How is Li & Fung's organizational structure different from other companies?

Li & Fung's organizational structure is different from other companies. It adopts traditional family management, that is, family members control the company's decision-making and operation, instead of adopting the modern enterprise's equity structure and board decision-making model. This structure makes Li & Fung's organization more stable, decision-making more centralized and its influence on external factors more limited.

The advantage of this family management structure is that the trust and tacit understanding between family members are more efficient, the decision-making speed is faster, and sometimes it can adapt to market changes faster. However, this structure also has some shortcomings, such as the difficulty in realizing professional management and the inheritance of leadership. In addition, contradictions and disputes between family members may also have a negative impact on the company's decision-making and business development.

In view of this structure of Li & Fung, it is suggested that the following measures can be taken: First, improve the corporate governance structure, establish and improve the board of directors and management, introduce professional management talents, and improve the scientific and transparent decision-making. Secondly, strengthen communication and cooperation among family members, formulate clear family articles of association and family enterprise culture, and ensure that family members jointly safeguard the interests of the company. Finally, pay attention to talent training and selection, guide family members to gradually transform into professional management talents, and realize the inheritance of leadership and the sustainable development of the company.

In a word, the family management structure adopted by Li & Fung is different from other companies' ownership structure and decision-making mode of the board of directors, and its advantages and disadvantages need to be weighed and improved in combination with the actual situation. Taking corresponding measures in corporate governance, communication and cooperation among family members and personnel training can help Li & Fung to better cope with market changes and development challenges.