Why it was profitable for Li & Fung to go beyond brokering exports to becoming a supply chain manager. Concept Introduction: Export Broker: Export broker refers to an organization which works as a middleman between the producers of foreign countries and the domestic consumers. It helps foreign producers to reach the domestic markets and charge commission or fee in return.

Question

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Answer 1

Question

Chapter 8, Problem 1BCQ

To determine

Why it was profitable for Li & Fung to go beyond brokering exports to becoming a supply chain manager.

Concept Introduction:

Export Broker: Export broker refers to an organization which works as a middleman between the producers of foreign countries and the domestic consumers. It helps foreign producers to reach the domestic markets and charge commission or fee in return.

Expert Solution & Answer

Explanation of Solution

As the Asian economy changed, the L Company also expanded its business. In addition to being the export broker, it expanded its business to being a supply chain manager.

This is because the company was only involved in connecting the manufacturers with buyers and there was no contribution from the production and distribution. Hence, the revenue was low.

The L Company became the supply chain manager, with various expanded activities, such as allocation of production to a manufacturer, breakdown of production, production allocation to the inputs and allocation of final assembly of goods among suppliers.

With these activities, the contribution from production and distribution increased. As a result, the revenue of L Company increased.

Conclusion:

Thus, it was profitable for L Company to go beyond export brokering.

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Answer 2

Question

Chapter 8, Problem 1BCQ

To determine

Why it was profitable for Li & Fung to go beyond brokering exports to becoming a supply chain manager.

Concept Introduction:

Export Broker: Export broker refers to an organization which works as a middleman between the producers of foreign countries and the domestic consumers. It helps foreign producers to reach the domestic markets and charge commission or fee in return.

Expert Solution & Answer

Explanation of Solution

As the Asian economy changed, the L Company also expanded its business. In addition to being the export broker, it expanded its business to being a supply chain manager.

This is because the company was only involved in connecting the manufacturers with buyers and there was no contribution from the production and distribution. Hence, the revenue was low.

The L Company became the supply chain manager, with various expanded activities, such as allocation of production to a manufacturer, breakdown of production, production allocation to the inputs and allocation of final assembly of goods among suppliers.

With these activities, the contribution from production and distribution increased. As a result, the revenue of L Company increased.

Conclusion:

Thus, it was profitable for L Company to go beyond export brokering.

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Answer 3

Question

Chapter 8, Problem 1BCQ

To determine

Why it was profitable for Li & Fung to go beyond brokering exports to becoming a supply chain manager.

Concept Introduction:

Export Broker: Export broker refers to an organization which works as a middleman between the producers of foreign countries and the domestic consumers. It helps foreign producers to reach the domestic markets and charge commission or fee in return.

Expert Solution & Answer

Explanation of Solution

As the Asian economy changed, the L Company also expanded its business. In addition to being the export broker, it expanded its business to being a supply chain manager.

This is because the company was only involved in connecting the manufacturers with buyers and there was no contribution from the production and distribution. Hence, the revenue was low.

The L Company became the supply chain manager, with various expanded activities, such as allocation of production to a manufacturer, breakdown of production, production allocation to the inputs and allocation of final assembly of goods among suppliers.

With these activities, the contribution from production and distribution increased. As a result, the revenue of L Company increased.

Conclusion:

Thus, it was profitable for L Company to go beyond export brokering.

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Answer 4

Question

Chapter 8, Problem 1BCQ

To determine

Why it was profitable for Li & Fung to go beyond brokering exports to becoming a supply chain manager.

Concept Introduction:

Export Broker: Export broker refers to an organization which works as a middleman between the producers of foreign countries and the domestic consumers. It helps foreign producers to reach the domestic markets and charge commission or fee in return.

Expert Solution & Answer

Explanation of Solution

As the Asian economy changed, the L Company also expanded its business. In addition to being the export broker, it expanded its business to being a supply chain manager.

This is because the company was only involved in connecting the manufacturers with buyers and there was no contribution from the production and distribution. Hence, the revenue was low.

The L Company became the supply chain manager, with various expanded activities, such as allocation of production to a manufacturer, breakdown of production, production allocation to the inputs and allocation of final assembly of goods among suppliers.

With these activities, the contribution from production and distribution increased. As a result, the revenue of L Company increased.

Conclusion:

Thus, it was profitable for L Company to go beyond export brokering.

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Answer 5

Chapter 8, Problem 1BCQ

To determine

Why it was profitable for Li & Fung to go beyond brokering exports to becoming a supply chain manager.

Concept Introduction:

Export Broker: Export broker refers to an organization which works as a middleman between the producers of foreign countries and the domestic consumers. It helps foreign producers to reach the domestic markets and charge commission or fee in return.

Expert Solution & Answer

Explanation of Solution

As the Asian economy changed, the L Company also expanded its business. In addition to being the export broker, it expanded its business to being a supply chain manager.

This is because the company was only involved in connecting the manufacturers with buyers and there was no contribution from the production and distribution. Hence, the revenue was low.

The L Company became the supply chain manager, with various expanded activities, such as allocation of production to a manufacturer, breakdown of production, production allocation to the inputs and allocation of final assembly of goods among suppliers.

With these activities, the contribution from production and distribution increased. As a result, the revenue of L Company increased.

Conclusion:

Thus, it was profitable for L Company to go beyond export brokering.

Answer 6

Chapter 8, Problem 1BCQ

To determine

Why it was profitable for Li & Fung to go beyond brokering exports to becoming a supply chain manager.

Concept Introduction:

Export Broker: Export broker refers to an organization which works as a middleman between the producers of foreign countries and the domestic consumers. It helps foreign producers to reach the domestic markets and charge commission or fee in return.

Expert Solution & Answer

Explanation of Solution

As the Asian economy changed, the L Company also expanded its business. In addition to being the export broker, it expanded its business to being a supply chain manager.

This is because the company was only involved in connecting the manufacturers with buyers and there was no contribution from the production and distribution. Hence, the revenue was low.

The L Company became the supply chain manager, with various expanded activities, such as allocation of production to a manufacturer, breakdown of production, production allocation to the inputs and allocation of final assembly of goods among suppliers.

With these activities, the contribution from production and distribution increased. As a result, the revenue of L Company increased.

Conclusion:

Thus, it was profitable for L Company to go beyond export brokering.

Answer 7

Chapter 8, Problem 1BCQ

To determine

Why it was profitable for Li & Fung to go beyond brokering exports to becoming a supply chain manager.

Concept Introduction:

Export Broker: Export broker refers to an organization which works as a middleman between the producers of foreign countries and the domestic consumers. It helps foreign producers to reach the domestic markets and charge commission or fee in return.

Answer 8

Expert Solution & Answer

Explanation of Solution

As the Asian economy changed, the L Company also expanded its business. In addition to being the export broker, it expanded its business to being a supply chain manager.

This is because the company was only involved in connecting the manufacturers with buyers and there was no contribution from the production and distribution. Hence, the revenue was low.

The L Company became the supply chain manager, with various expanded activities, such as allocation of production to a manufacturer, breakdown of production, production allocation to the inputs and allocation of final assembly of goods among suppliers.