Course Pack
Class 13, Monday, March 5th
Global Forces of Change and Industry Dynamics
Case I
Li & Fung: Beyond “Filling in the Mosaic,” 1995 – 1998
In early 1998, William and Victor Fung had to review their business, the Li & Fung Group, to plan for the next three years. Examine strategic and organizational issues including company culture, international expansion, and venture capital projects.
Discussion Questions:
1. How is Li & Fung able to maintain margins three times those of the rest of the industry? What are its specific strengths and how does it differ from more traditional competitors? 2. What attributes of Chinese business culture does the company exhibit? Are these strengths for the company? 3. What are the benefits of the Li & Fung matrix sourcing system? 4. What are the challenges the company faces going ahead and what issues does it need to address in order to expand? How and where should it expand?
Turn in your answers for Q1, Q2, and Q3 (italicized) for the 1-page short submission. Prepare Q4 for class discussion.
Class 15, Monday, March 19th
Global Expansion & Foreign Market Entry
Case II
The Plant Location Puzzle
The Eldora Company (EDC) is a leading U.S. bicycle maker. They have been extremely successful but their current market is approaching saturation. They want to explore options for the future, specifically, expansion in foreign markets. What is the next move? Should they go to China? With what products and what operations expansion strategy?
Discussion Questions:
1. Should EDC proceed with the Asian market opportunity? 2. If they are going to proceed with the Asian opportunity, where should they locate and why? 3. Which part of their business (marketing, production, design/engineering) should be located at their new location? 4. Describe an implementation plan over the next few years to successfully exploit the Asian growth opportunity.
Turn in your answers for Q1,
Global Forces of Change and Industry Dynamics
Case I
Li & Fung: Beyond “Filling in the Mosaic,” 1995 – 1998
In early 1998, William and Victor Fung had to review their business, the Li & Fung Group, to plan for the next three years. Examine strategic and organizational issues including company culture, international expansion, and venture capital projects.
Discussion Questions:
1. How is Li & Fung able to maintain margins three times those of the rest of the industry? What are its specific strengths and how does it differ from more traditional competitors? 2. What attributes of Chinese business culture does the company exhibit? Are these strengths for the company? 3. What are the benefits of the Li & Fung matrix sourcing system? 4. What are the challenges the company faces going ahead and what issues does it need to address in order to expand? How and where should it expand?
Turn in your answers for Q1, Q2, and Q3 (italicized) for the 1-page short submission. Prepare Q4 for class discussion.
Class 15, Monday, March 19th
Global Expansion & Foreign Market Entry
Case II
The Plant Location Puzzle
The Eldora Company (EDC) is a leading U.S. bicycle maker. They have been extremely successful but their current market is approaching saturation. They want to explore options for the future, specifically, expansion in foreign markets. What is the next move? Should they go to China? With what products and what operations expansion strategy?
Discussion Questions:
1. Should EDC proceed with the Asian market opportunity? 2. If they are going to proceed with the Asian opportunity, where should they locate and why? 3. Which part of their business (marketing, production, design/engineering) should be located at their new location? 4. Describe an implementation plan over the next few years to successfully exploit the Asian growth opportunity.
Turn in your answers for Q1,