Entrepreneur + Explorer = Entreplorers

#14 20501036

2008-06-13T13:06:00.000-07:00

Public service idea can be a business opportunity!

Summery -

Surviving in the saturated market is very difficult, if you don’t have competitively superior area on your business or idea.
In the article, however, he, the owner of the restaurant, makes remarkable success only with his idea. Actually the idea originally comes from social movement. The reason of movement was to create employment opportunities for blind and visually impaired people, and the first venture, the blindekuh in Zurich, opened in 1999 and is claimed to be the world’s first dark restaurant. Since then, the restaurant concept has been subsequently replicated elsewhere, including Paris, Berlin, London and multiple cities in Canada, United States, Russia and Australia, also in China. However, this dark restaurant (Whale Inside Dark Restaurant - Jujingdu Hei'an Canting; literally big whale stomach dark restaurant) in the central business district's funky Jianwai Soho complex, does not hire a blind people. He just thinks about the business, he took only the concept – meal in the darkness.

How he made success?

Right target and understanding of target market
Founder of the restaurant, he was not a person actually start this business. It was started by European country and they start it to get an experience suffering of disable people and give opportunity of work to the blind people . However, as he targets the young professionals who are willing to pay for special event, it would not be succeed when he just copy what European do, because Chinese relatively less interested in critical mind toward disable people.

As a business model to making a benefit, dark restaurants in china hired employee who has experience but who are not blind. So, when they serve the customer, they use night vision goggles so they can give a service in the darkness.
Conversion of idea and modification for targeted market can bring an opportunity to create new niche market.

http://spanish.hanban.edu.cn/english/China/195370.htm

http://events.nytimes.com/2007/07/22/travel/22surfacing.html

Entry #14 20300156

2008-06-13T05:22:00.000-07:00

Companies keep cool on the cheap

June 11, 2008

Korean Air employees at company headquarters in central Seoul ditch their neckties to keep cooler without cranking up the air-conditioning as a part of a campaign to reduce energy costs due to the recent surge in fuel prices. Provided by the company

Every drop of oil means big money as surging energy costs hit local companies. Besides taking drastic measures, including suspending business operations and cutting airline routes to compensate for energy-related losses, companies are taking small but effective steps to reduce energy spending altogether.

Because wearing a necktie is said to keep a man’s body temperature 2 degrees higher, employees at Korean Air, the nation’s flagship carrier, are taking off their ties to save energy. The company announced that from yesterday until Aug. 31, all employees are encouraged to leave their neckties at home, except for employees like flight attendants, who must wear them for service reasons. Through the move, the company hopes to save on air-conditioning costs.

The Lotte Group is following suit. Lotte Mart and Lotte Department Store have both launched “Cool Biz” campaigns in which employees are encouraged to ditch their ties. Also, Lotte Department Store’s main branch in central Seoul has switched its energy operating system to include inverters, which are more energy-efficient.

“We plan to switch all energy operating systems in our 24 department stores to this new system by the end of the year,” said Oh Yong-suk, public relations manager for Lotte Department Store. “We can save an estimated 2.3 billion won [$2.2 billion] on energy per year if we use this new system in all our branches,” he added. Discount store Lotte Mart is raising its air-conditioning temperature by 1 to 2 degrees in all its branches as well as lowering its lighting wattage to save on energy.

Shinsegae Department Store and its affiliate discount store E-Mart also announced an ongoing “Energy Diet” campaign earlier this year. Temperature-control equipment in all offices and stores will be replaced to include fuel-efficient inverters and chiller control systems, through which sensors keep indoor temperatures at an optimal level. The company plans to invest 2.5 billion won in the program. Signs and advertisements will be lit for a few hours less every day. “In the short term, we are expecting to save money on energy but in the long run, we see this as our environmental campaign to reduce greenhouse gas emissions and unnecessary energy spending,” said Yun Myeong-gu, director of the business ethics division at Shinsegae.

Convenience stores, which are open 24 hours, are joining the trend. The GS25 chain is also raising stores’ temperature by 1 to 2 degrees this summer and turning off unnecessary signs. To save energy used by refrigerated shelves, the company inserted “air curtains” to keep in the cool and put up deeper shelves so that products stay closer to the refrigerators. A “Transportation Management System,” which keeps delivery routes from suppliers to stores as short as possible, was implemented to save on fuel.

I thought the best important of business strategy is maybe making low cost. This policy is so interesting strategy and i thought it can cause increase effiency of working of employees. High price of oil made many policies of companies. There were so many bad effects. However, in other side aspect, there were good effects for naturl environment. For slow global warming, human should reduce oil consuming. I recomend that many company should change the think of this situation to positive -making 'Air curtain' is good idea for small company. If they did, they can make one more step than other competitors.

http://www.joongangdaily.joins.com

# 14 Entry_ 20500297

2008-06-12T22:01:00.000-07:00

'The Escalator Pitch'

Veteran entreplreneurs and financiers have long understood

the need for succinct pitches.

Enter the Twitpitch. It's not what you think.

I. Have you heard Escalator Pitch?
Professor Lee once mentioned about 'elevator pitch' in class. I don't exactly remember whether it was in Marketing class or Business strategy class, but for me it was quite impressive. Escalator pitch is like elevator pitch, something you can say in 10 seconds while he's going up the escalator and you're going down the escalaror. Then what makes a good escalator pitch? Principal of FutureWorks PR says "brevity and relevance." It's about focus and precision, and it needs to be aligned and presented in a way that reflects who you write to and why it's beneficial to your readers. Sergey Brin and Larry page, two top Google guys, were good at this, explaining their business as 'access to the world's information in one click', which made investors understand Google's vision right away and willing to hear some more about it. With only 8 words!

　　　　　　　　　　

　　　　　　　　　　
II. Products? IDEA!
Svetlana Gladkova, co-founder of Boyd, says that when you are actually talking about your product, it's your IDEA. "You will find the words, and if you can't, it may be a sign that your product is not distinct from compeititors." (quoted) Small, and unknown startups need to think of escalator pitches as their foundations for their brands. Introducing your business in a very short, but strong sentence is the key of attracting investors and customers interest. The real value is not how many sentences you say, but it's rather about how effective, how strong, and how impressive you are and what you say.
　　　　　　　　　　
　　　　　　　　　　

III. Personal Opinions
Business Strategy class was such a challenge for me. There were too many concepts to know, and this business world is more complicated than I expected. However, one thing I completely figured out is that how you approach to your customers is significant. As this article says, effective expression of your business or product like either elevator pitch or escalator pitch changes a foundation of your brand. You should have a short, strong, effective, precise, impressive, and powerful message to deliver your vision, mission, and commitment to your investors and customers. We have a tendency to neglect small things, but sometimes people are touched by a very little thing, like a note saying 'cheer up' or even just saying 'hi' with a big smile on your face. It can change your image and also the image of your company. Among lots of elements that you need to consider as you start your business, specific expression strategy that is able to convey what you really want to say should not be excepted.

　　　　　　　　　　
Both in Marketing class and Business Strategy class, professor Lee emphasized "differentiation" and "innovation". Being distinct from other competitiors, being more speicific from other competitors, and being more special and innovative than other competitors will make you succeed in any business. :)
　　　　　　　　　　　　　　　　　　　　
Annotaion: John Tozzi, The Escalator Pitch, Journal (Businessweek.com), May 16 2008

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Last entry (#14) by 20500297

Entry #13 20300156

2008-06-06T04:49:00.000-07:00

Stars get in early on product design

Putting aside their mikes for a moment, the Wonder Girls, a popular Korean girl group, are showing off their creative streaks.The girls helped design the INNOWo MP3 player, which the companyInno GDN put on sale Tuesday at three online shopping malls. Commentingon the player, which is emblazoned with crowns, lips and stars, Kim Yeong-se, head of Inno GDN, said, “We wanted to make an MP3 player for teenagers and thought of the Wonder Girls.” He said the company did not alter the singers’ sketches and that in one day, the online shops attractedover 100 orders.Instead of settling on using celebrities as the face of their advertisements, companies are now letting them take a more hands-on approach and hiring them from the design process.

The fashion industry in particular is keen on this tactic with a tendency among the younger generation to follow styling decisions made by celebrities.Actresses and jeans seem to be one of the hit equations for this trend.Three online shopping malls this year showcased jeans that were designed in collaboration with local celebrities. Local online shopping mall Wizwid showcased limited edition jeans, which were designed jointly by American jeans brand James Jeans and Korean actress Han Ye-seul.

SK Telecom’s shopping mall, 11st, showcased jeans that were a collaboration between another American jeans company, True Religion, and actress Jeon Ji-hyeon.Another online site, Interpark, had actress Kim Ha-neul designing for the French premium jeans brand, Taverniti So Jeans. The trend of celebritydesig ed jeans started last year when actress Kim A-jung designed the “A-Star Jean with Kim A-jung” for Guess and racked up sales of 6 billion won ($5.9 million) in six months.Luxury brands are no exception.

French handbag brand Longchamp initially hired Kate Moss as its spokeswoman, which led to Moss collaborating with Longchamp on its Legend Line with success. Also, French luxury brand Celine showcased the Song Hye-gyo for Celine bag, which the actress designed, and sold them as limited editions.Even though firms are now enjoying strong business with these collaborativeprojects with celebrities, some say the items are merely a “promotion show” with the products reflecting minimum celebrity input. “Many of these items have already been designed before the celebrity gets to see it.Oftentimes the companies just tack on the celebrity name after making the product,” said a fashion industry source.

Lim Mi-jin JoongAng Ilbo/ Cho Jae-eun Staff Reporter [jainnie@joongang.co.kr]

If you know who you are and who is your target or aim, at least you must not fail. It is not easy to know that consumer’s preference. However, if the consumer made product what whose want, it could be strong effect to consumer’s preference. Also, if the product was made by consumer who is super star, its effect would be more powerful to other consumers.

http://www.joongangdaily.joins.com

Entry 13. 20501036

2008-06-05T16:53:00.000-07:00

LG Wears Prada!

In the movie, Devil wears Prada, they represents women fanaticize on fancy and luxurious clothes or items. But the notion is not only limited on fashion business but also electronic goods industry too.

When we look back on the past time, company who wanted to get a better brand image, they usually lunch a new brand like Lexus of Toyota, Zipel of Samsung electronics’ refrigerator brand, Pavv in Samsung’s PDP TV brand. However, lunching new brand only to get separated brand perception with the original brand takes a lot of cost. So electricity companies find better and easier way to improve their brand image. That was joint venture with another company's brand which has power. Also there is couple of types of joint venture.

First, only borrow their brand name.

LG-IBM was the case. It produced by LG but they use IBM logo. Another case is Samsung Home plus. Tesco owning more than 94% of home plus. Tesco barrowed Samsung’s brand image (so they could reduce anti-foreign company mood).

Second, Use other luxury fashion designers brand’s design and reputation.

The reason they borrow other designers clothes brands' is the trend changes rapidly and build their own company for target need a lot of cost and risk. Because of The mobile market become like fashion market, customer became more consider about brand and design; of course, function would be the priority reason when they choose electronic goods. However, it is hard to compare which one has better performance, because they contain a lot of function in one product nowadays. Also people became less sensitive on the price. Prada phone, LG and Prada design and promote together, became one of most successes item in LG’s history with 800,000 cumulative sales even though it price over 700 ERUO.

Benefit of designers brands

Prada can be number one brand power Handbag Company but it’s almost impossible to be a top sales company, because they do not mess produce. They even use demarketing to keep the brand value. However, when they met LG, because of its characteristic as electricity, they could make win-win situation.

Other examples: Samsung-Armani phone and TV, Swarovski-Phillips USB drive, ASUS-Laborghini notebook computer

Beware

While many fashion brands making profit from licensing with other company, some company lose their brand value because of imprudent licensing like Pierre Cardin, Yves saint Laurent and Christian Dior.

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=001&aid=0002087133
http://bizi.tistory.com/entry/pradaphone-5
http://news.mk.co.kr/outside/view.php?year=2008&no=234297
http://www.hankyung.com/news/app/newsview.php?aid=2008060483931&sid=01040201&nid=000&ltype=1
http://news.chosun.com/site/data/html_dir/2008/05/23/2008052300843.html

* Sources are just reference. This article worked by me.

Entry #13_ St. ID: 20500297

2008-06-02T20:42:00.000-07:00

Power of Positioning*

How to distinguish yourself from the competition

to be sure you have a preferred place in your target customer's mind-

I. Positioning? Distinguising!

Many companies have difficulty in positioning. Positioning is very significant step in business because through this, the market would recognize your company, buy products from your company, and decide whether to maintain a relationship with your company. This acticle emphasizes the importance of positioning, defined as "the process of distinguishing yourself from competitors in specific ways in order to be the preferred provider for certain market segment." It's more like act of designing company's offer and image so that it can occupy a valued place in the targeted customer's mind.

The main benefit of clear positioning; it controls how the market perceives you and helps make your products and/or service more attractive.
　　　　　　　　　　　　　　　　　　　　

II. 5 Steps to improving positioning

1) Assess where you are right now: This is the first step of right positioning. You may ask your customers, or even competitiors and journalists how they describe your company, products, and overall images. Knwoing yourself is always the first thing to get finished in order to make some change.

2) Determing how you want to be perceived: It's an intentional act, the author says. Once you get to know where your company is, then you need to decide how you want to be thought of by your customers. Think of meaningful differences between you and your competitors.

3) Select your target customer: We usually define 'target customers' as anyone willing to buy that people sell. However, it's not true. You need to craft a strategy taking into account there questions: "How do those people choose among vendors?", "How does your target market define value?"... Focus on 'HOW' rather than 'WHAT'!

4) Factor in current trends: Figure out trends that are on the way that might tie in with your company. Which should you distance yourself from?

5) Formulate your four levels: "Your business objective drives your business strategy which drives your market strategy which drives your positioning strategy." If your business objective is to have fewer customers who spend more per sale, your business strategy must reflect this in the products or services you will be offering. Your market strategy will consist of how to find those new customers and how to communicate with them. Your positioning strategy will determine the messages you communicate to your target customer to drive sales of your more costly product line. (quoted) You're not happy with how people perceive your company? Or do you want to stretch to the next level? Then that's the time of REPOTISIONING!
　　　　　　　　　　　　　　　　　　　　

III. Personal Opinions

STP ANALYSIS*

Most of us have already heard of STP analysis. STP stands for segmentation, targeting, and positioning. All these three steps are important and need to be considered thoroughly, but probably positioning step is especially significant because it's the step where you can finally define your company's BRAND image and where you actually approach to your real customers. More importantly, positioning of products or brands in the CONSUMER'S MIND determines whether you would be able to maintain your relationship with them. Firms position their products and services according to several criteria, such as offering's value, (customers get a lot for what the product or service costs), symbols, or important attributes.

　　　　　　　　　　　　　　　　　　　　
As I have started studying business strategy since the beginning of this semester, I found out that reading consumer's mind is a key thing of success in business. It's like ALWAYS. You should, even more 'must' know what consumers want and need. It's interesting that business objectives, business strategy, market strategy, and positioning strategy are all inter-related, which means that how you start determines your end.
　　　　　　　　　　　　　　　　　　　　

Annotation: Christine Comaford-Lynch, The Power of Positioning, Journal (Businessweek.com) June 2, 2008

Entry #12 20300156

2008-05-30T04:27:00.000-07:00

Hyundai Heavy eyes financials
May 29, 2008

Hyundai Heavy Industries Company, Korea’s third-biggest company by market value, is in talks to acquire holdings in two units of the CJ Group to manage assets and offer ship financing.“We are in detailed talks to buy stakes in CJ Investment and Securities Company and CJ Asset Management Company and will make an announcement when details are finalized,’’ the Ulsan-based shipbuilder said in a filing yesterday. The stakes are worth about 800 billion won ($770 million), the Korea Economic Daily reported yesterday, citing unidentified industry officials. Hyundai Heavy, the world’s biggest shipyard, and units Hyundai Mipo Dockyard Company and Hyundai Samho Heavy Industries Company have combined cash assets of about 6 trillion won, and are slated to report record earnings for a fourth year. The acquisition would allow Hyundai Heavy to fund expansions and help customers finance costlier ships, said analyst Lee Jae Kyu.“Hyundai Heavy may be interested in buying the financial companies to manage its abundant cash,’’ said Lee, who rates Hyundai Heavy a “buy’’ at Mirae Asset Securities Company in Seoul. The acquisition would be the first for Hyundai Heavy since 2002 when it bought rival Hyundai Samho Heavy for 100 billion won. Hyundai Heavy plans to seek board approval for the purchase tomorrow, the Korea Economic Daily said.Hyundai Heavy would be the latest entrant to the country’s 44.6 trillion won brokerage industry after regulators lifted entry barriers last year to increase competition. Hyundai Motor Company, Korea’s largest automaker, and its affiliates bought 30 percent of Shinheung Securities Company in March, which was renamed Hyundai IB Securities Company. Bloomberg

http://www.joongangdaily.joins.com

Entry#12 20501036

2008-05-30T04:12:00.000-07:00

Wii, show us how much you love us!

It’s been a month after the first release of nintendo's new production Wii.
Nintendo launched it, in Korea, last month. This video game console was rumored to hit the Korean market in the winter, but Nintendo Korea delayed the release because localizing the software took longer than anticipated. Unlike its competitors, Wii is targeting a wider audience with its unique system. Wii is targeting women and older generations. Compare with the competing platforms like x-box 360, ps3 require only movement of the fingers, Wii games focus more on a user’s physical participation.

However, Nintendo now facing troubles. The total sales volume until now was less impressive then they expected and extending market rate was too slow. The reason was lack of compatibility of game titles which they used to use on ‘Game cube’ – Nintendo’s previous model. Also they claimed that lack of the number of title which has translated in Korean. Moreover, adding region-specific features make Korean gamers offended.

Are you doubt on me??

There’s a bitter love story between Nintendo and Korean gamers. While Nintendo DS were showing it’s out performance on the market sales, they tried to prevail on America to apply section 301 of the 1974 trade act on Korea meanwhile because they (Nintendo) thought that Korea has responsibility of epidemic of illegally copied game title. Well, it was work like that way but Korean gamers deeply wounded from Nintendo’s treat.
When I saw the decision they made (adding regional code), I realize that Nintendo still regard Korean gamers as a hindrance for introduce new product. Well, I think there’s the answer for the question why their market growth rate is slow!

- Korean can not play this game until Nintendo complet the translation.

- Wrong perception -
Korean Nintendo users might be hinder for their game software sales. However, they are the 'Early-adaptors'.
When we define ‘Adaption’ as the process by which a new idea or new product is accepted by the market, Early-adaptors are the people who accept and try new production in the early stage. Most of them are young and have knowledge about latest technology but have not enough money to buy every single new production but enjoy introducing new product and technology to the potential customers. In order to their work through the critics, they actually create followers market.

The video game market in Korea has seen high growth in recent years. Sony Computer Entertainment Korea estimated in January that the market, which was worth 136.5 billion won ($139.9 million) in 2006, doubled to 323 billion won last year. Sony forecasts that the market could grow to 700 billion won this year.

Nintendo made out performance with Nintendo DS, last year. However, it does not mean that they will make success. Now the early adopters group is dissatisfied and angered because of Nintendo’s policy. Yet, there’s no anti-Nintendo mood but the policy will drag down its brand power and will be suffered increase market share.

Why don't you develop anti-copy system? Why don't you allow some space until the early adopter boast your product so make them lead the market?

http://media.daum.net/digital/game/view.html?cateid=1051&newsid=20080528110412470&cp=donga

http://gamedonga.co.kr/gamenews/gamenewsview.asp?sendgamenews=28326

20501036

Entry #12_ St. ID: 20500297

2008-05-30T03:58:00.000-07:00

How to stand out? Try AUTHENTICITY

Take a cue from Starbucks and Anthropologie and get to know your

customers on an intimate basis.

That's the only way to cut through the noise.

* "Different" is no longer a differentiator!

We have been emphasized that being different from other competitior is very significant since differentiation can bring you competitive advantages that only you can have. Many presidents, CEO, and vice-president of markeing are trying to find ways to differentiate their companies in a certain marketplace and that's the reality. However, the author of this article Sohrab Vossoughi says that 'Different is no longer a differentiator.' Then what is a differentiator, we would ask. His answer is 'creating an anthentic relationship with customers."

* Summary of this article

1) Step back and consider your brand

You need to take a step back before introducing just another product. You'd better decide who's your TRUE tribe and what makes the most sense for those customers and your company. Before introducing a new product, you usually think of design. Yes, design is important but beautifully designed product is just an object. Push the pause button, dig deeper, and reconsider what it would take to make your customers truly love who you are as a brand.

2) Customers crave personal service

Without intimate personal service, customers cannot fully trust your company and products. You need to understand the culture and what people believe in to develop a deep relationship with your customers. As everyone wants to be with someone else, customers are still craving intimacy and you should be that someone for your customer.

3) The art of the authentic relationship

There's a store for women's clothing called Anthropologies. The article says that this store has made an art of the authentic relationship. It has dug deep into the subtietities and nuances of the psychographic profile of a specific type of 30-something married woman. Authropologies found out what these women really need and want, even considered their kids. Simply put, they have a 'connection' with their customers. And guess what? They don't actually advertise.

* Personal Opinions :)

What changes customers' minds: Authentic relationship
Developing a relationship with other can be easy, but maintaining it is a problem. When I think of people around me, it was not that difficult to develop friendship but there are only few people that I consider as "TRUE" friends of mine. Those whom I think as my true friends, I can trust them no matter what even if they disappoint me somehow because it's not just normal friendship, but authentic, true, and real friendship.

Like that, in business, authentic relationship is not the kind of relationship that lasts for only one season or that comes on suddenly because your product is cheaper or nicely designed compared to other companies' products. It's something that others can do, too. Beyond that, you need to build authentic relationship with your customers, which is the kind of relationship that allows for mistakes and creates a bond of loyalty. Besides, this relationship doesn't mean that you can rest on your laurels. Based on authentic bond with your customer, you should be willing to REINVENT yourself as both tour company and your customers evolve since everything changes.

Think of Jesus Christ. How did he change his disciples? I mean how is he influencing your life and actually changing it? By giving you what you want? Or by making your dreams come true? He may. But Isn't it true relatinoship between you and God that really touches your mind and motivates you to change?

Annotaion: Sohrab Vossoughi, How to stand out? Try Authenticity, Businessweek Journal. May 28, 2008 / http://www.businessweek.com/innovate/content/may2008/id20080528_503953.htm

Entry #11 20300156

2008-05-23T06:08:00.000-07:00

After rat incident, you can call Nongshim boss direct
May 23, 2008

Do you remember this incident shocked to whole society even other countries?

Nongshim chairman Sun Wook and other executives are personally answering complaint calls to the company.The food company suffered a public relations crisis in March when a customer supposedly found a rat’s head in a pack of shrimp crackers, a popular snack.Around 20 executives, including Sun, will take turns answering customer calls for two hours each day. This “hotline” will go on indefinitely, the company said. “We wanted to do something substantial to let our customers know we are looking at revamping our structure to avoid anymore safety accidents,” Sun said.

The company yesterday started its “Customer Satisfaction Campaign,” which will run through September. During this period, Nongshim will deliver its food to low income areas for free, and the company will promote its new shrimp crackers, which will be made in factories with upgraded safety procedures.

The company invested 30 billion won ($28.7 million) in safety measures. Nongshim will also start research and development on new snacks and hold an exhibition in September featuring snacks they think people will eat 100 years from now. “We want this campaign to be more than a one-time event. We will invest more in our factories in Korea as well as China,” Sun said.

By Cho Jae-eun Staff Reporter [jainnie@joongang.co.kr]

A few months ago from now, whole korean shocked by a snack 'Sae Woo Ggang'. Because of this incident, the company Nongshim's image and value decline so far. So Nongshim introduce a policy making hotline for customer. I thought, however, the policy cannot restore for ‘Old Nongshim’ easily. That’s why consumers already shocked and felt a sense of betrayal. Not wood, it’s food. Nongshim must introduce more good policies.

http://www.joongangdaily.com

Entre #11 Growing market - 20501036

2008-05-23T00:31:00.000-07:00

A man does not need many items to live their life but woman need more than hundred just for living.

Active careers and increasing purchasing power have made women emerge as trend leaders in the consumer market.

According to a report the Hyundai Research Institute ‘companies that win over women conquer the market' because women make 90 percent of all purchasing decisions in Korea. It is not only true for single women, who spend their earnings on premium-brand clothing, financial investments and leisure activities. But also married house wives too. Even they go for shopping with her family women make most of the choice from grocery to clothing for her family.

Finance, IT, automobile and alcohol companies in turn have begun to target women. Well, it’s not totally new story its market have grown.

In alcohol market, back in 1995, only 15.3 percent of women drank, because there was a stereotype for woman drinking. But in 2006, this rate increased by almost fourfold to 61.2 percent. With this trend, alcohol companies are lowering alcohol content and touting “well-being” qualities in their products.

Opinion -

Actually, I think the trends right now are being led by women from well-being trend, designers clothing boom and even in whit goods market, they try to get more beauty so sometimes company put some pictures from famous painter masterpiece to fit women’s perception.

Than what should we do and shouldn't do to get the market?

First, Korean companies often make mistake which comes from their stereotypes. However, as we have seen above, women is not a minority group anymore. They are leading the market and trends. So The company should get over the stereotypes within them.

Second, target the married women. In Korea, they often being ignored but even they yielded and gave up some of their needs, still women want to keep their beauty.

Third, There's no single market only for men or women. Women are smoking, drinking and driving too. Moreover, some women interested in combat sport like K-1. So companies have to get away from thinking that there is one marketing strategy for women. They should make market segment sharply without prejudice before build strategy.

http://joongangdaily.joins.com/article/view.asp?aid=2890107

# 11 Entry : 20500297

2008-05-21T06:02:00.000-07:00

Oprah's Favorite 'Favorite thing'

* Mini Case Presentation
Today our team and team Shasta gave a presentation about Oprah Winfrey's business, 'Harpo production.' While I was preparing for this presentation, I learned why Oprah and her business became successful. She has something that other people don't. Through this article, I want to talk about more about Oprah and her 'favorite thing' which made her 'differentiated'. The author basically talks about Oprah's "gift of appreciation.'

* Summary of the article

Considered as an inspiring leader, Oprah said that while material things are nice, the greatest gift you can give a person is to communicate how you FEEL about them. Oprah is a type of "caring mentor" who is honest, caring, and generous do the best job in motivating employees to deliver great customer service and therefore increase customer loyalty. It is important that you give employees local fame. Actually, there are only few people who trully want to be famous. However, they want to be famous and accepted in their local community, such as in family, school, and workplace. As Oprah does in her show, praising individual person specifically can give people local fame. Another thing you need to know is that you'd better not be stingy with praise. Whenever you watch Oprah Winfrey show, you can notice that Oprah always shows her appreciation and expresses praise to both guests and audience. 'When people receive genuine praise, their doubt diminishes and their spirits soar,' Oprah suggests.

My thoughts & Feelings
As we all know, Oprah had a very hard time in her childhood. Her parents got divorced and the environment was not helpful. (You may know what I'm talking about.) It was just too difficult for her to have a positive attitude toward her life. She was a type of girl in a minority society. However, that's just her past. Overcoming those obstacles, she become the most influential, powerful, and richest woman in the world. Without any future plan, Harpo production will fail after Oprah retires since Harpo production is based on Oprah's reputation and power. What made her take this position, then? Her optimism? Speech skill? Out-going characteristic? These could be right, but most importantly, as the author say, Oprah's attitude of showing appreciation is one of significant keys to her success. In these days, many business leaders are lack of caring, especially those Korean leader since Koreans usually feel uncomfortable with expression. In order to be an inspiring leader like Oprah, we should learn to express our true feelings - appreciation. Expressing appreciation is not a job of employees only. The reason why people are touched by Oprah and her show is because Oprah tries to understand thier feeligns, share them together, and show her appreciation.

Annotaion: Carmine Gallo, Oprah's Favorite 'Favorite thing, Journal, December 14, 2007
URL: http://www.businessweek.com/smallbiz/content/dec2007/sb20071214_702526.htm?chan=search

Entry 11, 20500297

Entry 10. Nintendo

2008-05-16T07:36:00.000-07:00

How do you make them grow up?

Koreans used to have strong stereotype forward to what they are entertaining. For the people who has this kinds of fixed idea think that people who entertaining with comics or games (both consol game and computer game) are immature.

Well, if someone talk like that, they are probably older generation. Now, the fixed idea have been broken at least the view toward game.

Japanese portable console, which was launched in Korea in January 2007, sold 1,000,000 consoles as of 27th of December 2007. They release 41 game titles and sold 2,200,000 copies. Especially, there are five game titles that have sold more than 100,000 units. “Brain Training Game” has sold more than 200,000. Nintendo and these game titles has helped expand the game population by age and gender.

- Maybe even species

It is remarkable performance compare with their one of the strongest rival Sony play station. Even though they have brand awareness from home applicants, they took three years to achieve 1,000,000 cumulative numbers of sales but Nintendo made it just after one year after enter the market.

- Playstation portable -

SWOT analysis of Nintendo

So my recommendation to keep their capitalization of Nintendo, they need to develop anti-hacking solution to prevent using R4 and try to save cost for title localization. It will hinder on introducing new game and give a tension for sales. Also it will effect on reduce illegal software market. Because some people buy R4 just because they can’t wait until it translated and released on Korea game market.

- I draw SWOT analysis myself even it was not seems like. :)

http://joongangdaily.joins.com/article/view.asp?aid=2884471

http://blog.naver.com/lemocin?Redirect=Log&logNo=110026367043

Entry #10 20300156

2008-05-16T06:51:00.000-07:00

SKT rolls the dice on game firm in China

May 16, 2008

SK Telecom, the nation’s leading mobile phone operator, has taken a $7.8 million gamble on a Chinese online game company.
The company said in a release yesterday that it has purchased a 30 percent stake in Shanghai Magicgrids Networks.
SKT said in the release that China’s online game industry has explosive potential. It has recorded an average 82 percent sales growth in recent years, and the industry was valued at around 1.2 trillion won ($1.1 billion) last year.
It is SKT’s third contract with a Chinese company this year. The company signed deals with a Chinese global positioning system manufacturer and a music label company in January and March, respectively.
SKT holds a 65 percent controlling stake E-Eye, the GPS maker, and a 42 percent controlling stake in TR Music, the music label company.

In August 2007, SKT became the second-biggest shareholder of China Unicom, a mobile phone operator.
SKT said it wants to become a market leader in China when it comes to convergence services combining mobile phones, music, games and GPS services.
“This year will be a milestone for us because we’re ready to converge services in China. We also hope to position ourselves as a game hub across the Pan-Asian region,” said Lee Suk-whan, head of SKT China Holding Company.
According to market observers, however, SKT’s purchase of an online game company shows it wants to find growth momentum in a sector outside telecoms. Despite China Unicom’s large customer base, it has unimpressive operating profits, said Kim Hong-shik, an analyst at NH Investment and Securities.

By Sung So-young Staff Reporter [so@joongang.co.kr]

SKT wants to escape from maturity maket of Korea. They discovered China's game industry potential and now do their plan. I expect the result of investment and also the result of SKT's future analysis.

# 10 Entry_ 20500297 :-)

2008-05-13T05:51:00.000-07:00

Building a better team*

What is this artible about?) "Collaborative Intelligence" is what the author talks about. It is the ability to harness the energy and intelligence of groups or teams. IQ, even EQ, is not sufficient to be an effective leader. Collaborative intelligence is what you need to raise more. As technology changes the world, it becomes difficult to achieve high level of collaboration. People care about themselves, not others. However, higher CQ in the workplace enables you to respond to new circumstances and increases adaptability of a company. A team with a high CQ will look like this;

1) It is able to share the stress and strain evenly throughout the team.

2) Achieves its objectives more through people and less through politics.

3) It has a strong network of connection and support between its members. This accelerates learning, enabling the team's reactions to be rapid and responsive to challenges.

4) It looks after its own: Individuals are not left to fend for themselves, and staff retention is high because people feel a strong sense of belonging.

5) It is well connected with other teams and with corporate objectives. Like a healthy organ in the body, it knows what its function is and serves the greater good through rough times and smooth.

6) It replenishes itself, growing its members, and is constantly learning to better adapt to its environment.

7) It displays a strong sense of meaningful participation, which the members are all nourished by.

My thoughts & feelings) Recently, I have had a hard time with my team. We are not productive and no one is willing to try new things. Our relationship is not close and I am even having a hard time sitting in BS class. I regretted that I chose this class. I like what I learn in this class and I still want to do better but the thing that bothers me is teamwork. Professor Lee assigned another presentation work and it gave me another hard time. I just want this semester to be over sooner or later. I can't stand with this anymore. The thing I am worried about is not my grade, but I just do not want to get stressed any longer. There's something to be changed for sure. The reason why I am writing this here in public place is because I want my problem to be the past. I desperately look for the way to change our team. There are only 3 of us, but somehow it's just too difficult to get along with other members and I am even afraid of the work we should work on until the end of this semester.. (sighs) How can we build a better team together? I wondered and this article written by Marshall Goldsmith helped me with that. The thing I had to change was not my environment or other people, but my selfish attitude itself. The way I see my team members and the way I see myself should be changed in order to increase my 'collaborative intelligence'.

* Annotation: Marshall Goldsmith, Building a Better Team, Journal. September 11, 2007.

* URL: http://www.businessweek.com/

#9, 20501036

2008-05-11T07:41:00.000-07:00

Success in franchise market

It is not a very new thing that opening franchise fast food restaurant like ‘Burger King’, ‘KFC’, ‘Pizza hut’. From 2000’s family restaurants like ‘outback steak house’, ‘bennigans’ are rush in to Korea. ‘outback steak house’ as an example, they recently open 100th restaurant in Korea. They made remarkable performance with localization and fitting marketing strategy and image making.

‘Starbucks’ introduce their business model even before coffee specialty store became familiar. So now they have more than 200 stores. Above two companies I introduced are benchmarking by themselves to use it as a successful case when they are penetrate to another country.

Now there’s another trend on the franchise market. Until now, most of overseas franchise stores were concentrated in Food and Beverage industry. But now the others who were not invited are hustle through the retail sales market in Korea.

G.S Watson’s is introduced in 2006. It a joint stock company with GS retail and A.S Watson’s invest 50:50. A.S Watson’s, subsidiary company of Hutchison Whampoa Hong Kong, has more than 5000 stores in 910 cities covering 19 countries in the world. G.S Watson’s is health and beauty specialty store and they have 11 stores in Korea.

Also in organic grain market in Korea, Huckleberry Farms and Cho-hung made master franchise contract. So, Cho-hung corp. introduced ‘Huckleberry farms’ as a direct management store. And for small franchise membership store they introduce ‘Hill Green’ as their own franchise brand.

These new trends in franchise market represent change of customers’ spending pattern. We can say the ‘Starbucks’ introduce and lead the coffee specialty business in Korea. But most of cases like ‘Huckleberry farm’, the well-being trend deliver the organic grain franchise business and health franchise companies introduces. However, we need to see that some trends are moves quickly so if someone wants to introduce some business, they should consider what the trend is and how long it will be sustain.

http://www.economy21.co.kr/magazine/txt.asp?news_id=59961&icon=22&part=naver

20501036

Entry #9 20300156

2008-05-09T06:54:00.000-07:00

LG designs future in product appeal
May 07, 2008

LG Electronics cashed in big around the world with its popular design-oriented Chocolate and Shine phones. Now LG Group’s chairman is looking to replicate the phones’ success — and he’s put up the cash to make it happen. Chairman Koo Bon-moo has decided to invest 100 billion won ($98.4 million) this year into upgrading the overall design of LG products, the company said in a press release.

This marks LG’s biggest investment in the design sector.The company spent 78 billion won and 88 billion won on design in 2006 and 2007. In addition, Koo announced that the company will add about 700 designers to its workforce in a meeting with 20 key company officials.“By doing so, we can enhance designs for all LG products, not a few items in particular,” Koo said. During the meeting, representatives from LG Electronics, LG Chem and LG Household and Health Care said they will research consumer preferences worldwide based on their gender, age, class and region. LG Electronics heads the design of mobile phones and home appliances, while LG Chem works on interior products such as artwork-inspired wallpapers and window frames. LG Household and Health Care will focus on the design of cosmetics containers. These three LG affiliates launched the LG Design Council last July to reflect Koo’s design-oriented policies.“LG earned more than 80 design-related awards last year, compared to 58 in 2006,” an LG official said.“Companies no longer compete over price, quality and technology. Design makes you a global leader. After all, most people think quality and design go hand-in-hand.”

so@joongang.co.kr

As you know, there are some telecom's companies such as SK telecom, KTF, LG telecom etc. These companies has many members but LG's members are just a few. This mean LG has the smaller influencing power than other company. However, so many people want LG's cell phone not service. Because, LG's cell phone has nice design. For example, shine phone has big influenced to many consumers and chocolate phone too. They are high price and very scarcity. It is LG's strategy and it is successed. So LG invest to cell phone design's post again about 100 billion won. Maybe, successful design can make bigger profit than any other telecom companies and maintain LG telecom. I strongly agree LG's strategy that invest large money to design's post.

Entry #9 20200622

2008-05-09T04:40:00.000-07:00

Builders Globalize Brands for Overseas Expansion

By Jane Han
Korean builders aren't just building plants and paving roads overseas, but they're starting to hammer their way into the Southeast Asian residential development business with their star-studded apartment brands.GS Engineering & Construction is set to break ground this summer on its major Vietnamese project, housing some 17,000 units of new apartments, villas and townhouses. Investments are huge, but the builder says it is confident that its brand ``Xi'' and actress Lee Young-ae will help make a soft landing.``Similar to Korea, branding is important in other emerging Asian markets,'' said a GS official, adding that no matter how good a product is, it must be strategically boosted with an attractive marketing strategy.Kumho Engineering & Construction is now creating a new brand and signing on its brand model to prep up for its overseas debut.``We're looking for a model who can represent us both locally and internationally,'' said a company official, who also stressed the importance of models and brands in today's cutthroat competition.Construction firms have been finding it more and more difficult to sell apartments amid a local housing slump, heavier property taxes and tough lending rules. Government data shows that more than 150,000 newly built homes were left unsold as of the end of last year, which is the highest level since September 1995. ``Conditions won't improve anytime soon as a growing number of people are reluctant to finance their homes,'' said Kim Eun-kyung, a researcher at a real estate market information provider Speedbank. Breaking into the overseas market has been one solution to offset the slow business here, while attempting a brand transformation has been another. Daewoo Engineering & Construction, which fronts its signature brand ``Prugio,'' recently switched models from mature actress Kim Nam-joo to younger star Kim Tae-hee, in an effort to boost the brand's vibrancy.Such change is expected to trigger a domino effect among the foray of domestic apartment names, which typically fronts an attractive female celebrity to show and tell their features.``Many of the current models have been signed on for more than three years, so it's about time for a generation change,'' said Kim Woo-min, a creative planner at AdOne, a Seoul-based advertising agency.While celebrities usually get paid some 500 million won to 1 billion won, some critics say that the excessive marketing frenzy will only pass on costs to home buyers.

I think branding is very important in other emerging Asian markets, no matter how good a product is, it must be strategically boosted with an attractive marketing strategy. I hope Korean apartment builders to come up with some good strategies to import thier brands.

Entry 9 / 20500297

2008-05-08T06:05:00.000-07:00

Why Risk Is Important?

Entrepreneurs, like ice climbers, are often said to risk their necks.

But there are ways to cut danger to sane levels - and some very good reasons to try.

To begin with) I'm NOT a risk-taker. I'm NOT a type of entreplorer who is willing to take risks. I'd like to live a 'safe', 'sustainable', and 'affordable' life. I don't want to experience any adventure in my life because it would cause risks! Risks equates to danger and I'm afraid of it. However, as a business student, I learned that avoiding risks is not the right way to pursue. The fact is, those who face risks and look for the way to make it as a chance of development usually become successful in their lives. For me, risk was a threat that discourages me and makes me feel that I am a failure, but today as I read this article, I realized that such a risk rather provides me an opportunity to make my life more fantastic! :)

Summary) Taking risks is not a gambling. We are able to reduce the risks to an acceptable level as we do any business jobs and work and in order to reduce that risk, we all need to be trained. The author compares taking rish with ice climbing. Ice climbing requires you to be trained, to have appropriate tools, to have fitness, and finally to trust partners. When these for elements are ready, you can enjoy recreational ice climbing because with these considerations, your risks are calculated. It goes same with the entrepreneurs. Training means what kind of skills you can use to engage a problem you have. Tools are those potentially useful processes, technologies, or other instruments to protect your company. Fitness is like how much you are prepared to take risks. Partners are those who share you vision and dreams. Getting the best partner is critial, the author says. "The most dangerous way of all to play it is so-called safe. Safe leads to atrophy and certain death - of spirit, culture, and entreprise.' (quoted) Risk is not only NOT to be avoided, it is to be embraced - for survivle as the author says, because it brings creativity.

My thoughts & feelings) I pretty enjoy my so-called boring life. I don't think it's boring, but it is rather safe and time-followed schedule. I feel calm and even peaceful when I do things as I plan. As I mentioned before, taking risk is still not my type. As possible as I can, I want to avoid any risk coming into my life since it destroys my peaceful life. Last semester I took 'entrepreneurship' class and it was pretty much about the personalities of entrepreneurs. What the professor and special guests mostly emphasized was entrepreneurs are willing to take risk and they try to find the ways to apporoah to the problems and transform them into another chance to develop themselves and enterprises. It means that true entrepreneurs can accept their problems and even failures and can learn from them. The reason why I am afraid of risks is because I am not fully ready to face my potential failure. I can't accept the fact that I have been doing something wrong and that I need to change the way I used to be. However, as the author says, risks are not only NOT to be avoided, but it is to be embraced. The harder I try to avoid things I hate, the longer they follow me. But once I embrace them, they no longer bother me or give me a feeling of failure, but would rather make me think differently. That would be the first step I can take to create 'innovation.'

Annotation* Bill Buxton, Why Risk is Important, Journal. March 12, 2008 / URL: http://www.businessweek.com/innovate/content/mar2008/id20080312_205292.htm?chan=innovation_innovation+%2B+design_innovation+strategy

Entry 9 by 20500297

Entry 8. 20501036

2008-05-02T05:07:00.000-07:00

A New trend in hospital management strategy

As Professor Abraham introduce trend in general hospital system in U.S.A, increase number of hospital made strong competition in Korea, too. It also makes both of them try new management strategy like attract foreign patient from outside.

In Korea, according to data from Seoul university hospital foreign clinic, foreign customer (patient) sizes are increasing every year. Their main purpose of visit was to have a plastic surgery and dermatology clinic. Also they can enjoy staying with tourism. But we already handle this strategy case in the class, so I will introduce something unique.

In Korea, before the missionary Allen who worked for royal physician of King ko-jong in 1890's (the last king of chosen dynasty in Korea peninsula) introduces modern medical art to chosen, oriental medical science was dominant art in medical science. However, after modernization, western medical art became qualified and oriental medical art was gone down.

But oriental medical art ride again because it has been recommended as an alternative medical science recent year. So the general hospitals gave an attention to them and they try a new strategy. Because some Korean doubt their effectiveness. But some people, they believe that it is more effective to treat some sort of disease or illness than a modern medical science.
So, some of general hospitals try a combined medical service so they can give feed back each other’s treatment. In this way, they could extend market share. However, there’s some government institutional allowance problem and conflict inside of medical experts group. Because according to a legal interpreting precedent, cross treatment by a doctor who has both oriental medical art and typical medical art’s license cannot make cross prescription. The doctor only can make isolated each boundary's prescription, not a cross prescription. And there has some conflict between oriental medical scientist and typical medical scientist. Doctors from modern medical art doesn’t trust their prescription because they though that it was not scientifically proved.

With all those negative view toward this new type of hospital business, it has potential not only for market inside of Korea but also it will give an attraction for international medical service market.

http://www.mdtoday.co.kr/mdtoday.html?cate=2&no=51855

20501036

Entry 8# Kim Han gil

2008-05-02T00:56:00.000-07:00

Daewoo to build new zone in Oman
April 24, 2008

Daewoo Shipbuilding and Marine Engineering Company will join the trend of local companies developing new cities in emerging economies, with an industrial and tourism complex in Oman. The world’s third-biggest shipbuilder said in a statement yesterday that it signed a memorandum of understanding with the Middle Eastern country to develop an industrial and tourism zone with a residential town for workers. The zone will be built by 2020 in Duqm, a port city about 450 kilometers (280 miles) south of Oman’s capital, Muscat.The value of the project and other details will be decided later, the statement said. It might be worth around $20 billion, a source said.Under the deal, Daewoo Shipbuilding and a state-run Omani company will establish a 50:50 joint venture for the project. In the tourism district, hotels, hospitals and leisure facilities will be built. The industrial sector will have a ship repair yard and additional port facilities.

In 2006, the local shipbuilder signed an agreement to build and run the yard, which will be the biggest in the Middle East.After signing the MOU with Oman’s finance minister, Ahmed bin Abdul Nabi Macki, in Seoul yesterday, Daewoo Shipbuilding chief executive officer Nam Sang-tae said, “Oman is the second biggest gas exporter to Korea and so it is a very important economic partner. We thank the government of Oman for giving a chance to participate in the country’s economic development.”Other local companies are also actively participating in new city development projects in Asia, Eastern Europe and Africa. Posco Engineering and Construction, an affiliate of the world’s fourth-biggest steelmaker Posco, is constructing a new town in Vietnam. State-run Korea Land Corporation is participating in new residential town development projects in Azerbaijan and Algeria as project manager.

By Moon So-young Staff Reporter [symoon@joongang.co.kr]

This strategy is good solution that improve daewoo's gross profit. Korea's building industry is already became maturity. It means there are so many comepititors and it cause some problems with limit demands in korea. As you know, Dae woo is not popular building company in korea. So this expand to abroad will be good solution that overcome domestic's limit demands.

http://joongangdaily.joins.com/

Entry #8 20200622

2008-05-02T00:55:00.000-07:00

10,000 local jobs to be slashed

Local administrations must slash 10,000 jobs and save up to 10 percent of labor costs this year, the Ministry of Public Administration and Security said yesterday. The announcement came in line with the Lee Myung-bak government's plan to streamline the public sector.
The ministry will provide financial incentives to local governments which reduce 5 percent or more of their labor expenses.
"Some 10,000 jobs related to tasks led by the central government, such as investigations into painful parts of Korea's past, have been added to local administrations over the past five years," a ministry official said. "These jobs will be cut within this year."
The number of local government officials rose 13.8 percent during the Roh Moo-hyun administration to about 282,500 by the end of last year.
Local governments that hired more public officials, despite a decrease in population, are already preparing to downsize, the ministry said.
The population dropped between 2002 and 2007 in 152 local autonomies across the nation, but 149 of them hired more public officials.
Regular employees, as well as part-time and temporary workers, are subject to the job cuts, according to the ministry guidelines which were sent out to local governments.
Of the 245 local autonomies, excluding Jeju, three already have said that they plan to eliminate 10 percent of their staff. Ninety-six said they plan to chop more than 5 percent but less than 10 percent. Twelve said there will be no further increases, the ministry said.
Local governments which cut 5 percent of their labor costs will be provided with incentives or special tax revenues worth 10 percent of the amount they saved. Those which save more than the basic target of 5 percent will be given 50 percent of the saved amount in incentives, the ministry said.
"(Local governments) can save some 770 billion won ($767 million) by trimming 5 percent of labor costs, and another 230 billion won by shutting down or integrating useless administrative organs," the ministry said. "This amounts to 1 trillion won, which will be used to stimulate local economies."
The ministry also called for the integration of districts with less than 20,000 people and 3 square kilometers in area. It urged local administrations to follow the organizational structure of the central government, in which each office is comprised of three or four divisions with 20 to 30 employees each.
Along similar lines, the ministry plans to draw up guidelines as early as next week to reduce and reorganize the staff of fire stations.
By Kim So-hyun
(sophie@heraldm.com)
2008.05.02

I totally agree with president Lee's plan, because in Korea, there are too many public service personnels who they are not really needed for the government. Also so many undergraduate students are thinking of being a public service person who they don't do much work and safe with being fired. What I think is that president Lee should cut down more than 10,000jobs.

Entry #7 20200622

2008-04-27T10:33:00.000-07:00

Honda takes lead in imported car market

Honda Korea looks set to become the first foreign carmaker to sell more than 10,000 units on the local market in one year.
According to the Korea Automobile Importers and Distributors Association, the local arm of the Japanese carmaker sold 2,827 vehicles during the first quarter of the year.
If the company can maintain a similar sales record throughout the year, Honda Korea's annual sales will come in at over 11,000 units. The highest annual sales recorded so far was the 7,618 units sold by BMW Korea last year.
"At the beginning of the year, the company set this year's target at 9,000 units and, even if annual sales come in at over 10,000 units, we don't think it will be much higher than that," said a Honda Korea official.
She said that, due to the global shortage of the sedan Accord, the company set the conservative target of 9,000 and that the problem may still act to hold back Honda Korea's sales this year.
The car is available in two versions, the Accord 3.5 and Accord 2.4, and both models are among the top ten bestselling imported cars for the first quarter. With the combined sales of the two models coming in at over 1,200 units, the Accord accounts for 45 percent of the company's first quarter sales.
Whether the company sells more than 10,000 units this year or not, Honda Korea has taken the lead in the imported car market with 18.05 percent market share and a 630-car lead over last year's top seller, BMW.

By Choi He-suk

(cheesuk@heraldm.com)

I believe Honda cars are cheaper than most imported vehicles but they offer high quality and performance thus attracting a wider consumer base. Honda cars' tendency to have high re-sale value, and the reinforcing of Honda sales and service networks have also helped to raise sales this year.

# 8 Entry / 20500297 (9th week)

2008-04-26T00:16:00.000-07:00

" Dreaming a Global Leader? Increase your CQ."

What's our school's name? It's Handong 'Global' University. What comes into your mind when you hear the word 'global'? When I think of global, it reminds me of 'cross-cultural' for I believe that global leaders should be those who understand and embrace cultural difference. In that content, well-known leaders tell you to increase your CQ, which stands for 'Cultural Quotient.' It is also known as 'Cultual Intelligence.'

Importance of Human Resource) Kevin Kelly, CEO of Heidrick & Struggles said that the key of success is human resource. Also, Jerry Davis (picture), Asia and Pacific CEO of Heidrick & Strggules said that the more competitive the world is, the more human resources are needed. They both emphasize the importance of this criticial resource, human. I remember professor Lee saying that human resource is something you can't easily replace with other resources. I agree with his opinion because among a lot of resources, human resource is the most difficult to get since it requires trust, loyalty, and even love sometimes.

IQ, EQ, and CQ?) What these two leaders talk about is CQ. Jerry Davis said that global leaders' requirements are not only IQ or EQ, but also CQ. As I mentioned, those who get high score on CQ have a potential to be an effective global leader, which means that they are able to understand and respect cultural difference. There are three types of CQ; Intellectual, behavioral, and emotional. Intellectual CQ is simply understand the cultural difference. Behavioral CQ is recognize cultural difference in a certain behavior of human. Lastly and most importantly, emotional EQ is maintain relationship and sympathize with foreigners even though people from different country look different, talk differently, and behave differently. In order to manage circumstances based on different culture and background and accept them, leaders must understand what CQ is and acknowledge of its significance, I think. To get into world and to expand your business in a global society, global leadership became something you can't avoid.

How to increase CQ?) To increase your CQ, experience in abroad is required. Those who have experience in abroad will be treated better than others. In my opinion, knowing and understanding is quite different. You can get some knowledge of a certain country and people living there without any experience. However, without actual experience, you can never understand and repect their differences.

As a business student..) We need to consider the fact that cultural barrier is the thing CEO should overcome. Why do you think that those foreign CEOs working in Korea fail? Because they are proud of themselves. They are so conceited that they just try to teach Korean managers and workers rather than respect our own cultural background and working habit. We can 'import' some tactics and management skills from abroad, but leadership is different. Successful CEOs are so curious that they always try to think of as many ways as they can to solve problems. 'Why is this happened?', 'What other things can do try?', 'How can I change?'... With these kinds of questions will refresh our thoughts and minds. So as a business student, and especially as a Handong Global University's student dreaming of being a global leader, what we need to do is accept other people's difference since God created each one of us different. We look different, we think differently, and we feel in a different way. However, diffence itself cannot be a problem. How to understand it and

whether we respect it or not it the thing!

* Reference 중앙일보) 글로벌 CEO를 꿈꾼다면 CQ부터 키워라

* Entry 8 by 20500297

#7 20501036 Maybe I am not old enough!

2008-04-25T02:34:00.000-07:00

When I turn twenty, it was almost impossible that play with toy thing. If I do playing with toy, people think of me as strange or have some mental problem and maybe I will be called otaku (it doesn’t mean that all of them has problem but people often call those kinds of people as otaku)

I am okay okay person!

Well, some people might ask that “if I don’t bother someone lese, what’s the problem than?” but, even though people think it’s odd, many adults still want to play with toy anyway but they don’t want to be seems like child. It’s a dilemma. So some smart people invent toy for adults (doesn’t mean stuffs in adult shop -_- ;)

http://www.funshop.co.kr/

Have you ever heard about that? They are introducing items which are not designed only for common purpose. They are niche market and there have not so many competitors in the market and still have potential.

They are selling from office wear to actual toy but it doesn’t seem so much like toy for children.

<>

So I try to buy something but all of their stuffs are extremely expensive than normal items which are selling on store out there. For example, if I buy a normal portfolio, it cost only cost 4000 won

4000 won normal portfolio

but if you buy it on fun shop which is luxuriously made by leather, it’s 159,000 won! Wow!

They are definitely targeting adult who are wealthy enough. But their items are uniquely designed and full of idea.

They don’t have off-line stores, they don’t have factory to product (if they product all of stuff they are selling, they will need to build more than hundred factory) and all items are imported from all different countries. Anyway, as professor Abraham said, there are tons of business opportunity out there!

Entry #7 20300156 Kim Hangil

2008-04-25T02:23:00.000-07:00

Hyundai begins 2008 with a bang

Helped by a weaker won and the launch of a new premium model, Hyundai Motor Company, Korea’s top automaker, saw record first-quarter sales and a surge in profits.The firm’s sales reached 8.2 trillion won ($8.2 billion) in the January-March period, Hyundai Motor executives said yesterday at an investor relations meeting in Yeouido, central Seoul. That is up 22 percent year-on-year and higher than any first-quarter sales figures in the past. Operating profit surged 61 percent to 529 billion won; net profit jumped 28 percent to 393 billion won.The automaker sold 443,000 vehicles in the first quarter, up 14 percent from a year earlier, after it launched the Genesis luxury sedan in January.

“Now the foreign exchange rate conditions are favorable to us,” T. H. Chung, vice president for finance and accounting, said in the meeting. He said the weaker won against the dollar and euro are helping Hyundai compete with Japanese rivals such as Toyota Motor and Honda Motor, which are now suffering in the global market from a stronger yen.“In such situations, we will conduct active marketing in Europe and the United States, which are our ultimate target markets,” he said.The won slipped 5.5 percent against the dollar and 13 percent against the euro in the quarter. On the other hand, the yen gained 12 percent against the dollar. “Though the weaker won can add to raw material costs, it is favorable to Hyundai Motor,” said Hyundai executive Park Dong-wook, “because exports account for two-thirds of Hyundai Motor’s total sales and the company has a $15 billion foreign currency surplus.”“For now, we have no plan to reflect the recent prices hikes of materials, including steel sheets, while making continued efforts to save costs,” Chung said. Posco, the world’s fourth-biggest steelmaker, has raised the price of cold-rolled steel sheets, which are used for vehicles’ bodies, by 31 percent so far this year.

Separately, the combined sales from Hyundai Motor’s plants in the U.S., India, China and Turkey rose 22 percent in the first quarter over a year earlier. The Indian production base recorded the highest sales growth among them with a 52.6 percent surge, while the U.S. plant marked the lowest growth of 1.4 percent, amid a slowdown in its economy.Hyundai’s first-quarter results, however, disappointed investors after Hyundai posted huge derivatives losses related to currency hedging. After the earnings announcement, shares of Hyundai Motor fell 4.1 percent to close at 79,600 won.

by Joongagn daily

Although, Hyundai make bigger money than past, they know problems what they have and have to solve. The main problem is the cost of resources of car. The most important resource of car is steel. However, price of steel is rising and rising. Increase of steel cause increase of base cost of car. If car’s price be increased, their net profit will decrease. This situation can effect to the stock market. Already shares of Hyundai fell 4.1%.
Hyundai has to find solution as soon as possible. I recommend within compass…. how about Chinese steel? They will show us high growth rate of steel industry and supply enough amounts of steel at low price.

http://joongangdaily.joins.com/

reference

http://www.fnnews.com/

# 7 Entry / 20500297 (for 8th week)

2008-04-21T00:06:00.000-07:00

vs.

Samsung and SONY are two companies I'm mostly interested in. I've actually been preparing for internship in Samsung for this summer vacation and all of my computer devices are SONY's. I was reading newspaper last weekend and found an article about these two companies. This article introduces a book, 'Samsung vs. Sony' written by 장세진, analyzing the reasons why Sony has collapsed while Samsung has been growing.

Until 2000, Sony's market value was quadruple of Samsung's. However, from this moment, Sony started to go down while Samsung got on the fast track. Finally, in 2006, Samsung's market value was almost 100 trillion dollars, but Sony's was half of it. What made Sony fail? And what made Samsung rise? The author of this book suggested that it's because of leadership and management system. For 10 years, in digital world, Sony pursued synergy effect between hardward and contents by using network while Samsung focused on key components for competitive advantage. But most importantly, "organizational process and leadership of CEO were essential influence" the author said. Samsung has its own speed of production and power of execution. Executive ability of Samsung is one of aspects I admire and that's one of reasons why I want to work in Samsung at least for few years after graduation. No matter what happened to Saumsung these days, I admire charisma of the president of Samsung, 이건희. He's a person of action and does have management skills and it's so obvious that Samsung is helping Korean economy to grow. I believe that his management style was so influential that it brought a lot of changes and improvement in Korea.

In this book, the author points out that Samsung's growth in these days resembles the one of Sony 10 years ago. The period of prosperity of Sony was over when it tried to change its management system and resulted in lack of strategy. When it comes to change, there is always a risk and Sony eventually failed with that change. It can happen to Samsung as well. Maintaining its previous management style and getting used to more complex management environment might be difficult and might result in more strict regulations which will make employees lack of loyalty. I guess what we call 'Samsung man' or 'Samsung woman' feels proud of their company because of its reputation and huge influence to Korea but no one knows how long it will last. As a company's life cycle we learned in class, there is always a time of declining. Samsung should have some strategies to be prepared for its future changes.

I recommend you to read this book if you want to know what you need to do as a CEO of a certain company in order to face 'change.' I haven't started reading yet, (I will for sure!) but I think it will be very helpful in understanding global leadership and dilemma of top companies and how companies overcome. :)

Reference: 한국경제) 삼성 '소니의 실수' 답습하지 않으려면- by 고두현기자

entry 7 by 20500297 =)

Entre 6 Start Internet shopping mall

2008-04-18T03:29:00.000-07:00

Back at 1990’s, when Internet shopping was poped up, it was almost adventure. Starting Online shopping mall, it cost much cheaper than start retail shop but, Of course, it was on the beginning stage and there’s huge uncertainty and nobody haven't walk the way. But at that time there’s small number of competitors existed so it was much easier to get attention from customers and investors.

Right now, start Internet business is still adventurus. because of too many competetors exist on the market. Unless you have your own successful off-line company like ‘CJ mall' or ‘Shinsaegye Mall' it's really make success only with price. They was late or new comer in online shopping business but they have money to start with higher position. Also we better not compete with low price policy. If you handle limited item like computer components, even if you have some knowledge about the product circulation and market condition, it will cost a lot. If you compete with low price, that means there probably have competitor who already known.

So what can we choose? What if we don’t have enough money to spend for advertise and we are inexperience, we should try something differentiation. Well, online niche market on apparel business is too common and famous case. so I'll show something different.

The strategy I found is 'minimizing cost and risk'. The way she makes success in the article was when she builds up her own shopping mall site she does not have much confidence because of the risk I have mentioned above and when she start her online clothing store it wasn’t very successful. So, she chooses to use her shopping mall site as portal shopping mall. In her web site, she covers hundred of items from kitchen soap to insurance and car. Actually she doesn’t really handle all the items. If you click any of those items you will directly link to another Internet shop that has competitive power and she get 1~20% of commission of product price from the destined shopping mall.
Maybe her company cannot grow up major shopping like amazon.com but not everyone can make that great success, anyway.

http://www.fnnews.com/view?ra=Sent0701m_View&corp=fnnews&arcid=080317223459&cDateYear=2008&cDateMonth=03&cDateDay=18

http://news.joins.com/article/aid/2008/04/15/3100169.html

20501036

Entry #6 20300156 Kim Han-gil

2008-04-18T01:29:00.000-07:00

Pricing the Genesis: How much is too much?
April 18, 2008

If Genesis is about creation, well, the new car is creating a headache for Hyundai Motor as the firm prepares for the U.S. launch of its new premium sedan, the Genesis, in June. The main problem is deciding on price. For the moment, the company’s closest estimate is 32 million won ($32,258) for the model fitted with a 3.8-liter engine. The price for the same model in Korea is 52.8 million won. Koreans may complain about the price difference. Some may say the car’s price doesn’t warrant it being marketed as a premium vehicle.So why the price gap? Since the Genesis was in development, Hyundai Motor has studied the prices of similar cars in the U.S. market, including the Chrysler 300C, Acura TL and Lexus GS. Those models were the anticipated competition for Hyundai’s first high-end release in the United States. The other models range in price from $30,000 to $40,000 in the United States. Other factors, including cost for parts, raw materials and currency fluctuations all contributed to the final price. One very important stage during the process was consumer research.“We found that although quality is important, the ultimate deciding factor for customers in buying a car was price,” said a Hyundai representative. Accordingly, because Hyundai Motor’s brand name is less recognized in the U.S. than Japanese or American automakers, the price for its cars had to be reduced.Another factor in the reduced price is the U.S. economic slowdown. Although a similar process takes place in Korea before the release of a new model, a Hyundai representative said that prices differ between the two countries “because the price levels and customer tastes differ between Korea and the United States.” The representative added that Japanese and German cars are also much cheaper in the United States than in their own countries. In short, in Korea, commodities cost more and Koreans accept the higher prices. The Genesis might cost more than 50 million won but demand is strong.With the price difference and demand in mind, some might consider reimporting Korean cars from the United States, meaning they would buy the car there and ship it back to Korea.But with import taxes amounting to around 34 percent of the original price, individual customers will not save much money by taking this extra step.

By Han Ae-ran JoongAng Ilbo [jainnie@joongang.co.kr]

This article make me to remember about our team's Markstrat strategy. At first period, We failed our strategy because of worng deciding product price. I thought that Hyundai knows what they will be faced at U.S before expands U.S market. They have to decide optimal price of Genesis and consider many factors in U.S- other high-end car's price, brand awareness etc. I agree this policy and expect to result of it. Also, I wish success of our strategy at Markstrat.

# 6 Entry / 20500297

2008-04-17T22:28:00.000-07:00

Finding Innovation Where It Lives

It's been 2 weeks since we started playing MartStrat simulation game. At the very first time, I couldn't really understand why 'innovation' and 'differentiation' are important as professor emphasizes in class. I knew that's what will make our team competitive but didn't have a clear view of innovation. I was like 'I can't be an innovator. I am not creative so thinking of unique ideas and thoughts should not be my job.' How irresponsible I was! Well, our group had several times of meetings as others and during that meeting, I just sat and agreed with some ideas from other group members. I could analyze and tell people what can be more appropriate choice for us but as we started failing, we all needed to be able to innovate our products in order to increase the sales. It was time to face 'innovation.'

In this article I read, Jack and Suzy Welch tells you some important aspects of innovation. Yes, 'innovation doesn't arrive like a thunderbolt. It emerges incrementally, in bits and chugs, forged by a mixed bag of coworkers from up, down, and across an organization, sweating and wrangling it out in the trenches.' (quoted) I agree with this part. It changed my thought that I had, which is 'innovation is possible with geniuses only.' It may sound ridiculous, but I really had this thought on my mind and that's reason I kept avoiding whenever I had to face 'innovation or differentiated-related' task. Innovation doesn't always arise from geniuses. Jack and Suzy said that 'it's a mind-set that makes people excited to share new ideas and to embrace the notion that you only win as an organization when everyone's brain is engaged.' (quoted) In other words, the place I am with my teammates for this game is the place where innovation lives. We are all different and have all different strengths. No one is the same. How creative God is! Thank God for creating us like his image. I can be creative, while I simply share my thoughts with others as we stimulate each other with our own unique thought. Innovation and differentiation are hard, for me still, but I no longer want to avoid it. It's not something that automatically pops up, but the time I spend with my team members, sharing ideas at night, sometimes having fun and joking around, is when innovation is being created!

Whatever I do today can be better tomorrow if I do it differently. I have a tendency to do things as 'I have done' them because I believed that's the right way. But now I know that it's not true. I leanred that embracing difference is the first step to take in order to make my life innovative and unique through this article. I'll get started right now. :)

Reference* http://www.businessweek.com/magazine/content/08_16/b4080084408701.htm

* entry 6 by 20500297 =)

Entry #6 20200622 Sang-Hoon

2008-04-17T05:41:00.000-07:00

Decentralization plan stirs row

A major political dispute is brewing over whether to scrap a massive regional development plan made by the previous administration.
The Lee Myung-bak government is expected to place the "innovative city" scheme under the knife in light of its plan to privatize many of the state-owned firms as well as recent reports that suggest the project won't likely lead to economic prosperity in provincial areas as had been hoped.
The project, estimated to cost 43 trillion won ($44 billion), was aggressively pushed by the Roh Moo-hyun administration as a way to decentralize the metropolitan area. Under the plan, 10 innovative cities would be born by relocating over 100 state-owned firms in Seoul there.
However, controversy rose when a recent government audit showed that its proposed economic value had been inflated. A think tank report, meanwhile, showed that the plan had been pushed on false expectations that all the families of relocated employees as well as related businesses would move as well.
A survey showed only 51 percent of the families were willing to relocate.
The main opposition United Democratic Party yesterday criticized the government and the ruling party of arrogance and said the "innovative city" project must be carried out as planned.
While the Ministry of Land, Transport and Maritime Affairs said it had no plans to change the project, the new government is reportedly already looking for an alternative plan.
Insiders say the new government is likely to replace or absorb the innovative city scheme into one of its proposed national projects.
The "5 plus 2 economic zone plan" seeks to raise the nation's competitiveness by devising cooperative and specialized development models according to five integrated economic zones: the metropolitan area (Seoul, Incheon and Gyeonggi Province); Chungcheong zone (Daejeon and Chungcheong provinces); Honam zone (Gwangju and Jeolla provinces); Daegyeong zone (Daegu and North Gyeongsang Province) and Dongnam zone (Busan, Ulsan and South Gyeongsang Province).
Gangwon Province and Jeju Island, meanwhile, would seek development models of their own.
The expectation is that "innovative" cities will likely be absorbed into this plan where they will play central roles.
The government is also reportedly considering using the extra lots that will stem from a reduced number of relocated state-owned firms, for corporate use.
The land could also be used in conjunction with its other proposed national projects like the Saemangeum project, cross-country canal and science-business belts, insiders said.
The move to virtually scrap the original plan will face an uphill battle, however, given the progress made so far.
Of the 10 innovative cities designated, ground has already broken in five.
Over 2.4 trillion has been paid out to citizens in land compensation, nearly 80 percent of the total. Also 28 state enterprises have completed their relocation plans.
Choi In-kee, policy committee chairman of the UDP, said attempts to downsize the plan would be met with strong public protests.
"The vicious cycle of completely reexamining projects from the previous administration should not be repeated," said Lee Gun-cheol, an official of Jeonnam Research Institute, a think tank in South Jeolla Province, where ground for the creation of a joint innovative city broke last November.
Politicians close to Roh Moo-hyun yesterday said changes in the scheme required gathering public opinion.
By Kim Min-hee (mhkim@heraldm.com) 2008.04.17

Actually I agree with making this grand waterway. I think it will bring Korea so many benefits. reasons are this; it will reduce logistics cost by one third, will produce seven hundreds of thousands jobs, can create more than 15sightseeing places, will reduce air polution and flooding, and it will improve water quality.
President Lee was elected by a nation. I think we should believe him because he is eager to make Korea as one of the most powerful countries in the world.

Entry #5 20200622 Sang-Hoon

2008-04-11T06:25:00.000-07:00

International Monetary Fund to close office in Korea amid restructuring

The International Monetary Fund said Thursday it will close its Korean office as part of a broader restructuring and downsizing of the Washington, D.C.-based organization, reported Yonhap News Agency.
In a brief statement distributed through Korea's Ministry of Strategy and Finance, the IMF said that its Seoul office will close when the term of current resident representative Meral Karasulu ends in September.
"While Korea is an important economy in both the region and the global economy, it is also now a mature and resilient economy, and has fully recovered from the Asia crisis," the fund said. "Given the importance of the Korean economy, our decision to close the office was a difficult one."
In November 1997, Korea, its economy reeling from an economic contagion that had alreadyswept through Thailand and Indonesia _ asked the International Monetary Fund for a $19.5 billion loan.
Korea ended up receiving a total $58 billion international bailout package arranged by the fund. The country, however, moved swiftly to reform its economy and ended up using only $30.2 billion of the offered assistance.
It eventually paid back the loans in full and ahead of schedule.
Still, the experience was so searing for Koreans that the events came to be known as the "IMF crisis" for the role played by the fund.
The fund said that as a result of the restructuring, a number of resident offices in both Asia and other parts of the world would be shut down, with some of them remaining open to take on a wider regional role.
"Notwithstanding these closures, the IMF remains committed to working closely with the authorities of all economies in the Asia region to maintain macroeconomic and financial stability," the statement said.
The document didnot mention any other offices to be closed by name.
Karasulu was not immediately available to comment.

2008.04.10

Entry #5 20300156 Hyundil Heavy develops LCD transport robot

2008-04-11T06:20:00.000-07:00

Hyundai Heavy develops LCD transport robot

Hyundai Heavy Industries Co. has developed an industrial robot for the transportation of LCD panels between their production processes, the company said yesterday.

Hyundai Heavy will supply the robots to LG Display Co., the world's second-largest maker of liquid crystal display panels, which are widely used in TVs and computer monitors.
About 100 units will be deployed at the 8th-generation production line in Paju, Gyeonggi Province. LG Display plans to start operation of the plant in the first half of next year.
It is the first time that Hyundai Heavy developed an LCD transport robot, a Hyundai spokesperson said. Industrial robotics are used for transportation of LCD glass substrate between processes. LCD glass substrates must be moved in a highly-controlled - stable, smooth but speedy - manner, the company said. Japan is the main supplier of the robots.
An LCD transportation robot developed by Hyundai Heavy Industries Co. [Hyundai Heavy]
Hyundai Heavy, the world's No. 1 shipmaker, has been producing industrial robots since 1984. It holds a 40 percent share of the market in the Korean automobile industry, where industrial robots are used for assembly. It has a 7 percent share of the global automobile manufacturing robotics market.

The global market for LCD transport robots - estimated to be worth $480 million and 6,400 units at present - is projected to grow about 15 percent annually to reach $540 million and 7,300 units by 2010.
"The Korean market is expected to grow to $100 million and 1,200 units this year and to $110 million and 1,300 units in 2009," a Hyundai official said. "We will target overseas markets, not to mention replacing shipped-in products with ours in Korea."

This is a R&D which we've learned. Sometimes, We have to accept any risks. I think this is the time to accept for Hyundai Heavy Instructure Co. They estimate future market and willing to change market share of Korea and world. I expect Hyundai after R&D.

http://www.koreaherald.co.kr/

Entry #5. 20501036

2008-04-11T01:12:00.000-07:00

Do not believe what only you can see now.

When I was in early teenager, E-land TV commercial often seen at golden hour and their brand was so strongly appealed to my peers. So, I ever wanted to buy clothing like E-land which was very popular and famous brand. Actually it was a synonym for high-quality fashionable and has competitively low price.

Now, if my mom buys me the clothes, I would never happy with it. It’s like old fashion’s brand which mean’s they lost brand power. So it was not a news when I heard that some of their brand like HUNT has been expelled. The HUNT (dismissed brand), twenty year old brand, it was very popular and major brand. So everyone knew the brand – maybe you too have one or two of this brand clothes in your wardrobe). But they failed to be innovated at maturity level. As every product has its life cycle and if the product arrives at the stage, they don’t have much choice. Innovate the product, differentiate and drawing another product life cycle or die (go decline stage).

‘HUNT’ was the one of most powerful brand they ever had. It marked one-billion dollar of turnovers worth a year in doing business until mid 90’s. However, competition in the casual brand market was getting stronger from 2000’s. So E-land retargets the market segment from early twenties to late twenties and thirty’s semi-formal suit (which is more convenience than suit) who are used to their brand. But it was too late. They expelled ‘HUNT’.

But there’s news that E-land shows a great performance in China. Turnover worth of business last year in China was 3.5 billion dollars and their approximate annum worth this year is 5 billion. Average growth rate in past seven years was 79% and annual profit increased average 63% every year. Rules of E-lands success was planting luxurious brand image. The reason they could make great success in China is they never exposes their previous brand image in Korea. All their brands have own brand image. One of brand of E-lands is ‘SCOFIELD’. Its formal suit cost 700 dollars (average salary of business person who are just graduate from university is 300 dollars). But this brand’s annual turnover worth last year marked on highest place above other luxurious brand like Boss, Luisvitton 'Babaean department store'.

When I analyze this case with BCG graph, we can see that during other E-Land brands in Korea working for CASH COW, they invest the money for R&D toward another WILD CAT brand like WHO.A.U and SCOFIELD. When they successfully move to STAR square, they withdraws their brand which is old and moving to DOGS. Also, we can apply this to product lifecycle graph. Before their brands like HUNT begin declines, they introduce new brand with different target segment. So E-Land could extend its company lifecycle.

http://news.mk.co.kr/outside/view.php?year=2008&no=196723

http://www.fnnews.com/view?ra=Sent0701m_View&corp=fnnews&arcid=080124222935&cDateYear=2008&cDateMonth=01&cDateDay=24

# 5 Entry: 20500297

2008-04-05T22:22:00.000-07:00

Yahoo_ New appeal to WOMEN

"The Internet giant hops to attract more women with a new content site

that will inforporate user home pages and blogs"

When I think of 'minority group', the very first thing that pops up in my head is 'women.' From the ancient, women have been treated as a servant of men. Well, it has been changed a lot and in many countries women became the most powerful group leading this global world. Think of Hillary Clinton or Oprah Winfrey. The more the world changes, the more women become influential with great leadership and potential.

Yahoo targets these women with their new site, called 'Shine'. This site will feature original blogs and content from major publishing partners including Conde Nast, Hearts, and Time. 'Yahoo executives argue that women are broadly underserved online, which the established players in the space would dispute. But other recent developments hint at increased activity at female-aimed online plays.' (quoted) So what can women do on this web site?

Yahoo aims to be the top destination site in the lifestyles category, said Amy Iorio (General manager of Lifestyles at Yahoo.) Remember that ACCORDS we learned in class? The second C stands for 'compatibility' including 'life style', which means that understanding potential customer's life style is very critical. In that content, I guess women as a demographic is a good target, since there are 40 million women between the ages of 25 and 54 every month. And in seems like women tend to blog more than males. Why? Well, I think women are more likely to show themselves to others.

With this new site, 'Shine readers will be able to start their own blogs and that content, if deemed worthy, can end up as some of the featured content in different sections on the site.' (quoted) The appearance of the web site is more women-like. Users are able to create their own blogs, and home pages, and 'clip' certain articles and put them on such pages. It's very easy and simple so women do not have to be frustrated with technology stuff.

I visited the web site. (Shine.yahoo.com) I like the logo design, which seems cute and sexy. Since it's a new web site, it friendly explains about itself with a pop-up window. It says, 'Shine features the best writers and bloggers in women's publishing. Plus, connect with like-minded women, share stories, and more. Take a ten-second tour to see more.'

This is the place where women can feel free to talk about their issues and creat a special women's community. You know what women like the most! TALK! I see this trial of Yahoo positively. 'Against the turbulent backdrop of Microsoft's bid to buy the Web portal and reports of its own maneuvers to find alternate deal partnets, Yahoo is quitely putting the finishing touches on this major new content site aimed at women.' (quoted) Not only that, there are competititors like Ivillage and fashion and celebrity-new heavy Glam.com, and that's what Yahoo should work on in order to differntiate and innovate their new web site. It reminds me of 'product cycle' that we learned in class. It may be too late for Yahoo to start a new thing, but I think no giving it up is one of aspects that we should keep in mind.

References: http://www.businessweek.com/technology/content/mar2008/tc2008037_816228.htm?chan=innovation_branding_top+stories

http://images.google.co.kr/imgres?imgurl=http://www.tamilstar.com/news/uploads/5_28.jpg&imgrefurl=http://www.tamilstar.com/news/publish/article_7291.shtml&h=407&w=400&sz=53&hl=ko&start=7&um=1&tbnid=_69xWnf2u1lDSM:&tbnh=125&tbnw=123&prev=/images%3Fq%3DYahoo%2Bwomen%26um%3D1%26complete%3D1%26hl%3Dko%26lr%3D%26newwindow%3D1

* Entry 5 by 20500297

Entry #4 20300156 Kim Han-gil

2008-04-03T04:46:00.000-07:00

World Bank lowers growth forecast
Lender says subprime crisis will hurt, but region’s fundamentals still strong
April 02, 2008

Korea’s economy is expected to grow 4.6 percent this year and 5 percent in 2009, the same as the average predicted for newly industrialized economies, the World Bank said in its latest report yesterday. The bank lowered the country’s economic outlook from the previous 5.1 percent in November to 4.6 percent. It said Asia is no exception to the likelihood of a significant slowdown in 2008 from falling exports to the U.S., rising volatility in global financial markets and high international commodity prices.Korea is one of the countries that is more exposed to the U.S. subprime-related assets than other East Asian countries, the report said, naming Woori Bank as one of the most affected institutions. Yet, the region’s strong fundamentals, supported by productivity gains, high savings and growing education and skills, are capable of preventing financial turmoil and cyclical slowdown, it said. In a review of East Asian and Pacific economies conducted every six months, the global lending institution said growth in developing East Asia is expected to drop from 10.2 percent in 2007 to 8.6 percent this year and 8.5 percent in 2009. The prediction was for slower economic expansion for all of the region’s nations, including emerging, transition and small economies. Korea’s growth reached 5 percent in 2006 and 4.9 percent last year. Growth by China was expected to hit 9.4 percent this year and 9.2 percent in 2009, while that for Japan was predicted to reach 1.5 percent this year and 2 percent in 2009. The review said East Asia is generally better prepared than ever to deal with uncertainties of the global economy. “The region is becoming more of a growth pole in the world economy, proving to be a force for stability at a time when the industrial economies are slowing,” it said. The report said it was striking how modestly East Asian exports fell over the past six months, as weakened exports to the U.S. were offset by increasing exports to Europe and other East Asian countries. Yonhap

Entry #4 20200622

2008-04-03T01:45:00.000-07:00

Korea's exposure to G3 downturn modest

Korea faces a modest risk from a slowdown of the world's three biggest economies - the United States, the European Union and Japan - as the country is less dependent on exports than its Asian peers, a report showed yesterday.
Korea was rated as being "at some risk" from a looming downturn of the major economies, the Swiss bank Credit Suisse was quoted as saying in its February report.
The Korea Center for International Finance said Korea is more sensitive to G3 economic cycles than China and India, which were considered "the least at risk," while the nation is less exposed to G3 economies than Singapore, Taiwan and Hong Kong, which were "at high risk."
"Hong Kong and Singapore have high export exposures to the G3 economies and high linkages with the capital markets of G3 economies. It is likely that the Taiwanese economy will slow sooner because the country has a high export exposure and sees a protracted contraction in domestic consumption," the Korea Center for International Finance said in its report.
"Korea's export exposure is not big and its domestic consumption is recovering, but its short-term foreign currency borrowing is excessive," the report said.
Singapore, Taiwan and Hong Kong are forecast to see their growth rate decline by 3 percentage points, 1.7 percentage points and 1.5 percentage points, respectively, when G3 growth dips 1 percentage point.
The G3's slowing growth will have less of an impact on Korea, which would post a 1.3 percentage point fall in economic growth for every 1 percent fall in G3 growth.
The report also said Asia's economic growth will remain unchanged at between 7 and 8 percent as increased domestic demand will cushion the impact of a flagging global economy.
Korea's economy expanded by 5 percent in 2007, but the nation's central bank downgraded its economic growth forecast to 4.7 percent in February from its previous projection of 5 percent in December due to a slowing global economy and record-high oil prices.

http://www.koreaherald.co.kr/
4/3

#4 Do you still want some more culture? / 20501036

2008-04-02T19:49:00.000-07:00

Starbucks which is one of biggest coffee chain downward readjustment of business showing prospect because of head offices’ poor progress in USA. However, they still keep their myth of success with out standing performance in ASIA countries like Korea. Especially in Korea, there’s a newly coined word doenjang-girl who longing New Yorker life style so they love to go to Starbucks (Starbucks coffee is their symbolic item) without considering their household economy. I also contributed some part for Starbucks’ success until I come back to Korea after a year of staying in Australia. When I try Starbucks’ cappuccino coffee I deeply disappointed because of its tasteless and other coffee chain’s coffee too. Actually, their coffee was same as before I went to Australia but now I could compare the taste. The reason because of oxidize of roasted bean. Just after roast coffee bean, it start oxidize. However, most of coffee that uses in Starbucks and other coffee company’s are roasted in other country and shipping into Korea. It takes more than two month. They spend more than one third of period of circulation (six month) in importing.

When Starbucks start business in Korea they were very new and fresh. So they could extend market every year with 228 branch shop and their followers like doenjang-girl (kidding). But their competitor like Dunkin Donuts erode away Starbucks’ market share with chip price and TV commercial. And now they are going to start building a factory for roasting coffee bean inside of Korea to take more pie and overcome the myth. Starbucks commercialize culture. They made it. But, one thing they really need consider of is taste. Basically they are selling coffee neither a music shop nor a book store.

http://news.mk.co.kr/outside/view.php?year=2008&no=181390
http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=103&oid=036&aid=0000006690
http://www.hankyung.com/news/app/newsview.php?aid=2008032157871
http://www.moneytoday.co.kr/view/mtview.php?type=1&no=2007111616065986291&outlink=1

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#4 Entry / 20500297

2008-04-01T06:54:00.001-07:00

The "Touchable" Tasting Menu

_Innovative table-top interactive menu_

I found something VERY interesting here! You may have seen this before, but to me, it was a shock! You don't have to wait until the waiter comes to you and ask you if you're ready to order at restaurant. Why? When you're ready, all you have to do is touch the screen!

I was going to upload a video, but somehow it's not working.

Please visit http://images.businessweek.com/ss/08/01/0125_virtual_sommelier/index_01.htm & watch a cool slide show of this design!

In Adour restaurant, located in New York's tony St. Regis hotel, there is something special designed by David Rockwell. "As customer runs his hands over the bar's stretched goatskin surface like a croupier handling cards, sparkles of light project from the ceiling onto the bar's surface, following the sommelier's every move." (quoted) When you touch another part of the bartop, a menu pops up and displays a list. - By the Glass, Red Wine, White Wine, Magnums, Bar Food, and so on. - Isn't this an amazing idea and design? As the author says, ubiquitous computing is a trend. Without a mouse or keyboard, people can manipulate computers, now even in restaurant.

For another example, 'Microsoft plans to introduce a similar technology, called 'Surface', in restaurants and lounges in Harrah's casinos and Sheraton hotels.' (quoted) Senior marketing director of Microsoft surface said that "computers will be pervasive, collaborative, approachable, and convenient." That's what computers are like these days.

One thing I am worried about this design is that if this design becomes prevailed, waiters and waitresses can lose their jobs since restaurants usually think about staff and workers. It's all about service. However, what I want to point out is the fact that creativity and innovation from 'imagination' of human being are unbelievable. This type of design provides customer a clear selection of wines and food AND writes another history of restaurants' service. I think it will create more interesting conversations on this table. Such a creative idea bring a new culture!

References: http://www.businessweek.com/innovate/content/jan2008/id20080125_679652.htm?chan=innovation_innovation+%2B+design_cutting-edge+designers by Spencer E. Ante

* 4th entry by 20500297

#3 Entry / 20500297

2008-03-28T04:20:00.000-07:00

Demystifying Strategy:

The What, Who, How, and Why

"It's just as important to understand what strategy is -- guiding principles for decision-making -- as what it isn't -- mission, value network, and vision." (quoted)

What is strategy? It's been almost a month since we started studying business strategy. However, I still don't have a clear view of what strategy is. The only thing that pops up in my head when I think of strategy is just some tactics you can use in order to win in business competitions. I wanted to know more about strategy and fully understand what it really means. Through this article I chose, the author helps you to get a better understading of strategy.

Many leaders know that they should have a strategy in order to align decision making in their businesses. Most of them struggle with strategies even though they have had a lot of theories to use, because 'when it comes down to the nitty-gritty crafting strategy, they get bogged down.' (quoted)

The author has his own definition of business strategy. "A business strategy is a set of guiding principles that, when communicated and adopted in the organizaion, generates a desired pattern of decision making. A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives." In other words, having a business strategy means that you have a roadmap including principles to follow. To do what? To achieve 'desired goals!'

The thing you need to remember is that a strategy is NOT a mission to be achieved. Plus, it's NEITHER the value network, the web of relationships you have with others like suppliers, customers, and investors, NOR a vision which is a means to use inspire others. What he means, I think, is that strategy is not a motivating tool.

What is a conclusion, then? "Mission is about WHAT will be achieved; the value network is about with WHOM value will be created and captured; Strategy is about HOW resources should be allocated to accomplish the mission in the context of the value network; and vision and incentives is about WHY people in the organization should feel motivated to perform at a high level." (quoted) These four together, decide the strategy direction to take. They are all inter-related so that you can't create a strategy without thinkging of vision and goals.

As a Christian, what kind of vision, goals, and strategy we should have? Proverbs 16:1 says "To man belong the plans of the heart, but from the LORD comes the reply of the tongue." And Proverbs 19:21 says "Many are the plans in a man's heart, but it is the LORD's purpose that prevails." We must live a life walking with the Holy Spirit. In Him, that's the place where the wisest strategy comes from.

Now I am less confused with strategy. These four elements of business have always been familiar to us but it was quite hard to tell the difference. What is your own definition of strategy?

Reference: http://www.businessweek.com/managing/content/sep2007/ca20070918_848913.htm?chan=careers_managing+your+company+page_strategy+and+execution by Michael Watkins

Entry #3_20500297

entry #3 20300156 Kim Han-gil

2008-03-27T23:52:00.000-07:00

Hana Bank head, ‘JT,’ promises 10% growth
New chief exec on lookout for M&As
March 28, 2008

Kim Jung-tae, right, holds a Montblanc fountain pen with his predecessor Kim Jong-yeul, at his inauguration yesterday at the Hana Bank headquarters in central Seoul. Kim Jung-tae will be the fourth owner of the pen, which was passed down from the bank’s initial chairman, Yoon Byung-chul. [YONHAP]JT is back, said Kim Jung-tae, the new chief executive of Hana Bank, the nation’s fourth-largest lender. It stands for both Kim’s first name and “Joy Together,” a slogan under which the former head of Hana Daetoo Securities said he can guarantee at least 10 percent growth at the bank in the next five years by fostering the potential capacities of the employees.“I will not be a boss, but a helper,” he said in his first meeting with the press, adding that his work philosophy lies in “working joyfully.”A Hana spokesman said Kim calls Hana workers by their first names rather than their last to help make them more comfortable. Appointed late last month, Kim was inaugurated yesterday and placed a board reading “JT” on the door of his room, instead of his full name.Kim said although no domestic banks are on sale at this point, he “is willing to take part [in the bid] when opportunities approach.”“I am against proceeding with reckless mergers and acquisitions. Internal growth also matters,” he said.On robust internal and external growth, the bank aims to become Korea’s largest bank by 2013, by more than tripling its assets to 400 trillion won ($405 billion).The 56-year-old CEO emphasized the importance of overseas inroads. “We will be pursuing domestic M&As as well. Markets outside Korea, especially East Asian countries such as Cambodia, Taiwan and the Philippines, will play a critical role as growth engines for the bank,” he said, citing their cultural and linguistic similarities with Korea. He also said the bank, a unit of Hana Finance Holdings, will double the number of countries it operates to 16 by 2016, and strengthen its business in China by raising the number of offices and branches there. Kim ran a brokerage house, Hana Daetoo, from 2006 until February of this year.

By Seo Ji-eun Staff Reporter [spring@joongang.co.kr]

http://joongangdaily.joins.com/article/view.asp?aid=2887943

#3 Breed a wild cat to the star

2008-03-27T05:24:00.000-07:00

Demand of Korea shipbuilding Company’s major product (container ship and LNG ship) is sharply increased in recent years and they have been received orders for next decade. Also, increase of demand in FPSO (Floating Production Storage & Offloading Unit – 10 billion dollars for each unit) brings huge profit to those companies. However, they are going to move their product focus to cruise-ship building industry. There is several reasons they want to change their major industry part but the main reason why they want to start cruise shipbuilding industry is simple. It makes a lot of profit. As an example, oil tanker’s price for 1GT* is 800dollars but cruise ship’s price for 1GT is 5500dollars and it’s about five times bigger.

It also because of extending of cruise tourism market. They have approximate 9.5 percent of market growth rate every year and in northern America market’s cruise ship providing rate could not follow the growth of number of tourist. It means this market has a lot of room for share with high profit.

When we apply with *BCG matrix, the business they are doing is ‘money cow’. - There are several competitors in industry like Chinese company but there’s a technological gap and they are losing their credit as long as they break dead-line for the product. - So it is a reasonable investment in cruise ship building industry as a wild cat( question mark ) which has high potential to become a star product because they have a stable profit model which can supply money to investment.

Right now, STX is most closely approached to cruise shipbuilding industry with M&A with AKEYARDS which is second world biggest cruise ship building Company last year.
Also, there are expectable supports from government not only financial support for R&D but also legal support. Because Korea’s shipbuilding is one of most important ‘STAR’ industry and they don’t want lose their star by struggle for supremacy with other country. Right now, it seems stable but if we consider of growing speed of Chinese Shipbuilding Company with low labor cost, the government also feel sympathy with diversification of profit model.

* GT – Gross tonnage is a calculated representation of a ship's internal volume. It is expressed in "tons," a unit of volume defined as 100 cubic feet (which is about 2.83 cubic meters). Gross tonnage is not a measure of the ship's weight or displacement and should not be confused with terms such as deadweight tonnage, net tonnage, or displacement. - Wikipedia

* BCG growth-share matrix

a simple chart to assist large corporations in deciding how to allocate cash among their business units. The corporation would categorize its business units as "Stars", "Cash Cows", "Question Marks(also called problem child or wild cat)", and "Dogs", and then allocate cash accordingly, moving money from "cash cows" toward "stars" and "question marks" that had higher market growth rates, and hence higher upside potential. - Wikipedia

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http://newsmaker.khan.co.kr/khnm.html?mode=view&code=114&artid=16501 http://cafe.naver.com/defenceworld.cafe?iframe_url=/ArticleRead.nhn%3Farticleid=264

Entry #3 20200622 Sang-Hoon

2008-03-27T01:22:00.000-07:00

Free Web Version of Photoshop Launches
Thursday March 27, 12:18 am ET
By Amanda Fehd, Associated Press Writer

Adobe Launches Free, Online Version of Photoshop, Hoping to Draw New Users
SAN FRANCISCO (AP) -- The maker of the popular photo-editing software Photoshop on Thursday launched a basic version available for free online.
San Jose, Calif.-based Adobe Systems Inc. says it hopes to boost its name recognition among a new generation of consumers who edit, store and share photos online.
While Photoshop is designed for trained professionals, Adobe says Photoshop Express, which it launched in a "beta" test version, is easier to learn. User comments will be taken into account for future upgrades.
Photoshop Express will be completely Web-based so consumers can use it with any type of computer, operating system and browser. And, once they register, users can get to their accounts from different computers.
Web-based software is increasingly popular, and Adobe knows it's got to get on that train, said Kathleen Maher, an analyst at Jon Peddie Research.
Many kinds of software are available for use online in a trend known as "software as a service," or "cloud computing." The earliest were e-mail programs, but they now include services to create and manage content and even whole operating systems. And they don't require time-consuming upgrades because they're maintained by the service provider.
Google Inc. provides a host of such services, as do Microsoft Corp. and others.
"This is the battlefield where Adobe and Microsoft and Google are going to fight some pretty big battles," Maher said.
Photoshop enters the online photo-management arena many years after such services first appeared. Some companies have already made a big name for themselves, like 9-year-old storage solution Shutterfly Inc., photo-editing service Picnik or image-sharing site Photobucket Inc.
Adobe says providing Photoshop Express for free is part marketing and part a strategy to create up-sell opportunities. It hopes some customers will move from it to boxed software like its $99 Photoshop Elements or to a subscription-based version of Express that's in the works.
Ron Glaz, a research analyst at IDC, says the move was necessary for Adobe to keep pace. Users are less likely to switch to a software they aren't familiar with, he said.
"They have a whole market that they are missing out on, and they need to make sure that the market is aware there is a Photoshop solution for them. As that market grows and becomes more sophisticated, hopefully it will generate money," Glaz said.
"It's one of those things, if you can't beat them, join them," Glaz said. "If they don't join them, the long run could be really painful."
On the Web: http://www.photoshop.com/express

Entry no.2 20300156 Kim han-gil

2008-03-21T05:39:00.000-07:00

Small-firm CEOs complain about loans
March 21, 2008
A meeting with Industrial Bank of Korea head Yun Yong-ro turned into chorus of complaints on Tuesday, as 80 chief executives of small- and medium-sized enterprises in the Gwangju area of Gyeonggi Province voiced their displeasure with difficulties in getting loans.Although Yoon promised to do his best to give more support to smaller firms, the CEOs were less than impressed. “Every time a new administration is launched, policies to give aid to small and midsized companies pour out and banks pledge to make it easier to borrow money, but the plans never materialize,” said the head of a construction materials company. “My hope has run out.”A CEO of a beverage bottle cap manufacturer complained that although metal prices have gone up 35 percent in the past two years, the cost of bottle caps has gone down. “Small companies are having a very difficult time nowadays,” he said. Financially stricken firms inevitably have to ask for bank loans, but banks apply excessively high regulations when giving out money, CEOs claim. A man called Kim, who runs a steel company, said, “After seeing a notice that banks provide special loans for buying raw materials, I went in to get some more information. But the procedure was too complicated and the loan extension period was too short.” Borrowing money with land or factories as collateral is not easy, some argued. Others expressed hopes that banks would not reshuffle their branch head positions, so contacts can be maintained.What are these plans the new administration has for smaller companies? First, the Ministry of Knowledge Economy, in cooperation with business lobby groups, has decided to form a group that will visit small- and medium-sized companies, listen to the challenges they face, and try to resolve problems.But the response was far from positive. A head of a cell phone parts-making firm said, “The business-friendly concept that every administration has emphasized does not apply to us. Showing off should make way for real change. For example, the entire industrial structure should be reformed to boost smaller companies’ competitiveness.” Making matters worse, loans to small firms are expected to be scaled down rather than increased. The Financial Supervisory Service warned against rampant lending, and many banks have decided to reduce their loan portfolios this year.By Kim Joon-hyun JoongAng Ilbo [spring@joongang.co.kr]

Entry no.1 20300156 Kim han-gil

2008-03-21T05:37:00.000-07:00

Price hikes starting to hit home
Consumers feeling the crunch in daily life as Misery Index climbs
March 21, 2008
Cartoonist Jeon Ae-suk, 38, is known for her thriftiness, but in this month alone, her living expenses have jumped 100,000 won ($98) because of recent commodity price rises.“I don’t go to theaters and never go out to eat these days,” Jeon said. “I’ve even stopped driving my car, but I still can’t compensate for grocery costs.”As Jeon shopped for ingredients to make kimchi on Tuesday, she found out that to make just three jars, it would cost her 20,000 won ($19.80).Last year at around the same time, she said it cost around 11,000 won to make five jars. Three heads of cabbage this year costs 6,000 won, compared to five for 5,000 won last year.Radishes fared no better, with one costing 1,200 won, about double the price from last year. In fact many items in the store have doubled in price ― or even more ― including cucumbers and mackerel.Korea’s consumer inflation rose 3.6 percent last month. This price index for raw materials and intermediate goods jumped 19.3 percent compared to last February. An official at the National Statistical Office commented, “After ramen prices went up, we see that people are really affected by the rise in living necessities, one of the hardest hit industries recently.” A Mr. Kim, a 35-year-old employee who gave only his surname, works at a large conglomerate. He said that last year he was always checking the gas meter in his car due to the rise in oil prices.But this year he is afraid to go out to eat lunch because of price jumps at restaurants. One item that has skyrocketed in price is jjajangmyeon, or black bean paste noodles. Industrial product prices are also expected to rise.Since late last year, large discount stores nationwide have been engaged in competition for their private brand products.Lotte Mart manager Ku Chang-mo, however, thinks this won’t stabilize prices because suppliers are negotiating to raise their prices even higher. The price hikes on China-made products have also been a big influence in Korea.“A coffee mug set, which cost 70 yuan [$9.88] late last year, cost 77 yuan last month,” said Moon Hyung-oh, who imports housewares from China. “Overall, the cost of Chinese products rose 10 to 15 percent and it will rise again soon.” For now, the forecast looks gloomy as prices continue to rise.“In the past, raw material price increases have not affected the everyday lives of the public to this extent, but now, with the price of oil, grains and raw materials going up at once, and with an unstable won, the impact is being felt more closely by citizens,” said Jang Jae-chul, chief researcher at Samsung Economic Research Institute. The Misery Index measures the economic and social costs for a country with inflation problems by adding the unemployment rate to the inflation rate. Monitored by the LG Economic Research Institute, the index last December stayed at 11, compared to 8.5 in September. By Special Report Team JoongAng Ilbo [jainnie@joongang.co.kr]

Entry 2. Winner takes everything?

2008-03-21T04:52:00.000-07:00

Development of third world countries extend their middle class and give them a purchasing power. There are many competitors runs for this newly opening market and India which has 1.1 billion population is one of most important market. Their car market has shown 13% of growth as compared with previous year and Hyundai's remarkable performance in small car market stimulate not only global car company but also their national car brand like Tata-moters and Maruti. Tata-motors' brand new car 'nano' only cost 4000 dollar with full option and has a fuel-efficient engine(21.6km to one liter). Maruti also designing a low priced car with 3600 dollar with GM. This kind of actions are taking also in mobile industry.
ZTE, chinese mobile company, make an interesting performance. They are actually new comer in mobile industry but they entered top ten mobile company last year with cheap mobile unit under 40 dollar. They made a deal with biggest telecommunication company vodafone and other telecommunication companies in third world which provide low price model. They are actually taking the new market on developing countries with cheap model. I think their successes are comes from customer oriented mind. They read customer's need. In contrast, Motorola's market share in 3rd quoter 2006 was 21.6% and it fall into 11.9% in 2007. They also knew what they need restructuring their business strategy. However, against all their need of restructuring, they failed because they couldn't read what they really need to change. As a result, motorola considering buy out of mobile unit part.

Do you believe 'winner takes everything'? Well, in the middle of wave of change, it's not truth(well...there has some. they are standing on higher position than new comers). Though you are new comer if you build a right strategy and view to approach the market, you can be the winner too.

Sources - Financial Times, 2008. 2. 27.
http://www.etnews.co.kr/news/detail.html?id=200802280295
http://www.hankyung.com/news/app/newsview.php?aid=2008031342461

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Entry #2 20200622 Sanghoon

2008-03-20T10:00:00.000-07:00

Wal-Mart Gets Clean And Lean

Tom Van Riper, 03.04.08, 5:26 PM ET

In the midst of a deteriorating retail environment, things are looking up at Wal-Mart. And it's not just because of a looming recession.
The giant discount chain, coming off a solid holiday sales season, is once again outperforming many of its rivals in the fight for consumer dollars. Same-store sales were up 2.6% in December, followed by a small but better-than-expected 0.2% rise in January. Delayed Christmas gift card redemptions were expected to lift sales growth in February, the results for which the company is scheduled to announce on March 6.
The easy explanation for the rebound: a slowing economy has more belt-tightening shoppers trading down, creating a relative boom for discounters at the expense of mid-level department stores. No doubt that's part of the equation. Rolling back prices on consumable goods like groceries and pharmacy products is a great way to drive store traffic during tough times, a weapon not available to the likes of J.C. Penney (nyse: JCP - news - people ) or Kohl's (nyse: KSS - news - people ).
But customers used to buying groceries at Kroeger or Safeway (nyse: SWY - news - people ), their clothes at J.C. Penney and electronics at Target (nyse: TGT - news - people ) or Best Buy (nyse: BBY - news - people ) don't suddenly rush to Wal-Mart (nyse: WMT - news - people ) for all their shopping needs at the first hint of economic nervousness. They begin by stopping by once a month or so, to save few bucks on basic staples.
From there, the question is "How do you entice them to come back a little bit more often?" says Britt Beemer, head of America's Research Group, which tracks retail trends. One way Wal-Mart is doing that is through sharper advertising. Never known for its hipness, the company is now embracing more pop culture in its marketing. A recent four-page insert featuring tween sensation Hannah Montana went into newspapers nationwide, the better to lure those recent new grocery and pharmacy customers to return for DVDs or kids' outfits.
There's also evidence that Wal-Mart's investments in store refurbishments are paying off. About 2,600 of the company's combined 3,331 super centers and discount stores have completed renovations resulting in brighter lighting and wider aisles. Beemer's numbers show that shoppers in those stores stay about 14 minutes longer than those visiting the older version.
For Wal-Mart, it's all part of a steady effort to squeeze as much money as possible out of existing assets, while accepting that its days of major domestic growth are over. The company has slashed the rate of new store openings dramatically in recent years, from 8.6% growth in square footage in 2005 to 4.9% in 2007, according to Edward Jones retail analyst Stephanie Hoff.
"If you're opening fewer stores, you're not diminishing the returns," says Hoff, who projects Wal-Mart to cut its square footage growth rate even further in 2008, to 3.9%.
What's more, much of the slowing growth tied to previous store openings is starting to lighten, pumping same-store sales growth figures higher again.
Why? Basically, opening a new store is an extreme method for adding more checkout lines when you've got the geographic saturation Wal-Mart does. A Wal-Mart store doing $100 million in annual revenue is cannibalized down to $85 million after another store opens a few miles away. In time, though, the presence of the new store draws new customers, in addition to the old customers looking to escape the long lines of the original store. Eventually, some customers find their way back to the original store, which now has shorter lines. The end result: Sales at the original store return to the $100 million level, driven by fewer shoppers celebrating a less crowded atmosphere by spending more on an average trip.
According to Beemer, this scenario is now playing out all over the country.
Wall Street is pretty bullish on Wal-Mart right now, predicting earnings of $3.40 per share for fiscal 2008, up from $3.13 from the just-ended year. That's 8.6% earnings growth, twice the projected industry average. Revenue is expected to break through the $400 billion mark for the first time, to $406 billion from $379 billion in 2007.

http://www.forbes.com/business/retail/2008/03/04/retail-wal-mart-biz-commerce-cx_tvr_0304walmart.html

Entry #1 20200622 Sanghoon

2008-03-20T09:11:00.000-07:00

Best Places For Business And Careers

Kurt Badenhausen 03.19.08, 6:00 PM ET

Companies in the U.S. are facing myriad challenges, from the credit crunch to soaring commodity prices to corporate tax rates that are behind only Japan's among developed countries. What is a chief executive to do? Head south.
In our 10th annual ranking of the Best Places for Business and Careers, the Southeast is home to half of the top 10 for a third straight year. But there is new blood near the top, including Lexington, Ky., Atlanta, Ga., and Richmond, Va. (Spokane, Wash., and Fort Collins, Colo., also made big jumps).
Common themes for the business-welcoming metros include solid job growth, an educated labor supply and low business costs. Interestingly, six of the 10 metro areas are anchored by capital cities; maybe lobbyist spending boosts an economy.
Topping the list for a second straight year is Raleigh, N.C. Business costs are 14% below the national average, and the area boasts one of the most educated labor supplies in the country, with 38% of the adult population possessing a college degree and 12% holding a graduate degree. Raleigh's secret is out, though, as people have been flocking to the area.
Net migration has averaged 25,000 annually in recent years, or 2.4% of the population, seventh highest in the country. The influx of talented young people is good news for big employers in the area like Cisco Systems (nasdaq: CSCO - news - people ), GlaxoSmithKline (nyse: GSK - news - people ) and SAS Institute.
One metro that made a big jump was Atlanta, which improved to sixth from 25th last year. Its ranking benefited from strong job and income growth and a big reduction in crime. "Hotlanta" features a diverse economy and pro-business environment. Another built-in advantage for big employers like AT&T (nyse: T - news - people ), Home Depot (nyse: HD - news - people ) and IBM (nyse: IBM - news - people ) is Hartsfield-Jackson, the busiest passenger airport in the world.
Another newcomer to the top 10 is Fort Collins. With a metro area population of 282,000, it is one of the smaller places on our list. Fort Collins is home to Colorado State University, which is the area's largest employer and a big reason why 40% of residents have a college degree, the sixth highest rate in the country. Fort Collins also benefits from strong income growth and business costs well below other Colorado locales like Boulder and Denver.
Our rankings cover the 200 largest metro areas (populations over 240,000) as defined by the U.S. Office of Management and Budget and are based on nine factors. West Chester, Pa.-based economic research company Economy.com, owned by Moody's, supplied data on five-year historical job and income growth as well as migration trends. We also incorporated Economy.com's business cost index, which looks at labor, tax, energy and office space costs and its living cost index, which factors in housing, transportation, food and other household expenditures.
The rest of the data for the rankings was furnished by Portland, Ore., demographer Bertrand Sperling, who last year published the second edition of Cities Ranked & Rated along with Peter Sander. He provided stats on crime, educational attainment, presence of four-year colleges and an index on cultural and recreational opportunities.

#2 Entry / 20500297

2008-03-19T01:38:00.000-07:00

2. A Fashionable Strategy for Tough Times _

Hello, everyone! :)
Can't you feel that time flies? The 3rd week already! (whoa!)

I've learned a lot of things in BS class until now. Remember the story of Gap that the professor mentioned at the end of the class? I've known and even bought some clothes at Gap, Banana Republic, and Old Navy, (I used to live in Canada, so I'm so familiar with these stores) but I never knew that these three are linked altogether. It was such an interesting story I heard, so I looked for an article talking about the relationship between Gap and Banana Republic and fortunately I found one. The title was also attractive, "Yes, we have a new banana!" However, it's quite old, updated in 2004, so I just read it myself and am not gonna share with you guys specifically here. (http://www.businessweek.com/magazine/content/04_22/b3885106.htm?chan=search) - In this article, you will know how Banana Republic has changed.

SO! Here's the story I want to share with you this week. This is the one I found while reading some articles related to Gap's story. As you can see above, the title of this article is 'A fasionable strategy for tough times' written by Susan Yara.

Have you heard of store called 'Intermix'? Intermix, Inc. operates boutiques for women. What's the impression of the word 'boutique'? Isn't it like 'fancy', 'expensive', 'wealth'..? The success of clothing shops depends on the economic situation. However, without worrying about the current economic crunch, Intermix, Inc. expects to earn $100 million in this year. Why? They have a STARATEGY, what we call.

Why can't the shops with well-known designers, such as Tommy Hilfiger, avoid economic concerns while the president of Intermix, Inc., Khajac Keledjian is confident with his strategy. What does Intermix have? What makes Intermix different from other boutique shops? "His stores are situated in hip neighborhoods, and his price tags aren't too outrageous: While it is possible to find a dress that costs $1,200 at an Intermix store, there also are plenty of $175 jeans and $58 T-shirts." (quoted) And smaller, hipper labels—such as Yigal Azrouel, Imitation of Christ, Catherine Malandrino, and Theory— got their first real exposure through Intermix, which means that although it is 'boutique shop', it is open to EVERYONE. Unlike other boutique shops continue to prefer wealthy people, Intermix widens the range of customers.

Salvatore Ferragamos and Hermes' strategy was to expand their shops. Famous designers started to build more stores and retail locations and as a results, the percentage of sales grew. For example, Hermes has 24 stores in the U.S. and more than 40 stores in Japan. They allow more customers to visit their stores and buy products made by luxury designers.

What I want to point out as I conclude is that having an appropriate strategy that fits for the company's characteristics, abilities, and current situation. As each boutique shop has different strategy, we will need to have a unique, special, and the RIGHT strategy in order to make sales explode in a certain market. That's why I have been looking forward to taking this course.

* Original text: http://www.businessweek.com/lifestyle/content/jan2008/bw20080131_592614.htm?chan=search

_posted by 20500297 * Entry 2

Counterplan for climate change will influence company performance in management area

2008-03-14T05:33:00.000-07:00

- Lack of counterplan will bring lack of financial investment

How to treat and build a strategy against climate change will decide company performance even in the same industry.

Dae Woong Lim, chief of Sustainable finance center in CDP committee Korea, proposed on conference for ‘CDP presentation meeting for company’ on 6th of march, 2008

He introduced cases of company in Europe which has strict climate bill in law. In the case, there are some companies shows 30% of earning rate difference in the same industry because investment trust companies like JP Morgan already make JENI-Carbon BETA Index which provide information of greenhouse gases and use it as a bond index and countries which need a obligates of carbon emit reduction are consider of it.

However, policy against climate change of companies in Korea is passive and easeful because they though we are not in the annex where countries have obligate carbon reduction rate.

Carbon information index has demanded by 8 domestic financial agencies this year. It is twice of last year. But only 10 of 28 companies (35.7%) answered survey for climate change and issues about carbon information index.

In world wide, more than 3000 companies demanded Carbon information index and 50 domestic companies are on the list. CDP survey (CDP Korea Report) will be analyzed and issued until early October.

Lim referenced that the CDP Korea Report will be applied by financial farm so they can get a good evaluation result if they could represent their effort and strategy properly.

Chun-Seung Yang, executive director of KoSIF (Korea sustainability investing forum) emphasized that there are several cases of discrimination on international financial market because domestic firms did not prepared strategy against climate change.
Response CDP survey will be a good method to learn how they could build their own strategy toward climate change and inform to the world financial market.

By Jung Yeon-Jin Energy Economic News [2008-03-12]

In the near future, when investment trust agencies measures trust grade of companies, counterplan against greenhouse gases will be important evaluation method.
It means if domestic company are not ready to develop proper program and strategy, they will face a financial difficulty.

Now Korea government and companies looking for growth engine which could lift up Korea’s economy. However, our industry structure is still in old resource use up style. In my opinion, every industry under this old paradigm industry system is already drawn into the Red Ocean no matter how we try (and we have fatal neighborhood – China) it is hard to find out new engine.

The situation now we have (or might have in the near future like financial difficulty as we read from the article) is the last scene of old paradigm called modern industry. If you do some research on climate change and get some information we could easily figure out that it is not a trend. Now we are facing a new paradigm which is taking every place in world wide. If we could adapt to this whole new world we could achieve our goal and get a great opportunity. For this, we should not satisfy with developing a reducing greenhouse gases technology. We need innovation for the long term goal and develop our creativity not only in the technology area but also point of view toward creates new markets and industries.

Intelligence recognizes what has happened. Genius recognizes what will happen.
John Ciardi (poet, 1916-1986)

20501036

10 years ago, Koreans created the MP3 player

2008-03-14T04:43:00.000-07:00

10 years ago, Koreans created the MP3 player
March 10, 2008
The world’s first MP3 player, by Saehan Information Systems.Given the presence of MP3 players virtually everywhere these days, it may seem odd that the coming-out party for the world’s first such player ended up in failure back in March 1998. Then an oddity, the first MP3 player was made by a small Korean tech start-up company called Saehan Information Systems, which is now defunct. The MPman F10 hardly caused a ripple when it was seen for the first time at one of the Korean booths at the annual CeBIT product fair in Hanover, Germany. No one was quite sure what it was. “No matter how the Korean staff tried to explain what an MP3 player was, people didn’t understand why they needed such a device because they could listen to music with CDs or cassettes. A few people accepted the MP3 player as something cool, but most people didn’t take it seriously,” said JR Bum, the vice president of local tech company MPIXAR, and an old hand who was around MP3 players in their early days. No one then thought that the MP3 player would become a flagship portable music device, as ubiquitous as the earlier Walkman, and, through the iPod, one of the icons of the digital age. Currently, more than 150 million players are sold every year worldwide.Despite its disappointing debut, Korean venture companies tried their hand at the new portable music device after Saehan put its prototype into mass production in May 1998. A couple of other early generation MP3 players were also produced by companies here, including Digital Way, where Bum worked at the time. In October 1998, Samsung Electronics, the nation’s largest electronics maker, ordered MP3 players from Digital Way and sold them under the Samsung name. Even though the very first MP3 player only played about 10 songs, Korean companies quickly developed the players into multipurpose gadgets that could function as radios, dictionaries and video players. A Korean MP3 player produced by Reigncom, was even called the future of digital life by Bill Gates, the founder of Microsoft, during his keynote address at the Consumer Electronics Show at Las Vegas in January 2005.
Apple’s dominant iPod. However, as Apple launched the iPod nano the same year, and cheap MP3 players from China soon flooded the market, Korean MP3 player manufacturers, which once had a shining vision of the future, staggered. Asked about the downfall of Korean MP3 players in the world market, Bum said: “MP3 players were made by the nation’s venture companies, who knew how to make them but did not have the money and power to promote the gadgets in the global market. “Samsung joined the MP3 player market, but its priority was other audio goods, not MP3 players.” To put it simply, Korea was sandwiched between Apple’s sleek and stylish iPods and cheap Chinese MP3 players. With the advent of the iPod, Korean MP3 players, including the much-heralded Reigncom, went downhill. To make matters worse, Korea’s high-end and ever-changing mobile phones have evolved into all-around gadgets as they play music, video clips and take pictures. This has decreased local demand for MP3 players.“More than 99 percent of local mobile phones now have MP3 player functions, so people don’t need to buy MP3 players unless they are really into music,” Kim Se-hoon, an official from Samsung Electronics, said. After suffering from harsh competition with the U.S. and China, however, local MP3 players are showing signs of rebounding. Reigncom turned a profit in 2007 for the first time in three years as it reported a 59 percent growth in sales from a year ago with growing demand for a Mickey Mouse-shaped MP3 player called the M Player with a price tag of just 55,000 won ($58). Samsung has also set its sights on selling more than 8 million MP3 players this year. That’s because manufacturers believe the devices still have a high potential even though they have been around for 10 years. “MP3 players are still not as widespread as CD players and Walkmans were because only people with access to computers can use MP3 players. In that sense, the MP3 market is still lucrative and Korean MP3 players are trying to compete,” Bum said. By Sung So-young Staff Reporter [so@joongang.co.kr]
http://joongangdaily.joins.com/article/view.asp?aid=2887191

LG’s 2008 spending for R&D in trillions

2008-03-14T04:37:00.000-07:00

LG’s 2008 spending for R&D in trillions
March 13, 2008
LG Group, Korea’s third-largest industrial conglomerate, said yesterday its spending on research and development will rise 11 percent from a year earlier to 3 trillion won ($3.1 billion) this year. LG Electronics Incorporated and LG Chem Limited, the group’s leading affiliates, will get the lion’s share of the spending, the conglomerate said in a statement, without specifying how much will go to each unit. “R&D is the only viable route to survival in an uncertain business climate,” LG Chairman Koo Bon-moo said in the statement. Yonhap

YouSun Baek_20500297

2008-03-13T23:09:00.000-07:00

"Do the Leader's MATH!"

An effective leader. Is this what you pursue?

As business students, we have heard of all different essentials of leaders and probably you have already thought of what kind of leader you want to be in the future. Handong especially focuses on 'global leaders' who will change the world based on Christian spirit.

For the very first article to share with you guys, I picked up the article about a 'leader.' There are so many descriptions of the leader out there, (We all have one!) but I thought that this article, written by John C. Maxwell (You can find his name on 'businessweek' easily.) is quite interesting to read and easy to understand. In this article, Maxwell says that there are 4 types of leaders, and very interestingly, they are called 'Adders, Subtracters, Dividers, and Multipliers!' and this depends on the impact they make. I'm not just going to copy and paste all the details he explained, but summarize them so that you can get the point. Let's get to know who they are and how do they do their 'MATH'!

1. Some leaders add to others—we enjoy following them

This is a type of leader who add the values to other people's lives. I guess this is a typical type of leaders who really 'serves' their followers. These leaders try to understand employees' needs, care for their situation, and make a contribution to them. They work 'together' to make things better. And yes, there is no doubt why employees enjoy following this type of leaders.

2. Some leaders subtract from others—we tolerate them

Subtracters turn things into more difficult situation. However, the thing you should remember is that they do not do this on purpose or with their intention. They just do not know how to add values to other's lives, which is very sad. :( They don't even think of adding values and hardly recognize the negative impacts they have on employees.

3. Some leaders divide others—we avoid them

This one is quite interesting. Dividers, the worst ones Maxwell thought, make things difficult on purpose. They do not respect the employees, but just do whatever that can make them stay on top. Simply as Maxwell said, "dividers seek to make themselves look or feel better by MAKING OTHERS FEEL WORSE.They damage relationships, fracture teams and organizations, and create havoc in people's lives."

4. Some leaders multiply value in others—we value them

These leaders not only make things better by working together with their employees, but also make 'PEOPLE' better. They help people to do their best with their talent, skills, and potential. They are humble, raising other leaders and giving people responsibilites and chances to rise up in the organization. These are the ones who are like Jesus Christ. Jesus humbled himself by giving of himself and raising us from the sins!

Being a leader is not easy, I know. We are here in Handong to be prepared and I believe that God called us to Handong because he has a 'special' plan for each one of us. I've read a book, 'Jesus, CEO', and combining what I learned from that book with this article, once again I realized that we all should be like Jesus. The way he lives is the best way of good leaders and CEO and I thank God that I know him!

Back to the article, what kind of leader do YOU want to be now?

Adders or Multipliers? Or Subtracters or Dividers? Think about it. :)

ps) You can read the original article on;
http://www.businessweek.com/careers/content/jun2007/ca20070614_587055.htm?chan=search
by John C. Maxwell

_posted by 20500297

Notice for Andies

2008-03-12T20:33:00.000-07:00

We will have a dinner meeting on this Sunday evening.
The main purpose of our dinner meeting is organize our project and make some relationship among us.
Please leave your contect number and I will notice exact time and place thru mobile SMS.
Also, I need your proper E-mail address to give you an authority to write and update articles.

May peace be with you!

ps. If there's any situation you can not come, please let me know.

In Ki Jeong(Alex) - 010 3430 6098

Welcome, all 'Andies' members!

2008-03-06T19:50:00.000-08:00

Hi, everyone. :)
This is our blog we are going to use throughout this semester.

Upload useful and helpful information for your own and for the rest of memebers.

Let's have fun!
Good luck!