Chocolate and Gold Ch. 04

I arrived on time at SFO to a bright, sunny afternoon. I headed for my elder sister's home in nearby San Mateo. Mike was out in the front yard doing some hedge trimming on their lovely home. The children were nowhere to be seen, but Jeannie appeared at the front door when she heard Mike greet me.

"Hey, Harry. Good to see you again. It's been ages," he said.

I liked Mike. He was upbeat and positive about life. He was also a great father, according to Jeannie. My sister jumped into my arms and gave me a big kiss and a hug.

After the usual small talk about the flight and where I'd been in the past month, I told them what I knew, which wasn't much. Neither Jeannie nor Charlie had been involved in the running of the business, so I wasn't surprised they didn't have any intimate details of what might be bothering Mr. Yee Fung. I assumed I'd have to wait until Monday to find out what all the fuss was about. I began to suspect, however, that it had to do with Mr. Yee Fung's ability to run the company, and that created a feeling of dread.

I phoned Charlie at her apartment in Berkeley to let her know I was in town. She was happy to hear from me and was curious what brought me here. I explained Jeannie's urgent phone call, and what I had learned from Mrs. Wong. Charlie didn't know any more than Jeannie did, but she was interested. That struck me as odd, since my younger sister usually displayed a negative attitude toward business and its role in the lives of what she referred to as the "common people." I would remind her often that our business funded her lifestyle and her various causes, and that she really shouldn't complain. It hadn't seemed to have any effect on her so far.

We arranged to get together for dinner on Sunday evening at Jeannie & Mike's home. Jeannie kept it simple. Mike barbequed some steaks while Jeannie and Charlie made salads and desserts. It was good to have us all together again. It had been so seldom in the past few years. The last time had been at the memorial service for our parents. Their bodies had never been recovered, so we had a stone and a plaque in their memory placed in the local cemetery.

Mrs. Wong had indicated that I should come into the office sometime after ten on Monday morning. That would allow Mr. Yee Fung to clear his desk and give us time to discuss whatever it was that was on his mind. I was anxious about this meeting. I had a feeling it was going to be a difficult session and I wasn't going to like what it was about. Call it a premonition or just me jumping to conclusions, but I was fairly sure of myself on this.

Mrs. Wong greeted me as she always did. She had been working in the office since I was nine years old; nearly twenty years. She was both my father's and Mr. Yee Fung's personal assistant and indispensable aide. She probably knew more about running Orient Pacific Imports than anyone.

"Hello, Harry. I am so pleased to see you," she said, her hands together in a small bow of deference. "You look well. Thank you for coming so quickly."

I bowed slightly in acknowledgement of this special lady. "You had only to ask, Mrs. Wong. I would never refuse a request from you or Mr. Yee Fung."

She smiled slightly, but I could detect the lines of worry on her face. "Mr. Yee Fung is in his office. I will tell him you are here." She walked to the familiar door and entered, closing it behind her. She returned in less than a minute, leaving the door open and standing beside it. "Mr. Yee Fung welcomes you, Harry. Please come in."

As I walked through the door, I wasn't sure what to expect, but the sight of my father's business partner and friend caused me to pause. In the few months since I had last seen him, he had aged noticeably. He slowly rose to greet me with careful movements and held out his hand. I shook it gingerly. He motioned for me to sit.

"Welcome, Harry. I am glad you were able to come so quickly. I wish this meeting were not necessary, but I'm afraid it couldn't wait. As you can see, I am not well. In fact, I do not have a great deal of time left. For that reason, I needed to talk to you and ask you to help me during this difficult period."

I nodded. "Of course, Mr. Yee Fung. Please do not hesitate to tell me how I can assist."

"I am probably going to tell you things that you already know, but please be patient with me. My reason will become clear to you."

He stopped and cautiously sat down in his large, leather chair. Every movement seemed to be an effort. He gathered himself and began.

"Your grandfather founded this company, but it was your father who turned it into the success it is today. He was visionary in some ways, but practical in others. He saw opportunities and took advantage of them, but only within some strict limitations. He would not overextend himself, financially. He would not sit on product for a long period of time. He wanted to move it quickly and profitably. His record of growth and success speaks for itself.

"He brought me into the company to manage the finances and to find opportunities with various Asian manufacturers. I would bring him my discoveries and he would evaluate them and decide if they were suitable. It was a very fruitful partnership, and the company thrived as a result.

"Your father rewarded me handsomely for my efforts. At first it was with salary, and then with a share in the business. As time went by, and we became more and more profitable, he continued to increase my share of the business until two years ago, when it rose to forty-nine percent. No man has demonstrated his generosity more than your father.

"He told me that it was as high as he was able to raise it. You see, he had hopes that you, or Jean, or even Charlotte, would come into the business when he wished to retire. He wanted it to stay in the family. Unfortunately, he died before his time, and you have chosen me to be your President. I was honored when you did that, Harry. You had faith in me, and I wanted you to be proud of the choice you made.

"Now, however, I am unable to complete my task. I have cancer. It is a reoccurrence of an earlier attack that the doctors and I thought we had beaten. That is not the case. It has invaded my body in several organs, and I have been told to get my affairs in order. I do not have much time left."

I sat, stunned at the quiet and deliberate way he had announced his fate. He had accepted a death sentence, and at least outwardly was calm.

"I'm so sorry, Mr. Yee Fung. You are such a good friend and partner for my parents and this company. I don't know what will happen to it now. I'm no businessman, and I think you know that. It would break my family's heart if this business were to fail because it lacked a leader."

He nodded gravely. "I feel just as you do, Harry. That is why I have called you and asked you to come. We need to discuss the future of Orient Pacific Imports. We need to discuss it with all of the shareholders. That means you, your sisters, myself, and Wong Soo."

"Wong Soo? Mrs. Wong? I don't understand."

"Your father was a very traditional man, Harry. It was his decision that his shares would revert entirely to you on his retirement or death. It was your decision to split those shares equally with your sisters. When you did that, it freed me to do something I have long wished to do. I gave ten percent of the company to Wong Soo out of my shares. She has long deserved recognition for the contribution she has made to our success. I hope you agree."

"Yes ... of course. That was very generous of you."

"No more generous than your father," he smiled.

"So ... what are you suggesting?"

"As Chairman, I suggest you call an extraordinary meeting of the board, and we can discuss the future of the company. I hope that with all our minds directed toward coming up with a solution, we will find a path to follow."

"I think we had better do that now, sir. I'm here and so is everyone else involved. At least we can get a start on finding a solution."

"Agreed. Would you ask Mrs. Wong to come in, please."

I went to the door and did as he had requested. She came in immediately. I suspected she had some idea of what was happening and what might be required.

Mr. Yee Fung instructed, "Mrs. Wong, would you please arrange for a special meeting of the board of directors to be held later this week. I expect it will take most of the day and it will require food and refreshments. We will also require copies of our most recent financial statements, as well as our current product orders. We would expect you to attend, of course, as you are a shareholder. If you need assistance, please take it upon yourself to obtain it."

She nodded wordlessly, smiled at me, turned, and left.

"Mrs. Wong will make the arrangements and notify everyone of the time. I think she will surprise you with her contribution to the discussion, Harry."

I smiled. "Good. You realize, considering my father and grandfather's reluctance to have women in positions of power, that you and I are now outnumbered two to one."

He nodded with a smile. "Time marches on, Harry. I think it will be an interesting meeting, but a fruitful one as well. I am an optimist by nature, and I am optimistic that we will find a solution to this problem. Also, on my death, the shares I hold will revert to your family. I have no heirs, and I can only try to repay the kindness of your father."

I was humbled by the straightforward honesty of this man. I understood how my father could trust this business to him without any hesitation. We sat for some time discussing what the business had been doing and how it had changed, even since the death of my father.

Mr. Yee Fung had been gradually shifting the emphasis from clothing and toys to more specialized items. He had also developed contacts in the Orient that would manufacture to specification. He could see having American developed products manufactured in a number of Asian countries. This was particularly true for electronics and some specialized toys.

As he talked, I began to realize that the business my grandfather had founded so many years ago had evolved into something much more focused and sophisticated. It wasn't the business I thought I was inheriting, and that gave me pause to think. Perhaps there was a way.

I left shortly before lunch, stopping to talk briefly with Mrs. Wong. I congratulated her on joining the board and told her it was long overdue. She smiled her gratitude and I think she knew I was sincere. She promised to arrange the meeting for Friday which would give us the most time for preparation. I asked her if she and I could meet to discuss the business in general and she immediately agreed. I would normally have asked this of Mr. Yee Fung, but I could see that even our brief meeting this morning had worn him out. We would have to be mindful of this for our board meeting.

We agreed to meet tomorrow afternoon at three pm. Mr. Yee Fung had been going home at two thirty lately, so he wouldn't be upset or bothered by my presence. I didn't think he'd object to my meeting with Mrs. Wong, but I didn't want him to concern himself with anything at present.

I drove back to Jeannie's home, lost in thought. Subject to what Mrs. Wong could tell me tomorrow, the Friday meeting was going to be a serious affair and I was going to have to give both Jeannie and Charlie a "heads up." I wanted their contribution. Good ideas can come from any direction, I'd found. Neither the girls nor I had much of a foundation in the business, but it was ours and I was sure they didn't want to see it fail.

When I got back to the house, I briefed Jeannie on my meeting and I could see the look of concern on her face. She immediately suggested I contact Charlie and let her know the content of the meeting. Jeannie said she sounded very interested in the process and was anxious to hear what was going on. I called her and left a message on her answering machine.

It was too early to call Vannie, but I was going to make sure she knew what was going on as well. If it came to pass that we married, she would have a stake in this too. Perhaps I was getting ahead of myself, but I was trying to look at all the possibilities. It also gave me another idea.

"Jeannie, do you think Mike could take a day off Friday to attend the meeting?"

"I guess so. What are you thinking, Harry?"

"I'm thinking he's your husband and therefore has a vital interest in what becomes of Orient Pacific. On top of that, he's a real good thinker in my opinion. We can use all the brains we can get for this problem."

Jeannie broke into a huge smile and gave me a big hug. "You're a pretty smart guy for a little brother."

Charlie called back just before three and I filled her in on my talk with Mr. Yee Fung. Again, she was very interested and asked a number of probing questions, most of which I couldn't answer. It wasn't the response I expected from her, but I was grateful for her interest.

"Charlie, I'm meeting with Mrs. Wong tomorrow afternoon at three. I've asked her to give me an update on the company. You know, what they've been doing and what changes have happened in the past little while. Would you like to be there as well?"

"Damn right. Thanks, Harry. That will help me get up to speed for the board meeting."

"You seem to be taking this all pretty seriously, little sister. What's brought about the change?"

"Oh, I don't know. Just a feeling that maybe there's an opportunity with this company to do something important. I'll tell you more about it after we've talked to Mrs. Wong tomorrow."

"I can't wait to hear. You've got me really curious now. What happened to the radical graduate student?"

"Relax, Harry. I haven't changed that much. Maybe I've just switched strategies."

"Hah! So instead of a blunt instrument, you've decided on becoming a subversive, huh?"

"Get off my case, brother. You're in for some surprises, so just you wait."

"Hey ... you are too. Wait 'till you meet my girlfriend. I met her on the French Riviera. I'll e-mail you a picture of her."

"You have a girlfriend? It's about time! When am I going to meet her?"

"Don't know. She lives and works in Florida. I think she's the one, Charlie. She really is special."

"Wow ... big brother has a serious squeeze. She's hot too, I'll bet."

"Scorching!"

"Get her out here, man. She needs to be inspected."

I laughed. I couldn't guess what Vannie would think of Charlie and Jeannie, two polar opposites. I was almost imagining their first meeting. Yikes!

We continued with our conversation, but Charlie kept coming back to the meeting with Mrs. Wong tomorrow and the board meeting Friday. There had been some kind of serious change in her attitude, and I wanted to find out what had caused it.

I phoned Mrs. Wong and asked her if it would be all right if Charlotte accompanied me tomorrow and Mike attended on Friday. She instantly agreed. I didn't know what she knew or remembered about my younger sister, but there wasn't any hesitation in her voice, so I wasn't worried. I told Jeannie what I was planning tomorrow, and she suggested I tape the conversation so she and Mike could hear it later. She had an appointment at their children's school and couldn't come with me.

I also asked Jeannie about Charlie's apparent change in attitude toward our business, but she wasn't really aware of it, possibly because neither chose not to talk about it when they were together. That made sense. They would inevitably end up in an argumentative stalemate. They might be sisters, but they were as different as night and day.

I called Vannie that afternoon and told her what I had learned. She was worried that I would be staying in San Francisco much longer and I assured her that I wouldn't make any decisions about my stay until I had talked to her. I'm not sure that settled her down, but at least she didn't dwell on it further.

As we talked, I was once again reminded of her feelings for me. There didn't seem to be any doubt in her mind that we were meant for each other. After I had hung up, I thought about it and recognized that while I wasn't certain yet, I couldn't think of any reason that would discourage me. However, I had so much on my mind with the family business that I couldn't concentrate on Vannie and what our future might be.

When I arrived at the company parking lot the next afternoon, Charlie was already there.

"Hi ... have you been waiting long?" I asked.

"A few minutes. I'm anxious to get this meeting under way. I brought my notepad to help me remember as much as I could and to note any questions."

"Don't worry about it. I've got a small recorder and I'll capture everything. We can go over it after we leave. Your sister wants to know all about the meeting as well."

"Let's go then," Charlie said impatiently as she strode toward the entrance.

Mrs. Wong was expecting us and led us into the board room. I hadn't been in the room for a couple of years nor had Charlie for longer than that. I was surprised at the photos and display cabinets. The product mix displayed was nothing like it used to be. I took some time to examine what was there and then turned to Mrs. Wong.

"This is very different than I remember it. There have been many changes. Please tell us about them."

We sat at the big table and the older woman began.

"You can see there has been much change in our product groups since you were last here. Some of them were the decision of your father, but many have come recently with Mr. Yee Fung and myself. Our strategy has been to improve the value of our sales, and with it, the profitability. Many Asian countries now sell t-shirts, underwear, toys, and party favors. That was how this business started.

"Now, we have several higher value lines. Ski wear, hiking and specialty sports shoes and boots, as well as golf wear. All these lines are high quality and high value. Our toys have been replaced with custom manufactured scale models in die cast and investment cast metal. Wooden ship models for expert modelers are now available. Model railroad engines, cars and track, in HO, O and G gauge. The quality of these is excellent and has been very well received by the hobby community.

"We are looking at opportunities in the electronics industry. We will not attempt to complete with the large manufacturers of televisions, entertainment equipment and computers. Those markets are already overcrowded and margins are narrow. We are looking for the unusual and worthwhile. We have also found a good supplier of small compressors and other tools. They are larger than hobby tools, but more compact than commercial equipment. It fits nicely into the home user market."

She paused and I just shook my head, but it was Charlie who spoke up.

"Mrs. Wong, where on earth did you learn all this? You sound like an economics professor discussing marketing strategies."

"Your father taught us well, Miss Charlotte. The markets we are trying to serve were already there, but the buyers had been relying on traditional suppliers for their products. We have been able to find places and product needs that they do not serve, and with the help of our suppliers, we are filling that need."

"Incredible!" Charlie bellowed. "A perfect execution of a segmented market strategy."

I turned and looked at my sister. "I didn't know you knew about this stuff, sis."

"What do you think I've been doing in school all these years? Give me some credit for paying attention," she smirked.

I was shaking my head. Not just at Charlie, but at the carefully crafted strategy that my father, Mr. Yee Fung, and Mrs. Wong had developed and executed. Even my unsophisticated knowledge of marketing told me this was a clever way to grow and sustain the business. I was nothing short of amazed. More importantly, I was interested. That was something new for me.