Li & Fung
Li and Fung: Growth for a Supply Chain Specialist
Case Analysis Paper
Global Strategy
(GS 601)
November 28th, 2012
Case Question: What would Li and Fung do to safeguard the growth of its business? How could it achieve its target turnover of US$20 billion between 2008 and 2010?
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Executive Summary
The case study for this paper is on a Hong Kong-Based Li and Fung Limited “Li and Fung”. This paper will try to answer the question of “What would Li and Fung do to safeguard the growth of its business? How could it achieve its target turnover of US$20 billion between 2008 and 2010?” Increase the efficiencies in its global value chain process and to ensure continued growth in net income. One of the primary strategies which set the stage for strong robust growth was the implementation of intranet and extranet information technologies. The internet technology standardized systems across the organization and linked the company’s offices and manufacturing sites throughout the world, encouraging easy tracking of orders and improved quality. The extranet technology linked the company directly to the customer and enabled it to meet and sometimes even exceed customer satisfaction requirements. The strong history of the company and the implementation of information systems and technologies enabled Li & Fung to orchestrate the whole value chain process in a virtual manufacturing environment. Lifung.com, studiodirect.com, ‘electronic stock offer’ and other systems and business processes were implemented to enable the firm to further penetrate into new buyer markets and also to discover opportunities in the supplier markets. This case analyzes the effectiveness of these information and technology systems and recommends steps that could be taken by Li & Fung to draw upon its traditional strengths and explore new opportunities for future
Case Analysis Paper
Global Strategy
(GS 601)
November 28th, 2012
Case Question: What would Li and Fung do to safeguard the growth of its business? How could it achieve its target turnover of US$20 billion between 2008 and 2010?
………………………………………………………………………………………………………
Executive Summary
The case study for this paper is on a Hong Kong-Based Li and Fung Limited “Li and Fung”. This paper will try to answer the question of “What would Li and Fung do to safeguard the growth of its business? How could it achieve its target turnover of US$20 billion between 2008 and 2010?” Increase the efficiencies in its global value chain process and to ensure continued growth in net income. One of the primary strategies which set the stage for strong robust growth was the implementation of intranet and extranet information technologies. The internet technology standardized systems across the organization and linked the company’s offices and manufacturing sites throughout the world, encouraging easy tracking of orders and improved quality. The extranet technology linked the company directly to the customer and enabled it to meet and sometimes even exceed customer satisfaction requirements. The strong history of the company and the implementation of information systems and technologies enabled Li & Fung to orchestrate the whole value chain process in a virtual manufacturing environment. Lifung.com, studiodirect.com, ‘electronic stock offer’ and other systems and business processes were implemented to enable the firm to further penetrate into new buyer markets and also to discover opportunities in the supplier markets. This case analyzes the effectiveness of these information and technology systems and recommends steps that could be taken by Li & Fung to draw upon its traditional strengths and explore new opportunities for future