...TASK: In the light of this brief company overview please answer the following four questions in connection to the industry in which Li Fung operates with particular focus on Supply Network Management aspects required for the manufacturing, distributing and selling of its products (equal number of words per section, 3000 words in total). Please research Li Fung in relation to all the tasks below. Question 1 (20 marks) Critically evaluate ALL aspects you think are relevant in relation to warehouse space and layout planning. You MUST provide various examples from the academic literature to underpin your arguments. Question 2 (20 marks) Critically evaluate ALL aspects you think are relevant in relation to warehouse operations management. Consider the appropriateness of mechanization and full automation. You MUST provide various practical examples from the academic literature to underpin your arguments. Question 3 (20 marks) Use Li Fung (see assignment brief above) as a case study for a critical review of how information technology in the Supply Network can help the Logistics and Operations Manager achieve their objectives. Question 4 (20 marks) What do you understand by the term modern methods of inventory management? Consider these terms with reference to the above Case Organization (Li and Fung) and then critically evaluate these terms with more traditional models such as re-order point and EOQ. A connection to the answers is NOT required. Outcomes...
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...Group Structure EXPORT SOURCING The Group’s export trading arm is Li & Fung Limited – one of the largest global supply chain management companies that manages the supply chain of high-volume, time-sensitive consumer goods through its office network in more than 40 economics DISTRIBUTION The Group’s distribution businesses are housed under the integrated Distribution Services Group which provides its customers with a menu of integrated Distribution Services in three core businesses across Asia: Manufacturing, Logistics and Distribution RETAILING The Group’s retailing businesses include the publicly listed Convenience Retail Asia Ltd, the Trinity Group and privately held Toys “R” Us, with store networks extending from the China markets to Singapore, Malaysia, Thailand, Indonesia, south Korea and the Philippines Li Fung Business Trading * 100 years of trading history since 1906 * Export trading arm handles the supply chain of high volume, time-sensitive consumer goods through its worldwide office network * Around 14,000 staff * Orchestrates nearly 15,000 international suppliers in over 40 economies to service approximately 2,000 customers * Member of Hang Seng Index, MSCI Index and FTSE4Good Index * 2009 Revenue: US$13.4 billion Li & Fung specializes in orchestrating a highly-customized path through the supply chain in order to deliver high-quality, low-cost products to its customers reliably and quickly. Over 80 offices in over...
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...of the firm. Family firms can be sole ownerships, partnerships, or limited companies, where family members are shareholders. The process of strategic management is of great importance to both family firms and non-family firms. However, the goals set by family firms differ from those set by non-family firms. Also, the rate at which the goals of each change differs greatly, with the goals of family firms being more susceptible to change in the short future. While families only have an indirect impact on non-family firms, where management operates in a way that serves the best interests of shareholders, they have a great influence over a family firm, where the family’s best interest is what management targets, which has been the case with Li & Fung, especially during its early stages. According to Sharma (1997), an important characteristic of family firms is that they consist of two sub-systems: family and business.(Harris, Martinez, & Ward, 1994) Periods involving any forms of strategic restructuring are significant to any business. Whether undergoing management restructuring or having to restructure its corporate strategy to sustain its competitive edge in the market, it is important for a firm develop a strategy allowing it to transition as smoothly as possible while maintaining its current position in the market; highly increasing the chance for a firm to continue growing after the completion of the restructuring process. The future success of any firm in a transition period...
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...Li & Fung Limited Press Conference August 12, 2010 Interim Results 2010 Interim Results Highlights • Record high growth of core operating profit over a half-year period • Record high margins due to strong onshore businesses and increasing involvement in value-added services • Delivered strong operating leverage with continued cost savings • Turnover modestly improved, reflecting the effects of early stage of the economic recovery together with contributions from previous acquisitions and outsourcing deals announced acquisition of 7 companies, and signed 4 licensing deals so far this year • Entered into a landmark sourcing deal with Wal-Mart Stores, Inc., 2010 Interim Results Highlights (HK$m) Turnover (US$m*) Total Margin % of sales Core Operating Profit % of sales Profit Attributable to Shareholders % of sales 1H 2009 46,292 5,935 5,395 11.7% 1,697 3.7% 1,397 3.0% 1H 2010 51,792 6,640 6,998 13.5% 2,635 5.1% 2,171 4.2% *USD1 = HKD7.8 Change 12% 30% 55% 55% 2010 Interim Results Per Share Data (HK Cents) 1H 2009 1H 2010 Change EPS 38.3¢ 57.5¢ 50% Interim Dividend 26.0¢ 38.0¢ 46% 2010 Interim Results Analysis--Net Profit (HK$m) In HK$m Core Operating Profit % of sales Amortization of intangible assets from acquisitions Notional Interest Net Interest (excluding notional interest) Associates Tax Minority Interest Profit attributable to shareholders % of sales Actuals 1H 2009 1H 2010 1,697 2,635 3.7% 5.1% (48) (49) (127)...
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...Li & Fung is a global trading company that supplies high-volume consumer goods including apparel, fashion accessories, home products, handicrafts, promotional merchandise, gift items, toys, sporting goods and travel goods. A path that company has been gone through shows a several critical points that influenced and affected the sustainable development of the company. Specifically, we would like to pay an attention on company’s corporate culture, a transformation and adoption of information technology as a core strength and rivals acquisition strategy. After analyzing the case, a several key questions are derived to show the main issues and implications for the case. 1. Does the three-year plan strategy work efficiently for the current business environment? For that, do the owners need to reconsider the corporate culture and philosophy of Li & Fung Company to be more suitable for the rapidly changing pace of business environment? 2. What kind of challenges had the company faced before adopting the E-Commerce? Is there an alternative way for “Bubble in strategy”? What is the role of information technology in current company’s business profile? 3. Does the expansion strategy lead Li & Fung to the future success? How the acquisition may affect on company? 1. We believe that the core of the any big corporation is a corporate culture and the way leaders are sharing the vision and goals. The Fung brothers had laid great emphasis on traditional...
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...LI & FUNG: GROWTH FOR A SUPPLY CHAIN SPECIALIST Question 1: In light of the American recession, what can Li & Fung do to continue expanding its business and reach its targets of US$ 20 billion for the period 2008 – 2010? In order for Li & Fung to safeguard the growth of its business and achieve its target turnover of US$20 billion between 2008 and 2010, it needs to refocus its strategic vision in three areas: 1. Target high‐end customers to increase margins 2. Implement processes to better handle variability 3. Apply cost saving strategies to increase turnover and profit In targeting high‐end customers, Li & Fung will be able to increase their margins and therefore lower their volume. By capitalizing on their already extensive network of suppliers, Li & Fung already has an advantage of attracting this new consumer segment. By implementing processes to better handle variability, Li & Fung will have a better handle on forecasting and economic conditions. The use of an ERP system, although extremely expensive, will improve Li & Fung’s ability to look at all the different aspects of the company and how they are affecting each other. By considering variability in their business strategy, Li & Fung will also be able protect itself from liability concerns should their customers not be able to pay their manufacturers. More stringent credit analysis should be performed before issuing letters of credit. Lastly, by implementing cost saving strategies...
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...Li & Fung (A) : Internet Issues What has been the historic strengths of Li and Fung? * Old company that has 100 years of experience and history, the company is well settled and is one of the leaders in the export trading. This also gives the company a really good brand image. Really good growth as a Trading Company * 69 % sales USA and 27 % sales in Europe * The company has Famous retailers such as American Eagle, Gymboree, the Limited * Global sourcing network quite important * The company has a really strong leadership. The fact that Li & Fung was and is still, in a way, a family business make the leader strongly committed to the success of the firm. Plus both of the current directors are really well publicly traded * Both of the Brothers educated at Harvard Business School * Victor completed his Ph.D and Taught at Harvard for 4 years * 1972 He returned to Hong Kong to modernize the company management * Really good global sourcing network, based in Hong Kong which is a hub concerning the export trading, the company also has offices all over the world that increase the reactivity and efficiency of the company. * Teams of product specialist in 90 separate, individual companies more focused on the needs of specific customers * Decentralized corporate structure for a better adaptability and rapid reaction to seasonal fashion shifts. * Committed staff * Meritocracy with the compensation...
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...Li & Fung 2006 1. What are the major competitive advantages/disadvantages of Li & Fung in 2006? Supply chain management is the core business of ‘Li & Fung’. Trading, logistics and distribution are the three main special essentials of ‘Li & Fung’s business. Supply chain excellence has become a key driver of competitiveness in most industries globally. A supply chain encompasses all activities from obtaining raw materials through to the delivery of final goods or services to the end-consumer. These include material sourcing and handling, product design, production planning, order processing, inventory management, transportation, warehousing and customer service. It also includes the management of information flow that facilitates communication among all these functions. For a company to be competitive, its supply chain must be flexible, agile, cost-effective and responsive. Nowadays it is more common for companies to collaborate in a global context where each of them focuses on its core competency and outsource the rest. As a consequence their successes becomes increasingly dependent on how well they can orchestrate the different aspects and manage the external parties involved along the supply chain. Equally important are companies' abilities to satisfy their customers' needs, shorten production lead time and lower cost. ‘Li & Fung’ has evolved from a sourcing agent to a global supply chain manager by being an innovator in the development of supply chain...
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...Li & Fung : Strategic Role of E-Commerce 2006/9/13 ECT 7010 Fundamental of ECommerce Technologies 1 Defensive posture of Li & Fung to the Internet at the beginning “Would the Internet disintermediate us? Would we get Amazoned by someone who will put together all of the information about buyers and factories online?” Answer: The Internet facilitates supply chain management and Li & Fung were not going to be disintermediated Key: have the old economy know-how and yet be open to new economy ideas 2 2006/9/13 ECT 7010 Fundamental of E-Commerce Technologies Internet Issues August 2000, beta launch of the new Businessto-business(B2B) e-commerce portal Important issues: Was there any chance of channel conflict or cannibalization between the offline business and the start-up? How would the market reach to the start-up once it was launched the following year? How specifically would e-commerce ultimately transform his family’s century-old company? 2006/9/13 ECT 7010 Fundamental of E-Commerce Technologies 3 Company Background 2000 – Li & Fung a $2 billion global export trading company 3,600 staff worldwide Sourcing and managing the global supply chain for high-volume, time-sensitive consumer goods Product mix – hard and soft goods Soft goods – apparel, including woven and knit garments Hard goods – fashion accessories, festive or holiday products, furnishings, giftware, handicrafts, home products, furnishing, home products, fireworks, sporting goods, toys...
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...5/15/2016 The ACA is changing the Industrial Organization of Healthcare | Economics Everywhere Economics Everywhere Connecting With The World Around You ≡ MENU The ACA is changing the Industrial Organization of Healthcare by PATRICK on DECEMBER 31 , 201 5 As the Affordable Care Act has taken shape over the past few years, little has changed. Healthcare costs have continued to rise, insurance premiums have increased, and there are still millions of uninsured or underinsured Americans. However there are some notable changes that have occurred in recent years. For one, a relatively small number of Americans that did not have health insurance are now insured. Many ACA advocates, including the President, argue that the decrease in the number of uninsured is a clear sign that the plan is working. And yet, we should expect these numbers to drop as it is now required by law to purchase insurance; therefore, this measure does not translate to marked improvement. Secondly, the entire healthcare sector is consolidating in response to the new law. This is an unseen (for some) consequence of the legislation that has greatly reduced competition in the sector. As insurers, providers, and healthcare retailer interests http://economicseverywhere.com/welcome/theacaischangingtheindustrialorganizationofhealthcare/ 1/4 5/15/2016 The ACA is changing the Industrial Organization of Healthcare | Economics Everywhere gain power, consumers are left with fewer choices...
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...The Poems 靜夜思 Jìng Yè Sī [quiet] [night] [think] Quiet Night Thoughts 唐朝 (Tang dynasty)李白 (Li Bai) 床前明月光 Chuáng qián míng yuè guāng [bed] [front] [bright] [moon] [light] Bright moonlight before my bed; 疑是地上霜 Yí shì dìshàng shuāng [suspect] [is] [ground] [on] [frost] I suppose it is frost on the ground. 舉頭望明月 Jǔ tóu wàng míng yuè [raise] [head] [look] [bright] [moon] I raise my head to view the bright moon, 低頭思故鄉 Dītóu sī gùxiāng [lower] [head] [think of] [old] [home village] then lower it, thinking of my home village. Brief explanation This is one of the famous poems from Tang dynasty. A poem related to Mid-autumn festival. This is a very famous one, written also by a very famous poet, Li Bai, who can even write excellent poems whilst he is drunk. This poem was also the first Chinese literature I learned. It is a story about how Li Bai misses his hometown while he was travelling all over the countryfar from his hometown. Deciphering with my words As you can see in above story, he saw a moonlight passing through and turn the ground in front of his bed to look like it was frozen. The impression that I got here is he feels lonely and sad. He filled the first 2 lines with sad vibes. Talking about moon and how its light make the ground seems frozen. Frozen has long be related with cold and sad feeling, like you lost something, I knew this from my experience as I once wrote my own poem. Later, he looks to the night sky to gaze over the moon. Here the impression I got...
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...What current trends affecting operations are reflected in the success of a firm such as Li & Fung? Li & Fung considered global operations and global supply chain become more and more important nowadays because of the increase of global competition. Li & Fung immediately paid more attention to develop modern online communication and transportation capabilities, which can make that the company maximize comparative advantages. There are 5 or more links in supply chain, and Li & Fung might do better if it can control supply lines in order to provide faster and high-quality products and cater the need of customers. Li & Fung operates on an international scale. How does this factor affect the firm, both positively and negatively? At that time, China has joined in WTO for almost ten years, and kept his promise that actively participated in international economic and trade exchange and tried his best to standardize the order of market. In this situation, local business became to reach more foreign customers. In fact, China’s domestic market had large growth potential. At the time of Chinese market, products were divided into two types. One type of products was cheap but had low quality. This kind of products could only satisfy basic needs. Another type of products was luxury good. However, the products which had lower price and nice quality were hardly found in China. The reason why Chinese market did not have lower-cost and high-quality products was that domestic...
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...Under “Western Eyes”: The Personal Odyssey of Huang Fei-Hong in Once upon a Time in China by Tony Williams Rather than being read in exclusively postmodernist terms, Tsui Hark’s series Once upon a Time in China may be understood as a new version of a Hong Kong cinematic discourse involving historical “interflow.” It deals with dispersion, China’s relationship to the outside world, and strategic forms of reintegration designed to strengthen national identity. In Sammo Hung’s Wong Fei Hung Ji Saam (West Territory Mighty Lion/Once upon a Time in China and America, 1997), Master Huang Fei-hong (Jet Li Linjie) travels to the Wild West to visit an American branch of the Po Chi Lam Clinic set up by his student Sol. During the journey, he bangs his head against a rock in a turbulent stream and loses his memory. He is rescued by a friendly tribe of Indians. Moments before we see Huang again, an Indian emerges from a tepee proudly announcing the birth of a child. When Huang recovers, he stumbles around in the Indian camp wearing an Indian costume, and his loose unbraided hair is flowing like an Indian’s. After using his martial arts prowess to defeat a hostile Indian, who ironically mouths racist American platitudes against the outsider—”His clothing is different, his skin color is different, his speech is different”—Huang is adopted into the tribe and given the name “Yellow.” Before this, he attempts to remember events of the recent past. But his vague recollections...
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...Picking labor rate/hour 12 Yuan 12 Yuan 12 Yuan Matting and framing time 20 minutes 30 minutes Matting and framing rate/hour 21 Yuan 21 Yuan Illustration 1-2 – Manufacturing overhead budget for Sino-Beauty Manufacturing Overhead Budget (in RMB) Supervisory salaries 100,000 Factory rent 130,200 Equipment rent (framing and matting equipment) 50,000 Utilities 20,000 Insurance 10,000 Information technology 50,000 Building maintenance 11,000 Equipment maintenance 4,000 375,200 4. Compute the product cost for the following three items. a. Yao Ming unframed print (base cost of print 12 Yuan).3.36+12+2=17.36 b. Jackie Chan print in steel frame, no mat (base cost of print 16 Yuan).4.48+16+4+2+7=33.48 c. Jet Li print in wood frame with mat (base cost of print 20 Yuan).5.6+20+6+4+2+10.5=48.1 5. (a) How much of the total overhead cost is expected to be allocated to unframed prints? 6. (b) How much of the total overhead cost is expected to...
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...Kung Fu movies Name: Institution: Course: Tutor: Date of submission: Introduction {introduce kung Fu movies] 0.5 Kung Fu movies are part of a subgenre of martial arts films. They are set in the modern period of futuristic martial arts. Kung Fu has its origins in China, which before being modernized, was popularly known as Wuxia (Greene, 2014). This film genre is an important creation of Hong Kong Cinema. The main difference between Kung Fu and Woxia is that the former has less sword play, instead, used more armed combat. It however found its way to the West, where it was embraced in Hollywood as one of them most loved action film genres. The genre was first played on screen in the 1930s in a film known as The Adventures of Fong Sai-Yuk (Kato, 2012). The first directors choreographed the fights to become more realistic on screen. The genre reached its heights in the 1970s and overtook some of the most famous genres of the time. Today, Kung Fu has reached international audiences across the world. The genre is mainly produced Hong Kong, main land china japan and India. This paper looks at the genre as produced in these countries, contrasts and compares them. Characteristics of kung Fu movies in Hong Kong, main land china japan and India The Hong Kong Kung Fu films combine action, mainly as codified by Hollywood, and Chinese storytelling. This is interwoven with aesthetic traditions, which combine to create a distinctive form that has a wide transcultural appeal. However...
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