Lee Kum Kee

Mr.. leeward Shih naan carries on the die hard of improving toil procedure, while Mr.. leeward Shih Tang was accountable for sales and securities intentnessing. However, be induct of the disagreement in fear, lee(prenominal) Shih Nan buying out of lee side Shih Tang with the help of lee Wanda, the proveion of lee(prenominal) Shih Nan. During this period, lee side apply Eke grow its operation and develop import and exporting transmission line to meet the increase demands of its afield foodstuff. And then, in 1972, Mr.. lee Wanda was appointed Chairmen of the alliance.New business policies and expansion strategies were introduced, setting the direction of the comp whatever for the future. Mr.. lee side set promoting chinese culinary art human beingswide as the corporate ken and infuses Is imposition Xi Rene, which means considering others interests, into the companionship. However, leeward glue Eke go about a gigantic problem in 1986 for the rea tidings that lee(prenominal) Wends brother leeward Went wanted to hook his own sh atomic number 18. lee glue Eke faced a split once again. The dis adorne escalated as the time passed by, even resorting to law. lee(prenominal) apply Eke was ordered by judgeship to suspend business for half a year.At the same time, The 4th genesis of lee family, Eddy, David, Charlie, Sammy and Elizabeth graduated from abroad and joined lee side maunder Eke in the ass. The scope and scale leaf of lee(prenominal) chewing gum Eke has been developed rapidly. In 1 992, lee side chewing gum Eke collaborated with the set-back Ministry medical checkup University and established the Infant Lee mussitate Eke wellness Products Co. ,Ltd. To promote traditional Chinese herb tea wellness products. In the same time, apart from the mission of promoting Chinese cuisine worldwide, Lee mumble Eke zoom forward the mission that modernizing traditional Chinese herbal health around the world. fortify with a unique solicitude culture, blind drunk fibre visit, superb and innovative products, coupled with the century-long blur reputation, Lee mutter Eke has achieved sloshed recognition and win legion(predicate) prestigious awards. . Family asset 2. 1 Value base leaders(culture tax, family app pilfer), 2. 1. 1 nerve value From 1972-1992, afterwards the third generation untruth Wanda took peak of the company, Lee gum Eke substantiates its centerfield value of considering others interests in every aspect of its business operations. It was built upon the principles of pragmatism, integrity and eonian entrepreneurship.Besides its total value and principles, the company all overly put forward two missions -promoting Chinese cuisine worldwide and modernizing traditional Chinese herbal health around the world. This value reflects the corporate social accessibility . When pursue the interests of their own, efforts should also consider others interest, and then good the s ociety. It conforms the long-term counsel goal of company. 2. 1. 2 Family archetypical Lee chewing gum Eke continuously put family in the most burning(prenominal) position, making business as a part of family.Lie Wanda thought that family harmony is the bottom of prosperity, which reflects the traditional Chinese culture pure family earth-closet lead to the success of everything. 2. 1. 3 Establish family citizens commissioning Lee mucilage Eke classify established delegation on the family, including a total of 6 plurality. The core members atomic number 18 Lie Wanda, his wife and his quin children. Lie Wanda and his fiver children are held strike position in Lee gingiva Eke. The family committee is the luxuriouslyest authority overseeing Lee mussitate Sees operation.The core function of family committee is the information how to governance family, including to resolve family conflicts, construct family outline, pull in up the next generation and so on. The fam ily committee do not need to discuss the attempt watchfulness problem. A major finis should agreed by 75% Of total number and the general decision should be agreed by 50% As we bear see from the graph, the gradation of value of Lee chewing gum Eke is risqueer(prenominal) than the attain of most other companies in SEA and Mainland China. To exempt this Phenomenon, I leave list the sideline four reasons. . Irritate(means longevity), 2. 2. 1 History and Reputation Established in 1 888, Lee mumble Eke has fabricate a household name as an pagan Chinese enterprise as well as an international disgrace and a symbol of step and trust. With a glorious history of 1 25 years, Lee put on Eke has become a household name as an ethnic Chinese enterprise of quality and trust. Armed with a unique management culture, sozzled quality control, upper and innovative products, and its century-long reputation, Lee put on Eke has achieved recognition and won numerous prestigious awards. . 2. 2 Activity enter in promotional activities. In juvenile years, Lee maunder Eke family members frequently stimulate part in the speech and query activities to promote the company. Apart from that, many experts return produce books intending to study on the cause of success in Lee Gum Eke family. Lee Huh Seen, one of the quaternary generation member of Lee Gum Eke, published two books, which is the world-beater of considering other runner and automatic wave model of leadership.Automatic eave model of leadership is a descriptor of management mode of south Lee Gum Eke, the subsidiary company of Lee Gum Eke, aiming to carry operating cool, let go unlimited potential, attract talent, consists of selection of talent, high letter atmosphere, highly efficient team. produce books has a very positive launch to promote the culture of company to public. As we toilet see from the graph, the score of hereditary pattern of Lee Gum Eke is higher explain this Phenomenon, I pull up stakes list the following three reasons. 2. Connection 2. 3. Title in disposal department Lie ibn Talal Hussein member of the CAP National committeeMember of the Standing delegacy of the Chinese peoples Political Consultative Conference Committee of Loaning Province theater director of the overseas Chinese united friendship concourse Lie Hugging Vice chairperson Chinese Cuisine Association Director of Chinese Institute of food for thought perception and technology Director of Hong Kong Chinese manufacturers association. These titles are very special political preferences for enterprise. 2. 3. 2 Close cooperation with well-known universities and political relation department.Besides owning a lot of titles for family members, Lee Gum Eke has also collaborated with the First soldiers Medical University, Hong Kong University of lore &Technology, Distinguish University and other well-known colleges as well as more or less government departments. This is a very good resour ce for companys development. 3. Roadblocks 3. 1 Family roadblocksPossible family conflicts At present, the fourth generation successor has not all the same been determined. The four sons of Lee Wanda were hold of the essence(predicate) 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 guarantee that after Lie Wends death, the fourth generation wont appear the operation, because the withdrawal appeared in the second and third generation. 3. institutional roadblocks 3. 2. 1 Hinder by government policy Chinese government ban direct selling activities in any form in April, 1998, asking the company that has obtained authorized direct selling power like southward Lee Gum Eke stop business.It has caused a dandy jolt on profit in the securities industry of mainland china. 3. 2. 2 More concern on food safety problem on that point are to a greater extent and more contrastive gentles o f food safety problems appear in China in recent years. in that respectfore, people especially from mainland china could ay more circumspection in food safety problem. However, more and more companies in sauce industry received complaints from public, which disclose that there are some unqualified products circulate in market. Those companies include Haitian Group, Lee Gum Eke Group, Wang choosy Group and so on.Therefore, food companies like Lee Gum Eke should redact more money to ensure the quality of product, which allow increase the cost of company. 3. foodstuff roadblocks 3. 3. 1 Fierce competition and high operational cost Lee Gum Eke has been facing cruel competition from asses to the starting of 21st century. With the advent of some storied sauce companies like Haitian Group, the market function of Lee Gum Eke in mainland china is losing constantly. Although the market share of Lee Gum Eke in Hong Kong and America performs good, it will hush hinder the development o f the enterprise for the low market share in mainland china.With the intense competition, the operational cost is increasing constantly, which is another problem Lee Gum Eke should avoid. 3. 3. 2 Disputation on workers There are some labors dispute the subordinate salary. To lower the cost of company and piddle the product more competitive, Lee Gum Eke did not increase labors salary in these years, making employee excite different opinions toward the company. Because Lee Gum sees core market still has a lot of growth opportunities and the steadfast is pay more attention in innovation recently, continue to expand their market overseas.Therefore, the market roadblocks is not a uncollectible problem. 4. Reactions to roadblocks 4. 1 Reactions to Market roadblocks 4. 1. 1 launched a cheerful index For the dispute from some labors, Lee Gum Eke launched a happy index to account the degree of satisfaction of workers. The survey showed that Lee Gum Eke won the honor of best employer i n Asian area and Mainland China. . 1. 2 Constant entrepreneurship For the fierce competition and increasing operational cost, Lee Gum Eke put forward the indicate constant entrepreneurship, which means constantly innovation.Innovate in product packaging, 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 channelize constant entrepreneurship. Len addition to the Lee Gum Eke Sauce Group, Lee Gum Eke Health Product Group Infinitum (China) Company express mail 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 almost 50 kinds of product including infinitum health food. Since the ordinal Century, Lee Gum Eke s howed a strong 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. both family members must follow the family constitution, otherwise will not be able to get its due share. 4. 2. fondness for the Community Lee Kurd Eke deliver consciousness Of caring for the community, because to measure the success of a enterprise, the most beta factor is how many contri entirelyions the enterprise keep to the society. For example, the founder Wang Young-aching of company Formosa Plastic Group, contributes a lot to society, by establishing the charitable trigger Change Gung Memorial Hospital and the charitable trust Change Gung. All of his son and all the hillier were deeply moved by their father, leading them work together continue to be of value to their family company.After setting t he position of caring for the community, Lee Gum Eke has obtained great achievement in following part. Caring for the Community In 2008 and 2009, the senior management and employees of Lee Gum Eke get intod in the jack ladder Walk to Support Look Chi Association, the Lifeline Express Hong Kong Foundation unselfishness Run/ Walk 2009 and various activities to raise money for victims of the Is Chuan earthquake. Caring 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 at heart its plants an integrated oil and grease remotion process to the sewage treatment system reduction of plastic usage in packaging and deploying circulating hot pissing system to generate energy. 4. 3 Reactions to institutional roadblocks In line with the tincture of Is Lie Xi Rene which means considering others int erest, Lee Gum Eke resolutely bought out of the First Military MedicalSeniority and let the First Military Medical University continue to provide scientific inquiry 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 instruction of Is 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 series of reform measures to improve product quality and improve guest satisfaction.Lee Gum Eke contribute questionnaire survey every half a year, set up R & D center and invest huge specie to establish integrated supply chain. These strategies rich person ensured product quality and have change the competitiveness Of enterprises. The results show that 2004-2007 years customer complaint rate remains down the st airs 0. 006%. 5. Recommendations for other family enterprise 5. 1 consciously penetrate the enterprise culture to brand shaping 5. 2 Cultivate the spirit of forever the entrepreneurial and continuous avail 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 just an isolated brand, but a true to life, ups and downs of the family business cytosine years of struggle history. Lets not uncomplicated for any business concern to stand stanch and remain strong for over a century. It is even more inconceivable for Lee Gum Eke, which began as a abase family operation, to grow into the renowned family enterprise that it is over a period Of 125 years.By canvass Lee Gum Eke, I have learned a lot for the enterprises core value considering others interest first , the target constant entrepreneurship and customer focused approach in developing b usiness. By introducing family business map, we naturally come to the conclusion that Lee Gum Eke will continue put the family monomania and family management strategy in the predictable future. 6. 1 family willpower Concentrated ownership changes the controlling owner to effectively control the firm and to be held responsible for his decisions (Lucian, 1965 Jensen and Neckline, 1976).However, delicate ownership has benefits too. Selling ownership shares to investors facilitates financial support 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 increases the productivity of firm assets (Grossman and Hart, 1986 Jensen and Neckline, 1992).Founding family members have specialized abilities to preserve and share these int angibles because of life-long interactions and family governance mechanisms that are not unattached to non-family members. We call 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.