This case compares the impact of disruptive forces on the logistics industry in Singapore and Hong Kong, and the two government responses in terms of strategic repositioning. This case is important for executives recommending the siting of additional investment dollars particularly between the two cities.
It was the 28th of February 2012, and Joshua Shen, an investment associate with a large banking group, found himself saddled with a project that blurred the lines between his professional and personal lives in an unexpected manner. His Chief Investment Officer had sent to him a fact sheet on a proposed private placement subscription to the shares in Cordlife Group for a private banking client, and tasked him to prepare a valuation report on the company so that he could decide whether to recommend the private placement to the client. Cordlife was not your typical firm: instead of selling everyday consumable goods and services, it was an umbilical cord tissue bank, in the business of life itself. Joshua was familiar with the company: he and his wife had just banked their first-born's cord cells with them. But, more often than not, a good product does not necessarily mean a good company, and a good company does not necessarily mean a good stock. How does one value such a business? Should he recommend the investment to the client, and on what basis?
Sheng Siong, one of the latest arrival on traditional grocers in the Singapore market, had been delivering better than average earnings. Why is this so? This case provides an interesting comparison of Sheng Siong, a largely domestic focussed, single product company, against Dairy Farm, a multi-national player in the supermarket business in Asia, and NTUC FairPrice, a co-operative. Students will learn how to make comparisons across three different formats.
Sheng Siong, one of the latest arrival of traditional grocers in the Singapore market, had been delivering better than average earnings. Why is this so? Would it be able to sustain its performance in an environment of intensifying competition, driven by new entrants and disruptive forces? What business adjustments does it need to make? Competitive advantages which had delivered in the past may be quickly eroded, and new ones need to be found, or current edges need to be sharpened.
Spencer Theodore Fung slowly closed the covers of the 2016 Analyst Presentation report he had just reviewed. The hazy Hong Kong skies of March 2017 reflected his mood. His third year as Chief Executive Officer of Li & Fung Limited (LF), Spencer wondered how to convince analysts used to 17% CAGR, that 2016 results were reasonable in light of the company's re-positioning. Opportunities abound, but would they believe and give him time? With a war chest of almost US$1 billion and gearing of only 27%, how should he roll out the next three-year plan? 2016, the 110th anniversary of Li & Fung's luminous existence, may mark the dawn of a new horizon...
In 2016, two years after leading OCBC through its largest acquisition of Wing Hang Bank, Group CEO Samuel Tsien settled into his flight home from a townhall meeting with his new colleagues in Hong Kong. Addressing them in Cantonese, he felt that the session went well, and that the cultural fit was good. Tsien continued the OCBC tradition of being sensitive to the concerns of staff in the acquired entities and their local business and regulatory requirements, even as OCBC integrated them to group standards in finance, compliance, audit and risk management. In the previous decade, OCBC had also acquired Bank NISP in Indonesia, and ING Asia Private Bank (IAPB) to spur the group's regional growth. Looking back, Tsien was satisfied that OCBC had successfully integrated them to achieve its strategic intent. Key executives in the acquired banks had stayed with the new owner. Major customers were successfully retained and had expanded their business with the OCBC Group. The growth trajectory of the acquired banks accelerated and new horizons opened. How did OCBC execute its acquisition strategy? What was its approach to integrating its acquisitions?