Lee Kum Kee

Mr.. downwind Shih Nan carries on the work of upward(a) production procedure, while Mr.. lee side Shih hell dust was trusty for sales and grocery storeing. However, because of the distinction in worry, lee(prenominal) Shih Nan buying out of lee side Shih Tang with the help of lee side Wanda, the son of downwind Shih Nan. During this period, lee side gum tree Eke grow its operation and develop import and export business to meet the change magnitude demands of its overseas foodstuff. And then, in 1972, Mr.. downwind Wanda was appointed Chairmen of the company.New business policies and expansion strategies were introduced, oscilloscope the subscribe toion of the company for the future. Mr.. lee set promoting Chinese cuisine worldwide as the corporate vision and infuses Is perch Xi Rene, which means considering otherwises interests, into the company. However, downwind mumble Eke faced a big fuss in 1986 for the campaign that Lee Wends brother Lee Went wanted to liquidate his own share. Lee gum tree Eke faced a split once again. The conflict escalated as the time passed by, even resorting to law. Lee mucilage Eke was ordered by cost to suspend business for half a year.At the same time, The 4th propagation of Lee family, Eddy, David, Charlie, Sammy and Elizabeth graduated from abroad and joined Lee put on Eke in the ass. The scope and scale of Lee gum tree Eke has been developed rapidly. In 1 992, Lee mutter Eke collaborated with the offset Ministry Medical University and giveed the Infant Lee mucilage Eke Health products Co. ,Ltd. To promote traditional Chinese herbal tea considerablyness products. In the same time, a relegate from the mission of promoting Chinese cuisine worldwide, Lee Gum Eke purr forward the mission that modernizing traditional Chinese herbal wellness around the world.Armed with a fantastic trouble last, mean grapheme control, superb and innovative products, coupled with the century-long brand reputa tion, Lee Gum Eke has achieved unanimous recognition and won numerous prestigious awards. . Family asset 2. 1 Value based leadership(culture time revalue, family value), 2. 1. 1 force value From 1972-1992, after the deuce-ace contemporaries pillow Wanda took charge of the company, Lee Gum Eke substantiates its core value of considering others interests in e genuinely aspect of its business operations. It was built upon the principles of pragmatism, integrity and unremitting entrepreneurship.Besides its core value and principles, the company as well as put forward twain missions -promoting Chinese cuisine worldwide and modernizing traditional Chinese herbal health around the world. This value reflects the corporate social accessibility . When prosecute the interests of their own, endeavors should also consider others interest, and then benefit the society. It conforms the long-term caution tendency of company. 2. 1. 2 Family First Lee Gum Eke always put family in the mos t outstanding position, making business as a part of family.Lie Wanda thought that family harmony is the foundation of prosperity, which reflects the traditional Chinese culture symphonic family eject lead to the supremacy of everything. 2. 1. 3 Establish family committee Lee Gum Eke Group established committee on the family, including a gist of 6 people. The core members are Lie Wanda, his wife and his five children. Lie Wanda and his five children are held key position in Lee Gum Eke. The family committee is the highest authority overseeing Lee Gum Sees operation.The core function of family committee is the study how to governance family, including to resolve family conflicts, construct family system, nurture the next coevals and so on. The family committee do not need to discuss the opening care problem. A major decision should agreed by 75% Of total number and the general decision should be agreed by 50% As we can see from the graph, the score of value of Lee Gum Eke i s higher than the score of most other companies in sea and Mainland China. To explain this Phenomenon, I will list the future(a) four reasons. . Irritate(means longevity), 2. 2. 1 History and Reputation Established in 1 888, Lee Gum Eke has become a household name as an ethnic Chinese enterprise as well as an international brand and a symbol of quality and trust. With a glorious history of 1 25 age, Lee Gum Eke has become a household name as an ethnic Chinese enterprise of quality and trust. Armed with a unique forethought culture, stringent quality control, upper and innovative products, and its century-long reputation, Lee Gum Eke has achieved recognition and won numerous prestigious awards. . 2. 2 Activity inscribe in promotional activities. In recent geezerhood, Lee Gum Eke family members oftentimes take part in the speech and interview activities to promote the company. obscure from that, umpteen experts have published books intending to study on the cause of success i n Lee Gum Eke family. Lee Huh Seen, one of the fourth coevals member of Lee Gum Eke, published two books, which is the power of considering other first and automatic wave model of leadership.Automatic eave model of leadership is a kind of worry mode of south Lee Gum Eke, the subsidiary company of Lee Gum Eke, aiming to continue operating cool, expiration unlimited potential, attract talent, consists of selection of talent, high letter atmosphere, highly in force(p) team. Publishing books has a very positive effect to promote the culture of company to public. As we can see from the graph, the score of heritage of Lee Gum Eke is higher explain this Phenomenon, I will list the following three reasons. 2. Connection 2. 3. Title in authorities department Lie Hussein member of the CAP National CommitteeMember of the rest Committee of the Chinese peoples Political Consultative Conference Committee of lend Province film director of the overseas Chinese united friendship group discus sion Lie Hugging Vice President Chinese Cuisine necktie Director of Chinese Institute of food science and technology Director of Hong Kong Chinese manufacturers association. These titles are very special political resources for enterprise. 2. 3. 2 crocked cooperation with known universities and government department.Besides owning a plenty of titles for family members, Lee Gum Eke has also collaborated with the First Military Medical University, Hong Kong University of Science &Technology, Distinguish University and other well-known colleges as well as some government departments. This is a very good resource for companys development. 3. Roadblocks 3. 1 Family roadblocksPossible family conflicts At present, the fourth generation successor has not yet been determined. The four sons of Lee Wanda were hold important positions in the group.Although Lee Gum Eke Group set up a family committee which is a good communication platform between family members, it cannot countenance that af ter Lie Wends death, the fourth generation wont appear the operation, because the separation appeared in the second and third generation. 3. Institutional roadblocks 3. 2. 1 Hinder by government policy Chinese government banned direct selling activities in any form in April, 1998, asking the company that has obtained authorized direct selling power kindred randomness Lee Gum Eke let out business.It has caused a dandy impact on profit in the market of mainland china. 3. 2. 2 More concern on food preventive problem in that location are more and more different kinds of food safety problems appear in China in recent years. Therefore, people particularly from mainland china could ay more attention in food safety problem. However, more and more companies in sauce industry received complaints from public, which disclose that thither are some unqualified products circulate in market. Those companies include Haitian Group, Lee Gum Eke Group, Wang choosy Group and so on.Therefore, foo d companies like Lee Gum Eke should invest more money to ensure the quality of product, which will accession the cost of company. 3. market roadblocks 3. 3. 1 Fierce opposition and high operational cost Lee Gum Eke has been facing vehement competition from asses to the beginning of 21st century. With the advent of some famous sauce companies like Haitian Group, the market share of Lee Gum Eke in mainland china is losing regularly. Although the market share of Lee Gum Eke in Hong Kong and the States performs good, it will still hinder the development of the enterprise for the low market share in mainland china.With the intense competition, the operational cost is change magnitude constantly, which is some other problem Lee Gum Eke should avoid. 3. 3. 2 Disputation on workers There are some labors dispute the low-level salary. To lower the cost of company and make the product more competitive, Lee Gum Eke did not increase labors salary in these years, making employee have diffe rent opinions toward the company. Because Lee Gum sees core market still has a lot of harvest-tide opportunities and the sign of the zodiac is pay more attention in innovation recently, continue to throw a fit their market overseas.Therefore, the market roadblocks is not a big problem. 4. Reactions to roadblocks 4. 1 Reactions to Market roadblocks 4. 1. 1 launched a happy index For the dispute from some labors, Lee Gum Eke launched a happy index to measure the degree of propitiation of workers. The survey showed that Lee Gum Eke won the honor of best employer in Asian area and Mainland China. . 1. 2 Constant entrepreneurship For the fierce competition and increasing operational cost, Lee Gum Eke put forward the tar stick to constant entrepreneurship, which means constantly innovation.Innovate in product case, in market, in management method and product producing procedure. It offers over 220 varieties of sauces and condiments in over 1 00 countries and regions across the five continents nowadays after setting the target constant entrepreneurship. Len entree to the Lee Gum Eke Sauce Group, Lee Gum Eke Health Product Group Infinitum (China) Company Limited develops the market of Chinese rebel health products. Not satisfied with the sauce field, Lee Gum Eke expand their business to the health product field, which is also a kind of innovation.Nearly 20 years since the establishment , the South Lee Gum Eke successfully produced nearly 50 kinds of product including infinitum health food. Since the twenty-first Century, Lee Gum Eke showed a hale momentum. 4. 2 Reactions to Family roadblocks 4. 21 Established family committee and constitution enterprise management problem. A major decision should agreed by 75% of apart from establishing family committee, Lee Gum Eke also developed he family constitution. All family members essential follow the family constitution, otherwise will not be able to get its due share. 4. 2. Caring for the Community Lee Kurd Eke de liver consciousness Of sympathize with for the community, because to measure the success of a enterprise, the most important factor is how many contributions the enterprise make to the society. For example, the founder Wang Young-aching of company Formosa Plastic Group, contributes a lot to society, by establishing the pitying foundation Change Gung Memorial Hospital and the charitable trust Change Gung. All of his son and all the hillier were deeply move by their father, leading them work together continue to be of value to their family company.After setting the target of caring for the community, Lee Gum Eke has obtained great accomplishment in following part. Caring for the Community In 2008 and 2009, the senior management and employees of Lee Gum Eke participated in the Charity go to Support disembodied spirit Chi Association, the Lifeline Express Hong Kong Foundation Charity Run/ Walk 2009 and various activities to raise money for victims of the Is Chuan earthquake. Cari ng for the Employees Lee Gum Eke promotes a 3-balance corporate hilltops family, health and work and provides free nutritious lunch and a shuttle for employees.Caring for the Environment Lee Gum Eke implemented environmental management facilities within its plants an integrated oil and grease removal process to the sewerage treatment system reduction of plastic usage in packaging and deploying circulating hot water system to generate energy. 4. 3 Reactions to institutional roadblocks In line with the spirit of Is Lie Xi Rene which means considering others interest, Lee Gum Eke resolutely bought out of the First Military MedicalSeniority and let the First Military Medical University continue to provide scientific research for the South Lee Gum Eke without participate in any management and investment. At the same time, the South Lee Gum Eke provided a sum of money to the First Military Medical University from sales in proportion. The problem has been well settled with guidance of I s Lie Xi Rene. For the complaints from public, Lee Gum Eke attaches great importance to quality of product. From 2004, Lee Gum Eke has taken a serial publication of reform measures to improve product quality and improve customer satisfaction.Lee Gum Eke conduct questionnaire survey every half a year, set up R & D center and invest huge funds to establish integrated supply chain. These strategies have ensured product quality and have modify the competitiveness Of enterprises. The results show that 2004-2007 years customer complaint rate be below 0. 006%. 5. Recommendations for other family enterprise 5. 1 Consciously penetrate the enterprise culture to brand shaping 5. 2 Cultivate the spirit of eer the entrepreneurial and continuous improvement 5. Implement people-oriented management culture 5. 4 Starting from basic and Striving to consolidate the basis of a hundred ears enterprise Family sustainability score 6. Conclusion Lee Gum Eke is not unspoilt an isolated brand, but a tru e to life, ups and downs of the family business 100 years of struggle history. Lets not easy for any business concern to stick out and remain strong for over a century. It is even more impossible for Lee Gum Eke, which began as a humble family operation, to grow into the storied family enterprise that it is over a period Of 125 years.By studying Lee Gum Eke, I have learned a lot for the enterprises core value considering others interest first , the target constant entrepreneurship and customer focused blast in developing business. By introducing family business map, we naturally come to the expiry that Lee Gum Eke will continue put the family self-possession and family management strategy in the foreseeable future. 6. 1 family ownership Concentrated ownership modifys the controlling owner to effectively control the firm and to be held responsible for his decisions (Lucian, 1965 Jensen and Neckline, 1976).However, diffused ownership has benefits too. Selling ownership shares t o investors facilitates financing and firm growth (Demesne, 1967). As we can see from the chart. The company Lee Gum Eke has a very high score of family value. Therefore, concentrated ownership can enable family members make their decision effectively. 6. 2 family management In principle, firm decision rights should be given to the person who maximizes the productivity of firm assets (Grossman and Hart, 1986 Jensen and Neckline, 1992).Founding family members have specialise abilities to preserve and share these intangibles because of life-long interactions and family governance mechanisms that are not available to non-family members. We call off these specialized intangibles family assets. From the chart we can see that the roadblock of Lee Gum Eke is lower than most of companies located in SEA and Mainland China. Therefore, choosing family management can maximize the profit of company because of the intangible family assets can show to others.