Fung and Tata Comparison Essay

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Provision of all-round Supply Chain services: The Fung Group was considered as “ultimate supply chain manager” to its clients, and its wide array of services and network spanned the entire supply chain across the globe. This “Total Value-Added Package” service differentiated itself from its competitors.

Agile and responsive to Market & Industry: Composing of its dynamic, self-initiated business units with spirit of entrepreneurship, the Fung Group was highly customer-centric and fast in reacting to change. The highly globalized business units allowed the company to follow the change of worldwide market and adjust its position in the industry quickly - from being solely a middleman agent, a supply chain manager, and a “value-chain” developer.

Cost-effectiveness: Using the centralized Group services for all business sectors, economy of scale was achieved. Apart from better operation efficiency, the sharing of customers, suppliers and resources base connected a big network and created a great business synergy.

Comparison of the Fung Group and the Tata Group[pic 1]

Appendix

1.The Fung Group Organization: Independent companies managing inter-related functions of the supply-chain industry.

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2.The Functional Network composed of small business units with distinctive management

3. Centralized Operation Support for all the business functionsReference:[pic 5][pic 6][pic 7][pic 8]

- Li & Fung 2012, Journal, Harvard Business Review. Harvard Business School.

- The Fung Group.”Group Structure” http://www.funggroup.com/eng/about/structure.php, accessed 2015June

- J. Magretta, 1998. Fast, Global, and Entrepreneurial: Supply Chain Management, Hong Kong Style. Harvard Business Review. Harvard Business School.

The Tata Group

The Fung Group

Business Profile

Highly diversified across many industries in India; business inter-relations among the companies were low.

Diversified Services across all functions of supply chain industry; Business sectors were highly related in a single industry

Culture

"Tata-ness" - a balance between the need for command and control in running the organization and the need to be creative, innovative and free-throwing. The Group as a trunk while the subsidiary as the leaves and roots.

"The Little John Wayne" - small business units act independently and self-directed with the spirit of entrepreneurship, while they are supported with resources from the group.

Structure

"Federal" Business Group structure - Each of the diverse business was housed in a separate company with own CEO and management team, while under 2 major holding companies in the Group. (Tata Sons & Tata Industries)

Flat inter-related business network: 3 Major business sectors (Li & Fung Ltd, Global Brands Group, Fung Retailing) covered the 4 high-level supply chain functions, manging more than 300 small business units with individual P&Ls.

Group Services

Central Support

Tata Services Ltd - Group Legal, HR,Finance, Management Training Centre, Corporate Affairs, Public Affairs, Economis and Statistics, Strategic Management.

Operation Support Group - Legal, HR, ITS, Compliance and Substainability, Central Administrative Support, Finance.

Business Practice Improvement and Innovation

Tata Business Excellence Model (TBEM)

The Fung Academy