Li&Fung Case Study
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Li & Fung : Case Study Analysis
Executive summary
Aim
This report aims to examine the Li & Fung business model and illustrate the challenges faced by the trading industry in the global market place.
Factors
Conclusions
It is concluded that:
Recommendations
It is recommended that Li & Fung :
Situation Analysis
• Li&Fung achieves operating margins consistently around or above 3% and has become the largest trading company in Hong Kong. • In 1997 the company had 2430 employees and sales of US$1.7 billion. • By 1998 the company’s trading operations encompassed a wide array of services. • Li&Fung’s success factors include focusing on efficiently managing the supply chain and a unique customer centric organizational structure. • The company faces the challenge of continuing to grow operations around the world.
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Introduction
In 1997 Li & Fung was the largest trading company in Hong Kong, achieving sales of HK$ 13.3 billion. In 1998 the directors planned a three-year program to multiply the company’s revenues. The aim of the company was to expand its business by focusing on two major areas:
a. Continued growth of the company’s venture capital operations; and b. The expansion of sourcing operations globally.
This report will examine the sources of the company’s success, including the specific strengths that differentiate it from its competitors, its business culture, and its sourcing system. This report will also identify the challenges and issues the company might face in order to expand their business
Aim
a. Identify how Li & Fung are able to maintain margins three times those of the rest of the industry b. Distinguish the Li & Fung’s strengths and ascertain how it differs from traditional competitors. c. Ascertain the attributes of
[pic]
Li & Fung : Case Study Analysis
Executive summary
Aim
This report aims to examine the Li & Fung business model and illustrate the challenges faced by the trading industry in the global market place.
Factors
Conclusions
It is concluded that:
Recommendations
It is recommended that Li & Fung :
Situation Analysis
• Li&Fung achieves operating margins consistently around or above 3% and has become the largest trading company in Hong Kong. • In 1997 the company had 2430 employees and sales of US$1.7 billion. • By 1998 the company’s trading operations encompassed a wide array of services. • Li&Fung’s success factors include focusing on efficiently managing the supply chain and a unique customer centric organizational structure. • The company faces the challenge of continuing to grow operations around the world.
| | |
Introduction
In 1997 Li & Fung was the largest trading company in Hong Kong, achieving sales of HK$ 13.3 billion. In 1998 the directors planned a three-year program to multiply the company’s revenues. The aim of the company was to expand its business by focusing on two major areas:
a. Continued growth of the company’s venture capital operations; and b. The expansion of sourcing operations globally.
This report will examine the sources of the company’s success, including the specific strengths that differentiate it from its competitors, its business culture, and its sourcing system. This report will also identify the challenges and issues the company might face in order to expand their business
Aim
a. Identify how Li & Fung are able to maintain margins three times those of the rest of the industry b. Distinguish the Li & Fung’s strengths and ascertain how it differs from traditional competitors. c. Ascertain the attributes of