Friday, May 30, 2008

20653023 Entry # 12

Blue Ocean Strategy: in details
We've mentioned Blue Ocean Strategy on our classes. And it prompted me to read more about it. Below you can find some principles, frameworks, and characteristics related to Blue Ocean.
But at first, let us define what Red Ocean Strategy vs. Blue Ocean Strategy are about:
  1. Compete in existing market space vs. Create uncontested market space
  2. Beat the competition vs. Make the competition irrelevant
  3. Exploit existing demand vs. Create and capture new demand
  4. Make the value-cost trade-off vs. Break the value-cost trade-off
  5. Align the whole system of a firm's activities:
    with its strategic choice of differentiation or low cost vs. in pursuit of differentiation and low cost

Critical question for strategists is, How do you break out of red ocean of bloody competition to make the competition irrelevant? How do you open up and capture a blue ocean of uncontested market space?
And there is an analytic framework, called the strategy canvas. First, it captures the current state of play in the known market space. Second, it allows to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what customers receive from the existing competitive offerings on the market.

Second basic analytic is the four actions framework: there are 4 key questions to challenge an industry’s strategic logic and business model:
1. Which of the factors that the industry takes for granted should be eliminated?
2. Which factors should be reduced well below the industry’s standard?
3. Which factors should be raised well above the industry’s standard?
4. Which factors should be created that the industry has never offered?

And the third key tool which is supplementary analytic to the four action framework: eliminate-reduce-raise-create grid. It basically organize previous questions in grid with 4 cells.

And the last one: 3 Characteristics of a Good Strategy
Focus
Every great strategy has focus, and a company’s strategic profile should clearly show it.
Divergence
To open up a blue ocean, it’s necessary to differentiate your company from overall trends within the industry.
Compelling Tagline
A good strategy has s clear-cut and compelling tagline, which must not only deliver a clear message but also advertise an offering truthfully.

20400512 Entry 12

Americans take 41 million fewer flights, survey shows





As the title implies, the number of flyers are decreasing constantly. According to surveys, the hassles are just too much to get through so people are choosing not to fly when traveling. Now the airline industries are going down.
The article also indicated that this could be a message to political leader's to get some type of reforming with the airline system. What is a possible effect of this outcome??
The article mentioned two airlines, Northwest and Delta announcing that they will combine in order to reduce costs. Many problems are on the rise with the airline industry with less peole flying and fuel costs going up. Many changes are being brought about the industry yet there has not been a positive outcome yet. So how much do you need to "dig in" to get to the people?
I believe that there is no true answer to this.
Until the airline industry figures out a way to get to the people in a new way, in my opinion, I believe that they will struggle for awhile.

20500198 entry #12

I thought of Nudge when I read about the newest sortie in the airlines’ ongoing war against their customers: American Airlines’ decision to charge passengers $15 if they have the temerity to check a suitcase. Now, I understand the reasoning. Checked bags add to the weight of a flight at a time when fuel’s price is higher than sky-high; baggage handling is expensive, too; etc. There are costs associated with checked luggage and the airlines are bleeding, as usual. (The net profit in the entire history of passenger aviation is approximately zero.) But if this cat needs skinning, might there be better ways to do it?
My daughter has been visiting from Ann Arbor, Michigan, where, she says, the water company offers a discount for customers who pay early. That got us thinking. If airlines want passengers to pack light, why not create incentives for the behavior they like rather than penalties for behavior they don’t? An airline could, for example, raise fares a little across the board, then offer a $15 rebate to people who check in without bags, simply by programming computers to post that amount to the credit card account associated with the ticket. A great horseman named Wayne Carroll regularly offered this advice to his students: “When you want a horse to do something, don’t tell him what not to do. Tell him what to do.”
That, of course, would require an attitude toward customer service found at places like Zappos but rarely associated with U.S. airlines. You can find it on Southwest; there’s a flight attendant on the US Airways Shuttle who’s so customer-friendly that it’s alarming until you realize he means it; and United recently got the smart idea of sending flight attendants back into coach with leftover wine from first or business class, which would otherwise go to waste. But such treatment is rare; more often you receive not just disregard, but active hostility—and it seems to be company policy (vide the baggage charge).
Why do companies declare war on customers? When the music industry was faced with file sharing, it ran around suing customers it should have wooing, for example. Marketing expert Phil Kotler and I once wondered about that in a conversation. I suspect it happens when firms get into a panic about profits, and make crazy grabs at the nearest group of people with money, or blame the messenger -- in this case, the messengers who are leaving. The impulse to punish -- rather than reward -- the people who make business possible usually fades quickly. But some industries seem to need more than a nudge.

My thought
Here is the important principle of business strategy. Incentive is better than punish. It said the case of Airline customer service. When they use punish to customer to reduce the cost of baggage delivering, it doesn't work well. But when the water company use incentives to customer, it works. I think when we make the strategy about cutting cost, customer service etc, we should use the incentives than punish. Incentives are the more sweet and also more effective one to customer and in the business field.

sources: http://discussionleader.hbsp.com/hbreditors/2008/05/the_war_on_customers.html

20600370 Entry # 12


Dell shares get boost from strong earnings report


Dell shares up nearly 10 percent on report of profit, revenue jump in fiscal 1st quarter


After Dell reported an incredibly high raise in trading ( up to 9.9 %), investors are trying to figure out if it is just a short term wonder or "the proof that the founder and CEO Michael Dell's turnover plan is working." (By David Koenig, AP Business Writer)


According to turnover plan Dell concentrated on the Asian market during the first quater of the year. Thus notebook shipment only in Asia jumped 43 % comparing to the last year. Revenue rose 19 % in Asia, 15% in Europe. Thus Dell has become a cumpany number two after HP in worldwide PC shipments, but still leads in the USA.


Machael Dell says that "strong Asia sales were partly due to a 140 percent surge at 1,800 stores in China that sell Dell machines. By early August Dell will be in 3,500 Chinese stores."
(By David Koenig, AP Business Writer)


Meanwhile, some skeptics say that Dell's success in the first quater job was due to weak dollar and job cuts. Currency rate added 3 to 4 percent to total revenue and the strong cost resulted in part of cutting 3700 jobs. Also Dell lost good positions in retail sales which used to give the winning positions in prices.


It really takes an effort for investors which one of those thwo is working now- "one period luck" or Dell's turnover plan.

20500198 entry #11


Ever since General Electric (GE) revealed plans to put its appliances business on the block May 16, Korea's LG Electronics has been on most everybody's short list as a potential buyer. Best known as the maker of cheap microwave ovens and toasters a decade ago, LG has emerged as the world's No. 3 manufacturer of white goods after Whirlpool (WHR) and Electrolux (ELUX). The Maytag deal put Whirlpool out of reach, but LG now could come close to realizing that ambition by acquiring the GE unit. LG's global appliances sales last year of $12.6 billion, when combined with GE's $7 billion or so, would roughly match Whirlpool's $19.4 billion and place it well ahead of Electrolux' $15.6 billion.
Success in the more mature U.S. market would, of course, be harder to achieve on its own. Still, in the U.S., LG has made remarkable progress in the past four years with its strategic focus on premium segments. The Korean maker has targeted consumers willing to pay a few hundred dollars extra for snazzy designs and high performance. LG's sleek washing machines, for instance, last year commanded a 22.8% share of the market for more expensive front-loading washers priced at up to $2,500.
One area of strength for LG is its relatively high margin in the cut-throat appliances industry. Its operating profit margin of 6.1% last year was slightly higher than that of Whirlpool (just below 6%) and Electrolux (below 5%).

My thought
In spite of these strength, in the situation that the appliance market is going to be saturated and be sharply contested fastly, because Whirlpool has great market share, LG electronics' profit growth might be limited to certain level. The analyst thinks that that level is not far from current level. As we said above, the difference of sales between Whirlpool and LG is too big and it is increasing countinously. To jump above whirlpool, LG should get the great portion of appliance industry of America and emerging market. The only way to do is to take GE. If LG won't, the other competitor will.

resources: http://www.businessweek.com/globalbiz/content/may2008/gb20080529_678095_page_2.htm

Saturday, May 24, 2008

20300244 entry 10


The second POSCO Asia Forum was held yesterday in Seoul. The POSCO Asia Forum is an annual event hosted by the POSCO TJ Park Foundation that was named after the steelmaker's founder Park Tae-joon.
The forum is designed to provide an arena for discussion in various Asia-related fields and also has presentations of the results from research projects funded by the foundation. At this year's event, 22 papers on the subject of increasing collaboration and understanding among Asian nations were presented.
In his opening speech, POSCO chief executive and TJ Park Foundation chairman Lee Ku-taek said that the need for research on Asia is growing ever greater as the region continues to grow. "Asia's dynamic economies, cultural heritage and its sociological potential have grabbed the attention of the world," Lee said.
"Along with rapid economic growth and globalization of the region, its values are also changing and the need for research efforts to shed new light on the issues has also grown."
This year's event also hosted the 10 researchers sponsored by the TJ Park Foundation's Asian experts program, which sponsors academics to study abroad and to develop expert knowledge on Asian countries.
At the forum, the keynote speaker Shraishi Takashi, vice president of National Graduate Institute for Policy Studies in Japan, said that with Asia's growth, the world order will become more complicated and that Asian nations would need to carry out strategic talks and prepare for changes.
Another keynote speaker Ian Chubb, president of Australian National University, said that Korea and Australia should be looking to increase intellectual exchanges to form the basis for widening economic and political cooperation.
Other speakers at the forum included Hanyang University's sociology professor Kim Doo-sub and Professor Kwak Jun-hyuk of Korea University's department of political science and international relations, who presented papers on issues related to the integration of foreigners into Korean society.
By Choi He-suk
(cheesuk@heraldm.com)
@ Korea Herald


--my thoughts

Asia has been growing so rapidly. It is getting more spotlight ever before, yet the glorious day of Asia hasn’t come. So as the article mentions, it is getting important to know about Asia while the world is getting globalize. At this, POSCO has been doing very meaningful forum. We might have to pay attention what they’ve found. As Asia’s importance gets bigger we need to research how Asia is changing and where Asia is going relate to the world economy and international relations etc.. Asia yet does not play as a main role in the global field but it might play as one in few years. We have to pay attention not only to the western world but also to the Asia even we live in Asia.

Friday, May 23, 2008

#20600370 Entry 11


Russia to become Adidas’s biggest European market



Adidas –Chinese axis and Russian axisChinese economy has rapidly developed during the past several decades. Many companies from all around the world moved their manufacturing facilities to China to save on labor cost. But the situation has changed and risen labor costs make companies such as Adidas shift their manufacturing operation away from China to Vietnam, Cambodia and Laos.
The vast Russian market always attracted attention of many companies from different industries. The German sportswear manufacturer tried to increase its share through the promotion of Champions League Final in Russia. It expects to cut the lag from Nike ‘counting on its 50% annual growth in China and Russia’. Also Adidas predicts US$ 1 billion sales in Russia making it the largest market in Europe

20400512 Entry 11

Gap weathers sales slump
As the article stated, although profit has rose, the revenue has once again declined.
Having researched about GAP, this article grabbed my attention quickly.
The article continues on to talk about Murphy, the current CEO, has been able to manage the inventory somewhat. Yet GAP faces the most tragic problem involving the clothing business. They are falling behind in the trend. Constantly declining from 2000, it almost seems like GAP is going to bust. Although they have Banana Republic and Old Navy, and they have the most outlets in the world, they are just not raking in the money.
There may be a way for GAP to swim out of its current situation but I believe it's going to take a lot more than a couple of years due to the fact they have to do so much R & D and catch up with the fashion trend of the current generation.

20653023 Entry # 11

10 TOP ROAD-TRIP CARS
If you're looking for luxury or economy, roominess or sport, here's an exclusive from Kelley Blue Book on its best picks for summer driving.
Convertible: Volkswagen Eos

Base price: $28,990 - $38,100
Mileage: 29 mpg Hwy, 21 mpg City If you've ever seen an Eos with its top up, you probably didn't know it was a convertible. This sporty little two-door looks equally sharp with its seats exposed or covered.
Kelley Blue Book particularly likes the extra-large sunroof. Yes, it's got a sunroof so you can have the sun on your shoulders while keeping the wind out of your hair.
High mileage: Toyota Prius
Base price: $21,100 - $23,370
Mileage: 45 mpg Hwy, 48 mpg City
With highway fuel economy of 45 miles per gallon - and even more in city driving - the appeal of the Prius would seem obvious. You can get where you're going with fewer stops for gas.
But, besides that, Kelley Blue Book picked the Prius for its commodious interior space. It has as much room for people and luggage as any mid-size sedan.
Small car: Mini Cooper Clubman
Base price: $19,950
Mileage: 37 mpg Hwy, 28 mpg City
The standard-length Mini Cooper made Kelley Blue Book's list last year. But while the Mini has always been fun to drive, and it's easy on gas, it lacked a place to put more than a night's worth of luggage.
The Clubman answers that need with about 8 inches of extra storage space behind the back seats, accessed through a barn-door style tailgate.
Sporty crossover: Infiniti EX35Base price: $31,900 - $36,850
Mileage: 24 mpg Hwy, 17 mpg City
A genuinely fun-to-drive little SUV, the EX35 offers some really remarkable technology. Kelley Blue Book points out the lane departure warning system that doesn't just warn you when you're about to drift into the next lane. It applies a bit of braking on one side to pull you gently into line. When it's time to park, amaze your friends with the "Around-view camera." It uses four fish-eye lenses and computer magic to create a view of your SUV as if seen from above. It's like having your own helicopter helping you parallel park.
Big crossover: Ford FlexBase price: $28,295
Mileage: 24 mpg Hwy, 17 mpg City*
This one's not quite ready for you yet - the Flex enters dealerships this summer. It's a full-size three-row crossover SUV that, with an optional contrast-colored roof, looks a little like a giant Mini Cooper.
The interior is far more conservative in appearance than the outside, but it's elegant, functional and roomy.
Kelley Blue Book particularly likes some of the novel options. Besides Ford's Sync Bluetooth audio/phone system, you can get a refrigerator to keep your drinks cool on the road.
Van: Dodge Grand Caravan
Base price: $21,290 - $27,140
Mileage: 24 mpg Hwy, 17 mpg City
In Chrysler's typical fashion, the Grand Caravan is loaded to the gills with clever features.
Among the niftiness you won't find in any other minivan: second-row seats that turn around to face the back row, Sirius satellite TV with two video screens, multiple DVD players and interior mood-lighting that makes it feel like a kid-friendly rolling bachelor pad.
Big SUV: Chevrolet Tahoe Hybrid
Base price: $49,590 - $52,395
Mileage: 22 mpg Hwy, 21 mpg City
While the Tahoe's high-tech hybrid system is truly remarkable, a long highway trip may not be the best way to show it off. By a wide margin, the system is most effective in city driving.
Still, the Tahoe is the most efficient full-size SUV you can get, city or highway, and you can use it to tow a boat or haul cargo. And it seats up to eight in reasonable comfort.
But don't expect to just stroll into your Chevy dealer and buy one. Availability is limited.
Family car: Chevrolet Malibu
Base price: $19,645 - $27,095 Mileage: 30 mpg Hwy, 22 mpg City A year ago, the idea of anyone gushing over a car called the Chevrolet Malibu would have seemed absurd. Then General Motors gave us this. Suddenly, here's a Chevy with looks, performance and genuine refinement. When Kelley Blue Book tested it against six other mid-size sedans, the Malibu stood out in one area in particular: highway driving. The Malibu is smooth, quiet and roomy, and the interior looks smart, too. Newly available: the combination of a fuel-efficient four-cylinder engine with a smooth-shifting six-speed transmission for maximum fuel economy.
Performance: Audi S5Base price: $50,500
Mileage: 21 mpg Hwy, 14 mpg City
Kelley Blue Book picked the S5, a performance version of the A5, for its unique combination of top-end performance, comfort and slick European style. It's a recipe that few cars manage to cook up quite as well.
Ultimate luxury: Bugatti Veyron Fbg par Hermes
Base price: $2,400,000
Mileage: 14 mpg Hwy, 8 mpg City
For those with lots...and lots...and lots of money to spend on a road-trip car (and the gas to fill it) Kelley Blue Book selected the ultra-expensive Hermes-infused version of the Veyron.
Only a dozen or so built-to-order copies of this one will ever be built at a price that's about $1 million higher than the "ordinary" Veyron.
Hermes designers toned down the hard-edged interior, covering everything - including the owner's manual - in bull-calfskin leather. The idea was to make the 16-cylinder, two-seat supercar a more relaxing place to tear down the highway at stomach-squishing speeds.

Saturday, May 17, 2008

20653023 Entry # 10

Remember that sometimes consumers don't buy product themselves. In this case producer has to pay its attention not only for consumers but consider buyers as carefully as users. One example of it men's undergarment bougt by women. There is one more example in this article, when users of laptop don't mind to have Linux OS but buyers which are governments prefer Windows considering it as a more potential for further development of their young generation.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Microsoft joins One Laptop Per Child project
By Steve Lohr
Friday, May 16, 2008
After a dispute lasting several years, Microsoft and the computing and education project One Laptop Per Child have reached an agreement to offer Windows on the organization's computers.
Microsoft long resisted joining the ambitious project because its laptops used the Linux operating system, a freely distributed alternative to Windows.
The group's small, sturdy laptops, designed for use by children in developing nations, have been hailed for their innovative design. But they are sold mainly to governments and education ministries, and initial sales were slow, partly because countries were reluctant to buy machines that did not run Windows, the dominant operating system.
Education ministries want low-cost computers to help further education, but many see familiarity with Windows-based computing as a marketable skill that can improve job prospects.
"The people who buy the machines are not the children who use them, but government officials in most cases," said Nicholas Negroponte, founder of the nonprofit group. "And those people are much more comfortable with Windows." The agreement was announced Thursday.
The XO laptop weighs 3.2 pounds, or 1.5 kilograms, and comes with a video camera, microphone, game-pad controller and a screen that rotates into a tablet configuration. About 600,000 have been ordered since last fall, with Peru, Uruguay and Mexico making the largest commitments. The alliance between Microsoft and OLPC comes after long stretches of antagonism, punctuated by occasional talks, between them.
Negroponte, a former computer researcher at the Massachusetts Institute of Technology and a new-media pioneer, said he first talked to Bill Gates, Microsoft's chairman, three years ago.
But at the time, Microsoft was fiercely opposed to anything that might promote the use of open-source software like Linux. Since then, Microsoft has become more comfortable in competing against Linux, at times running its products on the same machines in data centers, desktops and laptops, Negroponte said.
Back then, he added, the nonprofit laptop project did not have a working machine.
Last year, Negroponte said, he contacted Gates again, and this time the Microsoft chairman was receptive. He instructed Craig Mundie, Microsoft's chief research and strategy officer, to work out a deal with Negroponte. Those talks began in January in private meetings, when both men were attending the Consumer Electronics Show in Las Vegas.
"Customers have come to us and said they really like the XO laptop and they would like to see Windows on it," said James Utzschneider, manager of Microsoft's developing markets unit.
The first of the project's XO laptops running Windows XP will be tested next month in limited trials in four or five countries. Utzschneider declined to identify the nations.
The pact with Microsoft is not an exclusive agreement. The Linux version will still be available, and the group will encourage outside software developers to create a version of the project's educational software, called Sugar, that will run on Windows.
Windows will add a bit to the price of the machines, about $3, the licensing fee Microsoft charges to some developing nations under a program called Unlimited Potential. For those nations that want models that can run both Windows and Linux, the extra hardware required will add another $7 or so to the cost of the machines, Negroponte said.
The laptops now cost about $200 each, and the project's goal is to eventually bring the price down to about $100.
OLPC led the way in designing inexpensive laptops for children in poorer nations, but others have followed, notably Intel with its Classmate PC, which runs Windows and is $400 or less.
The project's agreement with Microsoft involves no payment by the software giant, and Microsoft will not join One Laptop Per Child's board. That contrasts with the approach of Intel, which joined the project last July, took a board seat and pledged an $18 million contribution - only to quit in January amid squabbling over Intel's aggressive sales tactics with the Classmate PC.
Of the Microsoft arrangement, Negroponte said: "We've stayed very pure."
But the alliance with Microsoft has created some turmoil within the project. Walter Bender, the president who oversaw software development, resigned last month. His departure, Negroponte said, was "a huge loss to OLPC."
Inside the project, there have been people who, Negroponte said, came to regard the use of open-source software as one of the project's ends instead of its means.
"I think some people, including Walter, became much too fundamental about open source," Negroponte said.
In an e-mail message, Bender wrote that he left the project because he decided his efforts to develop and support the Sugar open-source learning software "would have more impact from outside of OLPC than from within."

20500198 entry #10

Change the business portfolios as fast as you can.

Stoves, refrigerators, and other appliances used to be the core of General Electric's business. But now the hot growth is elsewhere. So they are getting out of the that business. Its appliance business represents a small fraction of the company's revenues, about $7 billion of its $173 billion total in 2007. CEO Jeffrey Immelt has said the company's future growth will largely be fueled by its health-care and energy businesses, much of it from outside the U.SBack in the early 1980s Intel's Andy Grove took the radical step of shifting the company's focus away from basic computer memory chips, toward microprocessors, the "brains" of the machine. The decision, which was controversial and shocking to some, led to unprecedented growth of Intel revenues, profits, and prestige.
When we find that some business will not grow, we should get out of there. The faster, the more profit will be caught. Under Jack Welch, GE bought and sold hundreds of companies. I can sure that was the original source of rapid growing of GE. We have to flexible about our business portfolio. Don't love a certain business. Do you want to be remembered as an icon in the decreasing business, or do you want to give yourself a chance to become iconic of something in the 21st century? It's upon your choice.







source: http://www.businessweek.com/innovate/content/may2008/id20080515_212057.htm?chan=top+news_top+news+index_news+%2B+analysis

20500198 entry 2

Friday, May 16, 2008

20400512 Entry 10


Finding Cracks in Facebook

A lot of people know Facebook and are frequent users of Facebook. Facebook has enabled friends to get connected just like other programs such as MySpace and as in Korea Cyworld. But now as the headline states, Facebook is facing a few problems.
Developing new systems has been a downfall to the company and now they are trying new methods to swim out of their troubles. As the article stated, the company is run by Mark Zuckerberg, who owns a big percentage of the company. The board has to side with him because they really don't have much choice.
It's amazing how people run Internet businesses. It's the thought of them being an "online industry" in one sense. How long does it take to "climb" up this far? I would think that the Internet business would need a lot more R & D than the real world market. As netizens increase everyday, the companies have to decide and select which would be more appealing. So how much effort is Facebook putting in to all of this?
The article stated that there were only three board members including Mark Zuckerberg. Is that enough to run a business? I would say they need to have more people considering there are so many different types of people that use the Web so they need more diversity in brainstorming. Although Facebook is slowly going up, I would say in the future they will face more "walls" than they are facing right now.

#20600370 Entry #10



Survey: U.S. economy tops competitive ranking


The United States topped world competitiveness rankings for the 15th straight year, but its economy is showing the same signs of weakness that sank booming Japan in the early 1990s, according to an annual survey released Thursday.
Asian tigers Singapore and Hong Kong ranked just behind the U.S., as they did last year. Switzerland jumped two places to fourth, while Luxembourg rounded out the top five most competitive national economies, said the Lausanne, Switzerland-based, IMD business school, publisher of the World Competitiveness Yearbook.
"The big question is whether the United States will be No. 1 after this year," project director Stephane Garelli said, adding that the report was based on 2007 data that do not fully reflect all of the problems in U.S. financial markets. "Everyone is catching up very quickly, but so far the U.S. economy is showing a lot of resilience."
The study lists 55 economies according to 331 criteria that measure how the nations create and maintain conditions favorable to businesses.
The U.S. position was cemented by its domestic economy, which is the world's strongest, topping all others in its amount of investments, stock purchases and commercial service exports. The U.S. also ranks as the easiest place to secure venture capital for business development and dominates all other economies in key technology criteria such as computers in use, according to the report.
But Garelli warned that U.S. economic health is vulnerable because of its heavy reliance on the financial sector for corporate profits.
The 2008 report says there are parallels between now and two decades ago, when the business school first started to study competitiveness and "Japan's competitiveness seemed unassailable, with a strong domination in economic dynamism, industrial efficiency and innovation.
"Then all hell broke loose," it added. "The stock market went into reverse in 1989, land prices collapsed in 1992, credit cooperatives and regional banks came under attack in 1994, large banks teetered on the edge of bankruptcy in 1997, and a major credit crunch occurred in 1998. Does this ring a bell?"
While the report called the similarities "frightening," Garelli said there are important differences between the Japan that stagnated for nearly a decade and the U.S. economy teetering on the brink of a recession now.
Japan's decision-makers were bureaucrats or politicians who reacted too slowly. The U.S. administration, by contrast, is full of business and financial experts that know when things need to be shaken up.
"The U.S always seems to find the means to reinvent itself in ways that Japan -- and much of Europe -- often lacks," he said.
Rounding out the top 10 most competitive nations were Denmark, Australia, Canada, Sweden and the Netherlands. Slovenia rose eight places to 32nd -- a jump matched by Poland, which is now 44th. Greece slipped the furthest, six places down to 42nd.
China and India both dropped two places in the report, to 17th and 29th, respectively. Russia fell four spots to 49th.
Venezuela was ranked last for the third year in a row, immediately preceded by Ukraine, South Africa, Argentina and Indonesia.
Personal reflection: It's interesting how economy of some rapid developing countries droped down. Also it feels like the US economy is "frozen." We've been watching for a couple of years now the weakening of US curency and stock market. My assumption is that in next 5 years such countries as Canada, Australia and European union will be able to drop the US economy down.

Saturday, May 10, 2008

20300244 entry 9

Local airlines are likely to take on the voluntary carbon offsetting program within the latter half of the year, industry insiders say, following a growing trend in the global airline industry.
Asiana Airlines began systematizing the carbon offsetting program for their employees for work-related travels yesterday, with plans to soon offer the choice to customers, according to industry sources.
Korean Air does not yet have specific plans but is soon expected to embrace the program because global airlines have already been keen on picking it up, the industry sources said.
The carbon offsetting program aims to encourage travelers to be more environmentally responsible by counting their carbon footprint - the practice of measuring the amount of greenhouse gases produced in units of carbon dioxide to gauge the impact human activities have on the environment.
Global environmental policies, such as the Kyoto Protocol, and the growing need for global corporations to be more environmentally responsible in order to be considered world-class raise the pressure for such programs.
Local airlines, such as Asiana Airlines, are expected to donate the "carbon fees" to organizations involved in the business of reducing greenhouse gases.
Asiana Airlines said it plans to provide incentives to encourage customers to volunteer for the carbon-counting program. One incentive is expected to be providing bonus air miles to travelers who make an offset purchase.
Airlines in the global market that have already launched the program include Air France, Air Canada, British Airways, Cathay Pacific, Qantas Airways, and Scandinavian Airlines.
Delta was the first U.S. airline to offer the option.
Observers project the current voluntary global trend to become mandatory in the next two years.
Some companies like Virgin are selling offsets from the aisle during flights.
As for Asiana's offset rates, flyers can expect to set aside 1,590 won for Gimpo-Busan flights, for Gimpo-Jeju flights 1,200 won, for the Gimpo-Haneda route 2,430 won, from Incheon to Beijing 3,332 won, Incheon to New York 27,649 won, and from Incheon to Frankfurt 21,234 won.
Asiana said it hopes to gain a reputation as an influential environment-friendly corporation by being the first company in Korea to adopt the carbon offsetting program.
By Yoo Soh-jung
(sohjung@heraldm.com)
2008.05.10

Key Issue for the 21 C Market, Environment. - my thought

Environment is Key Issue for the 21c Market. Whether any company really considers environment a lot or not they have to pay close attention to it for them to alive in global competition. This looks so interesting. We might have to think of this very carefully. It’s a kind of function of invisible hand. Invisible hand will choose the firm which considers of the environment a lot.

Friday, May 9, 2008

20600370 Entry # 9



How To Unlock Your Company's Creativity





It's all about innovation- Innovation implies new stuff; new stuff implies growth; and growth implies higher stock prices and beach houses in the Hamptons. Success is an outcome of new fresh and new ideas. Most big companies have already recognized the significance of innovation. That's why big companies such as IBM are willing to pay up to 30~40 thousands dollars for 2 to 3 day "master classes" on innovation to Rowan Gibson - co-author of "Innovation to the Core." Below I summarized some tips for successful incouragement for innovation in a company:

First, start scheduling a group innovation stretergy session (even if it means meeting on Weekends), encourage and reward thire new ideas by bonus pay, extra vocation time or other.

  1. "Knock down the walls" to connect people from different departments and make your company cross-functional. Only in that atmosphere of familiarity and friendlyness would you be able to build a creative team.
  2. Rip apart the assumption that hold you back.
  3. Make it clear for your team what they know or what they own. Defining those parts will help to generate innovation and free thinking.
  4. Understand that innovation is not one-off conversation but it should be persuited. "To wit: Manhattan-based Fahrenheit 212--a consulting firm with clients such as Gucci Group, Diageo (nyse: DEO - news - people ) and Warner Music--aims to inculcate innovative thinking by running a three-day, off-site meeting every three months."
  5. Let everybody contribute.

In Pictures: Six Tips For Fostering Innovation At Your Company - this book could be a useful guide for company leaders and enterprineurs to develop innovation and creativity within a company.

.Souese: http://www.forbes.com/leadership/innovation/2008/04/01/innovation-netflix-blockbuster-ent-manage-cx_mf_0401innovation.html

20653023 Entry # 9

Besides jokes sport industry is growing fast. And with upcoming Olympics in China why don't we read article about MBA in ...sport. Yes. And it's not a typo. What kind of course is MBA in sport and what kind of people are interested in it? You can find answers to those questions below.
And while reading, just think that probably 20 years ago combination of words "MBA" and "sports" was very unusual. But time creates blue oceans and smart people won't hesitate to discover and develop it.
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Management schools develop MBA courses for the fast-growing business of sports
By Frances Childs
LONDON: Are Olympic sports a business? For Stefan Szymanski, an economics professor with a special interest in the economics of sports, the answer is clear, at least in regard to the country that plays host to the games.
"The Olympics are not a profitable venture," said Szymanski, head of MBA programs at the Cass Business School at City University in London. Governments spend massively to build infrastructure, "but economically they are not profitable for the host country."
"Once the Games are over there is no real use for the facilities," said. "Simply put, sport is not a very good way of funding economic development."
Still, the Olympics generate a multibillion-dollar web of sponsorship, advertising and broadcasting deals and pose mighty management challenges; not surprising, then, that in November last year Manchester Business School, a leader in British business education, jumped on the bandwagon, announcing the introduction of what it described as an "Olympic MBA."
Formally titled the Global MBA for Sport and Major Events, the course is targeted at sports industry leaders.
"The sports industry, like other specialized sectors, demands unique skills," said Nigel Bannister, chief executive of the school's worldwide MBA programs. "One only has to look at the scrutiny Olympic committees are now under as they seek to implement very large budgets and complex projects. Any mistake is magnified under the glare of the global media."
Olympics aside, Manchester is only the latest business school to meld sports into its programs. Liverpool, Coventry and Warwick are among others that cater to professional sports' appetite for business skills and expertise.
The introduction of these courses reflects the growing importance worldwide of sport within an expanding leisure and entertainment industry, Szymanski said.
"Wherever economic growth is fastest, spending on sport is growing fastest," he said. "The richest countries spend the most on sport, but countries where the economy is expanding, China and India for example, are also increasing their spending."
In Britain, the business of sports is most visible in soccer, with many of the biggest clubs, including Chelsea, Manchester United, Manchester City, Liverpool and Aston Villa, now owned by billionaires from abroad. Russians, Americans and even a former Thai prime minister, Thaksin Shinawatra, count British clubs in their business portfolios.
Gone are the days when club scarves, rattles and copies of the team uniform were the main spinoff merchandise sold through approved retail outlets. Now, a Manchester United supporter can sign up for a Manchester United mortgage - offered in conjunction with Britannia Building Society - open a Manchester United savings account and buy a Manchester United insurance policy on his home and car.
The University of Liverpool, in the heart of another soccer-mad city, was the first to recognize the sporting world's need for business skills, introducing an MBA in Football Industries in 1997.
"Football was beginning to expand into the world of commerce partly as a result of the large increase in TV rights," said Rory Miller, the program's first director, who now teaches its module on football and finance. "There was also the expectation of profits from pay-per-view and pay TV. At the same time the rapidly growing commercial receipts of the clubs through sponsorship and merchandising were leading to new attitudes and a search for management recruits with business rather than football experience."
The course at Liverpool recruits about 25 students each year. Generally, Miller said, they are not from sporting backgrounds but are young professionals looking for a midcareer change from jobs as diverse as law, accountancy, marketing and journalism.
Charles Greenwood, now strategic planning manager for Nike UK, completed the Liverpool MBA 18 months ago. "The course was fantastic," he said. "I wanted to move from a career in financial services to one in the sports sector, and that's what I've done."
The Liverpool MBA consists of core business modules in finance, marketing and human resources management. For the football industries option, students add modules dealing with topics like sports law, sports marketing and sports finance.
Similarly, Coventry Business School offers an MBA in sport management. Again, students study the core MBA modules - finance, marketing and human resources management - before specializing with a sports module. The sports management course has been running for the past six years, with a yearly intake of 10 to 20 students.
Both Coventry and Liverpool recruit globally, and this diversity is reflected in the jobs that their students take after graduation. Students who completed the Coventry MBA last year have found jobs in sports consultancy and marketing in India and Spain, and in China working with the Olympic organizers. Several Liverpool graduates are working with UEFA, the umbrella organization for European soccer, in management roles.
The possibilities offered by sports to the world of commerce were recognized several years ago by John Neal, a performance coach who works with Ashridge Business School in Hertfordshire.
Ashridge runs a course, Sport Business Initiative, during which business executives and top sports coaches work side by side, learning from one another. Neal, who devised the course, believes that sports and business people have much to learn from one another.
"We set the course up eight years ago, initially to provide strategy and management skills to top level coaches," Neal said. "We worked with the England rugby team coaches in 2002-2003, and the program was so well received that Wales Rugby also wanted to get involved. "
While the course was designed for coaches who wanted management skills, "subsequently we've been approached by businesses who think their executives can learn from top coaches," Neal said.
The course, which runs for 10 days over 10 months, leads to no formal qualification. "It's not a tick box course. It's impossible to accredit a course like ours - it's too free flowing," he said.
"Students develop their own learning pathways and are subject to very honest feedback and evaluation from other students on the course."
Neal says that senior executives find the course valuable, "because in competitive sport we don't have time for silly games. We cut to the chase."
Evaluations by coaches gave them "totally honest feedback, which they often haven't had for some time," he said.
The Manchester sports management course, run in conjunction with The World Academy of Sport - a body which provides education to world ski-ing, world cycling and world netball - also targets senior executives.
Students mostly come from The City, corporate industry, or consultancy and marketing, although some are aiming to develop careers already established in the sports sector.
One such is Paul Davies, a performance manager for the British Paralympic Association, who is currently enrolled in the course.
"The sporting event management MBA gives me the opportunity to network and rub shoulders with people from all walks of business life," Davies said. "Doing the MBA has given me a good opportunity to broaden my own experience but also to experience other business opportunities."
Choosing to do the MBA was, for Davies, partly about learning new skills and partly about networking - an aspect that many MBA providers emphasize.
"An MBA is a very expensive degree to obtain, and jobs in the sports industry tend to be hard to come by," said Szymanski, of the Cass Business School. "In this industry, contacts count for a huge amount."

20500198 entry #9

The investment in extremely big business technology project
The Europe India Gateway high-bandwidth cable system will cost more than $700 million and will have at least 16 partners

When do business, sometimes we need a certain extremely big business technology project. But it's cost is too large to taken by just one company. So the partnership is very important. If we find suitable partner to co-invest to that project, we both can be winners in the market of their own. For example, here is the Europe India Gateway high-bandwidth cable system. It will cost more than $700 million. For this project, at least 16 partners cooperate. When this project completed and can use this technology in the Europe, India, and Africa, the company that participated in this project will can earn a lot. In the global generation, the ability to make partnership is very important as well as the ability to do well in business alone to all company that want to be global company.

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source: http://www.businessweek.com/globalbiz/content/may2008/gb2008058_604071.htm?chan=search

20500198 entry #8

Toyota's Strategy To Overcome Hard situation
Toyota projected cost-cutting efforts.

Toyota's latest records aside, the automaker projects a 29.5% profit drop for the current year, well below analyst expectations. Toyota is hurting from the impact of a stronger yen, a slowing U.S. economy, and rising raw materials costs. This three difficult situations are dangerous enough to beat toyota largely. In the U.S., Watanabe said Toyota would raise prices by 0.7% but in Japan, where sales for almost all carmakers have long been falling, Toyota has "no plans to raise prices," he said. But there's the rapid growth in Asia, the Middle East, Eastern Europe, and other resource-rich emerging markets. That is, the profit growth of Asian market will can be offset the profit decrease of American market. But it's very hard to sale more or got more profit from selling in total business. So they choose to do effort to cut the cost of business. On May 8, Toyota projected that its cost-cutting efforts will offset increases in raw materials costs by using 20% fewer types of steel in auto production and reducing the amount of resin it uses in cars by 30%. Watanabe added that internal reviews of the way the company is administered or conducts research and development can also save hundreds of millions of dollars. I think the Toyota's starategy is fit to the present situation. They got growth from new market, and they offset the increasing cost by cost-cutting efforts. The difficult situation will be continue, but Toyota's net earning will be recovered.
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source: http://www.businessweek.com/globalbiz/content/may2008/gb2008058_447061.htm?chan=top+news_top+news+index_news+%2B+analysis

Saturday, May 3, 2008

20300244 Entry 8



KT eyes wireless firms in emerging markets
KT, the country's top fixed-line operator, is keen on acquiring wireless firms in emerging markets, a senior executive told The Korea Herald.
The carrier is betting on overseas wireless investments, which require less time and fewer costs than fixed-line businesses, said executive vice president Kim Han-suk, who heads the firm's global business unit.
"We have focused on entering resource-rich emerging markets which have poor telecommunications infrastructure but have room for growth. ... We prefer mergers and acquisitions to greenfield investments," Kim said in a telephone interview on Tuesday.
While the company generates most of its revenues from its domestic fixed-line telephone and internet operations, it sees huge growth potential in overseas wireless markets, he said.
"There are opportunities for us to enter overseas wireless markets swiftly and cheaply," he said.
Kim said the company is looking at investment opportunities in emerging markets such as Kazakhstan.
The carrier operates mobile firm New Telephony Co. in Russia and wireless internet firm Super-iMax - slated for commercial launch this autumn - in Uzbekistan.
This strategy in line with the company's efforts to generate new revenue streams as the domestic telecommunications market nears saturation.
KT is the dominant local fixed-line carrier, with 90 percent of the landline market and 44 percent of broadband connections.
It is also offering new products such as WiBro - a home-grown high-speed wireless technology - and Web-based television and phone services to drive growth.
WiBro, better known as mobile WiMAX overseas, allows users to surf the internet at speeds of 2-3 mbps while moving at speeds of up to 120 kilometers per hour. WiBro made the world's first commercial debut in 2006 when KT and SK Telecom, the nation's two leading telecommunications firms, launched services.
KT is hoping to duplicate its local success in other countries. Making a foray into Central Asia, KT acquired a 60 percent stake in Super-iMax and a 51 percent stake in fixed-line carrier East Telecom in Uzbekistan in 2007.
KT also has a 79.7 percent stake in New Telephony Company, based in Russia's far east. NTC's market share skyrocketed to 44 percent in 2007, from 8 percent in 1997 when KT acquired the firm. From being a loss-making firm, it posted $40 million won in operating profit in 2007.
The Vladivostok-based firm is the largest mobile carrier in Russia's far east by subscribers. The company had nearly 1.1 million mobile, fixed-line and broadband subscribers as of the end of 2007.
NTC is also considering offering a bundled product comprising mobile, fixed-line and broadband services.
In 1995, KT purchased 40 percent of shares in Mongolia Telecom, which was owned by the Mongolian government. As the second-largest stakeholder, KT has contributed to the advancement of the Mongolian telecom industry via management consulting, educational programs and other efforts.
KT has also participated in a number of large-scale overseas telecommunication infrastructure building projects and has delivered several IT solutions.
Some of its successful projects include the deployment of 125,000 telephone lines in Bangladesh, broadband access network construction in Vietnam, and the setup of the operations support system for the 2006 Doha Asian Games in Qatar.
By Jin Hyun-joo
(hjjin@heraldm.com)
2008.05.02
My thought

KT is doing business not only in Korea but also in other countries. KT, well known as the dominant local fixed-line carrier, is not just domestic company now. They diversify the source of revenue from domestic market to global market. It is because they have to find the growing market and make a good investment in it for them to survive. Making firm grow is not the option but the nature of the firms. Otherwise, the firm will be disappeared.

Friday, May 2, 2008

20600370 Entry# 8

Rice is becoming White Gold

While the food price become more expensive all over the world, "rice price surges above $1,000-a-tonne level for the first time - up 47% since March,"-says News International.


Because the rice price goes up so rapidly, Organisation of Rice Exporting Countries, (ОРЕК) will be created soon. This organization will include such countries as Thailand, Vietnam, Combodia, Laos- the major exports of rice.
The major reasons of high price for rice are mostly caused by high fuel prices, drought, and high demand. Thailand is the biggest supplier of rice in the world. It imports more than 9.5 millions of tons enually. Because of high price problems, some countries such as Uzbekistan will prohibit the import of rice.

20653023 Entry # 8

All of us used to words "the Earth is our home". But how do we treat it? We consume a lot, but what do we give instead?
There is an article about levying special "pollution" tax on all food which travels all over the world before gets on our tables.
It's time to think and test ourselves if we are ready to change some of our habits and not have some, say, vegetables we used to have in order to help to save our home - the Earth - from global warming and don't wait when a big smart uncle do it for us.
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Putting pollution on grocery bills
By Elisabeth Rosenthal

ROME: Cod caught off Norway is shipped to China to be turned into filets, then shipped back to Norway for sale. Argentine lemons fill supermarket shelves on the Spanish Citrus Coast as local lemons rot on the ground. Half of the peas in Europe are grown and packaged in Kenya.
In the United States, FreshDirect.com proclaims kiwi season has expanded to "All year!" now that Italy has become the world's leading supplier of the national fruit of New Zealand, taking over in the Southern Hemisphere's winter.
Food has moved around the world since Europeans discovered tea in China, but never at the speed or in the amounts it has over the last few years. Consumers in not only the richest nations but also, increasingly, the developing world expect food whenever they crave it, with no concession to season or geography.
Increasingly efficient global transport networks make it practical to bring food before it spoils from distant places where labor costs are lower. And the penetration of megamarkets in nations from China to Mexico with supply and distribution chains that gird the globe - like Wal-Mart, Carrefour and Tesco - has accelerated the trend.
But the movable feast comes at a cost: pollution, especially carbon dioxide, from transporting the food.
Under longstanding trade agreements, fuel for international freight carried by sea and air is not taxed. Now, many economists, environmentalists and politicians say it is time to make shippers and shoppers pay for the pollution, through taxes or other measures.
"We're shifting goods around the world in a way that looks really bizarre," said Paul Watkiss, an Oxford University economist who wrote a recent European Union report on food imports. He noted that Britain, for example, imports - and exports - 15,000 tons of waffles, and similarly exchanges 20 tons of bottled water with Australia.
More important, Watkiss said, "we are not paying the environmental cost of all that travel."
Europe is poised to change that. The European Commission announced this year that all freight-carrying flights into and out of Europe would be included in the European emissions trading program by 2012, meaning that permits will have to be purchased for the pollution they generate.
The commission, the EU's executive arm, is negotiating with the global shipping organization, the International Maritime Organization, over a tax or other plan to reduce greenhouse gases. If there is no solution by yearend, sea freight will eventually be included in the emissions trading program, too, said Barbara Helferrich, spokesman for the European Commission Environment Directorate.
"We're really ready to have everyone reduce - or pay in some way," she said.
The European Union, the world's leading food importer, has increased imports 20 percent in the last five years. The value of fresh fruit and vegetables imported by the United States, in second place, nearly doubled between 2000 and 2006.
Under a little known international treaty called the Convention on International Civil Aviation, signed in Chicago in 1944 to help the fledgling airline industry, fuel for international travel and transport of goods, including food, is exempt from taxes levied on fuel for trucks, cars and buses. There is also no tax on fuel used by ocean freighters.
Proponents say ending these breaks could help ensure that producers and consumers pay the environmental cost of increasingly well-traveled food.
The food and transport industries say the issue is more complicated. The debate has put some companies on the defensive, including Tesco, the largest British supermarket chain, known as a vocal promoter of green initiatives.
Some of those companies say that they are working to limit greenhouse gases produced by their businesses but that the question is how to do it. They oppose regulation and new taxes and, partly in an effort to head them off, are advocating consumer education instead. Tesco, for instance, is introducing a labeling system that will let consumers assess a product's carbon footprint.
"This may be as radical for environmental consuming as putting a calorie count on the side of packages to help people who want to lose weight," said Trevor Datson, a spokesman for Tesco.
Some foods that travel long distances may actually have an environmental advantage over local products, like flowers grown in the tropics instead of in energy-hungry northern greenhouses.
Better transportation networks have sharply reduced the time required to ship food abroad. For instance, better roads in Africa have helped cut the time it takes for goods to go from farms on that continent to stores in Europe to 4 days from 10 in recent years.
And with far cheaper labor costs in African nations, Morocco and Egypt have displaced Spain in just a few seasons as important suppliers of tomatoes and salad greens to central Europe.
"If there's an opportunity for cheaper production in terms of logistics or supply it will be taken," said Ed Moorehouse, a consultant to the food industry in London, adding that some of these shifts also create valuable jobs in the developing world.
The economics are compelling. For example, Norwegian cod costs a manufacturer about $2.99 a kilogram, or $1.36 a pound, to process in Europe, but only 50 cents a kilogram, to process in Asia.
The ability to transport food cheaply has given rise to new and booming businesses.
"In the past few years there have been new plantations all over the center of Italy," said Antonio Baglioni, export manager of Apofruit, a major Italian kiwi exporter.
Kiwis from Sanifrutta, another Italian exporter, travel by sea in refrigerated containers: 18 days to the United States, 28 to South Africa and more than a month to reach New Zealand.
Some studies have calculated that as little as 3 percent of emissions from the food sector are caused by transportation. But Watkiss, the Oxford economist, said the percentage was growing rapidly. Moreover, imported foods generate more emissions than generally acknowledged because they require layers of packaging and, in the case of perishable food, refrigeration.
Britain, with its short growing season and powerful supermarket chains, imports 95 percent of its fruit and more than half of its vegetables. Food accounts for 25 percent of truck shipments in Britain, according to the British Department for Environment, Food and Rural Affairs.
Datson, the Tesco spokesman, acknowledged that there were environmental consequences to the increased distances food travels, but he said his company was merely responding to consumer appetites.
"The offer and range has been growing because our customers want things like snap peas year-round," Datson said. "We don't see our job as consumer choice editing."
Global supermarket chains like Tesco and Carrefour, spreading throughout Eastern Europe and Asia, cater to a market for convenience foods, like washed lettuce and cut vegetables, as well as global brands.
Pringles potato chips, for example, are sold in more than 180 countries, though they are manufactured in only a handful of places, said Kay Puryear, a spokesman for Procter & Gamble, which makes Pringles. A Pringles plant in Tennessee, for example, ships to 80 countries, including Japan.
China, whose traditional cuisine rarely uses potatoes, is now the world's biggest potato producer.
Proponents of taxing transportation fuel say it would end such uses by changing the economic calculus.
"Food is traveling because transport has become so cheap in a world of globalization," said Frederic Hague, head of the Norwegian environmental group Bellona. "If it was just a matter of processing fish cheaper in China, I'd be happy with it traveling there. The problem is pollution."
The European Union has led the world in proposals to incorporate environmental costs into the price consumers pay for food at the market. Switzerland, which does not belong to the EU, already taxes trucks that cross its borders.
In addition to bringing airlines under its emission-trading scheme, the European Commission is also considering a freight charge specifically tied to the environmental toll of food travel to shift the current calculus that "transporting freight is cheaper than producing goods locally."
The problem is measuring those emissions. The fact that food travels farther does not necessarily mean more energy is used. Some studies have shown that shipping fresh apples, onions and lamb from New Zealand might produce lower emissions than producing the goods in Europe, where for example, storing apples for months would require refrigeration.
But those studies were done in New Zealand, and the food travel debate is inevitably intertwined with economic interests.
Last month, Tony Burke, the Australian minister for agriculture, fisheries and forestry, said carbon footprinting and labeling food miles - the distance food has traveled - is "nothing more than protectionism."
Shippers have vigorously fought the idea of levying a transportation fuel tax, noting that if some countries repealed those provisions of the Chicago Convention, it would wreak havoc with global trade, creating an uneven patchwork of fuel taxes.
It would also give countries that kept the exemption a huge trade advantage.
Some European retailers hope that voluntary green measures like Tesco's labeling, which is set to begin this year, will slow the momentum for new taxes and regulations.
The company will begin testing the labeling system, starting with products like orange juice and laundry detergent. Customers may be surprised by what they discover.
Box Fresh Organics, a popular British brand, for example, advertises that 85 percent of its vegetables come from the British Midlands. But in winter, in its standard basket, only the potatoes and carrots are grown in Britain. The grapes are from South Africa, the fennel is from Spain and the squash is from Italy.
Retailers today could not survive if they failed to offer such variety, said Moorehouse, the British food consultant.
"Unfortunately," he said, "we've educated our customers to expect cheap food, that they can go to the market to get whatever they want, whenever they want it. All year. 24/7."