HBR case study on LI&FUNG

1. Core business–
Distribution & retailing
Diversified into: soft goods, furniture, cosmetic
In 2007 Turnover
crossed 11.854 Billion
CASE SYNOPSIS
Problems
TIME LINE
Target of doubling its
turnover to $20 billion
for the period 08-09?
Gave L/c to KB Toys
which went bankrupt
totalling the losses of
$10 Million and due
to which more than
40 Hong Kong Man-
agers were chasing
Conclusion/
Suggestion
The Group achieved rec-
ord profits 2009 respect to
2008: • Group turnover de-
creased by 6%i n 2009 driven
by its effective cost control
measures• Core Operating
Profit increased by 29% •
Shareholders’ profit in-
creased by 39% .
Situation/
Exhibit
 Balanced trading in all the countries
 Evasion in market like south Africa, South Asia.
 Avoid cases like KB toys
 leveraging its supplier relationship into performing sound trade overseas.
 During Economic turbulencein 2009 the company managed to sustain and
also was able to make profit.
 In 2006 Group’s
turnover was US$
8,772,008 million.
22.2% higher than
2005.
 In 2005 Group’s
turnover was US$
7,173,566 million.
17.9% higher than
2004.
 In 2004 Group’s
turnover was US$
6,084,096 million.
3.7% decrease than
2003
BY: Team6
(Invincible)
Abhishek kyal
Nishant Nagda