20501034 - Entry 3

Nikon
During Korean war, the pictures of the most extremely severe battle like Aprokgang(압록강) combat were only taken and reported by Life magazine that was using Nikon camera and lens. When it comes to camera’s and lens’ function, until now Nikon is regarded as the most reliable company. How they develop their company as a world renowned camera company?

History of Nikon
The moment Nikon launch into camera industry was just after World War 2, November 1945. Japanese Optical Engineering that had grown as a military enterprise was trying to find a new market that they could apply their optical technology. Soon they found camera industry which is perfectly fit for their company. The first compact camera’s brand name was Nikon.

Nikon’s Strategy

Organizing Nikon Club
Nikon organizes community that is made of professional photographer and it has been running more than 40 years. The number of community member is around 180,000 and they passionately support Nikon as Apple users do.

Running Nikon Salon
Nikon Salon is photo exhibition that is located in the most crowded commercial area, Tokyo, Ginja. The pictures being hung on in Nikon Salon are all excellent work and they were taken by using Nikon camera and lens. This is not only social place for Nikon users but the place where whole Japanese professional or amateur photographers debut. Nikon also promotes their new camera and lens. This is strategically very significant place of Nikon’s brand promotion.

Recommending World renowned Photographer Nikon
Nikon recommends world renowned photographers who work for newspaper, magazine to use Nikon’s camera and lens. This promotion forms some kind of impression that people who use Nikon are likely to be professional and look cool.

Pursuing high quality
To have better quality, Nikon has been operating 2 or 3 more quality control steps than market competitors. In fact, Nikon camera and lens are being estimated durable and uniformed functional. However, the shape of camera isn’t look good and seems to be all same, but they emphasize on their function and quality not design. This consistent strategy formed mutual trust with their customers.

Focusing on R&D
The center of Nikon organization is Engineer group. Engineer always come up with new idea and lead development of new product. They are also fully supported by management. Many times, Nikon sell asset like land or building to invest R&D. This R&D oriented mind can be seen in promotion. 7 out of 9 president are started their career in Nikon as an Engineer.

3. The Seoul of World Design

The Seoul of World Design
The Korean capital, soon to host the Design Olympiad, is funding projects to promote style in Korean brands—and help keep growth on track
by Moon Ihlwan

Korea's economy has long been one of Asia's success stories, but pessimists fret for the future as Korea is sandwiched between fast-growing China and longtime rival Japan. Could a government-backed plan to raise Seoul's standing as a city focused on design help keep its growth on track?
Seoul Mayor Oh Se Hoon certainly thinks so. Oh, leader of a city home to nearly a quarter of the country's population of 48 million, is convinced Korea can stand out from its larger neighbors by establishing the capital as a international design center.

The 47-year-old mayor says thinking about design will have numerous benefits. At an individual level he believes cultural benefits can enrich the daily lives of work-obsessed Koreans. Just as important, a renewed creativity can help the economy. "Design is everything," declares Oh.

The hyperbole isn't pure talk. Since taking office in July, 2006, Oh has set about turning Seoul into a global design hub with a slew of initiatives. He quickly established a new design division headed by a vice-mayor and initiated design competitions aimed at improving the city's looks. He has also begun offering training and seminar courses for young designers. The effort will kick into high gear in October when the city hosts the first Seoul Design Olympiad. It has also commissioned international "starchitect" Zaha Hadid to design the $98 million Dongdaemun Design Park.


Seoul Named 2010 World Design Capital

Oh's ambition got a huge boost last October when the city was designated as the World Design Capital in 2010. The title is bestowed biennially by the International Council of Societies of Industrial Design (ICSID), which represents some 150,000 designers from scores of countries.

These combined efforts, Oh reckons, will help increase the size of Korea's design market—measured by the total of revenues by design houses and investments in design by ordinary companies—to $15 billion in less than 10 years, from $7.4 billion last year. "In coming years we'll see aspects of design in our everyday life," predicts Lee Kun Pyo, president of Korea Society of Design Science and an acolyte of Oh.

Understandably, some find the challenge daunting. After all, Seoul isn't alone in seeking to boost its global standing through design. Hong Kong, Shanghai, Tokyo, and Yokohama all hold ambitions to be design centers. Then there's global competition from cities like London, Paris, Milan and New York, with many decades as leading arbiters of design. Yet Oh and design industry leaders insist there's big potential in Korea. For one, Seoul beat some 20 rivals, including Singapore and Dubai, to be named ICSID's first World Design Capital to be chosen through competition. (Torino, the first city to win the award, was named as pilot.)


Better Design Boosting Korean Blue Chips
Perhaps more important, Korean companies have also made great strides in recent years in improving brands through design. Companies like Samsung Electronics, LG Electronics, and SK Telecom (SKM) boast leading designers in the fields of digital displays, handsets, and mobile products and services, garnering international design awards along the way.
The fruits of their efforts are reflected in the improved global standing of Korea's blue chips. Last year Samsung overtook Motorola (MOT) to become the world's second-largest cell-phone maker (BusinessWeek.com, 12/16/07) after Nokia (NOK).

Samsung also beat all Japanese rivals to become the No. 1 flat-TV brand, and LG consolidated its position as No. 5 in handsets and No. 4 in flat TVs last year. "In the TV market, design will be a critical differentiator," Simon Kang, president in charge of LG's digital display unit told BusinessWeek earlier this year.


Promise from the Next Generation

The argument is straightforward: In a world awash with digital and high-definition TVs boasting super picture quality, it takes more than technological superiority to win business. Consumers may consider the purchase of a flat-screen TV as much for its look as a piece of furniture as for its technogical capabilities (BusinessWeek.com, 1/16/08).
Korea also has a remarkably large number of wannabe designers. In Seoul alone about 11,000 students are majoring in design at 18 universities, while another 2,600 students in 51 graduate schools attended design programs in 2007. Recognizing this potential talent, Japanese auto companies, including Nissan (NSANY), have begun hiring young Korean designers. "When I first saw the sketches that Korean students were drawing, I was utterly shocked. Their design is very emotional and powerful," Shiro Nakamura, Nissan's chief creative officer, said last year.
The city government has set aside $180 million to finance projects ahead of Seoul becoming the first World Design Capital, part of which will go to sprucing up Seoul's streets, buildings, parks, and the Han River running through the city. Big business, sensing an opportunity, will lend a helping hand by dispatching senior designers to help out on projects. Cha Kang Heui, chief designer at LG's handset division, reckons the overall effect could echo the impact of the Seoul Olympics in 1988. "Just as the Olympics often serve as a coming-of-age party for a developing country, design could provide momentum for Seoul," he says.


All Eyes on Seoul This October

For Seoul mayor Oh, though, the highlight of the design drive will be the Design Olympiad in October. Oh plans to invite top designers from fashion, graphics, and other different design fields. He's counting on attracting 2 million people to the 21-day event featuring competitions, exhibitions, live performances, and light shows. If that doesn't whet the world's appetite for Korean design, perhaps nothing will. "I want people around the globe to say, 'If you want to check out the latest in design trends, go to Seoul,'" says Oh.

Taken from http://www.businessweek.com


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


My opinion/summary:

It was nice for me to have read this article. I wasn’t really expecting to read a whole article about the design industry in Korea. It was refreshing, like a breath of fresh air. Although I myself am a student of Design, in all honesty, I don’t really know much about the industry. This really helped me to realize different things about the design industry in Korea. I always knew that Korea belonged to the top when it came to output. When I mean “output,” I am talking about the visual expression or presentation of the design. We have many talented artists and designers that are parts of agencies and companies all over the world. One example is Cartoon Network. Many of the work are done by Korean designers. When it comes to animation, visual, and product design, Korean designers are slowly getting attention. Yet because of heavy competition with other countries, I’m not quite sure if Korea could really make top-notch names for themselves.

Regardless of whether or not this dream of Seoul Mayor Oh Se Hoon is possible to accomplish, knowing that the government is trying to help encourage the industry to grow was heartening information. There are thousands of designers in this country. Yearly more and more are joining the industry and trying harder and harder to make it here. Making a lot of competitions for these young designers is a good thing for the over-all economy of Korea as well. It will give numerous career opportunities.

I totally agree that the Korean people truly need to take a break from their busy lifestyle and learn to appreciate the different aspects and experiences that life can offer. I truly hope that Korea will take the opportunity that the Design Olympiad in October will give us and take this time to look back how we have spent time in our work place and home and also look to the future to see how we can change it and make this country a more culture-friendly nation.


20600331

What does it take to make a great successful entrepreneur? An ability to accurately predict the future would be good. But we all know that that only happens in the movies. However a close approximation to predicting the future is possible. This is done by research, research, and more research. In other words, preparation. Researching to see past trends and getting to conclusions through those past trends could lead an entrepreneur to predicting the future.
The first character of this article tells about how he gathered information about the neighborhood and the direction it planned to go. This gave him an idea as to what the future of that neighborhood would be and what the needs of that specific area would be like. The information he gathered and the conclusion he ended up with drew him a picture of what he should invest in matching his business to the needs of this neighborhood.
As an entrepreneur, there is always a big risk to take when starting a new business in a new place. It is obvious that a business has a 50/50 chance of surviving. However this is not the case when there is plenty of research and preparation done. Researching and analyzing the pros and cons of the whole situation its durability and its potential.
However as unstable markets are, businesses are also unstable. In the face of these threats and hardships the only thing the entrepreneur can do is research hard and leave it up to God to do the rest. Not just stop with the research after the business opens, but continually making it a habit to research around and gaining knowledge about the external factors that may or may not affect the business. These types of preparations are essential for the development of a successful business. And a great business means a great entrepreneur.

20100656 - Entry #3

3. Delta melt~a

Original Article

Delta's Cancelation

Delta made bad business strategy. They did not make worst decision, but they made bad decision.

Importance of Customer Service

They should considerate on customer service. In this news, people could see how bad delta’s service is. 10 percent of flight is canceled by safety problem that also indicating Delta did not prepare for service to customers. This customer service should be fixed as perfect as possible. As people can see, customer service is that Delta’s biggest weakness. Even they do not have good customer service that does not mean cheap flight fee. In this case, they should reconstruct their business plan. If they lose customers' satisfaction, customer might use other airline to flight. For example, if CEO of companies have a important conference in foreign country, they might use other airline to keep time.

Delta company also related with many companies. If Delta airlines are going down, the other company, which is related with Delta airlines, will also going down. This is the red light for Delta to reprocess their business strategy.

Experience of Mine

When I was child, I went several countries for tour with my family. During those time, I could compare the each airlines by their service. The best facilliy with faculty system airline that I can pick Singapole Airline. Their service were great still that I remember. When customer need something, flight attendents ready for service. I also had a funtime with their facility. However, When I was on the Delta airline, I could feel air sickness first time. Their slow service and sits were uncomfortable.

If I have a chance to go abroad, I would pick singapole airlines not Delta.

Advice for Delta Airline

If they want to fulfill their customer satisfaction, they might reconstruct their plane interior design. When I walk to toilet at the airplane, Delta airplane hall way was too narrow. Even, I could see uncomfortable face through stewardess when they move food and drink carts. If Delta do not provide good environment, it also cause the bad service by their workers.

Airlines are big service companies that customer service is promise with customer. Airlines should be ready to keep time. Usually, customer service is defend on worker's attitude. It also means that if you treated well to your workers, workers might treat well to the customers. It is usually basic sense in business world. If Delta provide good environment to their workers, service might be faster and better to the customer who use Delta airlines.

Reference

http://money.cnn.com/2008/03/27/news/companies/delta_airlines/index.htm?postversion=2008032707

ST #: 20601011

3. College town business

Know the target first!

original article:

"If you know yourself you win 50 battles out of a hundred.

If you know your enemy you win 50.

But if you know yourself and your enemy you win hundred battles out of a hundred."

-Sun Tzu's Art of War-

Each of us have dream and we live for it. We learn something to make our dreams come true. Learning is basic thing to achieve our goal. To learn efficiently and effectively, we choose to enter a University. However, usually university that we attend is away from our home. So, we want to find a place we are to stay for university life.

Necessity: Why we need to run this business?

- As we know, many students are from other province or other country.

They might need a place to live during semester. However, dormitory is so limited to accommodate every single student. So, some of students should commute from outside of university.

Secondly, although there are some vacancies in dormitory, there might someone who wants to live off-post. Because they don’t want its regulation and their limited life comes from dormitory.

In this point of view, college town which is located near university and competent in housing price could be the best choice for them to stay.

Business in college town

- Price it at negotiable cost
On the top of everything, we should know which target we are aiming for.

For example, ‘Are they rich or poor? What are they doing? How old are they?’ To lead our business successful, knowing our main target is so important.

That way, we adjust things to them and get their interest in order for them to invest our business a lot. In this business we are aiming at university students. ‘Who are they?’ They are young(18-25) and they don’t have much money.

So if we do business we need to focus on having large amount of demands than making lots of profit from single demand.

- discount system
As I mentioned so far, students are our main target.

And they can’t afford to pay a lot of money. So we need to take advantage of their situation by offering them a discount system. Since there are many friends or couples among university students, it would be a great discount for friends or couple who live in the same town. Discount housing fee for students who contracted in the long term is also could be good.

- Linked business(business connected to college town)

If we have a lot of students in college town, college town would be another community like university. They will form their own culture in college town. Naturally, many industries for them would be a great success. For instance, game, sports, food, movie, book, fashion, etc. Therefore, having these kinds of business linked will make lots of profit.

In doing any business, knowing a main target is very important.

Through this, we can set up our business strategy and find out how to manage our business. In addition, even if our things are not going well, we can adjust it right. Let’s keep in mind. Things will go a lot easier and effectively when we know our object perfectly before we actually do something.

References:

http://www.typo3-ulm.de/creathor/index.php?id=12

http://www.imshealth.com/web/channel/0,3147,64576068_63872702_73162156,00.html

student#: 20601016

CHEATED!

I’ve had my own share of service jobs. They are not the most pleasant of jobs. They are physically and most of all mentally challenging because, where there are people, there is bound to be a fight. I don’t mean physical fights (although there are a few service jobs that are at more risk to be exposed to fights), I mean arguments between the employee and the customer. The customers are entitled and have the right to those services that each business should offer. However there are situations in which some customers think that they are being cheated from this service. Many complaints come in because of the poor service. To prevent this, businesses have adapted a customer-friendly environment that offers the best of services to their buyers. In some places, customers are treated with such respect like the Korean saying says “Customers are kings”. All of us have to admit that it is really hard and stressful to actually humble oneself to this position and offer this kind of service. However workers of low wages in the service businesses are trained and are expected to offer this kind of service. For this “king-like” service the customers leave tips.

The people who actually do this kind of job and offer this service are the low paid workers who clean the tables, talk to customers, and stand through all the complaints and arguments of the customers. Tips are and should be offered to these types of workers, not the managers.

Starbucks got sued for cheating their workers from these tips, tips that were rightfully entitled to these workers. Starbucks might argue that the work managers and workers execute are similar and they most of the time only see a very thin line that divides each of their work boundaries. Yes that might be true in some occasions; however, managers are paid more than workers. Normal workers are paid a lesser amount and maybe not in Korea but in other countries these workers depend on these tips to compensate their rough working conditions.

Working conditions such as these could affect the quality of service and work integrity in the work place. Giving the company a bad reputation and eventually ending in poor business and a drop in sales. Starbucks and other companies alike should clarify the working conditions and limits to which each employee is responsible of. Although working limits in business industries are hard to set there must be set regulations that divide the work according to their pay check.

http://www.nytimes.com/2008/03/21/business/21sbux.html?ref=business

20100656 (#2)

2. Apple: More Than a Pretty Face

Apple: More Than a Pretty Face

Consumer electronics companies need to do more than pare product lines and make cool stuff. What Apple offers is a complete ecosystem
by Sohrab Vossoughi

Gadget lovers take note: Consumer electronics (CE) companies are cutting back their product lines. Gone are the days when manufacturers created a dozen in-line products to cover every price point. Rather than spreading chips across the table, CE brands like Sony (SNE) and Samsung are following Apple's (AAPL) lead by stacking more chips on a few well-placed bets. Sony, for example, now offers just three models of ultra-slim point-and-shoot cameras in its CyberShot line. But will such paring enable Sony and others to succeed the way Apple has? Will this mean more products we love or more dross on the shelves?
Maybe you're thinking, "Not more Apple hype." But it's hard not to think of Apple as the innovator in the CE space. Apple is driving digital lifestyle on a global scale, and it's doing so in the face of economic adversity. The National Retail Federation reported that consumer spending on Black Friday dropped 3.5% compared with 2006. According to a MasterCard (MA) Spending Pulse report, sales of electronics rose just 2.7% from Thanksgiving to Dec. 24, 2007, over the same period a year earlier. Meanwhile, Apple anticipates holiday-quarter sales of $9.2 billion, a 29% increase over 2006, while the Mac operating system hit a record 8% market share in the closing days of the year. With the annual Consumer Electronics Show fast approaching, Apple is once again sure to be the talk of a trade show it doesn't even attend.
Design Alone Isn't Enough
To succeed like Apple, CE brands need to do more than create cool-looking products that are rich in features and intriguing behaviors. A cool object may be at the center of the experience, but as others have noted, surrounding a successful product like the iPod is a complete ecosystem that includes content and services, software and interfaces, retail experience, Web site experience, and an army of accessories. Imagine competing with NASA by designing a better space shuttle—but ignoring the launch pad, ground control in Houston, or the facilities at Cape Canaveral. Apple is successful because all of the elements of its ecosystem are in place—and are consistently meaningful and relevant to its target consumers.
According to the latest NPD report, Apple has secured over 70% market share for MP3 players. What's less well known, and more impressive, is the ratio of Apple's investment in the iPod platform relative to its return. Since 2004, Apple has added just one item to the iPod range, the iPod touch, making four pieces of hardware in all. In the same period, the catalog of available content (songs, TV shows, films) has increased 600%, to 4.1 million items. And—here's the pièce de résistance—the number of iPod accessories has increased tenfold, to 3,000. Apple collects fees for most, if not all, of those accessories, with third-party vendors and manufacturers paying to add the "Made for iPod" logo to a package or, in the case of connected accessories like speaker docks, a fee to use the proprietary Apple connector.
Many companies have tried to replicate Apple's success by imitating at the product level and focusing on the design of the object itself. Creative Technology has designed media players with simple geometric shapes, high-end details, and a polished look. Speaker docks from Altec, Logitech, JBL and Bose have tried to match (and keep pace with) the Apple color palette.
The makers of other music players have also used smart design to try to stand out—case in point is Microsoft's (MSFT) latest Zune media player, an inspired object with intriguing design, cool behavioral features, beautiful details, splendid packaging, and a compelling interface. A number of accessory providers have mimicked the look of Apple's fresh, uncluttered packaging. But none of this is enough.
Mind Share
Take Sony. It's an amazing company with a powerful brand. Innovative product platforms like the portable transistor radio and the Walkman set the stage for the digital lifestyle era. Yet it has struggled to transpose that success to the 21st century. In 2005 it outlined a strategy to reduce its SKU count by 20% by 2007, detailing a desire to focus on "champion" products and avoid having to battle competition on many fronts. So while four years ago, Sony offered a dizzying array of digital cameras that recorded on all kinds of media (floppies, MemorySticks, DVDs), now it has just three lines (ultra-slim, compact, SLR). That's better for consumers, most of whom don't care that Model 1 has a 2MB cache while Model 25 has 4MB. In December, 2007, CEO Howard Stringer announced that Sony's efforts were beginning to pay off. It is close to achieving a 5% net margin for 2007.
Apple ended its fiscal year on Sept. 30, 2007, with a net margin of nearly 15%. To succeed like Apple, companies need to understand more deeply the consumer they are targeting. Apple recognizes that it can't have everyone as its customer. It is willing to alienate some segments by appealing to a strong core of people that sociologists refer to as the Cultural Creatives. These are the people who wait in line overnight for the latest iPod or MacBook. Focusing on the Cultural Creatives in turn attracts followers who might not otherwise trust the brand.
Observe the next 10 people you see on the street with an iPod and ask yourself how many of them represent the Cultural Creatives featured in Apple's advertising. One, maybe two? Address your core audience. The rest will follow. That's how you sell 10 million iPods in one quarter.
In the hands of an artful company like Apple, design is the vehicle for driving meaningful, relevant experiences that are authentic to the brand. It's not about paring product lines or making cool stuff. Done right, design can add value to the bottom line and the brand. Design done right goes beyond the appearance and behavior of the object itself. It takes the entire product ecosystem into consideration. Design done right sees technology as an enabler, not the solution.
Apple creates holistic experiences that inspire strategic partners like accessory manufacturers and content providers to build up the platform. Apple understands: It's not about market share. It's about mind share.
Ziba Account Director Bob Sweet contributed to this article.
Sohrab Vossoughi is Founder and President of ZIBA Design, the company he started in 1984. The recipient of more than 30 patents and over 200 design awards, Vossoughi was named BusinessWeek's Entrepreneur of the Year in 1992. He continues to direct projects for clients including Nike, Microsoft, Xerox and Hewlett-Packard.

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

My opinion/summary:
Apple is probably one of the most respected and well-known for its innovative and simple designed products. Many people like this writer have attempted to analyze the whole “Apple phenomenon.” Some people say that Apple was just opportunistic, in other terms, “lucky.” They made beautifully designed, easy to use products that appealed to the masses of a time in which people craved for something more than just a product. They wanted to converse with a company and feel like it was a part of something bigger; hence, the huge network that is involved with iTunes. They were also able to make other companies make items that were for their products, such as the iPod series. They only have four key products they offer, yet it has been an instant success thanks to Apple’s innovative thinking. In the beginning, a problem with Apple was that they had too many functions that the masses didn’t know how to use. This didn’t keep the company from developing into one of the best techno gadget offering companies. Apple has used its mistakes to make products with simple design and basic functions that many can relate to.
Many companies are now following the footsteps of Apple. They are trying to integrate this idea of coming up with that one perfect product and building an empire around that instead of making a whole bunch of products that no one is going to use. Sony, which is well-known for its easy to use techno gadgets, has always made a lot of different kinds of products. Now it has three basic lines. In 2007, Sony was very close to achieving a 5% net margin. Although Sony has been quite successful mimicking the likes of Apple, Apple is still on the top with a net margin that is close to 15%.
Apple has been successful in tapping into its target market – the Cultural Creatives. These are the people that are totally into the next “big thing.” Because of its huge success in focusing on and delivering the requests of this group, Apple has been successful in gaining the trust of the other potential users. Apple has truly been triumphant in thinking like the common user. Perhaps in the future, different users with different needs may arise. I hope that Apple will be continuously successful in analyzing its users and providing satisfactory experiences with its products every time.

Resource = http://www.businessweek.com/innovate/content/jan2008/id2008014_858681_page_2.htm

20600331

2. Warning to the FedEx What will they do?

Original Article

The Position of FedEx

• 
  
  Fedex position is like two strikes three balls in baseball game. Great effects from high oil price make them to think new strategy. Now, Fedex’s business strategy is focused on the managing cost. As raw material price is going up such as oil. Its service cost might increase, too. As price goes up, demand is going down. As demand and supply going down, revenue would fall. FedEx CEO already predicts glum economic situation for their next year. Rightnow, last shot for FedEx is international shipment. Even, FedEx revenue falls. Their international shipments were growing. They have to use this advantage to keep their business.

S.W. of The Fedex

• 
  
  Weakness part of the company is high price of using fee. Even, in my experience, I feel that they cost me too much for 1 box as around $45. They also asked me for insurance fee. I did object to not spend more money on delivering.




• Strength Parts of the company are that they always consider customers' satisfaction and international delivery parts. As they started early their business, the other companies are hard to catch up FedEx brand name. Another strength of FedEx company CEO listen to the customers' opinion to reflect on FedEx company. It would increase customers' satisfaction


• 
  
  The main strategy for Fedex is that delivery as fast as they can in America. Nowaday, they expand their business area to the world. Their international parts of business are growing; however, quality of Fedex outside of America service is different from what America have. They need to develop their international market of business which also include E-business.

My Advise for the FedEx

• 
  
  As International business grow, FedEx have to increase their E-business to get more demand from customer. Fedex business strategy was focusing on the fast and safety delevery. They also satisfy the customers' demand. As raw material increase they have to spend their money wisely. Nowaday, most people went through E-business. They need to invest E-business to cover their weakness.

Reference

http://www.expeditersonline.com/artman/publish/article_005543.html

Woody Baird, "FedEx sees profit fall, glum forecast, http://news.yahoo.com/s/ap/20080320/ap_on_bi_ge/earns_fedex;_ylt=AnBW12DUl76QTExmif9u73j957EF,

3.20.08

ST#: 20601011

2. Basic skill for the customer-centered business management

original article:


-The most important Business strategy:

How to catch customers mind?-


* As Aristotle said “man is by nature political animal”, we cannot live alone. We live together in group or organization. Being together, we share our life in physically and mentally. That way we know and help each other. To make this good interactive relationship settled, winning the favor of people is really important. Therefore, we should listen to people very carefully, and make an effort to fill up their needs. This is basic and core of business marketing strategy.

* In relationship with others, we tend to have our own way rather than to listen to others or think in their position. That’s because most people think it’s easier and certain way to persuade customers. However, the desirable way to lead to successful business is the way that respect customer and consider their affairs as our own. “So in everything, do to others what you would have them do to you, for this sums up the law and the prophets.”(Matthew 7: 12) supports this theory well.

* Then, how do we listen to others well? First of all, we should show them a favor and respond. Here is a good example of bill gates. As we know, he is the most successful CEO in the world. He is not only a genius but also a good listener. He likes to listen to others showing response like ‘Really, Excellent, What happened then’. In this way, we can get our customers ready so that they could easily get attracted by us. Finally, we can yield profit which we aimed. Next, we should approach to the customers repeatedly with patience. We are prone to give up easily, when things are not going well. However, to make our customers to be on our side, we should give tires many times. Like there’s saying “No pains, No gains” we need to take pains to gain what we want to. The secret of business success starts from respecting others and listening to others carefully. Let’s take our step to successful business world by doing so.

-Unforgettable experience in my life-

Knowing it through our lives


*I was serving the military as a KATUSA(Korean Augmented Troops to United States Army) about 2years ago. At that time, I was work for chaplain. As a chaplain assistant, my job was giving a gospel to soldiers who don’t know God and also counseling soldiers who are in any sorrow or hurt. I have a great experience showing about the importance of listening to others carefully.

*One day when I was a sergeant(병장) a private(이병) was passing by the chapel. I stopped him and told him to come on in my office giving him a drink. I told him. “Since you are in low rank you might be in some hardships.” He replied “No sergeant!” And I talk back to him “I know what you’ve been going through. Because I was exactly in the same shoes where you are now” However, he still hesitate to say something which he is severely suffering from.

*After few moments, finally he broke silent and talked everything that makes him hard. For 10minutes, I just sat next to him and listen to him carefully showing my response. In the middle of his talk he started crying and asked me to give him an advice. At that time I realized how powerful listening to somebody. We can sting people’s mind by just listening to them.

Reference:
http://onon.egloos.com/22551
http://www.management-resources.org/universal.php?c=12&a=52
http://management.about.com/b/2006/07/06/listening-is-a-vital-management-skill.htm
네이버 영어사전

Student#: 20601016

2. Toyota finds new market in the air

Original Article

Summary
Toyota announced that they are going to launch into aircraft industry on 5th of March. Toyota plan to invest the company that is set up by Mitsubishi heavy industries for private aircraft. The money Toyota will put up will be around $97 million.

Sociocultural Forces
There are getting more and more demands of private aircraft. Therefore, you can see some of automobile company such as Toyota, Honda and Subaru are launching into aircraft industry and the people who can afford private airplane are showing their interests. However, many environmentalist criticize that private airplane could accelerate not only fuel consumption but also air pollution.

Economic Forces
The reason why Toyota launched into aircraft industry is they are having difficulty dealing with a slack domestic market. Therefore, they found an answer in aircraft sector which seems to have bright future. However, concerning skyrocketing price of fuel and raw material, many analysts are negative about launching high risk taking aircraft industry.

Technological Forces
Toyota addressed that they will work with Mitsubishi Heavy Industries manufacturing aircraft. It is very positive combination because Toyota’s huge manufacturing capacity is going to be complemented by Mitsubishi Heavy Industries’s accumulated aircraft technology.

Political/ Legal Forces
Japanese government is analyzing that aircraft industry is highly profitable business and has a ripple effect on whole economic sector. For instance, to manufacture aircraft, they should apply high technology such as carbon fiber complex and it can propel development of Japanese high technology industries. For those reason, Japanese government plan to subsidize around $500 million. That is 33% of whole investment. So we can say Toyota and Mitsubishi are being financially and politically supported by their government.

Customers
I think Toyota is targeting at big corporation level clients and highly affordable individual customers. In my opinion, it would be really jack pot if they can attract the oil money.

Suppliers
Due to huge steel and oil consumption in China and India, securing raw material with stable price would be the key factor of success.

Potential Entrants
Launching into aircraft industry costs huge amount of money. However, upcoming countries such as China and Russia announced that they will get into the private airplane market. The matter of success will be how to differentiate from Russia and Chian in terms of technology.

Substitute
Once airplane industries are boomed, I don’t think it could be substituted by any other means of transportation soon in the future. Because private airplane is the most luxurious and convenient form of transportation which is targeting at highly purchasable consumers, it won’t be substituted by express train or something else.

Competitors
Private airplane market is currently divided by Canadian company, Bombardia and Brazilian company Embraer. In addition, Russian and Chinese company will join this market. It will be stiff competition. To succeed over those companies, it would be matter of how Toyota’s manufacturing capacity will make a synergy effect with Mitsubishi’s accumulated technologies and differentiate from their competitors.

Student ID : 20501034

#Reference

Chosun Newspaper

Business week

www.breitbart.com

AOL takes on Bebo. Good idea?

Resource =
http://online.wsj.com/article/SB120541140334633205.html?mod=hpp_us_whats_news

AOL Buys Into Social Networking
Deal for Bebo Aims to Turn Laggard at Time Warner Into Ad-Focused Hot Spot
By MERISSA MARR and EMILY STEELMarch 14, 2008; Page A3
Time Warner Inc.'s AOL, battling to reinvent itself, is plunging into the hot and pricey world of social networking.
AOL announced plans to fork out $850 million for Bebo, a social-networking site with a strong presence in the United Kingdom, but a distant rival in the U.S. to heavyweights such as MySpace and Facebook.
The acquisition is the single biggest AOL has made in several years, as it attempts to transform itself from an Internet-access subscription business into an advertising-focused one. The deal represents a major bet that online advertising will retain its sparkle and social-networking sites will benefit.
The transaction is rooted in the belief that social networking is becoming a major gateway for how people use media and services on the Web, including email, search and video. "People are using social networks as their prism to the online world," said Bebo President Joanna Shields, a former Google Inc. executive who joined Bebo last year and is expected to remain at the helm.
The two biggest social networking sites are already largely spoken for: News Corp. bought MySpace in 2005 for $580 million, and Microsoft Corp. made a $240 million investment in Facebook Inc. last year. News Corp. also owns The Wall Street Journal.
Still, AOL's move is a risky one. Some hot Web properties, including social networks and video-sharing sites, are finding it harder than they expected to turn their heavy traffic into ad dollars, with some of the biggest sites generating less advertising revenue than hoped.
Like many of its counterparts, Bebo is more about potential than profit -- a factor that had warded off several contenders for the company, including Yahoo Inc. and CBS Corp., according to people familiar with the situation. Indeed, some analysts questioned whether AOL was overpaying.
"The price seems a bit high, and it's hard to know what AOL is getting," said Ryan Jacob of the Jacob Internet Fund, which owns shares in Google and Yahoo, but not Time Warner. Bebo, based in San Francisco, had 22 million visitors world-wide in January, compared with MySpace's 109 million and Facebook's 101 million, according to comScore Inc.
The deal comes as Time Warner Chief Executive Jeff Bewkes is under pressure to kick-start the company's stagnant stock price. AOL has been one of the company's trouble spots in recent years and the focus of a major turnaround. Mr. Bewkes flagged plans last month to separate the Internet-access business from the rest of AOL. At the time, he said he was "open to any strategic moves that make sense."
AOL has recently been in talks with Yahoo over a possible alternative to Microsoft's bid to acquire Yahoo, although it is seen as having little chance of success, according to people familiar with the situation.
The Bebo acquisition raises questions about whether Time Warner is still open to selling AOL, which had been seen as a serious option. Mr. Jacob said: "AOL is clearly bulking up to make itself more attractive, either for a spin-off or a transaction."
AOL plans to twin Bebo with its chat services AOL Instant Messenger and ICQ, creating a platform that it says will reach 80 million unique visitors around the world. "Social networking was really invented here at AOL. We let it get away from us," said AOL Chief Executive Randy Falco.
Bebo, founded in 2005 by a married couple, rapidly expanded to include a range of entertainment including TV shows and music. While it is little known in the U.S., it has a higher profile overseas, and AOL hopes to use the site to boost AOL's international presence.
But the biggest issue may be luring advertisers to Bebo. Ad spending on social-networking sites is still tiny and largely experimental for marketers. Expected to reach $1.6 billion in the U.S. this year, up from $920 million in 2007, the market is dominated primarily by MySpace and Facebook.
During its fourth-quarter earnings call on Jan. 31, Google said it was having a harder time than it expected generating ad revenue from partner social-networking sites. Its partners include MySpace.
Some of advertisers' concerns with social-networking sites stem from a lack of comfort displaying ads next to less-predictable content.
Mr. Falco says AOL can do better than Google by combining an interactive advertising approach that Bebo has developed, with AOL's existing online advertising technologies. AOL plans to use the data that Bebo users enter into the profiles they create about themselves to help better target ads both on that site and on the network of Web sites where it brokers ads.
AOL may face other challenges integrating Bebo. AOL already has stumbled in its efforts to integrate a series of smaller online ad firms acquired in the past few years. Earlier this week, Curt Viebranz was fired as president of AOL's Web ad selling unit, dubbed Platform A. He was succeeded by Lynda Clarizio, formerly president of Advertising.com


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

My summary/opinion:

Just as News Corp. bought MySpace and Microsoft Corp. bought Facebook, AOL has decided to buy Bebo this year; however, many people are wondering if Bebo was worth AOL paying $850 million. In 2005, News Corp. paid $580 million for MySpace; and in 2007, $240 million investment was made on Facebook by Microsoft Corp. So does $850 million on Bebo seem worth it? Unlike MySpace and Facebook, Bebo is more popular in the United Kingdoms; however, still the numbers of people that visit is being outnumbered by MySpace and Facebook. Bebo had about 22 million visitors in January while MySpace had around 109 million visitors and Facebook had 101 million visitors. So, if there are less people visiting each sight, how is this exactly going to help AOL?

Trying to combine the aspects of social networking so that it will appeal better to people is what the trend is nowadays. Social networking does influence to a certain degree how people use the web to gain information. Thus, in that way, being able to appeal to a mass is very important. MySpace and Facebook are only two of the many different social networking sites that are out there today. For many years now, AOL has been struggling. AOL has been trying to recreate itself as an advertising-focused company. It’s true that advertising is very important. I understand from such a perspective that is why AOL would be so willing to invest in Bebo. Yet it makes me think will all that investment pay off if users are not inclined to use it. How much more would they need to invest afterwards?

Some people say that perhaps this opportunity will help AOL jump start and get back on its feet. Others are not so positive. For me personally, I feel like AOL is trying so hard to stay hip and active that it’s forgetting to stay focused. It’s integrating too many things that require too much change all at once. I’m not quite sure where they are going. Maybe they need to do some more ground research and see what they really want. Takes things a bit slow and take it a step at a time.


20600331

AOL & www.bebo.com

Facebook, Myspace, Xanga. We’ve all been through these stages, where we at some point in our lives decide to join one of these online clubs. While many Korean youngsters have opted for the more Koreanized “Cyworld”, many westerners have chosen www.bebo.com . Ranking third in the “most popular social networking website” list, www.bebo.com (blog early, blog often) is a fast growing social website that offers users a platform to communicate their life stories and share their sentiments in this internet age.
AOL (America Online) run by Time Warner and headquartered in New York has recently acquired www.bebo.com. The internet service provider AOL has steadily been dropping in value to which it’s executives answered back by acquiring www.bebo.com . Plunging into the social networking industry AOL is trying to raise its value by opening to a younger internet oriented audience.
Aiming for the ad dollars, AOL’s attempt to compete in this industry has its ups and downs.
I personally have joined a few of these online social sites. Most of my friends have joined one or more of these blog sites also. In fact I have not taken a survey or anything of such, but one can be pretty much assured that over 90% of the whole Handong population is a member of a social networking site. There is a massive amount of people who surf around the internet and a big portion of these people have a blog or some sort of online social networking site. I imagine the ad dollars that these websites receive must be immense.
In light of this, AOL has made a good decision in acquiring bebo. Ranking third most popular out of these online social clubs, ads will definitely be observed. However sources say that although www.bebo.com ranks third in this industry, it only has 1.18% of the market share. Meaning that yes, a lot of people are consumers of these online services, however, are using sites other than www.bebo.com. To this problem www.bebo.com must differentiate, offering its consumers something better or new. Maybe a new addition or a new design. Maybe a new concept or an innovative idea that targets computer users who are not members of www.bebo.com. Adding games, or using an interface that would appeal to gamers. Who knows? Maybe even making it into a more interactive site, in which the user could totally plunge into by role playing and creating a fantasy of their own in a more realistic setting than pre fabricated games.

20100656

1. Toyota's Tonopoly

Original Article

Home-Run for the Toyota’s Customer

There are much competition around Car marketing. Toyota’s business strategy is going for the differentiation, which considers customer’s pocket. Toyota's main strategy for the car marketing is that the best customer service and electronic car business with their monopoly system in United States.

• First Hit for the Marketing

Toyota’s point is that “Despite the distributor profit, customers don't pay higher prices,” and they also pointed that “Who pays the extra costs?” Marketing strategy for the Toyota is customer satisfaction. Customer could feel that they had a good deal with car dealer. Customer would feel that they do not pay any skimming price of car. Even, Toyota don’t higher car price that their independent distributor make much money by operating system.

• Second Hit for the Operation

Toyota has advantages that they control price, mixing product, trim package and marketing plans. To use this advantages, Toyota’s distributors sale all the spare part to create their finance by making customers’ loan. They counted that they earn more money by using these advantage then selling a new car.
Toyota’s two distributors created their own Blue Ocean in Red Ocean of car market. “One of distributors is SouthEast Toyota in Florida, which controls all Toyota sales in Florida, Georgia, Alabama, and North and South Carolina. Another is Gulf States Toyota of Houston, which runs all 150 dealers in Texas, Oklahoma, Louisiana, Arkansas and Mississippi.” If customers bought Toyota’s car in these states, they were bought from Toyota’s two distributors. They could control their market as Shiny Blue Ocean like monopoly.

• Toyota's Future View

Electronic Standbility Control Standard Model is now future view of the car marketing. Toyota's developed technology which is famiar with environment, such as hybrid gas and electric cars. They are on right way.

Reference
Alex TAYLOR III. “FeASTING OFF TOYOTA: PART TWO March 12, 2008. mOTOR WORLD
<http:/money.cnn.com/2008/03/11/news/companies/taylor_toyota.fortune/index.htm?postversion=2008031209>
Scott Burgess. “Toyota: The Truth about Cars” Nov 6, 06
< http://www.thetruthaboutcars.com/editorials/toyota-the-weakness/>

ST #:20601011 Tae Sung Kim

1. Sports business strategy in the point of SWOT

Original article

The article, that I made a link above is about a scheme to make people, who are working in the outdoor sports center more professional and qualified on their job. While I was reading the article, I want to expand the contents of this article to train and upbringing competent sports leader.
Since I'm taking Business strategy class this semester, this time, I want to approach things in the point of view "SWOT". SWOT, as we learned, is about strength, weakness, opportunity and threat which are well-known, basic, essential and important in the business strategy.


Internal environment

S: What are the Strengths of investing much money to cultivate outstanding sports managers?
First, It will be a lot easier to control many athletes systematically, and effectively.
Secondly, as coach(sports manager)'s ability goes higher, we can expect higher quality of sports.

W: Weakness of investing a lot of money to rear excellent sports leaders.
Spending much money on upbringing professional coach could make it a bit neglect on welfare or the other circumstances of athletes. In conclusion, it will lower athlete's ability. Lastly, as coach's power is getting bigger, the chances for them to abuse their power are also bigger. So they might adopt an expedient when they lift a player for their sake. For instance, they might take a bribe.

External environment

O: What will be the opportunities when we invest lots of money to bringing up good sports managers.
If we keep trying this kind of effort on doing it, it will be developed to huge industry, which is named as biz-sports. Then, finally we will meet expansion of sports market by the higher quality of their plays. In addition, there will be an increase in number of people who want to play popular sports. It will have influence on demand of sporting goods. Then, sports market will be changed larger.

T: The threats would be the short of institutes or organization to raise competent leaders. For example, there are only few soccer management university in the whole earth like University of Liverpool football industry MBA course. Or the other industry like sports technology which could be replace sports leadership's role. After all, the sports leader upbringing industry will be deteriorated.

Analysis by SWOT

SO: The case between strength and opportunity is ideal connection of SWOT. Since these two are all positive things, keeping business and developing those good points are important. That way we can offer good quality game to fans and expect rapid growth in sports management. Finally, a lot of industry that are related to this will make a lot of profits.

ST: This is to maximize internal strength and minimize external threat. Therefore we should conserve and develop the strengths as we are advertising the importance of sports management and updating the facilities (solution for threats) .

WO: This is the relation between weakness and opportunity. As the words represent, the key point of this is making up internal weaknesses and taking advantages of opportunities as much as possible. By systematizing basic stuff about coach’s(sports leader’s) lifting players and managing team, we can lessen coach’s arbitrary decision or taking advantage of his absolute power.

WT: This type could be worst of these four. But as we know crisis is another chance to succeed. When it comes to this situation, we should make a hard effort to fix weaknesses simultaneously threats. As I mentioned above, we can lessen internal weakness through lessening coach’s arbitrary decision or taking advantage of his absolute power also overcome external threats by advertising the importance of sports management, enlarging managing organizations or institutes, and making it up-to-date.


Management is the control and organizing of a business or other organization(collins cobuild). It is not confined to certain area. It is widely related to business, art, music, architect, sports. In addition, there are a lot of competitors in the same sector. Therefore how to manage something effectively and efficiently in each sector is very important. That’s what business strategy for.

-Reference-

:English dictionary(Collins cobuild)
:http://sportsmanagement.co.uk/

:introduction to management(Kim Yungkyu/parkyoungsa)

Moon Jooyung 20601016

1. Is 'Ecomagination' just new trend or gold mine?

‘Ecomagination’




Is it just new trend or gold mine? Original Article
The word, 'Ecomagination' is a combined word with 'Eco' from 'Ecology' and 'Imagenation' from GE's slogan 'Imagination at work'. This is GE's new strategy to solve environmental problem that their customers are facing. Once GE repositioned themselves as a Eco Corporation, Siemens and BP anounced themselves as a Eco Corporation as well. Is Eco business simply new trend that won't be long? Or is it gold mine for the world biggest company?

As a matter of fact, we are not considering environmental business as a profitable model in Korea. Watch movie like; 'Uncomfortable Truth', we all agree that environment is so important. However, when it become personal, we have certain tendency that we don't want to spend any money for environment but abuse it. In the mean time, there is some movement that is pro-environment in outside of Korea. Some of multi-national company like GE, BP, Siemens announce that they will invest huge amount money for environment. It usually takes a lot of money and time and hard to get compensation for it. Can they find the sustainable future business model from Eco?

Profitability
Jeffrey Immelt, chief executive officer in GE argue that Eco business will bring big return for GE in the board meeting. However, except 5~6, rest of board members rejected his idea. They turned down arguing that it cost too much and it could be threatened by GE’s many ‘Superfund sites’ and “other environmental issues” that would be very difficult to fix.

However, if we look at the number, as a name of ‘Ecomagination’, GE makes tens of billion dollar every year. Hybrid locomotive, LED, Home Builder Program are typical ‘Ecomagination’ product. Net sales of ‘Ecomagination’ boost from $1o billion in 2006 to $14 billion in 2008. They are expecting ‘Ecomagination’ business to be around $20 billion amount business in 2010.

My analysis and suggestion
No doubt that the eco business is becoming new gold mine and I believe it will remind of gold rush again. However, in some sense, I consider it’s a bit overestimated the intrinsic potential of eco business. To minimize the risk and repeat the 1849’s gold rush, eco company should not only have a technical superior but also constantly ask international organizations and states to strengthen regulation on environment so more of their product be used under the law.

*Reference
Business Week
Chosun Newspaper
http://www.seri.org/
http://www.ge.com/

For The Dinner Party

Let's arrange time together after TUE. Biz-Stgy Class.

The Frantic HItter's contact #

Please write your cell phone number

20601011 Kim Tae Sung 010 3842 1958

20601016 Moon Joo yung 010 7285 7337

20100656 Lee Kang Ho 018 335 6008