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Li&Fung Case Study Analysis

Decent Essays

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 housing
- Credit market yield
Increasing cost

 Question

1) In light of the American recession, what can Li & Fung do to continue expanding its business and reach its target of US$20 billion for the period 2008-2010?

In light …show more content…

As the entrepreneurial mindset is one of the factors that led to so much of Li & Fung’s successful growth it should not be eliminated completely, but rather realigned. Rewards and incentives should be kept in place but with more emphasis on encouraging managers to collaborate with other businesses in their area, all under the umbrella of Li & Fung. This strategy would strengthen the business and positioning of Li & Fung businesses in various regions through cooperation, resource and strategy sharing.

 Next, Li & Fung should focus on its information technology system. In our opinion, this information technology system has been the backbone of Li & Fung’s successful management of so many business units around the world. This information system is already established and would require very little investment in order to amp it up a little to accommodate the aforementioned collaboratively-focused management style. The information system could smoothly and easily facilitate greater interaction between business models not only in the same region, but also around the world. These business units should be connected through the information technology system which would facilitate greater communication and also more accurate monitoring, thereby encouraging greater efficiency and productivity. Coupled with the entrepreneurial nature of the business, managers could also be given incentive to

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