ASSIGNMENT 1 SUBMITTED TO: KAREN HOWELLSSUBMITTED BY: ONUR CAN DURSUN
Sir Ka-shing Li, GBM,KBE,JP (born 13 June 19 Sir Ka-shingLi, GBM,KBF,JP (born 13 June 1928 in Chaozhon,China) is a Hong Kongbusiness magnate and philanthropist. He is the richest person of Asiandescent in the world and the ninth richest person in the world with anestimated wealth of US $25.5 billion as of 2012. Presently, he is the chairmanof Hutchison Whampoa Limitted (HWL) and Cheung Kong Holdings;through them, he is the worlds largest operator of container terminals andthe worlds largest health and beauty retailer Considered one of the most powerful figures in Asia, Li was named "AsiasMost Powerful Man, Li Ka-Ching" by Asiaweek in 2001. His companiesmake up 15% of the market cap of the Hong Kong Stock Exchange.
Forbes Magazine and the Forbes family honoured Li Ka-shing with the first ever "MalcolmS. Forbes Lifetime Achievement Award" on 5 September 2006, in Singapore In spite of hiswealth, Li has cultivated a reputation for leading a no-frills lifestyle, and is known to wearsimple black dress shoes and an inexpensive Seiko wristwatch, which is at odds with thehouse he owns in one of Hong Kongs most expensive precincts, Deep Water Bay in HongKong Island. Li is also regarded as one of Asias most generous philanthropists, donatingover US $1.41 billion to date to charity and other various philanthropic causes.Li is often referred to as «Superman" in Hong Kong because of his business prowess. LiKa-shing was born in Chaozhon in Guangdong province, China, in 1928of Tenchew descents.Lis father died in Hong Kong. Shouldering the responsibility of looking after the familyslivelihood, Li was forced to leave school before the age of 15 and found a job in a plasticstrading company where he labored 16 hours a day. By 1950 he was able to start his owncompany, Cheung Kong Industries.
A Harvard Business School article summarises Lis career in the following way:From his humble beginnings in China as a teacher’s son, a refugee, and later as a salesman,Li provides a lesson in integrity and adaptability. Through hard work, and a reputation forremaining true to his internal moral compass, he was able to build a business empire thatincludes: banking, construction, real estate, plastics, cellular phones, satellite television,cement production, retail outlets (pharmacies and supermarkets), hotels, domestictransportation (sky train), airports, electric power, steel production, ports, and shipping. Lis businesses cover almost every facet of life in Hong Kong, from electricity totelecommunications, from real estate to retail, from shipping to the Internet. The CheungKong Groups market capitalisation is HK $647 billion (US $82.9 billion) as of December2009. (This includes some double counting of the Group’s controlling stake in 12 listedcompanies around the world.) The group operates in 55 countries and employs over260,000 staff worldwide.
In 1950, after learning how to operate a plant, Li founded a plasticsmanufacturing company in Hong Kong with funds borrowed from family andfriends and contacts he cultivated as a salesman. Li avidly read trade publicationsand business news before deciding to supply the world with high quality plasticflowers at low prices. Li learned the technique of mixing colour with plastics thatresemble real flowers. After retooling his shop and hiring the best technicians hecould find, he prepared for weeks for the plant visit of a large foreign buyer.Impressed with the quality of Lis plant, the buyer placed a large order. A fewyears later, Li grew to be the largest supplier of plastic flowers in Asia and madea fortune selling them.
In 1958, unable to renew the lease for his company, Li was forced to purchaseand develop a site by himself. An opportunity to acquire land arrived afterthe 1967 riols were in full swing when many people fled Hong Kong. As a result,property prices plummeted. Li, believing the political crisis would be temporary,and property prices would eventually rise, bought parcels of land at low prices.By 1971, Li officially named his real estate development company CheuneKONG , named after Cheung Kong, the longest river in China. Cheung KongHoldings was publicly listed in Hong Kong Stock Exchange in 1972. Duringboard meetings, Li stated on a number of occasions his goal of surpassing theJardines-owned Hongkong Land as a leading developer.
The successful bid by Cheung Kong for development sites above the Centraland Admiralty MTR stations in 1977 was the key to challenging Hongkong Landas the premier property developer in Hong Kong. Despite its size, Jardinesdecided in the 1980s to protect itself from hostile takeover by Li or other outsideinvestors. The company implemented a cross-shareholding structure that wasdesigned to place control in the hands of Britains Keswick family despite theirless than 10% holdings in the group. In 1984, the company also moved its legaldomicile from Hong Kong to another British overseas territory - Bernmuda, inanticipation of the transfer of sovereignty of Hong Kong to Communist China in1997
In 1979, Li closed a unique transaction and acquired his current flagshipcompany Hutchson Whampoa Limited from HSBC. The purchase created amassive conglomerate with business interests in multiple industries. The mostnotable branch of his business is the investment in container port facilities aroundthe world, including in Hong Kong, Canada. China, the UnitedKingdom, Rotterdam, Panama, Bahamas and many developing countries. In total,Lis businesses control 13% of all container port capacity in the world
A subsidiary of Hutchison Whampoa, the A.S. Watson Group is a leading retailoperator with over 7,800 stores. Its portfolio encompasses popular retail brandsin Europe such as Superdrug (UK), Marionnaud (France), Kruidvat (Beneluxcountries), and in Asia including health & beauty specialist Watson’s YourPersonal Store, PARKnSHOP supermarkets, Great Food Hall, TASTE foodgalleria, gourmet boutique style fine food hall, Fortress electrical appliancestores, Watson’s Wine Cellars and Nuance-Watson airport duty free shops. ASWis also a major producer and distributor of water products and beverages in theregion with Watsons Water the top selling brand in Hong Kong
His two sons, Victor Li and Richard Li, are also prominentfigures in the Hong Kong business scene. Victor Li works directlywith his father as managing director and deputy chairmanof Cheung Kong, while Richard Li is the head of PCCW, the largesttelecom company in Hong Kong. They are both Canadian citizens.Li is famously plainly dressed for a Hong Kong tycoon. In the1990s he wore a $50 timepiece from Citizen Watch Co. and plainties. He now wears a Seiko. Even at his age, Li remains physically fit, and says that no matterwhat time he sleeps at night, he gets up before 6 am each morningto play golf for about an hour and a half. His golfing partner isHong Kong movie mogul Raymond Chow. Li says that during thattime, ...the ninety minutes that I have are mine. His preferableamount of time for sleep is eight hours. It is also said that he walkson the treadmill for fifteen minutes a day at noon.