BSP2005 Asia Pacific Business - Cheat Sheet

1. Micro
Business Strategy and Groups (Firms) Messo: Clusters & Innovations Demand
(Supporting Industries)
Generals Focus vs Diversify – western vs Asian > ? unrelated diversify > Level of Coordination dy/dx success
To access intermediate pdts / reduce risk of bankruptcy Clusters ↑ productivity and efficiency
(shareholders and employees)/ political connection / lack of • Efficient access
proprietary technology /increase in competition/ fill in • Rapid diffusion of best practices
institutional voids > ? diff > diff stage of diversity and ties > • Performance comparisons
Grps > create barriers to MNC, dev own internal mkt for $$, Stimulates and enable innovation
talents and goods(make own pdts), less transparency > coz fund • Innovation opportunities
is route around(-) • Knowledge creation & sharing
Firm’s Org > Centralize (Samsung) (+) share knowledge & ↑ • Experimentation
capabilities (-) info overspill / Decentralize(Sony) Facilitates commercialization
As firm move up tech chain • new biz & new lines of established biz
Unrelated (low P)> related > focus (High P) 3 processes: local dynamism, attractiveness & link to world mkt
JV to Acquisition Y clusters decline: rising cost, discontinued technology, buyers’ needs
Family control 2 profession manager changes, lack of rivalry & regulations
Diamond framework
Different type of innovation
• Radical Innovation > completely new > NASA>need scientist
• Incremental innovation > small improvement > need engineers
• Process innovations > JIT
Readings Focus strategies wrong? -Information problems, misguided Tiger and the tech:
regulations & poor judicial system (emerging mkts) Advantages
Institutional voids are 1.Affordable labor
Capital - Lack VC / $$ constrain 2.Center for IT components
Labor - unskilled 3.CA in applied technology
Product – little info & limited liability law Obstacles
Government Regulation - ↑ 1) Environment
Contract enforcement - Weak • Lack of home base market
Roles of Grps: > cannot filled all voids still • Lack of experience and frame of mind to compete with technology
Tale – Grps help countries to catch up by RE, FDI and 2) Lack of Innovative Workforce
licensing but as they grow > Hard to RE and No one provide • Education
2 Faces – Grps helps to innovate > ↑ productive > ME F > • Culture that the government
↑Capital, political ties & brand attract foreign firms, Share promote
knowledge 3) Shortage of Venture Capitalist
How to rebound(Japan) > performance related scheme to get • Poor financial backing
new ideas and compete by dy/dx in pdt and quality (Deming) > • Strong Gov. Restriction
build strong clusters (same language) & they love to make >
Ipod inside all japan items Location matters: a ext factor. (See pic)
1.Built talent and $$
2.IPR & tax incentive for Inno.
3.Diamond – creates need and opportunity for Inno. ↑ competitive pressure
4.UNI system 2 link

2. Japan BIz grps:Keiretsu - Mitsubishi > too much overlapping biz Build strong clusters: Citizen> started with
Now Sony > shift towards focus + foreign managers> energy biz strong engineers copy swiss tech & help
(toyota) relationship suppliers with swiss tech> applied
↑ buyers own knowledge > excel
Biz culture > managers lack of empowerment Knowledge sharing and dy/dx to win
long working hours > unproductive
Seniority pay system strong areas In clean Tech & Silver Tech
Less woman on top management > men stubborn more risky
Korea Chaebols: Samsung, Daewoo, Hyundai > political & financial Highly skilled, tech savvy workforce tend to support local brands
connections > Koreans are proud of their success, global Rigid education system>rote learning over
recognition but dislike e huge amt of power they weld > gradual creative approach>harder to shift 2wards new
restructuring (foreign owned, corporate governance) after 1997 form of knowledge-based growth
crisis
But Biz group limit new firm growth
•Hsin-Chu Science-based Industrial Park (HSIP) •Dense business network allows a company •Local (B2B mainly), Global
Taiwan Taiwan & China > need
•One of the world’s main centers of IC manufacture, to source easily for new components from (B2B & B2C) demand each other to grow > a
computers, and peripherals local subcontractors •HSIP -Attracts MNC and war both suffer
•Major Taiwan companies such as Acer, Mitac International, and •Firm can specialize and innovate more thus needs to be innovative
UMAX Data Systems are located here rapidly to cater to the needs of Taiwan & Japan & korea
• •SMEs in Taiwan make up for the marketing global audiences. > need to move up tech
•With HSIP as an industrial cluster, intense competition among inefficiencies of each undersized member •75% of Taiwanese electronic chain
these firms accounts for rising productivity and innovation. productions are sold under
•Supported by government who do not restrain their someone else’s brand name.
freedom in doing business •US is the 2nd largest
importer of Taiwan’s good. A
country that is at the
forefront of technology.
China Old > bad coz dev in SOE > SOE not performing & band having Improve private sector:
huge (NPL) - no transpancy & corruptions among old employees • guan xi 2 real biz
to ^ replace ironbowl, privatization culture > bnw
Growing SME but no innovations + firm engage in copy & fakes • legal reform
> SME short of capital > no microfinance • accounting reform
coz prevented by gov (getting too big no good) > so get fund • IPr
from overseas by selling stake(JV)

3. India Tata > Tata industries > Vc funds > funds from other grp Workforce
members > later sold to Jardine > Tata get capital & Jardine get IIT graduates (intellectual capital) plays an
exposure impt role in the economy > CEO
Tata > selective hiring> provide training> grp them as corhort > SunMicrosystem > confidence &
as they spread > stay in touch and info flow entrepreneurship > brain drain
Workers (construction) contribute e most %
to GDP
Major constraint: poor infrastructure > power
shortage, telecommunication
Bangalore is known as the Silicon Valley of
India > India's leading IT employer &
exporter
SEA: why no grow so well > Gov
Malaysia protect malay > grew lazy >
eg easy to get into uni and
special privileges
(bumiputras)
Indonesia Lippo Group > able to lobby Gov > influence gov
Thailand Product Mkt Advantages
• Potential in petrol • > free mkt (asean)
chemical and car parts than China
• Net exporter of both pdts • China will need to
import from Thai too
if it grow big
• tax incentives