Brandname: Lee Kum Kee
Company Name: Lee Kum Kee Co Ltd
 
Management Function Analysis
Globalization requires leaders to lead the organization beyond the "walls". Leaders may be very familiar with what goes on within the "walls" as these are familiar market with highly predictable consumers and identified competitors. Beyond the "walls" lies the foreign and unfamiliar markets and most importantly, there may exist a big difference in consumer culture across the "walls".

For this case, the company has taken the route to globalization through cultural networking. Network building is a well-recognized globalization tool and its success depends on the degree of compatibility and synergism between the parties concerned in the network. Cultural differences, manifested in the form of value system and business vision become major obstacles to full-scale alliance between two business enterprises. Globalization through cultural networking like the approach adopted by this company has strategically avoided the obstacle of cultural differences, as the global partners of this company share the same cultural roots, as they are overseas Chinese. This approach has allowed that company to expand its product coverage to practically everywhere in the world where there are Chinese people.
 
Implications for SMEs
SMEs should take note from this case of the benefits of adopting the appropriate "cultural networking" approach to establish and expand their market coverage.

SMEs should be prepared to be more open-up in their mental models to embrace networking with other SMEs or large enterprises, overseas or local, to achieve synergism, especially based on the cultural networking approach. Successful networking, including cultural networking would enable SMEs to:

(a) gain access to new market;
(b) enrich and enlarge information access;
(c) build new capability, competence, and technology;
(d) build critical mass to enhance competitive strength;
(e) catalyze innovation;
(f) enhance specialization; and
(g) facilitate individual and organizational learning.