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.

In December 2020, Daytoy Group, a leading global furniture and home furnishings retailer, asked the small Chinese candle supplier Dalian Talent Co. Ltd. to become its sole supplier of aromatic and unscented candles. Daytoy Group was offering the supplier a large amount of new production volume after terminating its relationship with its only other candle supplier in the Asia-Pacific region due to a corporate social responsibility issue. The supplier had to consider the cost of the additional supply chain management, manufacturing technique, and production capacity that would be needed to comply with the new request. The company already had enough orders from other reliable clients to fill its schedule until April 2022. Expanding production capacity and adding work teams to meet the request would take one to two years. How should the supplier respond to the request? What impact would the new arrangement have on its operations? How would it affect its long-time collaboration and future partnership with Daytoy Group?

In December 2020, Daytoy Group, a leading global furniture and home furnishings retailer, asked the small Chinese candle supplier Dalian Talent Co. Ltd. to become its sole supplier of aromatic and unscented candles. Daytoy Group was offering the supplier a large amount of new production volume after terminating its relationship with its only other candle supplier in the Asia-Pacific region due to a corporate social responsibility issue. The supplier had to consider the cost of the additional supply chain management, manufacturing technique, and production capacity that would be needed to comply with the new request. The company already had enough orders from other reliable clients to fill its schedule until April 2022. Expanding production capacity and adding work teams to meet the request would take one to two years. How should the supplier respond to the request? What impact would the new arrangement have on its operations? How would it affect its long-time collaboration and future partnership with Daytoy Group?