As Sam works to improve the functioning of his unit, and as the hospital seeks to achieve MAGNET status, he becomes involved in a discussion regarding changing the nursing care delivery model for the hospital’s Med Surg Units. His unit currently uses the Functional Model. In deciding on what new model to try, or if he should stick to the one he is using, Sam has to consider quality patient care, staff satisfaction, and his budget. What model of care do you recommend Sam use, or do you recommend that he stay with the Functional Model?
Some data in this area originates from past Harvard Business School Case Studies: "Li and Fung: Beyond "Filling in the Mosaic"- 1995-98," (HBS Publishing No. 398-092) Michael Y. Yoshino, Carin-Isabel Knoop, Anthony St. George; January 1, 1998; and "Li and Fung (Trading) Ltd.," HBS Publishing (No. 396-075) Gary Loveman, Jamie O'Connell, October 26, 1995. With a question and answer session the next day, William was sure of the Group's execution and lifung.com's prospects. In any case, he realized that imperative issues stayed uncertain: Was there any possibility of channel struggle or cannibalization between the disconnected business and the start-up? How might the market respond to the start-up once it was propelled the next year? What's more, how particularly would web based business at last change his family's extremely old organization? Organization Background Li and Fung was established in 1906 by William's granddad, Fung Pak-Liu and his accomplice, Li To-Ming in Guangzhou, China as a fare exchanging organization pitching to abroad shippers. During the 1930s the organization expanded into warehousing and the produce of painstaking work. Not long after Fung Pak-Liu passed away in 1943, his child Fung Hon-Chu accepted charge of the organization. After two years, quiet accomplice Li To-Ming resigned and sold his offers to the organization. The organization held Li's surname, a homophone "I'm not an Internet fellow, I'm a business fellow," jested William Fung, overseeing chief of Li and Fung Trading Co. Clad in his chinos and dark American Eagle T-shirt, Fung looked substantially more like another economy business person than the selfdescribed disconnected, "old economy relic": "I'm 51, I'm in excess of a silver hair in Internet terms, I'm a fossil."1 Nor did lifung.com, his senior sibling Victor's new online organization, take after a run of the mill Internet start-up, especially with a 96-year-old parent conceived toward the finish of the Qing Dynasty. In August 2000, the day preceding beta dispatch of the new business-to-business (B2B) web based business entry, William portrayed the difficulties confronting Li and Fung: About three or four years back, Victor and I talked about the Internet and how it impacts us. Our beginning stage was a guarded stance: Would the Internet disintermediate us? Would we get Amazoned2 by somebody who will assemble the majority of the data about purchasers and plants on the web? After a ton of research we understood that the Internet encourages inventory network administration and we wouldn't have been disintermediated. The key is to have the old economy know-how but then be available to new economy thoughts. Show 1 Li and Fung Consolidated Income Statement (December 31, 1999), in HK$* 2000 1999 1998 (HK$ thousands) (HK$ thousands) (HK$ thousands) (HK$ thousands) (June 30) (December 31) (June 30) (December 31) Turnover 10,267,606 16,297,501 6,583,730 14,312,618 Cost of offers (9,262,171) (14,585,881) (5,895,432) (12,891,709) Offering costs (191,616) (354,124) (143,136) (287,524) Regulatory costs (87,741) (867,842) (56,436) (747,725) Benefits before tax assessment 328,943 613,861 208,936 471,098 Tax assessment (29,805) (36,638) (14,536) (16,425) Benefit after tax assessment 299,338 577,223 194,400 454,673 *In August 2000, US$1 _ HK$7.78. for "benefit" in Chinese, which, alongside "Fung," a homophone for "plenitude," had a propitious ring when joined. Li and Fung moved for all time to Hong Kong toward the finish of World War II, growing its tasks to incorporate toys, pieces of clothing, plastic blooms, and gadgets. In the mid 1970s, both Fung siblings had quite recently come back from the United States: William had earned his MBA from Harvard Business School and came back to the business in 1972. Victor had as of late finished his PhD in financial matters at Harvard University and, following a two-year spell instructing at Harvard Business School, rejoined the business in 1974. Their arrival proclaimed Li and Fung's change from a family-possessed business to a professionally oversaw firm, with an arranging and planning framework set up out of the blue. William and Victor, the third era to run the organization, felt that the following consistent advance in developing the organization was to open up to the world. In 1973, Li and Fung turned into the holding organization for the Group and was recorded on the Hong Kong Stock Exchange (HKSE). All through the 1980s, Li and Fung extended its local system of workplaces all through the Asia-Pacific area as more wellsprings of supply developed in the quickly industrializing Asian economies. In 1988 the Group was privatized and streamlined, fused in Bermuda in 1991, and its exchanging exercises were again recorded on the HKSE in July 1992. With the 1995 procurement of Inchcape Buying Services (once in the past Dodwell), Li and Fung extended its client base in Europe while all the while moving its sourcing system past East Asia to incorporate the Indian subcontinent, the Mediterranean, and Caribbean bowls. By 2000, Li and Fung was a $2 billion worldwide fare exchanging organization with 3,600 staff around the world, sourcing and dealing with the worldwide inventory network for high-volume, time-touchy customer merchandise. (Display 1 indicates ongoing Li and Fung money related information.) By 2000, 69 percent of Li&Fung's deals were in the United States and 27 percent in Europe. Key clients incorporated The Limited, Gymboree, American Eagle,Warner Brothers, Abercrombie and Fitch, and Bed Bath and Beyond. Tesco, Avon Products, Levi-Strauss, and Reebok had progressed toward becoming clients inside the most recent two years; Royal Ahold, GUESS? pants, and bebe had marked on in 2000. Li and Fung's item blend included hard and delicate merchandise. Delicate merchandise alluded to clothing, including woven and sew articles of clothing for men, ladies, and youngsters. Hard merchandise included form embellishments, bubbly or occasion items, decorations, giftware, painstaking work, home items, firecrackers, donning products, toys, and travel merchandise. Hard products gave higher edges than delicate merchandise on the grounds that, in spite of a for the most part bring down thing esteem per unit, they required higher esteem included administrations for requests that were additionally generally considerably littler than delicate products orders. Hard merchandise things, for example, watches, shoes, bags, kitchenware, or teddy bears required an auditor for quality control assessment for even the littlest cluster arrange, along these lines extraordinarily expanding what Li and Fung could charge. Edges for delicate products were around 6 percent to 8 percent, while we get a request from an European retailer to deliver 10,000 articles of clothing. We verify that, in view of standards and work conditions, the best place to make the articles of clothing is Thailand. So we deliver everything from that point. Also, in light of the fact that the client needs fast conveyance, we may Item Improvement Crude Material Sourcing Creation Arranging Processing plant Sourcing Assembling Control Quality Confirmation Fare Documentation Delivery Union Design Accessories Bubbly Products Goods Articles of clothing Giftware Painstaking work Home Products Brandishing Goods Toys Travel Goods Li and Fung Add up to Esteem Added Bundle Show 2 Li and Fung Add up to Value- Included Services Source: Company reports. isolate the request crosswise over five industrial facilities in Thailand. Viably we are tweaking the esteem anchor to best address the client's issues. Five weeks after we got the request, 10,000 pieces of clothing touch base on the racks in Europe, all appearing as though they originated from one factory.5 Li and Fung customers profited in a few different ways: store network customization could abbreviate arrange satisfaction from three months to five weeks, and this quicker turnaround enabled customers to decrease stock expenses. Additionally, in its job as a go between, Li and Fung lessened coordinating and credit dangers, and furthermore offered quality confirmation to its clients. Moreover, with a worldwide sourcing system and economies of scale, Li and Fung could offer lower cost and more adaptable sourcing than its rivals. Moreover, through acquisitions and worldwide extension, Li and Fung was stretching out this information base to sub-Saharan Africa, Eastern Europe, and the Caribbean. At last, Li and Fung gave avant-garde design and market drift data to customers. Because of its Camberley securing in 1999, it began offering customers virtual assembling or item configuration administrations. As per Victor, "Li and Fung does not possess any of the crates in the store network, rather we oversee and coordinate it from above. The production of significant worth depends on an all encompassing origination of the esteem chain." as of late, be that as it may, Li and Fung had started to enhance activities by controlling or owning key connections in the chain. Now and again, Li and Fung offered crude material sourcing. In the past when customers put in a request, Li and Fung would decide the producer most appropriate to supply the merchandise, and that manufacturing plant would source its own crude materials. Be that as it may, Li and Fung comprehended its customers' needs superior to anything its assembling plants did, so by offering crude materials to its providers, the organization both guaranteed more prominent quality control and purchased bigger and along these lines more financially savvy measures of crude materials, in this manner creating cost investment funds for every maker. In such cases, Li and Fung additionally earned income by charging its production lines a commission on every crude material buy they made. By mid-2000, about 15 percent of Group deals included Li and Fung's crude material sourcing administration. Joan Magretta, "Quick, Global, and Entrepreneurial: Supply Chain Management, Hong Kong Style, A meeting with Victor Fung," Harvard Business Review, September-October 1998, p. 106. Corporate Culture and Compensation From the 1992 privatization on, the division of work between the Fung siblings was obvious: as Group executive, Victor was principally worried about the Group's key issues and long haul arranging; as Group overseeing chief, William took care of ordinary tasks of the freely recorded exchanging arm, or as he kidded in an ongoing meeting, "Victor is the profound scholar, and I simply make the money."6 In another meeting, Victor clowned that >GET ANSWER