This case follows the founder and CEO of King's Flair International (KFI), Alex Wong, as he navigates a critical situation involving Zhong Ying (ZY), a long-standing strategic partner of KFI. KFI, a reputable Hong Kong-listed Original Design Manufacturer (ODM) for premium international household brands, has collaborated with ZY as a manufacturing partner for over two decades. Throughout the years, ZY has enjoyed a steady stream of orders from KFI, contributing to its gradual business growth. However, due to its recent overexpansion and mismanagement, ZY found itself buried heavily in bank loans. In early 2019, ZY had reached a point where it could no longer meet its regular debt repayment obligations due to a lack of funds. Consequently, the bank issued an ultimatum, demanding full loan repayment within a few days or else initiating legal action against the company. Faced with this dire situation, ZY had no choice but to seek out Wong's assistance. Wong now faces two crucial decisions: 1) whether he should extend help to ZY, and 2) if he decides to help ZY, which of the three alternatives should he choose? Complicating matters further, ZY is currently working on an urgent order for KFI. Wong understands the gravity of his choice, as it carries significant implications that extend beyond ZY and can impact other manufacturing partners as well. Hence, he must carefully deliberate and weigh the potential consequences before making a decision.

This case series describes the decision of King's Flair International (KFI) on whether to venture into the nanofiber business. KFI grew from an original equipment manufacturer (OEM) in the kitchenware and household products market to a successful pioneer in developing and implementing a "virtual manufacturing system" led by the company founder, Alex Wong, with his adventurous and entrepreneurial personality. KFI's innovative product design and engineering, along with its celebrated virtual manufacturing (VM) system, enabled it to enjoy steady growth over three decades starting in 1989, and it was listed in 2015 on the Hong Kong Stock Exchange. As Wong constantly challenged the company's status quo, he became aware of nanofiber material and its potential. However, he also knew that the nature of the nanofiber business was very different compared to KFI's existing business-a dilemma emerged. In case (A), students will assume the role of the Founder and CEO of KFI and decide whether the company should venture into the nanofiber business. During the process, students will gain insights into how the founder grew KFI by developing and managing its core competencies, and in particular how the virtual manufacturing system played a pivotal role in realizing KFI's core competencies. In case (B), students will take the role of Gigi Wong, Executive Director of the company and the Founder's daughter, to decide how the nanofiber business could be implemented in KFI.

This case series describes the decision of King's Flair International (KFI) on whether to venture into the nanofiber business. KFI grew from an original equipment manufacturer (OEM) in the kitchenware and household products market to a successful pioneer in developing and implementing a "virtual manufacturing system" led by the company founder, Alex Wong, with his adventurous and entrepreneurial personality. KFI's innovative product design and engineering, along with its celebrated virtual manufacturing (VM) system, enabled it to enjoy steady growth over three decades starting in 1989, and it was listed in 2015 on the Hong Kong Stock Exchange. As Wong constantly challenged the company's status quo, he became aware of nanofiber material and its potential. However, he also knew that the nature of the nanofiber business was very different compared to KFI's existing business-a dilemma emerged. In case (A), students will assume the role of the Founder and CEO of KFI and decide whether the company should venture into the nanofiber business. During the process, students will gain insights into how the founder grew KFI by developing and managing its core competencies, and in particular how the virtual manufacturing system played a pivotal role in realizing KFI's core competencies. In case (B), students will take the role of Gigi Wong, Executive Director of the company and the Founder's daughter, to decide how the nanofiber business could be implemented in KFI.

Being a century-old family business, Li & Fung ("LF") had celebrated its evolution from a small trading company to a well-established, internationally recognized supply chain solution provider. However, the rapid advancement of internet technology and e-commerce development in recent years challenged the company's once-innovative business model. Although LF had aggressively streamlined and transformed its business, the company was still struggling to turn around. However, the recent trade war between the U.S. and China, along with the outbreak of the COVID-19 pandemic, triggered the Fung family to consider taking the company private. Case A enables students to take the role of LF's consultant to assess the motives, challenges, pricing, regulatory and financial implications of the going-private offer before making a recommendation to the company. Case B describes the actual outcome and the immediate developments of the company after taking it private. The new hindsight enables students to revisit the company's go-private decision in light of the new developments, offering students an opportunity to understand the agency conflict between the majority and minority shareholders in a listed family business. It also raises the question of whether going private is considered necessary for the Fung family. A moral dilemma would emerge towards the end, stimulating students to think about the issue of ethical leadership.

Supplement to the Li and Fung: Stay Public or Go Private (A). Case B describes the actual outcome and the immediate developments of the company after taking it private. The new hindsight enables students to revisit the company's go-private decision in light of the new developments, offering students an opportunity to understand the agency conflict between the majority and minority shareholders in a listed family business. It also raises the question of whether going private is considered necessary for the Fung family. A moral dilemma would emerge towards the end, stimulating students to think about the issue of ethical leadership.