A Case Analysis on An Entrepreneur’s Global Strategy

A Case Analysis on An Entrepreneur’s Global Strategy

Introduction

Li Ka-Shing is the Chairman of Hutchison Whampoa Limited (HWL) and Cheung Kong Holdings in Hong Kong. He was able to put up different business in electricity, telecommunications, real estate, retail, shipping and the Internet through sheer hard work, intuition and an eye for innovation.

He is not only known for his success in business but also as a philanthropist. Li has donated to several charitable and educational institutions and has also put up his own foundation to help the needy.

Li was named "Asia's Most Powerful Man" by Asiaweek in 2000. In 2006, Forbes ranked him as 10th richest man in the world and also honored him with the first ever "Malcolm S. Forbes Lifetime Achievement Award." Moreover, Li is referred to as ‘Superman’ in Hong Kong newspapers. His rags-to-riches story and integrity in dealing with people has inspired and gained him the respect of many.

Li Ka Shing has two sons namely Victor Li and Richard Li, who have followed his footsteps as an entrepreneur / businessman.

Victor Li

• Western educated

• Works for his father

• Started with small projects and eventually became deputy chairman of Cheung Kong Infrastructure Holdings Limited

• Shows some signs of similarity in character with Li Ka-Shing

• Seen as savior for Air Canada which was facing bankruptcy

• Gained a reputation as a solid manager with an eye for detail (Asia Inc., May 2004).

Richard Li

• Western educated

• Borrowed money from his father to put up his own business

• Head of Pacific Century Cyber Works, the largest telecom company in Hong Kong.

• Received criticism over PCCW acquisition where deal was not very transparent

Statement of the Problem

How should Victor Li and Richard Li carry themselves in business so as to become as successful and respected as their father?

Objectives

1. To help Victor and Richard Li gain good values and character which would influence the success of their business

2. To help Victor and Richard Li create their personal business style by learning from the success and mistakes of their father

Areas for Consideration

 Leadership style of Li Ka-Shing using Fiedler’s Contingency Theory

Fiedler’s Contingency Theory

• Leader flexibility is the ability to change leadership style

• Contingency Theory’s success is based on changing:

(1) the degree to which the task being performed by the followers is structured (situational factors outlined)

(2) the degree of position power possessed by the leader (punishments and rewards), and

(3) the type of relationship that exists between the leader and the followers (leader-member acceptance)

Fiedler’s Eight Octants

Leader-Position Power Octant Task Structure Leader-Member Relations Control active structured – Permissive passive considerate