The trading industry is a complex one that involves dealing with many different stakeholders while making strategic alliances with suppliers of raw materials‚ manufacturers and transporters. A porters 5 forces analysis reveals that the suppliers in this industry (including those that supply raw materials and those that manufacture) are highly fragmented and are high in number. As a result no single supplier firm commands a dominant market share in their respective product markets. Trading companies
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Case : Li & Fung Limited Ans#1- Li & Fung Limited is a global trading group. A company would like to use the supply chain management services of Li & Fung because it manages the supply chain for high volume‚ time sensitive consumer goods‚ delivering the right location. It focuses on providing a one- stop shop service through a network of 69 sourcing offices in 40 countries. Company would prefer Li & Fung rather than organising in-house department or appointing a senior manager
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Topic: Li & Fung Supply Chain Management and Operations Li & Fung: Global Supply Chain Manager From its inception in 1906‚ more than 100 years‚ especially since the 1980s‚ with economic globalization‚ Li & Fung’s business roles‚ it can be said with the evolution of the global economy‚ has experienced a historic change from simple middlemen to the global supply chain managers. After the mid-1990s‚ Li & Fung has actually become a global supply chain manager. Within the worldwide‚ he optimizes
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Li & Fung is an export trading company from Southern China that was founded back in 1906 by Fung Pak-Liu and his partner Li To-Ming. Li & Fung grew from a traditional export trading company to global supply chain management company it is today. After the passing of Liu‚ To-Ming decided to sell his shares. After both graduating from Harvard‚ Fung’s sons‚ Victor and William took over the company in 1974 and moved it to Hong Kong. The Fung brothers were both highly intelligent individuals. They
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Li & Fung Established in 1906‚ Hong Kong–based Li & Fung is now one of the largest multinational trad-ing companies in the developing world‚ with annual sales of more than $7 billion in 2005‚ up from just $1.2 billion in 2000. The company‚ which is still run by the grandsons of the founder‚ Victor and William Fung‚ does not see itself as a traditional trading enterprise. Rather‚ it sees itself as an expert in supply chain management for its 500 or so customers. These customers are a diverse
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based on Li & Fung‚ wherein the issues and the pre-requisites relating to the introduction of an integrated Management of Information Systems are to be critically analysed in respect to its current situation and suitable recommendations are given at the end. Likewise‚ in the first section of the assignment‚ those internet issues prevailing in the company which justifies the need to consider the introduction of Information Systems are stated. In the second section‚ its holistic global supply chain
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with large markets in Asia and Europe as well as the need for China’s own development and security. The OBOR initiative will also help Li & Fung to identify new drivers for growth in its sourcing & logistics business
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Value-Chain A value chain is an activity path through an organization and can be a very helpful tool for understanding the difference between two organisations that appear to be functioning in similar ways in the same sector. This is because organisations can construct their value chains in very different ways. A different design of the value chain‚ by which we mean a different activity path through the organisation‚ might simply indicate a different way of doing things‚ or it might generate notable
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Introduction 3 Case I.1 Li & Fung (A): Internet Issues “I’m not an Internet guy‚ I’m a business guy‚” quipped William Fung‚ managing director of Li & Fung Trading Co. Clad in his chinos and black American Eagle T-shirt‚ Fung looked much more like a new economy entrepreneur than the selfdescribed offline‚ “old economy relic”: “I’m 51‚ I’m more than a grey hair in Internet terms‚ I’m a fossil.”1 Nor did lifung.com‚ his elder brother Victor’s new online company‚ resemble a typical Internet
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riony [pic] Li & Fung : Case Study Analysis Executive summary Aim This report aims to examine the Li & Fung business model and illustrate the challenges faced by the trading industry in the global market place. Factors Conclusions It is concluded that: Recommendations It is recommended that Li & Fung : Situation Analysis • Li&Fung achieves operating margins consistently around or above 3% and has become the largest trading company in Hong Kong. • In 1997 the
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