Crisis Management and Succession Planning: Analyzing the Wahaha Inheritance Dispute

The sudden passing of Zong Qinghou, the founder of Hangzhou Wahaha Group, in February 2024 has led to a significant inheritance dispute that has captivated both the media and the business world. Kelly Zong Fuli, the founder’s daughter and current chairwoman of the company, faces legal challenges from individuals claiming to be her half-siblings, resulting in a legal battle over the control of the company and its substantial assets. This crisis highlights the challenges that family-owned businesses face in succession planning, governance, and crisis management. This paper aims to analyze the inheritance dispute through the lens of crisis management, focusing on how Wahaha’s leadership, governance structures, and succession strategies have impacted the organization’s response to the conflict. The study applies relevant crisis management theories, such as stakeholder theory and contingency theory, to understand how the company navigated the complex web of familial, legal, and business challenges. In doing so, the paper provides insights into best practices for crisis response and succession planning in family businesses, emphasizing the need for clear governance structures and proactive crisis preparedness.