Beruflich Dokumente
Kultur Dokumente
Analysis
Action: Woori Bank is going to acquire Saudara Bank in Indonesia
Target: Woori Bank
Woori Bank decides to expand its market in Indonesia by acquiring Saudara Bank. It claimed
domestic market was saturated, Indonesia was the fourth most populous country with 2.5
billion people and its purchasing power was growing for expansion decision. Another reason
is Saudara bank with 109 retailed banking-focused networks would leverage Wooris oversea
networks to 173. It was said like that but the question is are they able to achieve that?
Because this decision costs lots of managerial effort, but in this case, Woori seems not to be
aware of. Doing business in Indonesia, especially in banking sector, Muslims will not be
charged interest rate. Have they put that into consideration? In addition, acquiring an
established bank will raise significant change for them- whether Korean customers will notice
Saudara Bank is also a Korean bank and whether the company will hire Korean staffs or not.
Normally, Korean companies want to put themselves into the market and how to market
themselves to Koreans. Hence, this action leads readers back to Korean thinking process that
Korean people tend to be emotional influenced and question whether this decision could
result in a positive outcome or not.
Analysis
Action: Samsung Lifes insurance sales staffs aided tax evasion
Target: Samsung Life
Samsung Life Insurance was said to be investigated due to two insurance salespeople at the
company helped a client to evade tax. However, what needed to pay attention on are why
these two employees committed this malpractice and what enable them to do so? The
employees gave gifts worth hundreds of millions of won to Lees wife as a quid pro quo for
buying some 400 insurance policies, which was split from 40 billion won of Lees asset. It
was not stated in the article the reason for these two employees action; but if one recalls most
Korean companies are family-oriented, one might have a better look of what is driven behind.
The illegal transfer of money is used as a vehicle to get money for their children or family.
How they conducted this practice has to go upstream to seek for a proper answer. In 2008,
Samsung Electronics chairman Lee Kun-Hee was forced to quit and fined $100 million after
being convicted of tax evasion. The leader took full responsibility but denied the companys
wrongdoing after his return. Perhaps, in this case, Samsung Life has kept its eyes blind to
irregularities of its employees. That is how everything happened. Solutions to this
phenomenon seem to be unknown. Even though, Park Geun-hye promised to pursue
economic democratization, which tackles cross-shareholdings in Chaebols, increases anticompetition fines, and forcing prosecutors to get tough; it does not seem to be working since
Samsung and other Chaebols are too big to fail.
Analysis
Action: Expanding retirement age
Target: Korean companies
The government passed the minimum retirement age from 58 to 60, which was not legally
binding before, made some companies suffer from extra expenses. Also, some experts said it
would hamper the opportunity of youth employees since most Korean companies apply
seniority-based culture in which older workers will receive more benefits compared to new
workers especially in payment. However, these analyses are only partly relevant. If one
looks into the youth population in Korea, it is dwindling through time. By 2050 Japan and
Korea are projected to have youth population of 9% of the total, while only the United Sates
(19%), Iceland (18%), and Estonia (18%) are close to the current OECD total. Indeed,
Korean companies will suffer the shortage of youth population in the future; then without
changing the current law of retirement age, the situation is even worse. Companies would be
damaged by the reducing inflow of new employees and the increasing outflow of experienced
workforce. In the long run, the benefit of changing the current retirement law outweighs the
current costs the company will endure. By expanding retirement age, it can lessen
recruitment and management process in the companys human resource department. One
thing that could not be addressed is the seniority-based culture, but it is not necessarily a
factor that reduces youth employements.
Analysis
Action: The practice CSR of Hanwha group in reponse to desertification
Target: Social ecosystem
The action was stemmed from the encouragement of United Nation Global Compacts Korea
Network. The Chairman Lee Seung-han said, CSR is no longer a matter of choice but a
crucial business requisite for those aspiring to gain global leverage. Hanwha Groups CSR
conducted Hanwha Solar Forest campaign to transmit the message of saving the forest.
Although it brings benefits to the society, it seems to be a tit for tat practice rather than a
voluntary work. Yet the good sign is some companies like Hanwha have stepped out of their
capitalistic zone to actually do something for the social environment. Companies should
thus acquire a sense of emergency, realizing that CSR is not an option but a vital component
of their business portfolio. said Lee.
Analysis
Action: Samsung ready to launch one-chip to the market
Target: Competitors customers
One-chip is Samsungs solution in the next generation of wearable and flexible devices.
Specifically, one-chip can be flexibly placed in any Samsung products. This invention
contributes to change Samsungs identity, as people will no longer view Samsungs products
as individual items but instead interdependence. One-chip innovation also helps Samsung
fight against its biggest opponent Apple. If one looks into the two corporations product
categories, Samsung possesses massive product category while Apple only has a few.
Successfully inventing one-chip would allow Samsungs products from Smartphone, TV,
MP3, to washing machine and so on to be interrelated, which brings customers closer due to
its convenience and surpasses Apple with limited product category. Even though Apple is
one of Samsungs biggest customers for processors and memory chips, to let Apple utilize the
one-chip solution will be a different matter. Even if Apple were allowed to share the one-chip
technique, there would always be some conditions around. Lastly, what enable Samsung to
reach its target are skilled and obedient workforce.
Analysis
Action: Mercedes-Benz reveals its business plan with Korea
Target: Mercedes-Benz
The article generally focuses on creating network between German and Korean automobile
companies. German automobile, Mercedes-Benz plans to build an R&D center in 2014. This
article shows how a foreign company does business in Korea, which is different from what
have been normally discussed in class as we concentrate on how a Korean company does
business domestically or internationally. Then, the questions are why Korean market? And
what enable Mercedes-Benz to foster in Korean automobile industry? If one looks into
Korean cultures, their decisions tend to be short-term rather than long-term approach;
therefore, most of their cars do not reach the standard of sustainability. Mercedes-Benz
captures this quality gap and decided to continue working on this potential market. In
addition, as a part of Korean culture, when customers buy a foreign car, Koreans like it to be
German. That eventually gives a bonus to Mercedes-Benz. In fact, the firm achieved 20.5
percent increase in sales from a year ago and estimates to double its sales volume by 2020. A
part of Mercedess plan is to establish an R&D center in Korea, which supports job-creation,
makes it feasible for the firm to carry out it scheme. The key purpose of this new center is
using Koreans talent and expertise in telematics with the goal of performing faster and more
flexibly for Korean customers. Indeed, Job-creation is what Korean government currently
encourages. Meeting the need of not only the customers but also Korean government offers
Mercedes-Benz more leeway to thrive in Korean automobile industry.
Analysis
Action: R&D investment in Electronics sector
Target: Korean market
According to a report from the Korea Institute of Science and Technology Evaluation and
Planning, Korean firms heavily invested in R&D in electronic sector with 46.6 percent in
2011 in comparison with aerospace technology, pharmaceuticals, and machinery 0.2 percent,
2.3 percent, and 2.4 percent respectively. To focus on the rationale of why this imbalance
exists, one has to travel back in time to Korean management root. Korea is the country with
less resource, then how Korea can thrive and succeed are through imported resources and
R&D concentration. Also, Korean firms major success until now is by relying on big
family-owned conglomerates in electronics like Samsung and LG. The fact of centralizing
Korean firms R&D investment in electronics sector reflects the continuous practice of what
have been done in the past. However, this disproportionate distribution of business portfolio
might bring dramatic impact for Korean market in general. What if these conglomerates
collapse, how would Korean market be like? Indeed, it will create the domino effect, which
results in unemployment, poverty, fatality rate, and so many more.Analysis
Action: FSS calls KB Financial to hold off exec bonuses
Target: FSS and KB Financial.
To discuss authority impact, it is a must to recall Confucianism practice, which is a footprint
for many Korean organizations. Financial Supervisory Service (FSS) calls KB bank to put
off any bonuses for former and executives since the bank has been probed with corruption
allegations. That illustrates the relationship between rulers and the ruled based on the code of
ethics and regulations to conduct the practice. Another authority demonstration is between
parents and children when one seeks to uncover why financial authorities in KB Bank
committed corruption allegations. In order words, it illustrates the usage of capital in which
illegal transfer of money is utilized as a vehicle to get money for their children. Then, the last
question is what enables KB banks officers to embezzle money? If one remembers the case
that Samsung Electronics chairman Lee Kun-Hee was forced to quit and fined $100 million
after being convicted of tax evasion but denied the companys wrongdoing after his return,
one can recognize the precedent practice is a correct response. Since those too big to fail