Lee Kum Kee Co. Ltd (D): Governance reforms start to show rewards as the fifth generation matures
Lee Kum Kee Co Ltd, producer of LKK oyster sauce and a range of food and health products, reached its 130th year in 2018. The fifth generation comprised cousins mostly in young adulthood who were beginning to assume leadership roles as owner-governers. Senior executives were non-family specialists. At the time of writing, the fourth generation were the company’s leaders, with some oversight still by their father, Lee Man Tat, but had begun the succession. Generation 4, which was a group of five siblings, as their father had bought out other family owners, had overseen huge international growth and diversification. By 2019, the group’s net worth had reached $17 billion. In the early 2000s the company’s owners had reformed governance, and begun initiatives established to create a humanitarian legacy, and plan for long-term resilience on a ‘1,000-year’ concept. Some 15 years on, this case asks whether these reforms were starting to bear fruit, what challenges await the fifth generation, and what future reforms may be needed. Tough decisions lay in wait; the inheritance of Generation 5 was substantial, but they faced difficult choices on investment and renewed entrepreneurialism.
- This case aids an understanding of ownership as a professional discipline, and succession of as a family-owned firm grows significantly in size and complexity.
- There are insights into how values help long-term business resilience.
Lee Kum Kee, Consumer Goods, Food and Beverage, Consumer Goods, Food Seasoning, Healthcare
From founding in late 19th Century to 2018
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
Nespresso, the global leading brand in portioned coffee, is facing an existential threat. The company’s current market base, which consists primari...
By 2026, it's predicted that over 80% of organizations will have employed generative artificial intelligence (GenAI) in some capacity, up from less...
Choosing a CEO is a crucial decision for any company, but it becomes particularly complex in family businesses. This difficulty stems from the need...
Family businesses often have not only financial wealth but also nonfinancial values that make them different from nonfamily companies. For instance...
Leadership presence (LP) is widely acknowledged as a foundation of effective leadership. Historically, LP has been conceptualized as a collection o...
With organizations of all sorts facing increased urgency and unpredictability, being able to ask smart questions has become key. But unlike lawyers...
History, values and traditions provide family businesses with a competitive advantage, motivating and guiding their entrepreneurial activity. They ...
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in Harvard Business Review May-June 2024, vol. 102, issue 3
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications