'Li & Fung Case Study\r'

'Li & angstrom; Fung is an export trading high society from Southern china that was founded back in 1906 by Fung Pak-Liu and his attendant Li To-Ming. Li & adenine; Fung grew from a traditional export trading high society to global supply drawstring commission come with it is today. After the passing of Liu, To-Ming dogged to sell his shares. After both graduating from Harvard, Fung’s sons, overlord and William took over the troupe in 1974 and moved it to Hong Kong. The Fung br differents were both highly intelligent individuals.\r\nThey used peeled ideas and innovation to play the company into a more professionally managed firm that went public in 1992 (MacFarlan, 2005). Li & Fung manages the global supply kitchen range for high volume and time unsanded consumer goods for large companies much(prenominal) as Bed, john & Beyond, Avon, The Limited and Warner Brothers (MacFarlan, 2005). The company operates in 40 economies and employs over 20,000 people oecumenic (MacFarlan, 2005). I think part of the achiever of the company was that the brothers leaded so well to subscribeher.\r\nThey apiece had their own strengths. While Victor was more of the strategic thinker and sentiment long-term, William rivet on the operations and making money. As the chief executive officer of the root word’s e-commerce verbalize a combination of both thought leadership and execution, with the unique relationship mingled with Victor and William cementing the entire organization Although the company was spread out with different offices near the world they provided a centralized IT, financial and administrative support out of their Hong Kong office.\r\n nonwithstanding they had a decentralized corporate structure so that they were easily fitting to progress up with the up and coming fashions because as we know the styles are constantly changing. Li & Fung as well as had a actually competitive compensation package and had bonuse s that were base on profits which was different than other companies that had more restrictions. Along with the internet revolution, Victor and William were fast to understand and adapt to the changes brought on by new technology. By 2000 the company hopeed to extend its supply chain via the Internet.\r\nPrior to this the solitary(prenominal) function that was do was through an internal Intranet. This did expedite the orders only when only with the manufacturing plants since they were adapted to track their orders. It also helped increase the speed of the orders because they did not exigency to send soul a seek to inspect via regular mail. They were now able to view the item online and approve it. cardinal years later they launched extranet sites so they were linked to their key nodes and were personalized to meet the customer’s needs.\r\nThis helped streamline all communications since their customers were able to track the progress of their orders. The only issue was all of the software growth was outsourced and was not handled by Li & Fung’s employees. Management was aware of the succeeder the extranets were having and finally started to consider looking at their online options. When looking at their options they wanted to repair sure that they were doing it from within the company and not outsourcing. Michael Hsieh, president of LF International Inc. had met with John Suh, chief executive officer of Castling concourse which was an Internet start-up company.\r\nSuh was someone that Li & Fung needed in order to successfully start up their online side of the business. The confusing part with this is it was vent against what Li & Fung had said rough not outsourcing and keeping it within the company. They smart up working with the Castling Group and bring forthing them on board as part of their management team. John Suh stepped down pat(p) as CEO of Castling and became CEO of lifung. com (MacFarlan, 2005). All in a ll they chartered about 20% of Castling Group employees so it was not as full-grown as it first seemed.\r\nThe good thing with hiring this outside company is the experience that they bring to the table. Since it was a new team they pore on team readying to build the trust within the team curiously with how fast they needed this bear to move. This helped the employees work well totakeher to get this project done. I feel that what helped them move on was the trust they had with the companies they were already dealing with because they had proven to them that they were more than capable and also cogitate on value and loyalty.\r\nThe company model their customers first. They still believed in the old-economy know how. another(prenominal) thing that make them stand to a higher place some of the others is when Li & Fung started to cerebrate on the small and medium-sized enterprises (SMEs). This was decided subsequently they did some market research. These smaller companies want the same options as the larger companies when ordering their products. Lifung. com allowed the smaller companies to at least get some options for customization unlike other online companies.\r\n ordinarily the smaller companies are not able to compete because they do not find the options to customize their product as much. By lifung. com being flexible and innovative it allowed them to meet even more businesses. In appendage to focusing on SMEs, Li & Fung should focus on acquiring or merging with competing firms. The company should try to get into markets in developing countries such as India. It would also be beneficial for the company to try to break through into new products that are complementary to clothing such as footwear.\r\nOverall, the company been successful with its online company. They made the customization options easy for the customers. The customers were able to complete their orders xxiv hours a day and seven old age a week. We all know how substanti al it is for customers to have the flexibility and easy assenting to the internet as well as the ability to have access to orders at their convenience. Throughout its growth, the company assuageed focused on the understanding of information systems and technology which enabled them to stay ahead of their competition.\r\n'