in developing value for enhancing
customer base in an effective manner. It has been analysed that Leasun faced varied challenges
while transforming their operations through digital means.
It has been found that Leasun has initiated their digital transformation process from
development of e-commerce channels for discarding their traditional distribution networks and
enhancing online sales in an effective manner. For this managers have adopted two approaches

comprises of official flagship stores and online stores. For enhancing their digitalised practices,
they also concentrates on bring innovation in their products by improving its shelf life and taste.
They also adopted resource planning system for enhancing e-commerce management in an
effective manner. They also introduce customer relationship management programme in
collaboration with WeChat by inviting feedback as well as reviews from them in an effective
manner.
They also enhanced their cloud computing system for handling cross-organisational
intrinsic transactions among their different regions in an effective manner (Loonam and Et. Al.,
2018). They also installed material requirement information system for filling their stores with
raw materials in an automated manner. Managers of Leasun have established a new department
for covering media convergence, media operations, product design, video production in a
strategic manner. For supporting digital transition in an effective manner, Leasun has hired a new
segment for younger employees for operating their online channels.
It has been analysed that Leasun has managed to invest in varied aspects of digital
practices encompasses of e-commerce platforms, internal digital channels, social media
platforms, data mining techniques. Leasun had been working on their traditional practices from
years and immense digitalised practices are overwhelming foe them to operate effectively. It has
been discovered that digitalised practices are not operated all together in an effective manner.
This has also led to demotivate employees as they feel that they are not capable for adapting
changes in a strategic manner.
Apart from this, Lin Win is also confused for future development in regards with digital
transformation in an effective manner due to distinct views of senior management team
members. It has been analysed that Lin Win has to consider existing resources as well as
capabilities for moving further in the area of developing digitalised practices in an effective
manner. They also face challenges in regards with making collaboration with downstream
suppliers as well as upstream distributors in an effective manner (Tekicm and Koroteev, 2019).
Employees should also be given proper training while making adapt to these changes in an
effective manner.
CHAPTER 5
Proposed solutions to problem

Problem faced by Leasun is that they have adopted digitalised practices but do not how to
operate it and provide training to employees in a strategic manner. There are alternative solutions
which can be proceeded to identified problem in a strategic manner. Recommendations which
can be considered by managers of Leasun for mitigating their problems are mentioned below:
Provide motivation and proper training to employees- It is imperative for organisational
managers to provide motivation as well as proper training to their employees in a strategic
manner (Singh and Hess, 2020). It is desirable for managers of Leasun to identify motivational
force of their employees which can inspire them in a strategic manner.
Regulate capabilities and resources- For managing practices in relation to digital
transformation, it is necessary for managers of Leasun to regulate their resources as well as
capabilities in a strategic manner which help them to maintain their disruptive innovation
techniques in an effective manner. It is desirable for managers of Leasun to organise their
capabilities in a strategic manner in order to use it for enhancing their e-commerce platform,
customer relationship management system and other related aspects in relation to digitalised
practices.
Analyse customer needs- Desires of customers are unlimited which can be enhanced
through proper channels in regards with market research and other related perspective (Fenech,
Baguant and Ivanov, 2019). It is imperative for managers of Leasun to gain understanding about
the dynamic market conditions, changes in needs of consumers and many more for satisfying
their wants in an effective manner.
Best suitable choice for Leasun is to strengthen their processes as well as technology for
managing their resources in regards with future developments in an effective manner.
Limitations of the research
 This project report has a limitation to provide an action plan for determining the schedule
and time taking actions that are required for adapting solutions in an effective manner.
 This study is lacking in analysing organisational culture and other related aspects which
are considered as important for bring changes in regards with digital transformation
practices.
Scope for further study
This research has a wide scope as it researches about a current as well as relevant topic in
regards with present scenario in an effective manner. This research report has talked about

current business issue which is challenges faced by organisations in transforming their operations
through digital means in an effective manner. As most companies face differentiated issues in
adopting and managing digitalised practices in a significant manner.

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