1. What has been the historic strength and strategy for Li and Fung? Since Li and Fung was founded in 1906‚ the company has more than 100 years of history and it is the main historic strength of Li and Fung. It accumulated lots of information and experience‚ which other competitors couldn’t have owned without such a strong historic background. Li and Fung is a publicly traded family company. Speed‚ Solidarity‚ authenticity‚ trust‚ and control are the benefits to running a family business. For example
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Analysis…………………………………………….7-8 5. Information System….…………………………………………….9 6. Threats & Limitations……………………………………………..10 7. Options…………………………………………………………….11 8. Recommendations…………………………………………………12 EXECUTIVE SUMMARY: For past 96 years Li & Fung has been an export trading company with its branches spread across the globe. The company plans to enter into a new venture of online business. Entering into online business the company faces challenges to retain its existing customers and to capture new markets
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Li and Fung: Growth for a Supply Chain Specialist Case Analysis Paper Global Strategy (GS 601) November 28th‚ 2012 Case Question: What would Li and Fung do to safeguard the growth of its business? How could it achieve its target turnover of US$20 billion between 2008 and 2010? ……………………………………………………………………………………………………… Executive Summary The case study for this paper is on a Hong Kong-Based Li and Fung Limited “Li and Fung”. This paper will try to answer the question of “What would Li
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How does Li & Fung create value for its customers and suppliers Value for customers: low cost‚ high quality‚ fast delivery time‚ and customized services; and these are achieved by a. Knowledge‚ experience‚ and network of connections with around thousands of suppliers and because of the knowledge network‚ the company knows who is good at producing what at the lowest cost level and delivery time b. Organizing around customer-oriented divisions‚ combining the competitive advantages of different countries-
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Li & Fung (A): Internet Issues What has been the historic strength and strategy of Li and Fung? 100 years of history Publicly traded family company Both William & Victor educated at HBS Victor earned Ph.D. & taught there for 4 years 1972 Returned to Hong Kong to modernize company management Hong Kong Based Trading Company – by 2000 69% sales USA 27% sales Europe Major retailers (the Limited‚ Gymboree‚ American Eagle‚ etc) Global sourcing network Holistic Supply Chain Management
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flows within the enterprise". The Hong Kong listed company Li & Fung Ltd represents one of the world ’s best examples of achieving this goal. The company financial history clearly tells that story. Just last year‚ L&F saw profit attributable to shareholder increase by 23%. In fact‚ over the past 14 years‚ L&F has seen steady compound annual growth rate of 22%. Not bad performance for a small family company that started in Guangzhou in 1906 trading silk and porcelain. In 1937‚ L&F moved its headquarters
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ab UBS Investment Research Key Call: Li & Fung The US$2.8b question How much additional funding does L&F need? Management repeatedly highlighted that L&F will make more acquisitions if organic growth remains weak. We conduct an analysis to assess additional M&A funding required in order to make consensus EBIT estimate for 2013 (US$914m). If organic earnings growth reaches 30% YoY (which could be a stretch goal) in 2013‚ the company will need US$2.8b for more acquisitions that generate 4.8% EBIT
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Strategy Management (Case study 1: Li& Fung) SWOT Analysis Strength Opportunity Extensive network of suppliers (global reach supplier with SCM) Provision of value added service (customer centric structure) Entrepreneur corporate culture Low –end with hard goods Emerging Market Weakness Threaten Over dependence on US Market Vast supplier network makes it tough to maintain Increasing expense from acquisiton Continuing global economy downturn - Collapse of the American
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such as Li & Fung need to be paid. Why‚ after paying Li & Fung a fee‚ buyers and suppliers still find it valuable to deal through an intermediary? In other words‚ why don’t they trade directly? Li & Fung provides an interface between multiple buyers and suppliers by linking larger retailers in the developed world to a network of suppliers and factories throughout Asia. Buyers still find it valuable to deal through an intermediary because the experience and connection of Li & Fung in Asia
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Introduction Li and Fung‚ a Chinese company founded in 1906 has been experiencing high growth rates due to a series of acquisitions and the offer of a wide range of services in the whole elements of the supply chain (from raw material till finished goods). Recently the question its managers have to deal is how to face the challenges posed by the internet‚ more specifically‚ its lifung.com (after was renamed studiodirect.com) internet site. This company was an extension of its brick and mortar operations
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