In a decade's time, Convoy Financial Services Ltd, the brainchild of two entrepreneurs, had gone through the turbulent background of the Asian financial crisis, SARS, the dot-com bubble and the 2008 financial tsunami, and developed into one of the best independent financial adviser (IFA) firms in Hong Kong. As the foam settles from the financial tsunami, Convoy was seeking to position itself beyond Hong Kong to become a regional player.
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At the end of 2015 Laurent Madelaine was appointed the Head of Sears Holdings Global Sourcing SHGS the Hong Kong based subsidiary that provided merchandising global sourcing and testing facilities to American retail giant Sears Holding Corporation Laurent immediately received a clear mandate from SHC to optimize operations to eliminate waste and duplication and create an agile sourcing organization In February 2016 Laurent hired his former Tesco colleague Yasushi Yatchi Kumasegawa as a business analysis manager to find areas and methods of increasing efficiency within SHGS Laurent and Yatchi along with the other members of the leadership team restructured the organization in a manner that no employee at SHGS felt possible Announcing rationalization of SHGS as the goal the leadership team simplified the organizational structure and refocused resources in the right place reducing headcount from 890 in 2016 to 680 by February 2017 At the same time ambitious KPI targets on purchase savings and reduction in selling general and administrative spend were met The leadership team sought to continue their success in 2017 by completing a transformation to a nimble asset light organization that could anticipate market changes and the needs of SHC
Edwin Lee, is a fourth generation member of the Lee family. He owns and runs Sun Hing Group, and is a board member of the Simon KY Lee Foundation. The Foundation was established in 1985 and managed by Edwin’s grandfather until his passing in 2010. Largely inspired by the family’s experience with other charitable organizations, it underwent a major reorganization to accommodate a business model where social innovation is central to the Foundation’s charitable activities, and where the entire multi-generational family volunteers to participate in the decision-making process. As next in line to be the senior decision maker, Edwin’s challenge is to reconcile his professional ambitions of making a large-scale social impact as a philanthropist with his family’s wish for him to become the guardian of the family’s business. The question is, to what extent Edwin should be involved simultaneously with the family business operations and The Simon KY Lee Foundation’s charitable activities in achieving his personal and family’s objectives and in ensuring the Foundation’s future development?
The protagonist Jamie Brown had been working in the textile industry for 32 years. He was passionate about the industry and enthusiastic about improving Coats’s operations, particularly in the Shenzhen, China, factory.
At an operational level, Jamie was challenged by the conflict of business priorities. One of the key directives set by the board of directors was to maximize cash flow. Inventory was the significant contributor to cash constraints in this industry, and Coats began to reduce batch sizes for production, and to reduce inventory stockpiles. To meet customer requirements for short lead times, thread was produced in small lots, and after the order was filled, the remaining thread was placed in inventory. With his strong operational background in the textile industry, Jamie was aware that by following this procedure, Coats was sacrificing economies of scale that could hurt profitability which could also impact cash flows through the year. This sacrifice also raised the question of whether Coats should pursue a make-to-stock or make-to-order strategy, since a make-to-order strategy implied that lot sizes would be set in accordance with customer orders.
Elizabeth Mok was the second born and the only daughter in the fourth generation of the Lee family. She was also the only one of five siblings who did not own shares in the family business, the world-renowned sauce maker Lee Kum Kee, headquartered in Hong Kong. For Elizabeth, it seemed natural not to own shares, as she had high respect for the traditional approach to succession planning, where females did not inherit a family business. Besides, she believed her brothers worked hard to build the firm’s international reputation and therefore deserved the shares more than she did.
Elizabeth was once again asked by her family to reconsider her decision not to own shares. This time, she could sense their determination to change the state of things.
The Japanese brand UNIQLO was popularly known in many parts of the world for its high quality, functional clothing that was offered at inexpensive prices. Its approach to making apparel was considered radical in the industry as it was more geared around innovation than fashion.
With the goal of becoming the world’s number one apparel brand, supporting UNIQLO’s quest for global leadership were a number of domestic and overseas suppliers which collaborated with the company to develop quality materials and manufacture quality products. How did UNIQLO’s technology driven business model thrive through economic turbulence and maintain competitiveness in the cyclical, trend-driven fashion industry? How did UNIQLO’s products fit in an era when the digital economy heightened consumers’ sensitivities to fashion and lifestyle trends? In order to achieve its ambitious goal to become the global number one apparel brand, what action could the company take to sustain robust growth?
Henry Tam, the logistic director at 7-Eleven’s Combined Distribution Centre (CDC), is considering how to tackle a high employee turnover rate. This challenge is partially the result of a shortage of labor in Hong Kong. Over the years, Henry has taken several steps to address the issue. These include collaborating with non-governmental organizations (NGOs) to train and employ disabled workers; adjusting the use of cold storage for perishable goods; how to handle bakery products; how bulk goods are packed and distributed; and adopting new technologies to improve employee productivity. Moreover, Henry offers the staff three hours of overtime per day, allowing them to earn more. Henry doesn’t know what else he can do to decrease the high turnover and retain his employees.
TSL is a family business in a traditional jewelry industry in Hong Kong that is being driven to change by many external and internal factors. This scenario, which is faced by many businesses, can be challenging when perceived from a conventional corporate mindset. To design a future for TSL, the management team needs to embrace an entrepreneurial mindset and build the “new company” by starting from basic principles, then completely re-think how to focus on providing value to new as well as existing customers through innovative products, service, and operating procedures.
The case is set in early 2016, when TSL was facing increased competition, new price sensitivity among its customers, and industry changes. Issues raised in this case are quite broad and could be useful in a wide range of courses, including Strategy, Marketing, and Organizational Behavior. The case could be used as part of a discussion on innovation, strategy, business development, change management, family businesses, company culture, branding, or similar topics.
The students are asked to take the viewpoint of Annie Yau Tse, the new Chairman, on how to move forward in this environment. Remarkably, Annie is the daughter-in-law of the patriarch/founder, and had little experience in the industry. Her background and training is in information technology. She brought a fresh viewpoint and the courage to institute dramatic changes in the management of operations.
This case describes a hypothetical situation faced by a fictitious international conglomerate, ICL, that intends to enter the retail grocery market in Hong Kong. The conglomerate’s interest in the Hong Kong supermarket industry was initially kindled by the plan of Hutchison Whampoa, Ltd. (HWL) to sell its leading supermarket chain PARKnSHOP in August 2013. However, in October 2013, HWL reversed course and decided not to sell PARKnSHOP, saying that the sale would not deliver maximum value to its shareholders. Before embarking into new territory, ICL wanted an in-depth understanding of the Hong Kong grocery market environment, competitors, and potential barriers to entry. The conglomerate was aware that the new Competition Law, which was expected to take effect in 2015, might have profound implications on the grocery market landscape in Hong Kong.

