Li Ka Shing Essay Example
Li Ka Shing Essay Example

Li Ka Shing Essay Example

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  • Pages: 5 (1300 words)
  • Published: October 6, 2017
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A Case Analysis on An Entrepreneur’s Global Strategy Introduction Li Ka-Shing is the Chairman of Hutchison Whampoa Limited (HWL) and Cheung Kong Holdings in Hong Kong. He was able to put up different business in electricity, telecommunications, real estate, retail, shipping and the Internet through sheer hard work, intuition and an eye for innovation. He is not only known for his success in business but also as a philanthropist.

Li has donated to several charitable and educational institutions and has also put up his own foundation to help the needy.Li was named "Asia's Most Powerful Man" by Asiaweek in 2000. In 2006, Forbes ranked him as 10th richest man in the world and also honored him with the first ever "Malcolm S. Forbes Lifetime Achievement Award. " Moreover, Li is referred to as ‘Superman’ in Hong Kong newspapers.

His rags-to-riches story and integrity in dealing wit


h people has inspired and gained him the respect of many. Li Ka Shing has two sons namely Victor Li and Richard Li, who have followed his footsteps as an entrepreneur / businessman. Victor Li

•Western educated

•Works for his father Started with small projects and eventually became deputy chairman of Cheung Kong Infrastructure Holdings Limited

•Shows some signs of similarity in character with Li Ka-Shing

•Seen as savior for Air Canada which was facing bankruptcy

•Gained a reputation as a solid manager with an eye for detail (Asia Inc. , May 2004). Richard Li

•Western educated

•Borrowed money from his father to put up his own business

•Head of Pacific Century Cyber Works, the largest telecom company in Hong Kong.

•Received criticism over PCCW acquisition where deal was not very transparent Statement of the ProblemHow should Victor Li and Richar

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Li carry themselves in business so as to become as successful and respected as their father?


1. To help Victor and Richard Li gain good values and character which would influence the success of their business

2. To help Victor and Richard Li create their personal business style by learning from the success and mistakes of their father Areas for Consideration ?

Leadership style of Li Ka-Shing using Fiedler’s Contingency Theory Fiedler’s Contingency Theory

•Leader flexibility is the ability to change leadership style

•Contingency Theory’s success is based on changing:

1) the degree to which the task being performed by the followers is structured (situational factors outlined)

2) the degree of position power possessed by the leader (punishments and rewards), and

3) the type of relationship that exists between the leader and the followers (leader-member acceptance) Fiedler’s Eight Octants Leader-Position PowerOctantTask StructureLeader-Member Relations Control active structured – Permissive passive considerate Strong1StructuredGood Weak2StructuredGoodC P Strong3UnstructuredGoodO EWeak4UnstructuredGoodN R Strong5StructuredPoorT M Weak6StructuredPoorR I Strong7UnstructuredPoorO T Weak8UnstructuredPoor L It can be said that Li Ka-Shing is a flexible leader whose leadership style falls in Fiedler’s Octant 1 and 3. Octant 1: Strong leader, followers tasks are structured, good leader-member relations Octant 3: Strong leader, followers tasks are unstructured, good leader-member relations (Task structure can either be structured or unstructured based on the industry involved

Basis of leadership style:

•Known for innovation and being able to successfully put up business of differing industries rrequires a flexible leadership style apt for the said industry.


Higher openness to change is required in the Internet and Telecoms industry in order to ride the wave of newer technologies; as compared to real estate and shipping which have slower rate of change

•As Li's power and influence

grew it became clear that his real talent lay not just in having an uncanny eye for opportunities but also in knowing when to sell (Time Magazine)As for his two sons’ leadership style, it is assumed in this analysis that they still have much room for improvement as compared to their father based on the information presented in the introduction Alternative Courses of Action 1. Stick to Li’s basic philosophy of integrity when doing business ?Be honorable and treat partners rights ?If a 10 percent share is reasonable and you can get 11 percent, take 9 percent because a hundred more deals will come to you ? Keep your reputation good, work hard, be nice to people, keep your promises.This will always make your business much easier Pros

•They will attract more business due to reliability and integrity

•They will gain respect of people and other businessmen Cons

•Will need effort and willingness to change if they do not practice this style

•Shrewd business partners may not want to work with them

•They will have to filter partners to deal with, so as not to compromise integrity

2. Become a strong leader just like their father and not just a manager ? Use the expertise of others, whether it’s your staff, your partner or you government ?Octant 1 or 3, emphasis on good employee relations and rewards PROS

•Employees and partners alike will feel that they are important and their opinions are being respected

•Employees and partners will be encouraged and inspired

•Employees and partners will more likely be happier with their jobs CONS

•Does not happen overnight

•Need to invest effort, time and sincerity to become a good leader

•Detractors will still be present

3.Involve one’s self

in philanthropy to increase their charm ? Li Ka Shing is not called Superman for nothing.It is great business style coupled with charisma in dealing with people ? A general concern for others makes him popular and well-loved by most people PROS

•Employees and partners will think highly of them

•Employees and partners will be encouraged to do the same

•More people will be attracted to do business with them CONS

•There will be detractors who will think that they are not sincere in what they are doing

•Does not guarantee success in business, but only an add-on Conclusion and RecommendationsIt is recommended for Li’s children to start with ACA #2 - become a strong leader just like their father and not just a manager. Leadership is value free (e. g. Hitler and Marcos had good leadership style) and although this cannot be learned overnight, it is still the easiest one to start with as compared with the other two ACAs. It will also reflect more in their handling of the business.

Once Victor and Richard have attained being good leaders, they can start focusing on establishing integrity and going into philanthropy.By this time, their perspective would have broadened and they will be able to make better decisions and also easily improve on their character. They already have a wealth of experience coming from their father which they can start from. They need not repeat the mistakes that their father encountered since he already knows what should and should not be done in order to succeed in business and be respected by people as well.


  1. Mills, Quinn D.2005. Asian and American Leadership Styles: How Are They Unique? Retrieved from the Web

on Dec 2, 2006. ttp://hbswk. hbs. edu/item/4869.html Mu, Li Feng. 2005. A Successful Leader – Li Ka-Shing. Retrieved from the Web on Dec 7, 2006.

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