Abstract

The case examines the evolution of Hong Kong based Li & Fung Limited from a traditional trading company into a global consumer goods export trading giant and a manager of customers' supply chains. It discusses in detail the company's efforts to constantly evolve its business model in response to the changes in the external environment and the customer needs and preferences. The case examines Li & Fung's major strategies viz. positioning itself as supply chain manager, integration of operational strategy with its organizational strategies, customer-centric organizational structure, technology and Internet initiatives, and globalization efforts, which contributed to the company's emergence as one of the world's leading consumer goods trading companies. Finally, the case explores the challenges facing Li & Fung in 2004 and discusses its future prospects in the light of these challenges. The key focus of the case is on enabling the students to gain a comprehensive understanding of globalization - rationale, levels of globalization, managing global operations, globalization strategies and challenges.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand how a regional trading company used its vast sourcing knowledge and network to become a global value chain manager.

Keywords

Case, Li & Fung, Globalization, Value Chain Configuration, SCM Strategy, Global Supply Chain, Internet-enabled Supply Chain, Knowledge Sharing, Customer-Centric Organizational Structure, Global Expansion, Hong Kong's Export Trade Industry and External Environment