The History of Lee Gum Eke: From Family Business to Corporate Vision and Conflict

Mr. Lee Shih Nan carries on the work of improving production procedure, while Mr.. Lee Shih Tang was responsible for sales and marketing. However, because of the disagreement in business, Lee Shih Nan buying out of Lee Shih Tang with the help of Lee Wanda, the son of Lee Shih Nan. During this period, Lee Gum Eke expanded its operation and develop import and export business to meet the increasing demands of its overseas market. And then, in 1972, Mr. Lee Wanda was appointed Chairmen of the company.

New business policies and expansion strategies were introduced, setting the direction of the company for the future. Mr. Lee set "promoting Chinese cuisine worldwide" as the corporate vision and infuses "Is Lie Xi Rene", which means considering others' interests, into the company. However, Lee Gum Eke faced a big problem in 1986 for the reason that Lee Wend's brother Lee Went wanted to liquidate his own share. Lee Gum Eke faced a split once again. The conflict escalated as the time passed by, even resorting to law. Lee Gum Eke was ordered by court to suspend business for half a year.

At the same time, The 4th generation of Lee family, Eddy, David, Charlie, Sammy and Elizabeth graduated from abroad and joined Lee Gum Eke in the ass. The scope and scale of Lee Gum Eke has been developed rapidly. In 1 992, Lee Gum Eke collaborated with the First Ministry Medical University and established the Infant Lee Gum Eke Health Products Co. ,Ltd. To promote traditional Chinese herbal health products. In the same time, apart from the mission of "promoting Chinese cuisine worldwide, Lee Gum Eke purr forward the mission that "modernizing traditional Chinese herbal health around the world".

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Armed with a unique management culture, stringent quality control, superb and innovative products, coupled with the century-long brand reputation, Lee Gum Eke has achieved unanimous recognition and won numerous prestigious awards. Value based leadership(culture value, family value),  core value From 1972-1992, after the third generation Lie Wanda took charge of the company, Lee Gum Eke substantiates its core value of "considering others' interests" in every aspect of its business operations. It was built upon the principles of "pragmatism, integrity and constant entrepreneurship".

Besides its core value and principles, the company also put forward two missions -"promoting Chinese cuisine worldwide" and "modernizing traditional Chinese herbal health around the world". This value reflects the corporate social accessibility . When pursuing the interests of their own, enterprises should also consider others interest, and then benefit the society. It conforms the long-term management goal of company.  First Lee Gum Eke always put family in the most important position, making business as a part of family.

Lie Wanda thought that family harmony is the foundation of prosperity, which reflects the traditional Chinese culture harmonious family can lead to the success of everything.  Lee Gum Eke Group established committee on the family, including a total of 6 people. The core members are Lie Wanda, his wife and his five children. Lie Wanda and his five children are held key position in Lee Gum Eke. The family committee is the highest authority overseeing Lee Gum See's operation.

The core function of family committee is the study how to governance family, including to resolve family conflicts, construct family system, nurture the next generation and so on. The family committee do not need to discuss the enterprise management problem. A major decision should agreed by 75% Of total number and the general decision should be agreed by 50% As we can see from the graph, the score of value of Lee Gum Eke is higher than the score of most other companies in SEA and Mainland China. To explain this Phenomenon, I will list the following four reasons. Irritate(means longevity),  Established in 1 888, Lee Gum Eke has become a household name as an ethnic Chinese enterprise as well as an international brand and a symbol of quality and trust. With a glorious history of 1 25 years, Lee Gum Eke has become a household name as an ethnic Chinese enterprise of quality and trust. Armed with a unique management culture, stringent quality control, upper and innovative products, and its century-long reputation, Lee Gum Eke has achieved recognition and won numerous prestigious awards.

Activity participate in promotional activities. In recent years, Lee Gum Eke family members frequently take part in the speech and interview activities to promote the company. Apart from that, many experts have published books intending to study on the cause of success in Lee Gum Eke family. Lee Huh Seen, one of the fourth generation member of Lee Gum Eke, published two books, which is 'the power of considering other first" and " automatic wave model of leadership".

Automatic eave model of leadership is a kind of management mode of south Lee Gum Eke, the subsidiary company of Lee Gum Eke, aiming to continue operating cool, release unlimited potential, attract talent, consists of selection of talent, high letter atmosphere, highly efficient team. Publishing books has a very positive effect to promote the culture of company to public. As we can see from the graph, the score of heritage of Lee Gum Eke is higher explain this Phenomenon, I will list the following three reasons. Title in government department Lie Hussein: member of the CAP National Committee;Member of the Standing Committee of the Chinese people's Political Consultative Conference Committee of Loaning Province;Director of the overseas Chinese united friendship conference; Lie Hugging: Vice President Chinese Cuisine Association; Director of Chinese Institute of food science and technology; Director of Hong Kong Chinese manufacturers association. These titles are very special political resources for enterprise.  Close cooperation with well-known universities and government department.

Besides owning a lot of titles for family members, Lee Gum Eke has also collaborated with the First Military Medical University, Hong Kong University of Science &Technology, Distinguish University and other well-known colleges as well as some government departments. This is a very good resource for company's development. Family roadblocks:Possible family conflicts At present, the fourth generation successor has not yet been determined. The four sons of Lee Wanda were hold important positions in the group.

Although Lee Gum Eke Group set up a family committee which is a good communication platform between family members, it cannot guarantee that after Lie Wend's death, the fourth generation won't appear the operation, because the separation appeared in the second and third generation.  Hinder by government policy Chinese government banned direct selling activities in any form in April, 1998, asking the company that has obtained authorized direct selling power like South Lee Gum Eke stop business.

It has caused a great impact on profit in the market of mainland china. More concern on food safety problem. There are more and more different kinds of food safety problems appear in China in recent years. Therefore, people especially from mainland china could ay more attention in food safety problem. However, more and more companies in sauce industry received complaints from public, which disclose that there are some unqualified products circulate in market. Those companies include Haitian Group, Lee Gum Eke Group, Wang choosy Group and so on.

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