Author Topic: East Asia Business Strategies  (Read 2034 times)

Offline julez.lim

  • Companion of Honour
  • ***
  • Posts: 809
  • Where sharing is learning
East Asia Business Strategies
« on: November 18, 2006, 11:57:28 AM »
Lately, I attended a seminar about how goverments intervention in companies is good at times... Like having GLCs are not a bad idea if done properly... This is apparent in companies in East Asia
They speaker gave examples of different business models of Japanese, Korean and Taiwanese on how different country's gov work together with local companies to grow the market locally and internationally.
For the Korean it's chaebol...

Got this from Wikipedia
"Chaebol is a South Korea's form of business conglomerates. The English word is a transliteration of the Korean word 재벌, which is now romanized as Jaebeol. The Korean word means business group, trust (as in Standard Oil Trust), and is often used the way "Big Business" is used in English.

Chaebol refers to the several dozen large, family-controlled Korean corporate groups, assisted by government financing, which have played a major role in the South Korean economy since the 1960s. Some have become well-known international brand names, such as Samsung, Hyundai, and LG.

The chaebol were powerful independent entities acting in the economy and politics, but sometimes they cooperated with the government in the areas of planning and innovation. The government worked hard to encourage competition among the chaebol in certain areas and to avoid total monopolies.

The role of big business extended to the political arena. In 1988 a member of a chaebol family, Chong Mong-jun, president of Hyundai Heavy Industries, successfully ran for the National Assembly. Other business leaders also were chosen to be members of the National Assembly through the proportional representation system. Hyundai even played a role in the slight thawing of relations between North and South Korea since 2000.

The top 10 largest chaebol in Korea in 2004 by total revenues were Samsung ($89.1 billion), Hyundai Motor Company ($57.2 billion), LG ($50.4 billion), SK ($46.4 billion), Hanjin ($16.2 billion), Hyundai Heavy Industries ($10.5 billion), Lotte ($6.3 billion), Doosan ($4.5 billion), Hanhwa ($4.4 billion), and Kumho Asiana or Kumho ($2.8 billion).[1]"


This is on Japanese - keiretsu.... A different model from Koreans...

"The prototypical keiretsu are those which appeared in Japan during the "economic miracle" following World War II. Before Japan's surrender, Japanese industry was controlled by large conglomerates called zaibatsu. The Allies dismantled the zaibatsu in the late 1940s, but the companies formed from the dismantling of the zaibatsu re-interlinked through share purchases to form horizontally-integrated alliances across many industries. Where possible, keiretsu companies would also supply one another, making the alliances vertically integrated to some extent.

The major keiretsu were each centred around one bank, which lent money to the keiretsu's member companies and held equity positions in the companies. Each central bank had great control over the companies in the keiretsu and acted as a monitoring entity and as an emergency bail-out entity. One effect of this structure was to minimize the presence of hostile takeovers in Japan, because no entities could challenge the power of the banks.

There are two types of keiretsu: vertical and horizontal. Vertical keiretsu illustrates the organisation and relationships within a company, while a horizontal keiretsu shows relationships between entities, normally centred around a bank and trading company." -Wikipedia        --->Go to Wikipedia to view the list of Japanese companies...