Li & Fung – Internet Issues

With over 105 years of history, Li & Fung Trading Co. is a publicly traded family high society that has been based in Hong Kong since after ground War II. The devil brothers, William and Victor, were third generation leaders of the caller-out and both went to Harvard Business School. Victor also earned his doctors degree from HBS and taught at the school for several years. After returning to Hong Kong from the States, the two brothers led the modernization of the company to a professionally managed firm. Li & Fung offered a mix of hard goods and soft goods. The soft goods were products much(prenominal) as clothing apparel and fashion accessories, and provided margins of 6-8%. The hard goods were products such as watches and suitcases, and provided higher margins from 10% to as high as 30%. By 2000, the trading company had established a global sourcing network with 69% of the sales in the fall in States and 27% sales in Europe. Key customers included major retailers such as The Limited, Abercrombie & Fitch, and Bed, Bath & Beyond. Under the Fung brothers leadership, the company right away expanded in existing and new regions: Asia, Europe, India, the Mediterranean, and United States. The step-up strategy was tripartite: organic growth, expansion by acquisitions, and move into new markets through E-Commerce and the Internet.

Li & Fung adopted the Chinese disposal economic planning approach and set goals continually on a three-year interval. The gap analysis performed between the current call down and future desired state set the culture of the company for rapid organic growth. In 2000, Li & Fung outperformed the Hang Seng big businessman by 75%. In the acquisitions area, the firm gained new clients through purchases of rival companies, including Inchcape Buying Services, Dodwell, Swire Group, and Camberley. The new acquisitions also allowed Li & Fung to desegregate its operations and take advantage of economies of scale. In 1995, Li & Fung launched a global intranet to create connectivity between... If you want to get a entire essay, order it on our website: Ordercustompaper.com

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