Analysis Of Four Function At Li Ning China Commerce Essay

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Management is in particular situations. The organization have resources for effective planning, organizing, leading and controlling. So as to achieve the established organization process of target. With the deepening of enterprise reform, people will increasingly recognize the necessity and urgency of strengthening management, So, Any organization, whether small or big, and whether new or old, They all have their own management tasks and principles. The meaning of four functions are¼š1. Management is in order to achieve the organization's future target activities; 2. the essence of management is to co-ordinate; 3. Management exist in organizations; 4. Management of the key point is to people to carry on the management. Therefore, the basic functions of management is divided into four different areas.

2: The four functions of management:

2.1: Planning

Planning is the main core area of all the functions of management. It is the foundation of the management of the pillar, the plan is to make sure that the organization's future development goals and achieve the goal of the way. This is called strategy planning. So this functions is very important for a company.

2.2: Organizing

The second function of the management is organizing. It main is allocating and configuring resources to accomplish the preferred goals and objectives establishing during the planning processes, simply put, making optimum use of the resources required to enable the successful carrying out of plans.

2.3: Leading

Leading is the third function of management. In a leadership role, must be able to motivate employees to rise in the target, and guide their duties or responsibilities assigned in the planning process. Simply put, leading is establishing direction and influencing people to follow that direction. So, a good leader can is need for capacity.

2.4: Controlling

Controlling is the four function of management. It involves valuation and reporting of actual job performance, includes establishing performance standards based on the company's objectives. Actually, controlling is monitoring and adjusting resources and processes to achieve goals and objectives in a highly effective and efficient fashion.

3: Background of Li Ning company Ltd China

For Li Ning, the Chinese people should have been aware of this brand and it is our own brand of sports. Li Ning Company Limited is one of the leading sports brand companies in China. It's headquartered in Beijing. In 1989, the Li Ning trademark was registered by Li Ning who was a world famous gymnast.Originally, Li Ning only focused on sportswear. By 1993, Li Ning took the lead in establishing nationwide franchise system, which boosted its turnover in the following years. For example, the annual growth rate of turnover was 100% from 1993 to 1996. Li Ning was rapidly developed after 2000. For instance, this company started to build brand positioning and launched the slogan "Anything is possible" in 2002. By 2004, Li Ning was officially listed on the Main Board of the Hong Kong Stock Exchange and became the first Chinese mainland sporting goods company listing in Hong Kong. In 2007, Li Ning Became the official partner of the Swedish Olympic Committee and the official sportswear sponsor of the Swedish Olympic Delegation. In 2008, Mr. Li Ning lighted the final torch for Beijing Olympic Games, which promoted the brand image of Li Ning. (Li Ning 2011) Li ning company from the first single sportswear development to have sports clothing, sports shoes, sports equipment, and other products series of professional sports goods company, Currently, Li Ning product structure maturing in the sporting goods industry and I believe that Li Ning will become increasingly strong.

4: Analysis of the four function at Li Ning China:

4.1: Planning

Recent years, Li Ning slow development and internal management turmoil and many other issues. In 2011, Li Ning inventory rose 40%. But profit dropped 65%. In 2012, Li Ning Company Limited amount of orders dropped significantly, apparel products year-on-year declines of more than 20% (China financial shares 2012). In the case of poor performance. Recently, Li Ning announced the three stages of the future development of the management plan. The hope can improve channel inventory, build a reasonable cost structure, strengthen the organizational ability to execute the construction of the core brand, in order to improve profitability.

The first phase of measures: focus concerned about the the retail terminal sales and clearance channels inventories, improve the cost structure of products and operations, and to strengthen the organization and execution capabilities, improve channel efficiency, profitability and performance, and to focus on core products and the domestic market, as well as to strengthen the brand into and improve marketing efficiency. (Chinese radio network 2012 )

The second phase is scheduled to be introduced in 2013 to 2014, and now in the pilot phase of more first-class products and customer experience, including improving supply chain management, marketing and product planning mode.(Chinese radio network 2012 )

The third stage is scheduled for the next 2-4 years, and has been in the planning, the plan will focus on the transformation business model in order to improve the company's profit structure and channels, better meet the market demand for the products and consumer brand experience. (Chinese radio network 2012 )

4.2: Organizing

Forging market-sensitive supply chain, the core factors in its reaction speed of the supply chain, which has been pursued by the Li Ning Company. And Li Ning existing reaction rate in the industry is considered to be quicker, the Li Ning company logistics system has a very clear reflect. Li Ning has three production bases in the country, which are located in Beijing, Shanghai, Guangzhou, and three distribution centers located in three regions of the Yangtze River Delta, Pearl River Delta and around Beijing. Production comes out, Li ning logistics department 2 hours can will products in the distribution center, the distribution center for goods with the inspection, and then according to the needs of dealers, the regional logistics company for distribution. The centralization of the supply chain and shorten the Li Ning's average inventory days, the utilization of the funds has been effectively improved. After the transformation of the Li Ning supply chain, the supply chain efficiency improved considerably, This has been the Li Ning company's high gross profit margin a powerful supporting factors.

4.3: Leading

Mr. Li Ning is the founder of the LI-NING brand and the Group's Chairman and an executive Director. He is main responsible for formulating the Group's overall corporate strategies and planning. For the Li Ning company limited, 2012 was a difficult year marked by slower industry growth, intensified competition, elevated costs and the impact of casual wear brands. Mr. Li Ning has chosen to enhance their competitiveness through proactive reforms, first: bringing brand strengths into full play; second: enhancing product capabilities; third: driving reform of distribution channels, fourth: improving organization structure. Their have never underestimated the challenges and potential difficulties that come with reform. I believe Li Ning Company Limited under the correct leadership and direction of Mr. Li Ning and will be toward a bright and successful future.

4.4: Controlling

Li Ning company limited senior management has the responsibility to ensure that the Group's control is sound and effective. in 2012, the group further strengthened its internal in various compliance, operational and financial aspects, the group has put in place an integrated system of internal control. The system is designed to achieve (i) effectiveness and efficiency of operations; (ii) enhancement of reliability of internal and external financial reporting; and (iii) compliance with applicable laws and regulations.( Li Ning annual report 2011) In order to clearly define responsibilities and internal control. The group has set up a top-down organization and management system and containing three levels which are responsible for ultimate accountability, supervision and implementation. (refer to Appendix A) Currently, Li Ning Company Limited implementing the internal control manual, which represents the Group's existing internal control policies and operating procedures to strengthen its internal control system of codification. The Internal control manual "areas of coverage includes sales and accounts receivable, procurement and trade payables, inventories, capital, taxation, financial reporting, management functions of the group, administration and human resources, intellectual property rights, export and fixed assets. I think, Li Ning Company Limited in the operation control is very experience. This is based on their years of hard work and attention and support of senior management. So Li Ning Company Limited will have a good system of controls.

5: Conclusion

To sum up. firstly, This paper introduces the management in each of the importance of the organization and principles and the significance and role of each function. Then, I select Li Ning company limited to analysis. I introduce the background of the Li Ning company limited, it is one of the leading sports brand companies in China. Headquartered in Beijing. Currently, The company is also facing a series of difficulties and challenges. In 2012, Li Ning Company Limited amount of orders dropped significantly. However, Mr. Li Ning has chosen through positive reform to promote the distribution channel and increase their competitiveness. Recently, Li Ning also announced the three stages of the future development of the management plan and they hope to improve sales in the next few years. But according to my analysis. Li Ning's success is that it has a complete supply chain, the market-sensitive supply chain has become the core of Li Ning. A good supply chain management has become the enterprise management an important link, Currently, Li Ning in the sports industry has made some initial success, but also need to further build fast supply chain system and to enhance the enterprise's operation efficiency. Through the analysis of the four management functions for Li Ning Company Limited. I have been fully aware of the company and hope that the Li Ning will be better development.

6: Recommendation

From Li Ning enterprise management and see. Li Ning Company has been able to achieve such success, its excellent logistics management capabilities is one of the important factors. But I think Li Ning can also improve the logistics management. When choosing a logistics company, many domestic enterprises have always believed a large logistics company. However Li Ning is not looking for the largest logistics company and only to find the most suitable. So Li Ning choice of logistics services is some medium scale of logistics and transportation company. Although Li Ning has sensitive of the supply chain, they have three distribution centers located in three regions of the Yangtze River Delta, Pearl River Delta and around Beijing. But in cost, delivery speed, cargo security and efficiency still need improving. Therefore, I suggest that Li Ning can choose high quality professional third party logistics companies and professional logistics management team. Finally, I hope my advice will be useful for Li Ning.

7: References

1.Li Ning,o. (2011). Financial Report. [Online] available from <URL :>

2. China financial shares(2012). [Online] available from <URL :>

3.Chinese radio network (2012). [Online] available from <URL :>

4. Li Ning Annual Report (2011)from Li Ning company limited <URL :>