Risk Takers

20600370 Entry 14

2008-06-13T12:21:00.003+09:00

Is Vietnam The Next China?

Vietnam can become the next China says online magazine Fobes.com. During the last few years its economy grew radically. In fact Vietnam has become the second fast growing economy in the world after China,- says Donald H. Straszheim, Donald H. Straszheim is vice chairman of Roth Capital Partners in Los Angeles, . He emphasizes that the Vietnamese government has been working hard to improve the economy and to make Vietnamese people to live better off and gave some steps, or shall we call them stretergies to improve its overall economy.

First of all the economy growth started from so-called "doi moi" economic revival programm-in 1986 where the Country was opened for foreign investments .

In 1995 Vietnam joined the Association of Southeast Asian Nations.

In 2000 Vietnam signed the US-Vietnam trade pact and became a member of World Trade Organization .

As we can see Vietnam launched an opened up economic policy which I believe was really significant in the country development.

Although the country's economy is rapidly growing, we can't ommit the fact that they do have some economical problems as well which Mr. Straszheim. Vietnam is struggling with inflation problems which are likely to grow more that 16% in the nearest future. The government is trying to control and prevent inflation by limiting the key exports, reducing tariff on some imports, cutting public-sector construction and more.

In addition to inflation Vietnam has a trade and budget deficit ranged or 6~7% . Also the state currency Ban is getting depreciated agaist the American dollar.

In the end Mr. Straszheim concludes that due to new Economical problems , no matter what they have been caused by, the government would have to start raising it "with a fresh start."

Source: http://www.forbes.com/opinions/2008/06/12/vietnam-china-inflation-oped-cx_dhs_0612viet.html

20653023 Entry # 14

2008-06-12T08:18:00.004+09:00

Blue Ocean Strategy: in details (cont’d)
Today let us talk about companies’ strategic planning process.
Research reveals that even knowing all paths to create blue ocean company still stays in red ocean due to its strategic planning process.
How does usual typical strategic plan look like?
Lengthy description of current industry conditions and the competitive situation; discussion of how to increase market share, capture new segments, or cut costs; outline of numerous goals and initiatives; full budget; graphs and spreadsheets.
How does process look like?
Out of mishmash of data provided by people from various departments who often have conflicting agenda and poor communication managers try to get some reasonable factors filling in boxes and running numbers.
Instead would not be that better to think outside the box and develop a clear picture of how to break competition?
To do that we should use the second principle of blue ocean strategy: Focus on the big picture, not the numbers.
Drawing a strategy canvas (for example of it plz refer to my first entry about Blue Ocean Strategy) for your company and using the Pioneer-Migrator-Settler (PMS) Map will let you to see how to break into the blue ocean.
Drawing a strategy canvas does three things:
1. Shows the strategic profile of an industry by depicting the factors that affect competition among industry players
2. Shows the strategic profile of current and potential competitors, identifying which factors they invest in strategically.
3. Shows the company’s strategic profile (value curve) depicting how it invests in the factors of competition and how it might invest in them in the future.
There are 4 steps of visualizing strategy:
1. Visual Awakening

Compare your business with your competitors’ by drawing your “as is” strategy canvas
See where your strategy needs to change

2. Visual Exploration

Go into the field to explore the 6 paths to creating blue ocean
Observe the distinctive advantages of alternative products and services
See which factors you should eliminate, create, or change

3. Visual Strategy Fair

Draw your “to be” strategy canvas based on insight from field observations
Get feedback on alternative strategy canvases from customers, competitors’ customers and noncustomers
Use feedback to build the best “to be” future strategy

4. Visual Communication

Distribute your before-and-after strategic profiles on one page for easy comparison
Support only those projects and operational moves that allow your company to close the gaps to actualize the new strategy.

Another useful exercise to pursue profitable growth is to plot the company’s current and planned portfolios on a pioneer-migrator-settler (PMS) map.
Where pioneers are the business that offer unprecedented value (very significant, your blue oceans); settlers – businesses whose value curves conform to the basic shape of the industry’s; and migrators – businesses exend the industry’s curve by giving customers more for less, but they don’t alert its basic shape.
If both the current portfolio and the planned offerings consist mainly of settlers, the company has a low growth trajectory. If current and planned offerings consist of a lot of migrators, reasonable growth can be expected.

20300244 entry 13

2008-06-11T03:09:00.002+09:00

LGE moves closer to making English its official language

LG Electronics Inc. employees will be banned from using the Korean language in e-mails directed to the company's overseas operations, as part of the aim of adopting English as its official language.

English will be the official language for e-mail communications between the company's local and overseas operations, the company officials said yesterday. Korean will be allowed in cases where the use of the language is unavoidable with English translations. The company's "Speak English" campaign started early last year.

LG officials said they hope such a sweeping change will help facilitate smoother information sharing among its overseas units and the company's non-Korean employees keep up to date with developments at its headquarters in Korea.

Since the end of last year, the company has held the management's meetings in English to cater for non-Korean executives whose numbers have been growing.

Last month, LG Electronics hired a British expert as its chief human resources officer in the latest addition to its growing lineup of foreign C-suite executives. At the management meetings, presentations as well as all related materials are provided in English. Held twice a month, the management meetings are attended by the company's top executives including the company's CEO Nam Yong, heads of various business branches and other high ranking officials.

In 2005, the nation's leading maker of electronics appliances removed the Korean language from its intranet and in January last year, the company's CEO gave a speech in English at a global conference of its executives.

The Korea's tech giant has also changed accounting, marketing, production and personnel management systems into English and plans to produce company policies and regulations in English.

In April last year, the company set up a language support center to facilitate the transition from Korean to English. Known as the English center, the organization is responsible for carrying out duties related to adopting English as the company's official language both at its headquarters and at its 114 overseas operations. In order to encourage the use of English, the center has also been compiling a list of commonly used work-related English phrases.

By Choi He-suk

(cheesuk@heraldm.com)
2008.06.11

My thought,

Business is the fastest area of changing. To survive, company can not stay what they are. They have no choice but change. LG E is showing us what we should do for the future as a company and a nation which face global world. English speaking is going to be more critical to us. As a company grows to a global company, communication is so critical at the company for many of reasons. Without well communication, as one reason, any firm can not have competitiveness to its competitors.
Korea become a leading nation in the globe with no sufficient natural sources in the land, like that we can be a good communicator as a leading nation in the global business with non-English speaking back ground. I believe there is a solution to this problem. We just need to jump in to this problem to solve this problem. And LG E has started.

20500198 entry #13

2008-06-06T23:40:00.002+09:00

Using the Company as the Classroom
Job assignments that provide the critical lessons managers and executives need to be successful may be more valuable than formal training

......

Examples of what CCL found to be the best developmental jobs, and some of the skills they help build, are listed here:

1. Change Manager: A change manager leads an important effort to change or implement something of significance, such as restructuring a business or leading the cultural integration of an acquisition. Managing complex change develops the ability to motivate others and deal with ambiguity.

2. Turnaround/Fix-it: Here the job is about the last chance to clean up a mess; usually accompanied by serious people issues and morale problems. Fix-its build both strategic and conflict-management skills.

3. Startups: With startup assignments, the person is starting something new, whether it involves building a team or creating new systems, facilities, or products. Startup assignments teach innovation and skills for identifying vision and values (visioning).

4. Staff-to-Line or Line-to-Staff Shifts: Moving from a staff assignment to a job with an easily determined bottom line builds business acumen and planning skills. Shifting from line responsibility to a highly visible staff function develops organizational agility and personal adaptability.

5. International Assignments: These are defined as first-time assignments of a year or more outside the leader's home country. An international job assignment usually involves new language, new business rules, and different cultural norms. These assignments teach perspective and interpersonal savvy.

6. Member of Projects/Task Forces: While much of the work in today's flatter organizations can be classified as project work, this type of job assignment specifically relates to membership in a group with an important and specific goal, working with a high-visibility sponsor on a tight deadline. Here, workers develop problem-solving and priority-setting skills.

7. Significant People Demands: A sizable increase in either the number of people managed or the complexity of people-challenges characterize this job. To achieve results, the leader must increase skill level in people-management competencies such as delegation, managing and measuring work, and informing.

The lessons and experiences found in these types of jobs build skills across many key competencies and equip managers and executives for future success. Starting with these as a baseline, organizations can determine which jobs offer the most developmental horsepower for their particular business, considering criteria like a) what the job requires and will therefore teach in the way of skills; b) what the person can learn about the business; and c) what new challenges the job will provide.
Once identified, these are the jobs that should take center stage in the development planning process. By channeling some of the development resources earmarked for training to a focused job assignment strategy, organizations will get real work done and do right by their leaders by providing them opportunities to develop differentiating skills. Only by using the company as the classroom can average leaders become legendary.

My thought

Here is the way that average leaders can become legendary. It's to use the company as the classroom. Nowadays, a lot of company do learning teaching program for their employees, but the article shows that this way is ineffective. If I use the company, that is the job, as the classroom, I can make the employees be more capable and my company can get more good results. I think it's very important. The most valuable asset of the company is people, that is the workers, nor the real estate neither the brand or something. If we make the working environment to be like this, I think that we can take really valuable one to our company and to our managing. Let's think new way. We can save cost to teach workers. And we can get better effect of learning skills and knowledge. Why not use this really awesome method?

sources: http://www.businessweek.com/managing/content/jun2008/ca2008064_524685.htm?chan=careers_managing+index+page_top+stories

Entry 13 200600370

2008-06-06T17:19:00.002+09:00

Here are some advice for those who want to sell their homes from Money Magazine. I found them useful:

5 new rules for home sellers
Whether you're buying or selling, the real estate game has changed. To win, you've got to learn a new playbook.

Rule 1: Get real about price

Prepare three area brokers where there will be given a good description like houses, sizes, prices and other detail information. Do provide 10% discount which will give you an advantage among other firms and attract more clients to you. If you have small inventory, cut bigger don't make baby steps in this case.

Rule 2: Vet your agent - especially if it's you

You can't do it alone, you need an assistent. If you try doing everything for yourself, you'll do pooly. Get an agent, but not a newbie, get someone who is experienced enough in good and bad in this area.

Rule 3: Pimp your house - hire a home stager

Make it beautiful. Make it look more attractive you could hire a homestager which will probably cost you some money as the renovation itself. However, it's worth it.

Rule 4: Cash will make your home look even better

Make something that will make your house look more attractive than another one.

Rule 5: Underwater? Learn to swim

First, you may be able to persuade your new employer to make you whole on the loan. Second, if the rental market in your area is strong (as is the case in many spots that were healthy but not overly bubbly during the boom), you can become a landlord and wait out the slump. Third, of course, is to sell for as much as you can (see Rule No. 1) and raid your savings for the difference.

Reference: http://money.cnn.com/2008/05/01/real_estate/seller_tips.moneymag/index.htm?postversion=2008051212

20653023 Entry # 13

2008-06-05T10:34:00.003+09:00

Blue Ocean Strategy: in details (cont'd)
Today I'd like to summarize chapter about market boundaries.
As you can remember, 'classical model' of formulating business strategy claimed that market boundaries are not elastic and in order to survive you have to fight with others to get bigger share within existed market. And in pursuit of success companies are supposed to do following:
1. Define their industry similarly and focus on being the best within it
2. Look at their industries through the lens of generally accepted strategic groups and strive to stand out in the strategic group they play in
3. Focus on the same buyer group, be it the purchaser, the user or the influencer
4. Define the scope of the products and services offered by their industry similarly
5. Accept their industry’s functional or emotional orientation
6. Focus on the same point in time – and often on current competitive threats – in formulation strategy
Blue Ocean Strategy offers 6 basic approaches how to Reconstruct Market Boundaries.
It called six paths framework. And it’s said that these paths have general applicability across industry sectors. Here they are below:
Path 1: Look Across Alternative Industries
A company competes not only with the other firms in its own industry but also with companies in those other industries that produce alternative products or services. (Alternatives include products and services that have different functions and forms but the same purposes.)
Company which applied this path: NetJets with its fractional jet ownership; NTT DoCoMo with its i-mode
Path 2: Look Across Strategic Groups Within Industries
Term strategic group refers to a group of companies within an industry that pursue a similar strategy. Most companies focus on improving their competitive position within a strategic group: Mercedes, BMW, and Jaguar focus on outcompeting one another in the luxury car segment as economy car makers focus on excelling over one another in their strategic group.
Companies which applied this path: Curves (the Texas-based women’s fitness company, franchising), Polo Ralph Lauren, Toyota’s Lexus, Champion Enterprise
Path 3: Look Across the Chain of Buyers
There is a chain of “buyers”: purchasers who pay for the product or service may differ from the actual users, and in some cases there are important influencers as well. And an industry typically converges on a single buyer group. But challenging and industry’s conventional wisdom about which buyer group to target can lead to the discovery of new blue ocean.
Companies which applied this path: Novo Nardisk with its NovoPen and NovoLet; Bloomberg with its terminal and keyboard; Canon with its small desktop copier.
Path 4: Look Across Complementary Product and Service Offerings
Untapped value is often hidden in complementary products and services. Think about what happens before, during, and after your product is used.
Companies which applied this path: NABI with its bus for U.S. Municipal Bus Industry; Philips Electronics with is teakettle in Britain.
Path 5: Look Across Functional or Emotional Appeal to Buyers
Along with scope of products and services competition in an industry tends to converge on possible bases of appeal: rational or emotional.
But challenging the functional-emotional orientation of industry companies often find new market space. Emotionally oriented industries offer many extras that add price without enhancing functionality. So, eliminating those extras may create a fundamentally simpler, lower-priced, lower-cost business model. And vice-versa: functionally oriented industries can often infuse commodity products with new life by adding a dose of emotion what in turn, can stimulate new demand.
Companies which applied this path: Swatch (from functional to emotional), The Body Shop (from emotional to functional), QB House (from emotional to functional), Cemex (from functional only to emotional)
Path 6: Look Across the Time
All industries are subject to external trends that affect their businesses over time. Looking at these trends with the right perspective can show you how to create blue ocean opportunities.
Companies which applied this path: Apple with its iTunes; Cisco Systems (well-timed production for high-speed data exchange); CNN with its real-time 24-hour global news network; HBO’s show Sex and the City.

20300244 Entry 12

2008-06-03T22:35:00.003+09:00

LG Electonics denies Electrolux's proposal for joint bid for GE unit

LG Electronics yesterday denied a news report that Sweden's Electrolux proposed that they jointly bid for the home appliances unit of General Electronics.

"The report is groundless. We have not received any such an offer," said a spokesperson of the Seoul-based electronics company.

The Korea Economic Daily reported yesterday that LG Electronics was reviewing Electrolux's proposal for the bid, citing an unnamed industry source.

Electrolux and LG Electronics are the world's second and third largest home appliance maker, respectively, after Whirlpool Corp. GE is placed 10th in the world appliance market, while it ranks second in the U.S. market.

Electrolux and LG Electronics are one of the five potential bidders to buy the home appliances unit of GE, GE's CEO Jeffrey Immelt said in Seoul last week.

He earlier said that GE is considering removing its slower-growing home appliance unit, as the U.S. conglomerate seeks 10-percent annual profit growth.

Analysts say the GE unit, which posted $7.2 billion in global sales last year, could sell as much as $8 billion.

The acquisition of GE, the traditional home appliance brand in the United States, could help LG expand its presence in the world's largest economy, analysts said.

But they doubted whether the GE's appliances unit was an attractive acquisition target for LG Electronics, which has many overlapping business with GE.

When asked about the possible purchase of GE's appliances unit, LG Electronics' CEO Nam Yong said on May 27 that the company is "monitoring the situation as it will have a major impact on the landscape of the global appliances industry."

Echoing the CEO's remarks, the company said in a regulatory filing on May 28, "Although we have conducted an internal review on the impact (of the sale of the GE's appliances unit) on LG Electronics, no developments have been made so far regarding a bid."

On the same day, GE CEO Immelt said LG Electronics is "clearly one of the leading candidates" while naming five potential bidders for the GE unit.

By Jin Hyun-joo

(hjjin@heraldm.com)

2008.06.03

My thought

Business is like a game among the competitors. You have to pay attention not only to your inner environment but also to your outer environment, as we learn from the Potter’s Model. LG may buy GE or not. However, whether they buy GE or not they have to have a picture what will be happened to their industry. Whether the leading company buys or any other companies buy it will definitely affect to their company, especially like this huge sale in the industry.

20300244 entry 11

2008-06-01T21:40:00.003+09:00

Hyundai-Kia's SUVs get top U.S. consumer rating

Hyundai Motor Co.'s Veracruz and Kia Motors Corp.'s Sorento were named as the top sports utility vehicles in their respective segments in this year's Vehicle Satisfaction Awards.
Awarded by the U.S.-based automotive industry consulting firm AutoPacific, Vehicle Satisfaction Awards surveys consumers with recently purchased vehicles and rates their satisfaction in 46 categories.

For the 2008 Vehicle Satisfaction Awards, the company surveyed 34,000 motorists who bought new cars between September and December 2007.

The results showed that Kia Motors' Sorento was found to be the most satisfactory vehicle in the mid-sized SUV category along with the Hummer H3. Other vehicles in the category were Dodge Nitro and Nissan Xterra.

Hyundai Motor's Veracruz was named the top large crossover SUV along with the GMC Acadia. Other vehicles in the large crossover SUV category were the Ford Taurus X, Mazda CX9 and Saturn Outlook. Friday also saw Hyundai Motor receive another piece of good news from the United States. According to the company, another quality survey of more than 20,000 motorists who bought new vehicles between September and November 2007, carried out by U.S.-based industry consulting firm Strategic Vision, showed that Hyundai Motor's Santa Fe was the most satisfactory vehicle in the small SUV category. The Santa Fe received 885 points out of possible 1,000 to beat Toyota's FJ Cruiser and the Jeep Wrangler to take the top spot.

By Choi He-suk

(cheesuk@heraldm.com)

My thought,

I was just proud of my country when I saw this news article, the Hyun-dai’s victory in U.S. SUV market. In three segment group, Hyun-dai received top recognition from customers. It once was known as a cheap and low quality car to U.S. consumers. So they started 10 years warranty as respect to change consumer’s perception, which is so famous story as regard to this company. And now they are getting top recognition for many various aspects for their car in its market. You just never know. Many might have said Hyun-dai would fail to the U.S. market. But they are one of those who are leading the market now. I just can see that how they were doing their best to success from their crisis.

20653023 Entry # 12

2008-05-30T23:49:00.000+09:00

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:

Compete in existing market space vs. Create uncontested market space
Beat the competition vs. Make the competition irrelevant
Exploit existing demand vs. Create and capture new demand
Make the value-cost trade-off vs. Break the value-cost trade-off
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

2008-05-30T20:04:00.003+09:00

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

2008-05-30T15:29:00.002+09:00

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

2008-05-30T14:50:00.003+09:00

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.

Reference: http://biz.yahoo.com/ap/080530/earns_dell.html

20500198 entry #11

2008-05-30T14:36:00.005+09:00

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

20300244 entry 10

2008-05-24T23:54:00.001+09:00

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.

#20600370 Entry 11

2008-05-23T21:48:00.003+09:00

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

Reference: http://russiatoday.ru/business/news/25024

20400512 Entry 11

2008-05-23T20:12:00.003+09:00

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

2008-05-23T19:34:00.008+09:00

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.

20653023 Entry # 10

2008-05-17T01:23:00.007+09:00

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

2008-05-17T00:36:00.002+09:00

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

2008-05-17T00:34:00.001+09:00

20400512 Entry 10

2008-05-16T23:55:00.003+09:00

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

2008-05-16T16:00:00.003+09:00

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.

Reference: http://edition.cnn.com/2008/BUSINESS/05/14/world.competitiveness.ap/index.html

20300244 entry 9

2008-05-10T20:48:00.000+09:00

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.

20600370 Entry # 9

2008-05-09T21:56:00.003+09:00

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.

"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.
Rip apart the assumption that hold you back.
Make it clear for your team what they know or what they own. Defining those parts will help to generate innovation and free thinking.
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."
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

2008-05-09T18:28:00.006+09:00

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.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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

2008-05-09T12:58:00.002+09:00

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

2008-05-09T12:30:00.003+09:00

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

20300244 Entry 8

2008-05-03T15:19:00.002+09:00

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.

20600370 Entry# 8

2008-05-02T23:38:00.003+09:00

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.

Reference: http://lenta.ru/news/2008/04/30/orec/

http://www.finfacts.ie/irishfinancenews/article_1013348.shtml

20653023 Entry # 8

2008-05-02T22:37:00.007+09:00

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.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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."

#20600370 Entry 7

2008-04-25T22:54:00.002+09:00

Retailers in tobacco price probe

http://news.bbc.co.uk/1/hi/business/7367126.stm

It has been estimated by Office of Fair Trading ( OFT) that have been engaged in unlawful practices for retail prices for tobacco.
OFT charges eleven companies to in swapping information for future pricing.

Since 2000 and 2003 the understanding between tobacco firms and retailers limited the retailers' ability to estimate their price independently. There was an illegal indirect proposal of future retail prices between competitors as well. Retail price coordination is illegal and has some restriction by law- says the OFT who has been building up the case for five years secretly. The OFT says that if the evidence for such illegal action, the named tobacco companies would be fined up to ten million turnover. "If we find evidence of anti-competitive activity, we are prepared to use the appropriate powers to punish the companies involved and to deter other businesses from taking part in such behaviour," says OFT chief executive John Fingleton.

Meanwhile, tobacco companies and retailers deny any kind of activity that harms the interest of consumers. "takes compliance with competition law very seriously and rejects any suggestion that it has acted in any way contrary to the interests of consumers," said Imperial Tobacco.

My own reflection: This is such an ethical issue. In the case the OFT really finds the evidence of illegal action, the reputation of companies will get spoiled and they would loose their consumers' trust. I think that would harm the companies more than any 10% fine.

Reference: http://news.bbc.co.uk/2/hi/business/7366348.stm

20500198 entry #7

2008-04-25T22:52:00.002+09:00

Nowadays, a lot of company makes their money from abroad market. Here is a good case. The Mumbai-based Tata consultancy Services is more "American" than New York-based IBM. Tata consultancy Services collected 51% of its revenues in North America last quarter, while 65% of IBM's were overseas. Current company need to focus on abroad market. In this world, the whole market of the world is the target martet to company. If the company only focus on the domestic market, it lose a great deal of opportunities. The korean market is very small. We need to enlarge the market to whole world.

from: http://www.businessweek.com/magazine/content/08_18/b4082000234598.htm?chan=globalbiz_asia+index+page_top+stories

20400512 Entry 7

2008-04-25T22:06:00.002+09:00

Coca-Cola Enterprises earnings tumble
The bottling company says profit fell 47% on higher commodity costs despite a 7% rise in revenue; results miss expectations.

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Coca-cola as stated in the headline had a rise in revenues but a decrease in profit. In the article, it states the fact that the sales in North America hasn't been that good and it is "flat" on the scale. Although it has risen in Europe, most of the consumption of Coke is done in North America and if North America does not sell than I would think that naturally profit would decrease. Also in the article it states that the increase in prices of other assets has led to the downfall of profit. When i read this article I would say there is really nothing that Coca-cola could do in order to increase their profit other than to hope that overseas sales go up rapidly. They coudl only wait for the other prices to go down. Even with R&D, I do not think a solution could be made up.

20400512 Entry 6

2008-04-25T21:53:00.002+09:00

Microsoft gives rosy outlook

Software giant tops earnings forecasts, offers upbeat guidance for 2009 and no news on Yahoo bid; stock falls after-hours.

____________________________________________________________________

Microsoft the "big" computer market has given unexpected results and surprised all analysts. Reading this article it got me to thinking about how I could relate it with Markstrat. Afterall, how business runs is all up to the board of directors and the decisions they make. In the the beginning of the article it talks about the selling of software and Xbox consoles. To my remembrance, Microsoft does a lot of advertising to sell their products and it is also sort of a given that many users use Microsoft.

Since we are constantly doing Markstrat right now, the lesson I got from this article is that advertising is really key in selling any products in the market.

20300244 Entry 7

2008-04-25T18:06:00.002+09:00

Samsung Electronics Co., the world`s largest maker of flat-screen televisions, yesterday unveiled a "smarter" television set which it says offers a glimpse of TVs of the future.
"The Pavv Bordeaux 750 is a key product that combines Samsung`s TV and semiconductor technologies," said Kevin Lee, an executive at Samsung`s digital media business unit.
"On top of regular TV functions, the new set contains content, and can play multimedia content stored in portable memory devices or desktop computers," he told reporters in Seoul.
"We believe that televisions will become much more than what they are now, delivering a whole different kind of multimedia experience to our everyday lives," Lee said.
According to Samsung, the new product has three distinctive features. The "Contents Library" offers customers a selection of pre-loaded tips and information, ranging from 30-minute yoga exercises, English education programs for children and recipes. It can be updated and expanded via www.pavv.co.kr
Customers can also watch videos on YouTube, a popular U.S. website for user-created content, as well as access real-time information on stocks, weather and news through the TV`s Power InfoLink function.
Users can watch multimedia content stored on USB memory sticks or link the TV to a desktop computer to view data.
The new model boasts the same design features as the previous Samsung TV models, branded Crystal Rose in Korea, Touch of Color in the United States and Crystal Design in Europe.
The product will be launched in the United States later this week, with a locally adjusted Contents Library, and in Europe later this month.
Prices are set at about 2.7 million won ($2,715) for a 40-inch model and 3.5 million won for a 46-inch one.
By Lee Sun-young
(milaya@heraldm.com)

----------------------------------------------------
Thought

Samsung offers new type of TV set. They said that they will offer glimpse of the future. They said their new TV will provide a whole different kind of experience. And I believe it is only a start. We will see super multimedia which will enable us to have future experience. Making good product is still important, and advertising that product is still important. However, in my opinion, it is most important to create consumer experience with product. Consumers do not want to buy ‘just product’. They would go to buy other companies good if theirs have more contents and special customer service and all that. Creating customer focused experience is one of the key to success in business.

20500198 entry #6

2008-04-25T11:00:00.006+09:00

The strategy of conglomerate faced saturated market and matuarity period.

-Ford posted a $100 million profit for the first quarter, largely on new hit cars and strong sales outside the U.S.

Ford is very old and very big company. We can call it as conglomerate. The market of ford in U.S.A, that is a car market, is saturated and is in the matuarity period. There has been the strategies of Ford that overcome this situation. First, they cut the cost. They employ lower labor and close the factory with decreasing of market share. Next one is that they segment their coustomer and focus on their star product. That were SUV and Truck. They do focus on these market, and they can earn a lot of money from these. And last strategy is that they make new market. Because the car market of U.S.A already in the maturarity period, they turn their face to other market, Europe, South America, and Asia. Especially markets of South America and Asia are in the rapid growth period. So from now on, they can get more money from these market than now. I think they do great job. Their strategies have been appropriate and have worked great. I think Ford can recover their top position of car market in the world soon.

from: http://www.businessweek.com/lifestyle/content/apr2008/bw20080424_757866.htm

20653023 Entry # 7

2008-04-22T08:07:00.002+09:00

We live in the era of the Internet and hi-technology. And I think all of us got at least once marketing e-mail as inevitable part of subscription.
Below is article with 100 words wich shoulnd NOT use in "good" marketing e-mail subject line.
Read them and compare with what at times arrives into your e-mail box.
It would be very interesting to get similar artice in Korean from well know Korean e-marketer just to see differences in opinion.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Seven Dirty Words You Can't Say in Email Subject Lines (Plus 100 Others You Shouldn't Use, Either)by Jordan Ayan
If you've ever heard George Carlin's famous "Seven Dirty Words" (http://en.wikipedia.org/wiki/Seven_dirty_words) you can't say on TV, you can safely avoid using all seven in your subject lines. They will definitely get you blocked.
Here is a list of 100 more that you should avoid using as well:
Top 100 words NOT to use in your subject lines:
100% free
50% off
act now
all words that relate to sex or pornography
all words that related to cures or medication
amazing
anything that looks like you are YELLING
apply now
as seen
as seen on Oprah
as seen on TV
avoid
be your own boss
buy
call now
cash bonus
cialis
click here
collect
compare
consolidate
contains $$$
contains word "ad"
credit
Dear Friend
discount
don't delete
double your anything
double your income
e.x.t.r.a. Punctuation
earn
earn $
earn extra cash
easy terms
eliminate debt
extra income
fast cash
financial freedom
for only
for you
FREE
free
free access
free gift
free info
free instant
free offer
free samples!
friend
g a p p y t e x t
get
get out of debt
hello
herbal
hidden
home based
hot
information you requested
instant
levitra
life insurance
limited time
loans
lose
lose weight
lower your mortgage rate
lowest insurance rates
make money
medicine
mortgage
multi level marketing
notspam
now only
numerical digits at the end
offer
online degree
online marketing
online pharmacy
only
open
opportunity
promised you
refinance
removes
reverses
satisfaction
search engine listings
serious cash
starting with a dollar amount
stop or stops
teen
undisclosed recipient
valium
vicodin
winner
work from home
xanax
your family
Your own
You're a winner!
Jordan Ayan is the CEO of SubscriberMail (www.subscribermail.com), an email marketing services and technology provider.

20300244 Entry 6

2008-04-19T19:32:00.000+09:00

Chicken sales plummet amid avian flu scare

Chicken sales have dropped following reports of the latest bird flu outbreak early this month, leading retailers said yesterday.
"Demand for chicken has been declining with the bird flu outbreaks, and news of it spreading has made consumers feel uneasy about eating chicken, driving more people to shun it altogether," said Park Tae-hoon, a spokesman for E-Mart, the country's leading discount store chain.
E-Mart said chicken sales dropped 15 percent between April 1 and 15 compared to a year ago, with sales just over the past weekend plunging by about 30 percent.
Lotte Mart, the third-largest discounter, saw chicken sales fall 14 percent from April 8 to 14 compared to a year ago. Homeplus, the second-largest discount store chain, had sales fall 4.7 percent between April 7 and 13. Over the past weekend, however, sales dropped 11.2 percent year-on-year, the discounter said.
"We believe the further decline during the weekend is a result of dampened consumer sentiment following the news that the bird flu is spreading," said Shana Lee, speaking for Homeplus.
The Ministry of Food and Agriculture yesterday announced seven new suspected cases of the avian flu, or H5N1 virus, reported in the southwestern part of the country. News of the virus spreading has stirred criticism against government efforts to contain the disease.
On Wednesday, the ministry heightened the nationwide alert to "orange," the second highest level of risk. Most bird flu cases have been reported in the Jeolla provinces.
The leading discounters say the drop in chicken demand is not detrimental to their overall sales performance, since the product accounts for a small share of all the items they sell. They also say the impact of the latest bird flu outbreaks on poultry sales is still minor compared to previous experiences when demand had dropped by 50 percent.
"The impact on sales so far has been less compared to the outbreaks in previous years," said E-Mart's Park.
Retailers also attribute the less dramatic reaction of consumers to greater awareness from past cases, which generated reports that bird-flu-infected poultry is safe to consume if it is cooked above 75 degrees Celsius.
Still, at high-end department stores like Lotte Department Store, where less volume of poultry is sold, chicken sales are "next-to-nothing," said Koo Sae-hee, a Lotte Department Store spokeswoman.
Consumers like Hyun Su-sun, a working woman and housewife in her mid-40s, would also prefer to play it safe.
"I feel uneasy about eating chicken, because you can never be too safe when it comes to food safety and all the uncertainty about viruses," Hyun said.
"Even if experts say it's safe to eat chicken well-cooked, I prefer not to take the risk, especially when animals like birds are difficult to contain since they fly and can quickly spread diseases," she added.
Hyun said the recent spate of controversies in the food industry triggered by Nongshim's fried shrimp chips, with a reported case of a mouse head found in a package by a consumer, and a knife blade discovered in a can of tuna manufactured by Dongwon F&B, could also sap consumer appetite.
"It is ultimately up to the consumer to buy a product or not," said Hyun.
By Yoo Soh-jung , Korea Herald

My thoughts
When something unexpected thing which is also negative to your business happens, you will have difficult time. Or, even, you may have bankruptcy. So it is crucial to think a head about the difficulties that possibly you can have. If very new and difficult problem happens to your company you may not know what to do. However, if you have a problem which already had taken place in your company or the other companies you should know how to react or you should already have your preparation for that. In this case of bird flu, it already happened past. If you were excellent business person you should have manual for when bird flu happens now. It is because that as the world goes more complicated we would have more unexpected things happening to our business. Have integrity in your business, especially for your company’s uncertain, undefined and unexpected risks.

Entry # 20600370

2008-04-18T17:14:00.000+09:00

http://russiatoday.ru/business/news/23597/video

EU battles for its energy independence

As prices on energy resources surge, the EU tries to find ways to decrease dependence on Russia by building a pipeline which bypass Russia. One alternative can be direct supply from Turkmenistan that has promised to deliver 10 billion cubic meters of gas to the EU annually from 2009.

Right now Turkmenistan signed a long-term contracts with Russia and Iran on a natural gas supply. All coutry's gas, up to 50 billion cubic metres, is imported by Russia. Also Turkmenistan is building a gas pipeline to China.

The question is how Turkmenistan is going to meet these new commitments.

In view of the recent news, Russian state-owned company Gazprom plans to participate in a multi-billion dollar project to pipe Nigerian gas to Europe across the Sahara.

Underlining these two articles we can see that it would be very difficult for EU to gain independence unless it starts participating in projects with Russia or building its own pipes.

20653023 Entry # 6

2008-04-18T00:28:00.007+09:00

Merrill Lynch posted another quarterly loss as the brokerage house continued to suffer from subprime mortgages crisis.
Since last year Merrill lost $1.96 billion, or $2.19 a share (compare a year-ago profit of $2.11 billion, or $2.26 a share). Main reason of the loss of the brokerage house is new write downs of $6.6 billion.
Combined with the loss Merrill Lynch said it would cut an additional 4,000 jobs by the end of the year. The cuts would come from the company's capital markets and trading divisions, not support staff and financial advisers. The firm currently has 63,100 employees.
Merrill is considered by most on Wall Street to be one of the biggest victims of the subprime mortgage crisis beside investment bank Bear Stearns.
In November Merril ousted its chief executive Stan O'Neal.
Thain said in interviews over the past two months that Merrill’s massive positions in subprime mortgages and other complicate instruments had deteriorated.
The write downs were widely expected by most analysts.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 40 countries and territories and total client assets of approximately $1.6 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies, with more than $1trillion in assets under management. For more information on Merrill Lynch, please visit http://www.ml.com/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Merrill Lynch to write down further $6-8 billion: report
TOKYO/NEW YORK (Reuters) - Investment bank Merrill Lynch & Co (MER.N: Quote, Profile, Research) will announce $6 billion to $8 billion of asset write-downs in its first quarter results on Thursday, the Wall Street Journal reported on Wednesday, citing a person familiar with the matter.
The latest write-downs would increase total debt losses since October to more than $30 billion, the paper said. The setbacks will contribute to a third straight quarterly net loss at Merrill, the longest losing streak in its 94-year history.
Merrill Lynch spokeswoman Jessica Oppenheim declined to comment.
Investors have been bracing for more bad news from big U.S. banks reporting their first-quarter results this week as the housing market collapse and credit market turmoil has taken a big toll on their balance sheets.
On average, analysts who cover Merrill have told clients they expect $6 billion to $8 billion of write-downs.
"In this environment, anything is plausible," Sandler O'Neill + Partners analyst Jeff Harte said.
The real key to Merrill's actual results will be what steps the firm has taken to reduce its exposure to risky assets going forward.
"It's how much is written down. If the losses are bigger and it's because they reduced exposure, that may not be so bad," Harte said. "The actual earnings number is less relevant than the health of underlying business."
The Wall Street Journal also reported that Merrill is preparing to slash 10 to 15 percent of jobs in some struggling business areas, such as bond financing.
Such cuts, too, are not totally unexpected. Rival banks such as UBS, Morgan Stanley, Goldman Sachs and Lehman Brothers have laid off employees, and recruiters expect the current slump will lead to new rounds of layoffs.
Currency traders in Asia said the article on Merrill caused a slight dip in the U.S. dollar against the yen but that the reaction was muted because investors had been expecting more such write-downs.
JPMorgan Chase (JPM.N: Quote, Profile, Research), which is taking over hard-hit investment bank Bear Stearns (BSC.N: Quote, Profile, Research), on Wednesday reported more than $5 billion of loan losses and asset write-downs. Regional bank Wells Fargo (WFC.N: Quote, Profile, Research) also reported lower quarterly results Wednesday.
Earlier in the week Wachovia (WB.N: Quote, Profile, Research), the number four U.S. bank, posted a surprise first-quarter loss as losses from its mortgage portfolio worsened. It also cut its dividend and raised $7 billion of capital.
(Reporting by Eric Burroughs in Tokyo and Joe Giannone in New York; additional reporting by Olesya Dmitracova in London, editing by Will Waterman and Dave Zimmerman)

Referrences:
http://www.ml.com/index.asp?id=7695_7696_8149_88278_95339_96026&ML.grp=HL
http://www.reuters.com/article/businessNews/idUST23375520080416?feedType=RSS&feedName=businessNews&pageNumber=2&virtualBrandChannel=0

20300244 Entry #5

2008-04-13T02:04:00.004+09:00

Shares of LG Display Co. tumbled yesterday as worries over what analysts described as sapping earnings momentum overshadowed the company's better-than-expected performance in the first quarter.
Shares closed at 43,900 won ($45), down 4.98 percent, from a day earlier, against the KOPSI's 0.85 percent gain.
LG Display, formerly LG.Philips LCD, reported Thursday a record quarterly operating profit of 869 billion won during the January-March period. Sales stood at 4.04 trillion won.
Although the results were better than expected, some analysts cast doubt over future earnings, saying that a slowing U.S. economy and a price war among TV makers could hurt the market position of LG Display's key clients such as LG Electronics Co. and Philips and Vizio.
Goldman Sachs lowered its 12-month price target on the world's second-largest LCD maker by 2.5 percent to 52,000 won. BNP Paribas said in a report that earnings momentum will sag next quarter.
Analysts worry that the global LCD market could face a supply glut next year, bringing down panel prices. LG Display is scheduled to begin next year mass production at its factory in Paju, Gyeonggi Province, where the so-called eighth-generation production line is to be installed.
Despite the dim prospects, CEO Kwon Young-soo offered a positive outlook for the company and the global LCD industry, saying that the extent of the feared supply glut would not be as grave as some expect.
"Liquid crystal displays are becoming increasingly popular in more electronic devices other than TVs and computer monitors," Kwon said. LCD panels are widely used in TVs, computer monitors and some IT gadgets. The trend is creating new demand for LCDs."
He also said the demand for small-sized panels is growing steadily, as customers choose flat screen TVs over bulky tubes, even in the low-cost small-size TV segment.
Kwon said it is likely that operation of the advanced production line in Paju will start in January or February, one or two months earlier than planned.
By Lee Sun-young, Korean Herald
------------------------------------------------------
My thoughts,
Should I believe the company or the analyst? In the journal there are two different views for the same problem. One is positive and another one is negative. They are predictions on the LCD sales. Both have supporting facts for their claim. However, there will be only one claim that is correct at the time they predicted. By the way, when we want to invest for this company, we as a normal people are lack of information. And we don’t want to just cast a coin to choose the right decision. On this journal, we don’t have 100% sure opinion. So my claim is that you should have business knowledge and your own decision making process to make your good decision even you have a lot of money and hired some good investors for you. Because there will be a time that you need to choose your decision from many good analysts.

20400512 Entry 5

2008-04-11T20:37:00.002+09:00

Samsung boss 'may quit' due to allegations

Source: http://edition.cnn.com/2008/BUSINESS/04/11/skorea.samsung.ap/index.html

This has been an issue for the following couple of weeks. SAMSUNG a big company in our country is now facing problems as being charged with allegations for bribery.

The president Lee Gun-Hee has been questioned about the many allegations. After the questioning he threw out a claim in considering the mananagment and structural changes.

It's amazing to see how scary the inside of a company can be. Just one slip of the tongue and the next time you could be facing prosecuters.

This article led me to rethink that no matter how well a business is running the "insides" are what is the most important. Having a corrupted system can lead to many problems and troubles. Although having trust is important you can never trust anyone too much in the business world.

2008-04-11T19:58:00.002+09:00

The mixation of Cultures and Internet is very good business item. Here is a good example. CEO of this company took a nitch of Hindi in the U.S.A. The music site of Hindi culture satisfied them who haven't found the site of their culture-they couldn't download their music before this site. It sponge all people of Hindi in the U.S.A and also the indian people. They are finding this site althogh the company doesn't advertise. There are a lot of chances similar with this thing, from mixture of cultures and internet.

---------------------------------------------------------------------------------
From South Asia to iTunes

Anjula Acharia-Bath made sure she was in the right place at the right time. The co-founder and CEO of online entertainment portal DesiHits had heard nothing but no from Apple (AAPL) after repeatedly pitching a sales partnership. She didn't lose heart. Instead, she happened to hit connection paydirt while dining at her regular hangout, Tamerine, a Vietnamese restaurant that's a hot spot for Silicon Valley venture capitalists. In January, 2006, she overheard two diners talking about Guy Kawasaki, a former Apple executive turned venture capitalist, as if they knew him well. Acharia-Bath introduced herself and asked how she could get a better reception from Apple. One of those diners, Barry Weinman, co-founder of Allegis Capital, soon introduced her to his contacts at Apple.

Today, DesiHits, which is moving from Santa Clara, Calif., to New York City, sells Indian music from Bollywood hits to Bhangra classics, remixed with rap and pop, via iTunes, Apple's online music store. DesiHits podcasts are available on iTunes as well. And on DesiHits' Web site, visitors can find entertainment news, interviews, and other original content aimed at Desis, the Hindi term for the 20 million or so South Asians living around the world, including 1.9 million in the U.S., according to a 2004 U.S. Census count. In recent months, it has also become a destination for well-known American rappers such as LL Cool J, 50 Cent, and Lupe Fiasco to promote their music.

Like most Web startups, the site's strategy is first to build an audience, then use those numbers to lure advertisers. In the meantime, the site is making money from downloads. Acharia-Bath says traffic is up as well, with almost 1 million unique visits to the site in February, 2008, up from about 800,000 the previous month. That may not be a staggeringly high number, but it beats long-established MTVIndia.com.

Speaking to an Identity
The idea for a music site grew out of Ranj Bath's podcasting hobby. Bath, who is Acharia-Bath's husband and co-founder, had deejayed mixes of Indian and pop music at parties since his days at the University of Westminster in London. After the couple, both children of Indian-born parents who moved to Britain, relocated to California, they scoured entertainment magazines and Web sites but found little sign of fusion culture, that hybrid of Western and South Asian music popular with their generation. Says Bath: "We saw that other Desis were struggling to find online sites that spoke to their identities." Bath, 38, then a marketing manager for Intel (INTC), and Acharia-Bath, 36, a former headhunter for Forsyth Group Executive Venture Search, decided to launch DesiHits in their spare time with about $35,000 in savings.

At first, the site was no more than a podcast series on hip Indian music. As it gained popularity, the couple enlisted Arun Sandhu, 28, a friend who had worked at Star TV and Bravo, to produce original content. In 2006, Acharia-Bath was introduced to Draper Fisher Jurvetson, a venture capital firm known for its early-stage investments in Web businesses Skype (EBAY) and Baidu (BIDU), asking for more than she thought she would get: $1 million. No problem. The couple quit their jobs and assembled an unpaid advisory board from industries other than music and entertainment, hoping to tap into expertise that will help them develop an advertising model and other revenue streams.

Previous attempts to reach the niche have foundered, notes Mira Kamdar, a senior fellow at the World Policy Institute, a Washington think tank with a global bent. "MTVDesi was canceled despite lots of the same hype DesiHits has," says Kamdar. And Columbia University marketing professor Gita Johar says the group is highly fragmented: "I would argue that not all Desis are the audience, as there are many subsegments and cultures within the South Asian population."

One way around those potential potholes may be to attract a broader Indian audience. Right now, about 29% of desihits.com traffic is from India, according to page-view tracker Alexa. Bath says DesiHits isn't marketing directly to Indians, but he is confident the site will engage them—as well as listeners not of South Asian descent—as the site becomes more well known. Says Bath: "They're finding us."

20653023 Entry # 5

2008-04-11T15:18:00.003+09:00

As we discussed on our classes business does not operate in vacuum and environmental factors are crucial for one to survive.
I think we are witnesses of so-called “third oil crisis” which has a lot of not rosy consequences.
Speaking macroeconomics language such exogenous variables as high jet fuel price, high cost of leasing and buying planes, and the credit crunch affect airline industry and led to bankruptcy of four companies since March 31: Aloha Airgourp, ATA Airlines, Skybus Airlines (all in the United States), and now Oasis Hong Kong Airlines which went into liquidation Wednesday.
Provisionally all procedure will be held under KPMG (global network of professional firms providing Audit, Tax, and Advisory services).
Oasis Hong Kong Airlines tried to create its own blue ocean within industry seeking a niche among travelers who dread very long flights in economy class but have been reluctant to pay $6,300 for a round -trip in business class. They were proud of its on-time performance and also offered more legroom in economy and business class than other budget carriers and even some premium carriers.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Oasis Hong Kong Airlines goes bankrupt

Oasis Hong Kong Airlines, a long-distance budget carrier that tried to offer premium service and spacious seats at low prices, suddenly went into liquidation Wednesday and canceled all flights, the fourth budget carrier to halt operations in the past week and a half.
The bankruptcy filing by Oasis stranded thousands of passengers in Hong Kong, London and Vancouver, British Columbia. Many of the would-be passengers stuck in Hong Kong are children trying to return to British boarding schools after going home for the spring break.
High jet fuel prices have taken a heavy toll on the airline industry and particularly on budget carriers trying to compete on price with low profit margins. The other three to shut down since March 31, all in the United States, are Aloha Airgroup, ATA Airlines and Skybus Airlines.
The spate of bankruptcies threatens to undermine travelers' confidence in budget carriers. But airline industry experts say that Oasis's business model of punctual, top-notch service and lots of legroom at discount prices made it especially vulnerable to high oil prices.
For other budget carriers, the lesson of Oasis's demise is that, "they have to pack more seats and more passengers into their aircraft," said Derek Sadubin, the chief operating officer of the Center for Asia Pacific Aviation, a consulting company in Sydney.
While established airlines are also feeling the brunt of high fuel prices, budget carrier start-ups have proved more vulnerable because they must struggle during the current international credit crunch to borrow money to cover any operating losses.
The shutdown of Oasis "does remind us that it is an extremely precarious business when there are so many external factors outside the control of airline management, one being jet fuel prices and another being the credit crunch," said Martin Craigs, the president of the Aerospace Forum Asia, a trade association in Hong Kong representing aviation equipment suppliers, including Airbus and Boeing.
Yet another problem for start-ups like Oasis is that the cost of leasing or buying planes has stayed high, even as economic weakness in the United States and elsewhere has started to hurt demand for air travel. Asian and Mideast carriers are actively expanding and ordering hundreds of planes, leaving Boeing and Airbus with long backlogs of orders.
Stephen Miller, the chief executive of Oasis, said at a brief news conference Wednesday that the carrier still hoped to find an investor to buy its operations. But Eva Cheng, the Hong Kong secretary for transport and housing, said that the company had made a voluntary filing for liquidation Wednesday only after lengthy negotiations with a possible investor broke down Tuesday.
Cheng said that the cessation of service by Oasis was particularly troubling because it came at a time when many flights on other carriers are already fully booked - including for children, some traveling without adults, who are trying to return to school in Britain.
Cheng urged other carriers to give priority on nonstop flights to children holding Oasis tickets. An estimated 40,000 young people from Hong Kong, a former British colony, attend schools in Britain, the bulk of them in elementary schools, junior high and high school, but some in university as well.
Virtually all civil servants in Hong Kong, regardless of national heritage, are still eligible for a taxable government allowance that covers more than half the cost of sending children to boarding school in Britain.
Cathay Pacific Airways, the dominant airline in Hong Kong with at least a third of the market, announced Wednesday that it would add an extra flight to London on Friday and another Sunday with priority for schoolchildren. The airline also said that holders of tickets for Oasis flights in the next two weeks would be eligible to buy one-way economy class tickets from Hong Kong to London or Vancouver - the two routes formerly operated by Oasis - for 2,500 Hong Kong dollars, or $320.
Raymond and Priscilla Lee, a wealthy Hong Kong real estate couple also active in philanthropic causes, started Oasis in October, 2006. The private equity arm of Value Partners Group, a large Hong Kong asset management company with $6 billion under management, bought $30 million in convertible bonds from Oasis to help finance its growth.
Cheah Cheng Hye, the chairman and chief investment officer of Value Partners, said Wednesday that the company had several layers of guarantees on the bonds and had a "very reasonable chance" of recovering its money, and that the company's well-known funds would not be affected because they did not hold stakes in the private equity unit.
Value Partners' risk from the Oasis investment is insignificant to the overall company because its investments are diverse, Cheah added in an interview, explaining that, "it's like running a hotel with 100 or 200 rooms - sometimes a guest will check out without paying the bill."
The High Court in Hong Kong appointed KPMG as the provisional liquidators of Oasis. The airline's ticket holders will be among its creditors.
Oasis had superb on-time performance - it boasted that every flight to and from London was on time in February. It also offered more legroom in economy and business class than other budget carriers and even some premium carriers.
In business class, Oasis put up to 60 inches, or 150 centimeters, between each seatback, compared with 38 inches on some budget carriers, and in economy class it put 32 inches, compared with 31 inches on many carriers.
Oasis operated roomy four Boeing 747-400s with twin aisles on its nearly 13-hour flights from Hong Kong to London and Vancouver. But the planes also have four engines, which gulped fuel at a time when crude oil is over $100 a barrel.
Oasis was an unusual hybrid of the new all-business class airlines now appearing over the Atlantic and the very inexpensive economy class carriers now spreading around the world. Oasis allocated 22 percent of its seats to business class and charged as little as a third of Cathay's prices, seeking a niche among travelers who dread very long flights in economy class but have been reluctant to pay $6,300 for a round -trip in business class.
But many corporations have contracts with Cathay for their employees, while expense-account travelers have tended to prefer Cathay for its frequent flyer plan, Sadubin said. On an Oasis flight from London to Hong Kong last Friday, economy class was full but there were just two passengers in one of the aircraft's three sections of business class.

Entry # 20600370

2008-04-11T12:46:00.000+09:00

Chinese workers flood into Russia

It was very difficult to imagine Korea using foreign workers 20 years ago. Nowadays, it is vital for the majority of small-sized and mid-sized companies to use the cheap labor force of migrant workers to survive in the highly competitive world.
The same pattern is observed in Russia which is being flooded by Chinese workers. The reason is that business owners want to hire foreign workers because they can work long hours and for little money.
Along with the advantage of using low-paid workforce, there are many issues that should be thoroughly mulled over, such as inability to collect tax, capital outflow, legislation problems, and so on.

Entry 20600370

2008-04-04T23:56:00.002+09:00

The fuel prise is getting more and more expensive and is not likely to get any cheaper in nearest time. The raise of fuel price strongly influences American aircompanies. To adjust to continious oil price raise many of them have to make some changes services they provide.

In case of Northwest few changes appeared. Northwest raised prices for international flights and cut domestic schedule by 5 percent.
Significant changes appeared in such airlines as ATA or Aloha Airlines. Because of fuel price two companies had to shut down and Champion Air is about to stop flying by May 31. Some companies have to freeze hiring new pilots.

Because of the high fuel price aircompanies fear that the demand will go down therefore it will lead to attempts to save money by "cost reductions, productivity improvements and revenue enhancements." "every effort will be made to achieve these reductions through attrition," the airline said. Airlines said they will not seek for pay cuts.

20500198 entry #4

2008-04-04T22:53:00.002+09:00

People worried about the recession of U.S.A. If it is real, it affect to whole economy of all of the world. Until now, the U.S.A is affecting a lot to whole world. It's because the financial power. I think the korean government also have to strongly improve a financial industry. Now there is increase of unemployment rate in U.S.A. The reason is that there is a crisis in financial industry especially caused from 'subprime mortgage'. It affect to the whole industy of U.S.A. And the unemployment rate is proving that. It's a chance to us. Using the difficulty of great big world wide bank, small banks of korea have to go forward to worldwide market. It will be chance to our banks. We should catch it to get the power of finance in the world.

------------------------------------------------------------------------------------

Employers slashed 80,000 jobs in March

Employers worried about recession slashed 80,000 jobs in March, the most in five years and the third straight month of losses.

At the same time, the national unemployment rate rose from 4.8 percent to 5.1 percent, the clearest signal yet that the economy might already be contracting. The new snapshot of the job market, released by the Labor Department Friday, underscored the damage that a trio of crises --in the housing, credit and financial sectors -- has inflicted on companies, jobseekers and the economy as a whole.

The unemployment rate was the highest since September 2005, when significant job losses followed the devastating blows of Gulf Coast hurricanes.

Job losses were widespread in March. Construction, manufacturing, retailing, financial services and various business services all racked up losses. That overwhelmed gains elsewhere, including in education and health care, leisure and hospitality as well as in government.

The new employment figures were much weaker than economists were expecting. They were anticipating a drop of 50,000 payroll jobs and the unemployment rate to rise to 5 percent.

The 5.1 percent rate is relatively modest by historical standards, but was nonetheless the highest in more 2 1/2 years.

Job cuts in both January and February turned out to be even deeper. Employers got rid of 76,000 in each month. The elimination of 80,000 jobs in March was the most since March 2003, when the labor market was still struggling to recover from the 2001 recession.

The economy is suffering the effects of a housing collapse, a credit crunch and a financial system in turmoil. That's causing people and businesses to hunker down, crimping spending, capital investment and hiring. Those things in turn further weaken the economy in what has become a vicious cycle.

For the first time, Federal Reserve Chairman Ben Bernanke acknowledged Wednesday that the country could be heading toward a recession, saying federal policymakers are "fighting against the wind" in combating it. Many other economists and the public believe the recession already has arrived.

Economists define a recession as two consecutive quarters of negative growth.

Bernanke wouldn't tip his hand about the Fed's next move. However, many economists believe the central bank will lower interest rates again when they meet later this month.

The Fed has taken a number of extraordinary actions recently -- slashing interest rates, providing financial backing to JP Morgan's takeover of troubled Bear Stearns and opening an emergency lending program for big investment houses. All the actions are ultimately aimed at limiting damage to the national economy.

With a public on edge, Congress, the White House and presidential contenders are scrambling to come up with their own relief plans even as they engage in a political blame game.

With the pace of hiring slowing down, the number of unemployed people increased to 7.8 million in March; workers with jobs saw only modest wage gains at the same time.

Average hourly earnings for jobholders rose to $17.86 in March, a 0.3 percent increase from the previous month. That matched economists' forecasts. Over the past 12 months, wages grew 3.6 percent. With lofty energy and food prices, workers may feel like their paychecks are shrinking.

Many analysts believe the economy shrank in the first three months of this year and could still be ebbing now. The government will release its estimate of first-quarter economic growth later this month.

Bernanke, however, has said he is hopeful the economy will improve in the second half of this year, helped by the government's $168 billion stimulus package of tax rebates for people and tax breaks for businesses, as well as the Fed's rate reductions.

Still, even Bernanke predicted this week that the unemployment rate would rise in the months ahead. Some analysts say it could climb to 5.5 percent or higher by year's end.

20300244 entry 4

2008-04-04T22:49:00.003+09:00

FTAs help cushion inflation risks (Korean Herald)

While steep commodity prices and record-high oil costs fan inflationary pressures around the globe, free trade agreements can be a boon - rather than a blight - regardless of their controversies.

Countries with FTAs under negotiation or yet to be ratified may want to accelerate the process, because such trade pacts can cushion consumers from rising costs, experts say.

"Free trade agreements definitely do have a cushion effect on consumer prices and can provide stabilization," said Hong Seung-in, senior deputy director of the FTA Negotiation Coordination Division at Seoul's Trade Ministry, in a telephone interview. "Tariffs are removed in free trade, so this means consumers can buy goods without this extra burden."

Although it depends on the category, Hong said that under an FTA the prices of some goods could drop by 12 percent. Korea's average import tariff rate with the United States, for instance, is 7 percent.

In the case of the Korea-U.S. FTA, both sides agreed to remove tariffs on 94 percent of manufactured goods within three years once the accord takes effect, while duties on all goods would be removed in 10 years.

Consumer prices of imported goods from the United States are projected to drop between 6.1 percent and 6.2 percent, according to Lee Hang-koo, an economist at the Korea Institute for Industrial Economics and Trade. He expects a trade pact with the European Union to generate the same effect, although negotiations are still underway.

Comparatively, agricultural imports make up about 10 percent of imports from the United States. Due to the sensitive nature of agricultural goods, most tariffs are to be phased out throughout an average span of 10 years.

With Korea dependent on imports for most of its grain needs, Lee expects free trade to ease the shocks of global inflation as well. Rice, the nation's staple food, has also been exempt from FTAs.

According to Lee Jung-hwan, chief economist of GS&J, a private think tank, agricultural tariffs are significant, with some as high as 700 percent. The lowest is about 2 percent, while the average ranges between 20 percent and 40 percent for products like fruits and livestock.

Lee of GS&J, however, said an FTA would have little relief on grain import prices. The duty on wheat is 3 percent, and duties on corn and grains used for fertilizer are merely 1 percent.

The price of beans, on the other hand, can drop as much as 81 percent.

Free-trade partners can also help each other drive down prices while providing competitive goods, said Lee, the economist at the Korea Institute for Industrial Economics and Trade.

"If the Korea-U.S. FTA is ratified, tariff elimination could boost the competitiveness of Korean brands, for instance, against cheaper Chinese goods flooding into the world's largest consumer market," the trade expert explained. He emphasized the favorable prospects for Asia's fourth-largest economy, which has been recording a decline in U.S.-bound exports.

"For a country like ours that depends on exports to drive the economy, an FTA is very important," Lee told The Korea Herald.

Seoul is also keen on securing free-trade deals with as many strategic partners as possible, which would open up the country more to adopt international standards, take it up to par with advanced countries, and also strengthen its global competitiveness. The country is currently negotiating a deal with Canada, while preparing to begin discussions with China and resume talks with Japan.

Free-trade partners, however, need to be wary of some opposing factors.

Hong warned that the cost-saving impact also depends on the exchange rate. A weaker domestic currency means having to pay more for imports.

He also cautioned that countries more sensitive to inflation and high oil costs would have to raise the prices of their goods.

"This means that if our trading partner can't cope with inflationary pressures, the cost burden would naturally be reflected in the final marketing product," Hong said.

But Lee of KIET offered a more uplifting view.

"Producers are constantly pressured to find cost-effective ways of production with rising raw material costs, which ultimately means competitive prices for consumers," Lee said.

By Yoo Soh-jung

(sohjung@heraldm.com)

------------------------------------------------------------------

My Thoughts,

FTA has been praised by many of econmists. However it has been suffered much in the reallity. FTA between Korea and U.S. is still not copleted. Although it seems that we as koreans have advantages from it, it is not so easy to say we should do this in the public. Since it has both good and bad sides. When I first learn Economics in the class the very first chapter claimed that the better standard of living means better economy. Even though I would agree with some part it is not just like that.
This article is one of a good example. For it says it's good to have FTA, they didn't talk about the people's impact who might loose their job or their wealth. FTA finally could better-off for the county's economy but it could be good or bad to a person who lives in this community. so my opinion would be this. We need to approch this case with political approch. Polititions need to come up with this issue and make people to understand or make consensus among the people.

20400512 Entry 4

2008-04-04T20:22:00.002+09:00

The underemployment rate is rising
Don't be fooled by the relatively low 4.8% unemployment rate. Other measures, such as the number of people only working part-time, are a sign of recession.
Source: http://money.cnn.com/2008/04/02/news/economy/jobs_outlook/index.htm?cnn=yes

This article discussed the topic of unemployment as suggested in the title. Now they are viewing the rise of unemployment rate as recession. Nowadays, rather than full-time jobs more part-time jobs are offered in the markets.

It's kind of ironic how job unemployment can be looked at as a recession. It seems like it's almost saying that the market is slowing looking workers like customers and the company are facing problems.

Do cases like this such as job declines need r&d? I suppose all areas that the company deals with needs r&d but just how much time should be spent upon the employment staff? But then without employees the company wouldn't be able to run.

I think that the markets need to start developing more ideas in how to bring in more workers or stop cutting workers.

20653023 Entry # 4

2008-04-01T16:56:00.002+09:00

Business nowadays needs to go globally in order to survive. I see business as a live organism. Without moves it dies.

And as we studied on previous lessons environmental factors such as economics and political regulation play significant role in defining strategic moves in business. With less strict regulations toward business and enough investment in their pockets Indian business appeared on global market making acquisitions abroad.

Several years ago a lot of international business rushed to China opening there their factories. But with restricitve Chinese policies nowadays a lot of them looking for best opportunities in other rapidly developing markets. One of them is India. So not only India seeks for opportunity to invest in foreign business but foreigners look for investing their money into India as well.

Economical law that Capital doesn't flow to poor countries works right now for India's benefit.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

With Jaguar and Land Rover in hand, India

strides onto the global stage

The Associated PressSunday, March 30, 2008
To understand India's economic rise, look to its cars.
The iconic Indian automobile of a generation ago was the Ambassador, a noisy, boxy clunker that was ubiquitous despite its ungainly 1950s style.
Compare that to the newest Indian-owned line of cars, the famously sleek and sophisticated Jaguar, which Tata Motors, India's biggest auto company, purchased Wednesday, along with Land Rover, in a landmark US$2.3 billion deal.
The vehicle upgrade could be a metaphor for the transformation the entire country has gone through in recent years, as the so-called "License Raj" — the stifling state-run socialist system widely blamed for shackling India's economy — came to an end, giving rise to a new middle-class whose appetite for consumption has reshaped India and spurred a national economic boom.
Now, Indian companies are taking that money and shopping overseas for acquisitions as part of a strategy meant to announce India's arrival on the global stage, break into new markets and keep the profits rolling in.
"It's a matter of survival," said Ashutosh Goel, an analyst with the brokerage firm Edelweiss Capital. "To succeed and thrive you have to be a serious global player and not only focused on the domestic market. You can't remain a purely Indian player."
Nearly all the leading corporations here — including Reliance Industries Ltd. and outsourcing company Wipro Ltd. — are looking overseas, and news of Indian acquisitions of brands from Europe, the United States, Asia and Africa has become common.
Many see the newfound assertiveness as a reflection of the general feeling in India that the once-stagnant underachiever now belongs among the international elite.
"Indian companies have been in the mood for overseas purchases for a few years now and that coincides with the boom in the economy and the general feel-good factor here," said Anjana Menon, an editor at Mint, a leading Indian business newspaper.
At the same time, the robust economy and looser regulations have attracted widespread foreign investment, increasing competition here and forcing Indian companies to expand overseas to seek sales, analysts said.
Beyond Tata Motors, the crowded car market includes the Maruti Suzuki Ltd. — majority owned by Japanese automaker Suzuki Motors Corp. — South Korea's Hyundai Motor Ltd., Japan's Honda Motor Co. and U.S. automakers Ford Motor Co. and General Motors Corp.
International companies are interested in more than selling just cars, however. Coca-Cola Co., which was booted out of India in the 1970s to make way for the local brand Thums-Up, came back in 1993, after the economy opened to foreign investment, and now owns the former rival. In gleaming new malls across India, customers can choose between German washing machines, Korean air conditioners and Japanese televisions.
Tata Group, the country's oldest and largest conglomerate, is the most striking example of an Indian company on an acquisition spree. With roughly 100 companies in everything from salt to software, it has led the charge that has made India an international player.
The group has emerged from its own economic doldrums with high-profile moves like the purchase of British steelmaker Corus Group for US$13 billion, as well as tea, hotel and automobile companies.
Tata's acquisitions have sparked an outpouring of national pride.
"The Empire Strikes Back!" was one of many headlines Thursday that trumpeted the purchase of Jaguar and Land Rover, brands founded in Britain, India's former colonial power.
The economic rise can be traced back to 1991, when India began shifting toward a market economy. The boom was led by the outsourcing and technology sectors, which forged a connection between Indian companies and overseas markets.
The new opportunities gave rise to an educated and ambitious middle class, which has lustily embraced consumer culture.
"The middle class Indian from a decade ago was more of a saver and he's a spender now," said Menon. "There's a generational shift and there's more money in people's wallets and they're freer to spend."
Companies like Tata have reaped giant profits that freed them to pursue acquisitions. In five years through March 2007, Tata's annual group sales more than doubled to US$29 billion, not including Corus Group. The capitalization of its 27 listed companies rose six-fold, to US$78 billion.
"Bankers are looking where they can put their money and (Tata is) a sure thing, they're not even a bet," said Tarun Das of the Confederation of Indian Industry.
Tata announced the Land Rover and Jaguar acquisition with very little fanfare, apparently anticipating anti-India backlash. In a sign of how the times have changed, Indian companies that once lobbied the government for protection against foreign competition now find themselves battling protectionist sentiments abroad.
Tata is paying Ford with a 15-month, US$3 billion loan but expects to replace that financing with a mix of equity and debt during the next several months, said C. Ramakrishnan, Tata's chief financial officer.
Some analysts are skeptical about how the luxury brands will fit into Tata's portfolio and whether going into debt to pay for the deal makes sense amidst fears of a global recession.
But many of Tata's big-ticket acquisitions were derided initially and went on to be praised by analysts. It's other purchases include Britain's Tetley Tea, Boston's Ritz Carlton Hotel, Eight O'Clock Coffee, Glaceau flavored waters and South Korea's Daewoo Commercial Vehicle Co.
Other corporations looking overseas include the Aditya Birla Group, which has bought companies in cement, metals, telecommunication and textiles. Last year, Reliance Industries bought Malaysia's leading polyester producer, Hualon Corp, while Wipro bought New Jersey-based Infocrossing Inc.
"Every large and small Indian company is looking at overseas corporations," said analyst Goel.

20600370 entry #3

2008-03-28T21:55:00.000+09:00

Recent news from Iraq made the oil price top US $107 per barrel.
It is important not only to possess rich mineral resources but also to be able to extract them from the bowels of the earth.
Russia is one among countries which oil reserves can bring a great portion of revenue to the country for years. But the question is how much the government is ready to spend on resource exploration.
Though, the Russian government spent more state funds on exploration in 2007 it is still a mere 0.5 percent of federal budget. As a consequence "Output fell 0.7 percent in January and 0.9 percent in February, to 9.79 million barrels per day, compared with the same months last year".
Russia decided to double state spending on resource exploration to 2020 to $23 billion. The focus will be on oil in eastern Siberia.
Friendly relationship between Korea and Russia can help Korean oil exploration companies promote their business in Russia and replenish its oil reserves. Korea have already participated in several projects for oil exploration in Russia.

The article is available by clicking on the following link http://www.moscowtimes.ru/stories/2008/03/28/045.html

20400512 Entry 3

2008-03-28T20:47:00.000+09:00

You can go to the site by clicking on the title

Bear Stearns' Cayne sells over $60M in stock
Source: http://money.cnn.com/2008/03/27/news/newsmakers/cayne_stock/index.htm?cnn=yes

The chairman of the troubled company Bear Stearns dumped his stock just after the company that was going to buy Bear Stearns quintipled their bid.

When I read this article, one part of me thought that Cayne did a good job but one part of me thought what good can it do them now?

Reading articles like this constantly gets me thinking on how detailed and thorough we must be in setting up any type of business plan. It's not only earning money that it makes a good business but always staying stable and on line with competition.

What good is it going to be for Cayne and his wife who have now sold their shares and only have money now? Can they possibly climb back up the ladder of success??

20300244 Entry 3

2008-03-28T17:30:00.000+09:00

Shan Hsing Lighting's new $7 million factory is running at just 60% of capacity

by Dexter Roberts

from Business Week
With Chi-Chu Tschang in Beijing

Entrepreneur Tim Hsu first started making lamps more than 20 years ago in Taiwan. And like tens of thousands of other factory owners in Taiwan, Hong Kong, and Macau, he later moved operations to the Pearl River Delta region of Guangdong in South China, setting up his Shan Hsing Lighting in a sleepy hamlet of rice fields and duck farms called Dongguan. Since then the region has grown into the largest manufacturing base in the world for a host of industries, including electronics, shoes, toys, furniture, and lighting. The combination of low wages, minimal regulation, and a cheap currency was unbeatable. Hsu was so confident of Guangdong's future as the world's workshop that he spent $7 million on a much larger factory, which opened earlier this year.

Now many of China's manufacturers—including Shan Hsing—are undergoing the kind of restructuring that tore through America's heartland a generation ago. The U.S. housing market, which generated demand for everything from Chinese-made bedroom sets to bathroom fixtures, has plummeted. A new Chinese labor law that took effect on Jan. 1 has significantly raised costs in an already tight labor market. Soaring commodity and energy prices, as well as Beijing's cancellation of preferential policies for exporters, have hammered manufacturers. The appreciation of the Chinese currency has shrunk already razor-thin margins, pushed thousands of manufacturers to the edge of bankruptcy, and threatened China's role as the preeminent exporter of low-priced goods.

Hsu's new factory, it turns out, is running at just 60% of capacity, and he predicts that half of China's lighting factories—almost all based in Guangdong—will have to close their doors this year. "Shoe factories, clothing, toys, furniture, everyone is shutting down," he says. Hsu's not alone in his alarm. "We spent 20 years building up our industry from nothing to one of the biggest in the world," says Philip Cheng, chairman of Strategic Sports, which produces half the global supply of motorcycle, bicycle, and snowboarding helmets out of 17 plants in the Pearl River Delta. "Now we are dying." Cheng says he once earned 8% margins. His margins now? Almost zero.

Comprehensive statistics on shutdowns are hard to come by. But the Federation of Hong Kong Industries predicts that 10% of an estimated 60,000 to 70,000 Hong Kong-run factories in the Pearl River Delta will close this year. In the past 12 months, 150 factories making shoes or supplying shoemakers have closed in Dongguan, says the Asia Footwear Assn. More plants will disappear as demand slows: UBS (UBS) analyst Jonathan Anderson expects overall export growth of just 5% or less for China this year.

Chinese policymakers so far profess little concern. The closures are mainly hitting lower-value, labor-intensive exporters that pollute heavily and use energy inefficiently. Beijing now wants cleaner industries that produce higher-quality items for the local market, from cars and planes to biotech products and software. That emphasis not only helps boost domestic consumption—a key national goal—but also reduces frictions internationally from the ever-swelling trade surplus. "We are not abandoning the [exporters]," said Guangdong Governor Huang Huahua on Mar. 8. "[But] selling domestically is good for the country, good for the collective, and good for the people."

Still, the shift in the manufacturing base is likely to hit harder and be felt more widely than officials expect. So far, most shutdowns have been in Guangdong, but the pain is hardly limited to the region. When more than a hundred South Korean-owned factories closed over the Chinese New Year in the eastern province of Shandong, 1,200 miles from the Pearl River Delta, thousands of workers were left without jobs—and with unpaid wages.

LOSING ITS ALLURE
The bigger multinationals may be having second thoughts, too. A report by the American Chamber of Commerce in Shanghai found that more than half of foreign manufacturers in China believe the mainland is losing its competitive advantage over countries like Vietnam and India. Almost a fifth of the companies surveyed are considering relocating out of China. "The big story here is that globalization is for real—and China is no longer what it was," says Ronald Haddock, a vice-president at consultant Booz Allen Hamilton, which wrote the report.

The rise of the yuan may be the biggest single factor driving companies to relocate. But other government policies are contributing to the crisis. Last year, Beijing decided to cut or cancel tax rebates on more than 2,000 items used to make exported goods. The impact has been huge. "The end of rebates has raised the cost of manufacturing many goods by 14% to 17% at the factory level," says Harley Seyedin, president of the Guangzhou-based American Chamber of Commerce in South China.

Now a tough new law requires companies to provide employee benefits including pensions; to guarantee collective-bargaining rights; and to hire for the long term. It's "wreaking havoc," says Ben Schwall, president of Aliya International, a Dongguan company that does quality inspections for China's lighting industry. The law is raising operating expenses by as much as 40% when you add spiraling wages in almost every sector. "We knew it was going to be a more difficult year, but no one foresaw 40% more in costs," says Willy Lin, vice-chairman of the Textile Council of Hong Kong. "So when everything exploded in our face, we started to ask: What can we do?'"

For many companies the answer lies outside China. In early March, Hebei Yong Jin Cable opened a factory in Vietnam's Tay Ninh province, near the Cambodian border. "In Hebei province in China, it costs more than 1,000 renminbi a month [to pay relatively unskilled workers]," says Qu Huijun, Vietnam project director at Hebei Yong Jin. "But in Vietnam, it is about 500 RMB. So the cost of labor is cheaper by half."

Rising costs are also affecting sourcing decisions by big apparel and footwear labels. Adidas has told its suppliers in Guangdong to look at lower-cost regions in China as well as abroad. So Taiwan-run Apache Footwear, which has 18,000 employees in Qingyuan, Guangdong, is considering setting up smaller plants on the Guangdong border with Hunan and Guangxi, where costs are lower. It recently opened a second factory in India. "We will reduce our percentage produced in China because of growth in other countries," says Bob Shorrock, Adidas' global director for sourcing.

Shifting manufacturing abroad, though, takes time and money. Complicated logistics networks that have grown over more than a decade to support everything from computer makers to shoe factories will have to relocate as industries move. "We have more than 100 suppliers in the Dongguan area," says Shan Hsing's Hsu. "Moving is not easy."

Even in countries like Vietnam, labor costs are already rising, and shortages are emerging. Other costs may far outpace those in China. The bill for constructing Apache's India factory was almost three times what it would be in China, the company estimates, because the Indian government required that it be built to strict British specifications on the materials used. Frequent power and water shortages mean Apache has had to provide its own expensive backup systems for its Indian plant as well. "Adidas says we should move as fast as we can to India. But productivity in India is 65% to 70% the level of China," says Charles Yang, Apache's executive general manager. "If we ramp up too fast in India, we may shoot ourselves in the foot."

KINDERGARTEN AND CAMP
Fear of stumbling abroad has led many manufacturers to seek even more productivity gains in China. "The most important thing we can do to cope is to raise our efficiency," says Li Dongsheng, chairman of top Chinese electronics maker TCL. Some are trying automation. Reducing employee turnover—which nears 75% annually at many Guangdong companies—is another way. That's why Apache offers perks like a kindergarten and even a summer camp for employees' children to learn English. It has just finished building 280 apartment units it will sell at below-market prices to its married employees. "We are trying to make it feel like home here," says Yang. "It stabilizes your workforce."

Will these efforts keep a lid on the prices of products coming out of China? Probably not. For years manufacturers have met the demands of U.S. retailers to lower their prices. But their backs are finally to the wall, says Charles Swindle, a senior vice-president at Hong Kong's Flora Forté, which uses 20-plus China factories to make home decor items for Bed Bath & Beyond (BBBY), Wal-Mart (WMT), and major U.S. department stores. "I know factories are turning down millions of dollars in orders because they will lose money if they take them."

The next step is inevitable, says the American Chamber's Seyedin: "There will be a rise in the prices of shoes, textiles, and all kinds of household products." Geoffrey Greenberg, president of Creative Designs International, saw the cost of toys and costumes he acquires from Guangdong factories rise as much as 25% last year. He recently passed on price hikes of up to 10% to his customers, including Wal-Mart and Kmart (SHLD).

Some manufacturers will try to avoid those increases by finding cheaper locales deep inside China. "The answer to high prices in China is more China," says William Fung, Hong Kong-based group managing director at the world's biggest consumer-goods sourcing company, Li & Fung. "There are still places like Sichuan or Hunan that are cheaper."

But there are plenty of signs that labor costs are rising in cities such as Chengdu in Sichuan and Changsha in Hunan. And no matter where they relocate on the mainland, manufacturers face the same newly stringent labor law, high commodity prices, and pressure from the ever-climbing currency. That has major implications for the global economy. "Unlike in the last 20 years, when China exported deflation, from now on, China will export inflation, " says Peter Lau, CEO of Hong Kong retailer Giordano International, which has extensive operations in China. "Consumers will have no choice but to accept the new reality. They should get psychologically prepared."
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My thoughts

"Unlike in the last 20 years, when China exported deflation, from now on, China will export inflation, "

The world is ever changing. I still remember the time that many of business men or enterprises went over sees to establish their factory in China for everything was cheap in there. But it didn’t last long. Even it took only 20 years to lose her competitive. Now Vietnam and India rises as China rose in the past. Main reason for losing competitive of the China is government’s policy. Regardless of good or bad, government’s policy makes harder to do business in mainland in China for foreign companies. Most of them are either closing their business or looking for a place to move their factory. However, in my opinion, it is hard to say that Chinese government is doing wrong for the complexity of the situation but one thing I could say on this seen is that the companies should take a good look at the close environments as well as global situations. And they also should know the right time to make a significant decision. The world will still be changing ever. And business people should live with this never changing true.

20653023 Entry # 3

2008-03-28T16:18:00.000+09:00

It won't be an overstatement to say that I was impressed by video clip about generating energy we were showed other day in our Business Strategy class. And professor Lee's question: "what as Christians can we do to help to prevent and/or solve energy crisis" prompted me to think more about my position regarding this issue. I'm not an inventor and never will be one. But as a global citizen, what can I do to show that I care for my home, the Earth.

There are some things I got so far as answers. One of them is
SLOW DOWN A LITTLE, SAVE A LOT OF GAS.

(on the picture: 2008 Ford Edge: Aerodynamic design is an important factor in fuel economy, especially at higher speeds)

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Speeding on the highway adds a surprising amount to your fuel costs.
NEW YORK (CNNMoney.com) -- With gas prices rising, gas-saving advice abounds: Drive more gently, don't carry extra stuff in your trunk, combine your shopping trips.
This is all sound advice but there's one driving tip that will probably save you more gas than all the others, especially if you spend a lot of time on the highway: Slow down.
In a typical family sedan, every 10 miles per hour you drive over 60 is like the price of gasoline going up about 54 cents a gallon. That figure will be even higher for less fuel-efficient vehicles that go fewer miles on a gallon to start with.
The reason is as clear as the air around you.
When cruising on the highway, your car will be in its highest gear with the engine humming along at relatively low rpm's. All your car needs to do is maintain its speed by overcoming the combined friction of its own moving parts, the tires on the road surface and, most of all, the air flowing around, over and under it.
Pushing air around actually takes up about 40% of a car's energy at highway speeds, according to Roger Clark, a fuel economy engineer for General Motors (GM, Fortune 500).
Traveling faster makes the job even harder. More air builds up in front of the vehicle, and the low pressure "hole" trailing behind gets bigger, too. Together, these create an increasing suction that tends to pull back harder and harder the faster you drive. The increase is actually exponential, meaning wind resistance rises much more steeply between 70 and 80 mph than it does between 50 and 60.
Every 10 mph faster reduces fuel economy by about 4 mpg, a figure that remains fairly constant regardless of vehicle size, Clark said. (It might seem that a larger vehicle, with more aerodynamic drag, would see more of an impact. But larger vehicles also tend to have larger, more powerful engines that can more easily cope with the added load.)
That's where that 54 cents a gallon estimate comes from. If a car gets 28 mpg at 65 mph, driving it at 75 would drop that to 24 mpg. Fuel costs over 100 miles, for example - estimated at $3.25 a gallon - would increase by $1.93, or the cost of an additional 0.6 gallons of gas. That would be like paying 54 cents a gallon more for each of the 3.6 gallons used at 65 mph. That per-gallon price difference remains constant over any distance.
Engineers at Consumer Reports magazine tested this theory by driving a Toyota Camry sedan and a Mercury Mountaineer SUV at various set cruising speeds on a stretch of flat highway. Driving the Camry at 75 mph instead of 65 dropped fuel economy from 35 mpg to 30. For the Mountaineer, fuel economy dropped from 21 to 18.
Over the course of a 400-mile road trip, the Camry driver would spend about $6.19 more on gas at the higher speed and Mountaineer driver would spend an extra $10.32.
Driving even slower, say 55 mph, could save slightly more gas. In fact, the old national 55 mph speed limit, instituted in 1974, was a response to the period's energy crisis.
It was about more than just high gas prices, though. The crisis of the time involved literal gasoline shortages due to an international embargo. Gas stations were sometimes left with none to sell, and gas sales had to be rationed. The crisis passed, but the national 55 mph speed limit stayed on the books until the law was loosened in the 1980s. It was finally dropped altogether in 1995. (The law stuck around more because of an apparent safety benefit than for fuel saving.)
Despite today's high gas prices, don't expect to see a return to the national 55 mph speed limit. The law was unpopular in its day, and higher speeds have become so institutionalized that even the Environmental Protection Agency's fuel economy test cycle now includes speeds of up to 80 mph.
Driving 10 miles per hour faster, assuming you don't lose time getting pulled over for a speeding ticket, does have the advantage of getting you to your destination 50 minutes sooner on that 400 mile trip. Whether that time difference is worth the added cost and risk is, ultimately, up to you.

References:

http://money.cnn.com/2008/03/26/autos/slow_down_save_gas/index.htm?postversion=2008032711

20500198 entry #3

2008-03-27T20:51:00.000+09:00

I think that we must do FTA with many countries. This article shows the result of FTA with Chile and Singapore. There has been a huge increse in the amount of trade with that country. And the market share rate has been grown after FTA, in especially automobile in Chile. In macro economic class, I've learned that the protectionist trade policies doesn't change the trade condition. It just raise real exchange rate. It can decrease the amount of import. But because of the increase in real exchange rate, the amount of export also decrease. So net trade is fixed. For these reasons, I think that we have to do FTA with U.S.A, E.U and also with another many countries.

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Chile, Singapore FTAs firing on all cylinders -2008/03/28

Korea's experience with its first two free-trade-agreement partners -- Chile and Singapore -- is proving to be favorable for both trading partners, government studies showed yesterday, countering negative notions held by opponents of market liberalization.
The upbeat report released by the Ministry of Foreign Affairs and Trade in Seoul found that two-way trade between Korea and Chile has jumped more than four-fold to $7.53 billion from the $1.85 billion recorded before the FTA.
The report comes as the two countries celebrate on April 1 the fourth anniversary of the FTA's implementation. Underscoring the positive impact for Korea's export-driven economy, the study said the country's exports to the South American country expanded more than six-fold to total $3.3 billion as of last year, compared with $500 million in 2003.

......

In the same year, demand for Korean automobiles reached No. 1 in Chile, with a market share totaling 29.3 percent, surpassing Japanese cars, which made up 25.2 percent. Before the trade pact, Japanese cars accounted for 23.5 percent and Korean ones were 18.8 percent.
Between April 2007 and February 2008, exports to Chile totaled $3.3 billion, a 92.3 percent surge from a year ago. By category, demand for cars jumped 38.9 percent, steel plates 63.1 percent, tires 47.2 percent and gasoline 211 percent.

......

With Singapore, Seoul's second FTA partner -- which took effect in March 2006 -- bilateral trade has soared 51.2 percent to total $20.3 billion into the second year this year, compared with $13.4 billion seen before the FTA. Throughout the same period, Korea's trade deficit with Singapore shot up 151 percent to $5.8 billion from $2.3 billion.
The market share of Korean goods in the Southeast Asian nation, however, rose to 4.9 percent in 2007 from 4.3 percent recorded in 2005, the ministry report showed.
Products that posted the biggest surge in exports since 2006 were petroleum, which rose by 834.8 percent, ships (500.3 percent), and miscellaneous petrochemical products (189.7 percent). Growth in imports from Singapore was led by semiconductor-related items (380.7 percent), computers (96.3 percent), and computerized recording devices (73.4 percent).
New investments into the country from Singapore throughout the past two years averaged $540 million a year, more than a two-fold jump from the annual average of $270 million attracted between 2001 and 2005 before the free trade pact. Major areas of investments were the finance and insurance industries, totaling $270 million, followed by electrical and electronics firms with $160 million, and property leasing companies with $130 million.

Trade experts say success of a free trade deal comes with the effort to make structural reforms, improve competitiveness, and create a safety net, especially in the case of the agricultural sector, which would face reduced income resulting from a drop in agricultural prices.

From. http://www.koreaherald.com/ 2008/03/28

20000612 Entry #2

2008-03-25T14:06:00.001+09:00

Korean new government is trying many different policies for poor people.One of the policy is to make market prices stable. Government posted 52 necessities of life stabilization policy. One of the important thingis to make a change in oil market. Especially enabling large marts tocompete in the oil market. Its strategies to lower the price of oilsfrom market competition of oil companies and large marts.This is pretty common in developed countries, but this is not so commonconcept to implement this strategy in Korea. Because no one knows ifthe large marts are actually going to enroll the oil market. The first reasonis that most international oil price is higher than national price.Second is that even though international price lower than national, it isstill too expensive if transportation is added. Third is that the governmentlowered the tariff to 1%, but it is not permanent. There will still bemany problems to consider before this policy.

20600370 entry

2008-03-23T12:45:00.000+09:00

At the midst of deteriorating decline a lot of retail companies are looking for some ways to keep the sales up. Wal-Mart is one of the models which structures are followed in order to sustain retail business. The reasons for deterioration decline are: there are too many stores now that provide good discounts.
So what are the ways Wal-Mart uses to keep customers "come back a little bit more often?" One of the ways is advertising. Wal-Mart is known for sharpening advertisements where they are more "into pop-culture" style.
Another thing Wal-Mart is known for is store refurbishment. Wal-Mart invests a lot of money for renovation. As a result the stores have brighter lightening and wider aisls. The study shows that a customer stays in those shops forteen minutes longer than in other stors.
The third stretergy, Wal-Mart opens new stores. They say "If you are opening fewer stores, you are not diminishing the return." This is "an extreme method" for adding moew checkout lines when you have a geografic saturation. As a result shoppers celebrate a less crouded stores by spending more money.

The last stretergy which is onpening fewer shops seems controvercial to me. People have thins perception "the more people, the better product. " Also, I think people are attracted more to more crouded placed rather than empty. However, in case the store are too saturated, taking this step does make sense.

20500198 entry #2

2008-03-22T23:28:00.000+09:00

From 2005, Kyoto set-up has started. And in many countries, the ETS, emission trading system, was appeared. And it effected much to a lot of industries, especially energy intensive industry. But it was not perfect. In fact, U.S.A refused this set-up and they hadn't applied to industry being within their land. It makes the europian companies less competitive than american companies. It was nonsense. So finally, EU have decided that if the all companies of the world doesn't be in the boundaries of Kyoto set-up, they make their companies emit freely. I think from now on, the result of this decision is very important to korea, also. If all companies of the world will have to be obey the Kyoto set-up, a lot of companies will be in the boudary of that. It will create much new cost and make the company less competitive. The goverment and company should prepare about this.

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CO2 Leeway from EU for Heavy Industry
The EU offers safeguards to industry if a global climate change deal falls through and the bloc must implement new pollution rules

Energy intensive industries have won some concessions from the European Commission when it comes to taking part in future legislation to reduce greenhouse gas emissions in Europe.
Following an EU summit in Brussels on Thursday and Friday (13-14 March) and the intervention of several member states -- including economic powerhouse Germany -- Brussels has offered safeguards to energy intensive industries such as steel and cement factories on its proposal to force them to buy rights to emit carbon dioxide by auction.
If next year's international negotiations on a new climate change deal fail, then certain measures will kick into place, with industry in these sectors worried that they will lose their competitive advantage if forced to buy pollution rights when companies outside the EU continue to benefit from laxer environment rules.
Trade unions have also warned of severe job losses if European companies choose to relocate to avoid the EU's strict pollution rules.
"I am particularly happy with the solution for energy-intensive industry and carbon leakage," the European Commission President Jose Manuel Barroso said after 27 EU leaders had wrapped up their traditional spring gathering.
The summit conclusions suggest that "appropriate measures" will be taken "if international negotiations fail." At the end of next year, governments will try and agree a new climate change agreement for after 2012, when the current Kyoto set-up runs out.
Energy intensive industries in Europe are to be offered two assurances should there fail to be a global agreement. They may get free pollution permits -- instead of having to buy them by auction -- linked to technological benchmarks, while the EU could also make foreign companies take part in the emissions trading system (ETS).
"This is a very credible response" to some EU states' and industries' fears, Mr. Barroso said of the compromise.
However, the commission has refused to list concrete industries, which could possibly be subject to the safeguards. It argues it should reflect the outcome of international talks on climate change in December 2009, as it may result in a sectoral deal.
Energy intensive industry has been up in arms since Brussels in January proposed overhauling the ETS, seen as key to achieving the bloc's goal of reducing CO2 emissions by 20 percent by 2020.
Under the new-look system, EU member states will no longer be able to grant pollution permits to their companies. Instead, the national allocation plans would be replaced by auction.
EU leaders agreed, however, that "an international agreement remains the best way of addressing this issue" -- something that should give the 27-nation bloc a better negotiating position at the United Nations climate change conference in Copenhagen in December 2009.
"The current system based on national caps of emissions did not provide enough guarantees" for achieving the overall 20ghkgogkwk20 goal, said Slovenian Prime Minister Janez Jansa, whose country currently holds the rotating presidency of the EU.
But he also mentioned concern over the possible relocation of EU companies to countries beyond the EU that could cause serious both social problems at home and a global rise in greenhouse gas emissions.
"This is a dual concern, so we need to pay specific attention to that," Mr. Jansa said.
"An international agreement must provide equal conditions for all. Our industry, especially energy-intensive industry expects - and they are right in doing - that we will have a suitable solution."

From www.businessweek.com March 18, 2008

20500198 entry #1

2008-03-22T20:33:00.000+09:00

I once thought Samsung and LG electronics of korea is the best company in the field of cellular phone. But now i know that Nokia of finland is the best company in that field. Samsung is 2nd, and LG is 3rd company in that part. When i see this article, i hope that one of two korean company buy the motorola's cellular phone part. I think that it can make the company that buy that part the first company in that field. But there was bad case on BenQ, the taiwaness company. So it must be very cautious and careful. But i think it will have to proceed by one of korean company. I don't want that japanese or chinese company make the legend.

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Asian Companies Wary Of Motorola
Why handset makers Samsung, Sony Ericcson, and LG aren't lining up to buy the struggling U.S. company's mobile-phone division

Once Motorola (MOT) revealed on Jan. 31 it was considering selling its handset division, speculation about a possible buyer quickly focused on companies in Asia. For all of its woes, Motorola still has a sizable presence in the U.S. market that might prove appealing to an ambitious Korean or Japanese brand, or an up-and-coming Chinese company.
No Asian company has yet stepped forward to express interest in striking a deal. And analysts who follow the industry see the beleaguered asset as a tough sell in Asia. "If you take a coolheaded approach to the handset business, I don't think any major industry player will want it," says Greg Roh, electronics analyst at Korea Investment & Securities in Seoul. "It is not a case of one plus one equaling two.…A takeover and ensuing restructuring could be costly and dangerous."

BenQ's Cautionary Tale
A big reminder of the difficulties is the collapse of the highest-profile attempt by an Asian company to acquire a struggling Western cellular brand. In 2005, the Taiwanese electronics group BenQ, which had won respect in the telecom and computer industries for its innovative design and was making headway establishing its brand worldwide, tried to jump-start its global push by buying the struggling handset unit of Siemens (SI). The deal proved far too big for the Taiwanese company, though, and in 2006 BenQ Siemens went bankrupt.
The damage didn't end with the handset division, though, and last year BenQ took on a new name, Qisda, and a new strategy to focus on contract manufacturing. "Recent rumors of strong Chinese interest [in the Motorola unit] make sense only if [Chinese companies] have short memories or are not familiar with the BenQ-Siemens fiasco," says David Kerr, vice-president for the global wireless practice at Strategy Analytics.
As BenQ's experience illustrates, in the fiercely cutthroat handset market, a misstep could push a manufacturer way behind rivals, and achieving synergies could take time. A foreign takeover would probably involve the headache of integrating vastly different operations and clashing cultures, which could discourage any potential buyer from courting Motorola, particularly when its existing strategies are working. "It could be a dangerous undertaking," says Michael Min, a specialist on information technology companies at fund manager Tempis Capital Management.
......

From "Businessweek" -February 4, 2008

20300244 entry 2

2008-03-21T23:18:00.000+09:00

20300244 entry 1

Global economy is doing bad recently. It looks almost crazy. The Oil price and the raw metarial price are keep going up. Exchange rate has been change so big in short time period. Down fall of global economy is caused by bad credits and price rising for raw meterials and oil. Global economy effects on every nations and specailly on Korea. Korea is havily relating on other country's economy that it is doing its many major businesses abroad. So I think it is very crucial to find resources at a relevantly low price to have our economic competence. So I support the Governments policy on resources.
---------------------------------------------------------------------------------------------

Private think tanks warned yesterday that the Korean economy may experience stagflation, which is a combination of stagnation and inflation.
The warning came after the central bank announced that commodity prices, the leading indicator of consumer inflation, hit a 9-year-high in February.
A report by the Samsung Economic Research Institute warned that the Korean economy could possibly fall into stagflation due to the slowing global economy which is a result of the U.S. economy's slowdown and global inflationary pressure.
"The U.S. economy has entered a recession, according to recent negative economic indices. The world will show signs of mild stagflation due price hikes in raw materials, led by the weak dollar and increased global liquidity," Kwon Soon-woo, a research fellow at SERI, said in the report.
"The Korean growth rate is also slowing, while inflation is expected to rise," he said.
Another private think tank, the Hyundai Economic Research Institute, warned that Korea urgently needs to boost its domestic demand, in case global stagflation stemming from the U.S. recession hits Korea.
"The U.S. central bank's interest rate cut has eased the credit crunch, at the expense of giving up control of rising inflation. Eased capital will flow into crude oil and commodity markets, fueling global inflation," Ju Won, a Hyundai research fellow, said.
According to BOK data, raw material costs year-on-year jumped more than 45 percent the last two months, adding to worries over the already high inflation rate of 3.6 percent in February.
Observers warn that inflationary pressures will discourage corporate investment and employment, which in turn could undermine consumer income and private spending.
The Korean economy is slowing down. Although President Lee Myung-bak's government set the growth target at 6 percent for 2008, the central bank and global investment banks already have revised that down to 4.7 percent to even 3.6 percent.
Whether an economy is experiencing stagflation can vary from country to country.
In the case of the United States, economists call it stagflation when the GDP contracts for two consecutive quarters, and inflation rates breach the central bank's target for two consecutive quarters.
In the case of Korea, there is no clear definition of stagflation. However, economists say that, if the economy fails to meet the potential growth rate of 4.5 percent, or remains sluggish at 3 percent level, then the economy would be in a recession.
Korea achieved a 4.9 percent growth last year.
"I wouldn't call the current situation stagflation. But I agree that the recent developments regarding inflation are worrisome," said Lee Geun-tae, a research fellow at the LG Economic Research Institute.
"It remains to be seen whether oil prices will stabilize and bring down inflationary pressures in the second half," he said.

from Korea herald, date of 21 mar 08

20300244 entry 1

2008-03-21T23:06:00.000+09:00

Hynix gave big purchase for its partnership with Fedelix. Hynix is already second biggest company for its market share. Though they are one of the top they still need to find out their
way to keep growing the company. I think it's similar to human. For human to pursuit their
happiness they are to find creative way of life every day. No one wants to have same days always. Likewise inovating or growing company as finding its differciation is not trial but the
way it is.

----------------------------------------------------------------------------------------

Hynix Semiconductor Inc., the world's second-largest maker of DRAM chips, has signed a partnership deal with a local fabless chip company, the company said yesterday.
Under the agreement, Fidelix will design DRAM chips for Hynix while the latter provides foundry services in return. Fabless semiconductor firms such as Fidelix design chips and market them but outsource the fabrication to foundries.
Hynix will spend about 3.5 billion won ($3.45 million) in acquiring a 10 percent stake in Fidelix.
Based in Seongnam, south of Seoul, Fidelix provides fast-speed memory solutions required in the area of mobile communication. Revenues stood at 63.2 billion won in 2007.
(milaya@heraldm.com)

20400512 Entry 2

2008-03-21T16:44:00.000+09:00

Borders hoists for sale sign
Source: http://money.cnn.com/2008/03/20/news/companies/Moritz_borders.fortune/index.htm

Another company in trouble...
Just exactly how much does a company have to work to stand on their feet??
Reading about another company having to sell everything has got me to double thinking on how much needs to be spent just to not fall behind.
R & D is not just one day thing, you always have to work and work till you get a breakthrough.
As a person thinking about doing business in the future reminded me that the business market is a tough place.
Got to strong and not back down on anything.

20400512 Entry 1

2008-03-21T16:37:00.000+09:00

Source:
http://money.cnn.com/2008/03/20/news/economy/fed_emergency_lending.ap/index.htm?postversion=2008032017

Reading this news article has got me to rethinking of how much companies need to do constant R&D just to stay "alive" in the business world.

Even big corporations such as Wall Street needs investments in order to keep their company running.

As FED constantly lends out to big corporate banks, my question on this is how long will it last and will they be able to survive in the future???

20653023 Entry # 2

2008-03-21T10:07:00.001+09:00

More About M&A

Last class we talked about M&A (merger and acquisition) strategy. According to The Jordan Edmiston Group Inc., the number of deals through 2007 is 838 across 11 industry sectors with a total value almost $109 billion. Do the math and that is $130 million per deal. Quite impressive, isn't it?

So, JEGI provides us with data that online media and marketing services deals led the way with 555 recorded transactions with value $43 billion (Google, Microsoft, Yahoo and AOL)

There are some of those transactions:

Yahoo! Acquires Zimbra for $350 million
Yahoo! Acquires Rivals.com for $100 million
Yahoo! Acquires Blue Lithium for $300 million
Yahoo! Acquires Right Media for $750 million

Google Acquires Postini for $625 million
Google Acquires Grand Central for $45 million
Google Acquires Feedburner for $100 million
Google Acquires Doubleclick for $3.1 billion

Nokia Acquires Twango for $96.8 million
Nokia Acquires Enpocket
Nokia Acquires Navteq for $8.1 billion

Microsoft Acquires Medstory
Microsoft Acquires TellMe for $800 million
Microsoft Acquires aQuantive for $6 billion

eBay Acquires Stubhub for $310 million
eBay Acquires Stumble Upon for $75 million

AOL Acquires Third Screen Media
AOL Acquires Tacoda for $275 million

Cisco Buys Webex for $3.2 billion
Answers.com Acquires Lexico for $100 million
News Corp. Acquires Dow Jones for $5 billion
MySpace Acquires Photobucket for $250 million
R.H. Donnelly Acquires Business.com for $345 million

So, why make acquisitions?

One of the answers is "growth". It was observerd that M&A provides with more rapid growth rather than organic.

Besides, there are more several reasons for M&A such as:
1. To acquire new capabilities or add to existing one
2. To establish a business model
3. To lower cost
4. To improve market position

To succeed in M&A The Boston Consulting Group suggests to take followed steps:
1.Thoroughly test the upside potential of the acquisition based on original recent research
2.Access the internal impact of the deal
3.Quantify the cost of inaction
4.Carry out pre-M&A exercises
5.Establish opening and closing bids in advance.

References:
http://seekingalpha.com/article/58714-the-top-m-a-deals-of-2007
http://www.growingbusiness.co.uk/06959143454024511016/mergers-and-acquisitions.html
Successful M&A: the method in the madness by BCG

2 entry by 20653023

20653023 Entry # 1

2008-03-20T22:56:00.000+09:00

CJ Home Shopping adds Ford Escape to list

Ford Motor Company introduced the Escape in 2001 and it quickly became a bestseller in American SUV (sport-utility vehicle) market for its correct combination of size, power and stylish looking. And now Ford is trying to get big slice of Korean market with new dealer: a home-shopping network. On March 18, 2008 CJ Home Shopping Company, one of Korean leading television retailer, said it will sell directly this car to consumers starting Friday, March 21. Price for this car will be $28,840 (29.7 million won). According to the home-shopping company it's slightly higher than for similar Korean-made car, Hyundai Motor's Santa Fe.
It's first time when a home-shopping company tries to sell a car. GM Daewoo Auto's attempt failed due to resistance from their labor union.
So, Ford is the first automobile company which trying to reach their customers through TV channels so far.
Thanks to ease of shopping and others benefits offered Korean home shopping channels quite successful. So, in my opinion it's a good strategic move in reaching more customers.
SUV market is on its maturity stage (even it's still pretty big declining) and we can observe some characteristic of that stage we discussed on our Buisness Strategy class: price war, ads war and introduction of new or updating previous models. Another thing we know about maturity stage is that during the maturity stage, firms will try to sell their product through as many outlets as possible because availability is crucial in a competitive market. And it’s exactly what Ford tries to do on Korean SUV market.

FYI:
Top 10 Least Expensive SUV of 2008

1. Jeep Patriot

2. Kia Sportage

3. Jeep Compass

4. Hyundai Tuscon

5. Jeep Wrangler

6. Ford Escape

7. Mazda Tribute

8. Honda Element

9. Nissan Rogue

10. Suzuki Grand Vitara

References:
www. edmunds.com/reviews
www. joongangdaily.com
www. forbes.com

1 entry by 20653023

2008-03-14T21:12:00.000+09:00

Since it is very easy nowadays to get cheeted, we have to be careful with choosing our business partners, providers, or even consumers. I liked this articles about choosing the best loaner because it could be very useful in our daily life.

Choosing The Best Lender
When shopping for a loan, it's important to compare lenders as well as loan offers

You're shopping for a mortgage and you've received four offers from four lenders. How do you choose? The first factor most people consider is the interest rate and other costs, but that's only the beginning. You'll also want to think about the lenders themselves, not simply the numbers they're tossing your way.
Here are five steps to follow when determining which lender is right for you:

1. Compare fees as well as interest rates
Comparing loans based on their annual percentage rate (APR) is a good place to start, but it's not enough. In the case of a mortgage, to get a more accurate breakdown of costs, ask the various lenders for a formal "good faith estimate" of all the fees you'll incur with your loan -- this is a standard form lenders must provide you that is more detailed than the overview you'll get with an offer. Also, ask about potential charges that may not appear on that list, such as prepayment penalties. You're not just comparing numbers here: determine how honest and upfront you feel the lender is being, and don't use a lender that you feel is evading your questions.

2. Consider your individual circumstances
Bigger lenders aren't necessarily better than smaller ones, especially if you have unusual circumstances. For example, some lenders specialize in loans for people with poor credit, while others may have more options for those with small down payments. If you have special borrowing needs, look for a lender with experience working with people in similar situations.

3. Look at the range of loan types available
There are more loan options available than ever before, so take advantage of all that choice. Look for a lender who offers a wide variety of loan types, from conventional fixed-rate and adjustable-rate to newer ones such as hybrid ARMs and option ARMs. Your lender should be able to match you with a mortgage that's right for your financial situation and risk tolerance.

4. Evaluate the level of customer service
When you're comparing offers, ask each lender about their policy regarding locking in their quoted rates and see whether there is a fee. Also, ask them to amend one of the terms (such as a payment cap) and see how willingly they agree. You're looking for flexibility and responsiveness. And also note how well they listen to you. If you ask for a 30-year fixed-rate mortgage, they ought to present that as an option, not push you toward something different, such as an interest-only loan. If you're not getting good service from a lender who is competing for your business, you're not likely to get it after you've agreed to work with them.

5. Check out the lender's reputation
Word of mouth is important in every business, including the loan market. If you've never worked with a particular lender, you'll want to find out the opinion of people who have.

Another week

2008-03-14T19:23:00.000+09:00

Another week...
The 2nd week of the school has passed...
Time really does fly by fast.
Already 4 classes of Business Strategy done and about few "hundred" more to go.
Does age matter when your in the business world??
Or is it the same everywhere? It's at the level where you're at that makes the difference.
Being the 2nd y0ungest in the team, there's a lot of burden on my shoulders but let's not cower away but face up to the challenges.
No pain no gain and it's better to take the risks than not right??
So... let's just get on with it!

wHo Am I?

2008-03-09T23:27:00.000+09:00

My name is John Park. I am 25 years old. I came to Handong in 2003, and I've been taking Management & Economics course. I love music.

I love to try delisious foods. I am good at basketball. My dream after I graduate is being a business missionary. I want to know Jesus more and more. And I also want to know how business works more and more. :)

Kim Katherine's Story

2008-03-09T22:46:00.000+09:00

Was born and grew up in Uzbekistan.

Influenced a lot by Russian culture.

Handong is my fourth and the longest visit to Korea so far.

Did internship in 신한은행. So, familiar a bit with Korean corporate culture.

I'm indeed one of so-called TCKs (Third Culture Kid) with all consequences.

Studying Business, field of Global Management and Leadership.

Hope to graduate in August 2008.

Much of my enjoyment comes from music, nature, good friendships and hanging out with my Daddy God.

If you'd like to know more about me, please, go to http://www.facebook.com/profile.php?id=592740578

About me

2008-03-09T22:28:00.000+09:00

Name: Irina Sim
Birthday: 28.11.84
Major: GM & English
About me: I was born in Uzbekistan and lived there for 21 years after that I came to study to Korea, and my childhood dream came true. I am the younger daughter in my family. I like dancing, getting to know different cultures, reading fiction and just dreaming. ^^

Introduction

2008-03-09T20:38:00.001+09:00

Profile

Name : Se-Hwan Park 朴世桓

D of B : 1981. November. 22nd

Major : Management and Economics

Address : Seoul, Korea

Career : Intership at Ahnlab Co.

Director at Pharos English Camp

School : Handong Global University (00~)

Abbotsford Jr and Sr High (96~00) Canada

Daelim Middle School (94~95)

DaeGil Elementary (88~93)

Hobby : Piano, Ski, Web Surfing, Watching movie

Introducing Sungmin Jang

2008-03-09T19:03:00.001+09:00

Name: Sungmin Jang
Birthday: 1985/07/31
Class: 2004 (Junior)
Majors: Management and English
A little bit about myself: Was born in Korea but left when I was 5 and grew up in the Philippines for 13 years. Studied from Kinder to Highschool in the Philippines and returned to Korea December of 2003. I attended Handong for 2 years and left for the army. Now I'm back as a junior to finish college.