Share a cautionary tale of a small proprietorship in South Korea.
The Business Structure readings should help you brainstorm some ideas for this.
Post online here.
Limit: 100 words.
Use APA citation style to identify your sources.
http://owl.english.purdue.edu/owl/resource/560/01/
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The Sillicon Valley starts to bloom again. But in Korea, they still have no hope in venture business after the collapse of ".com" business. According to interviews with 3 Korean businessmen in Sillicon Valley ; Cheolsu Ahn, Seungjin hwang, Jonhoon Lee, They agreed that Koreaan company ,'Pandora TV' has better thechnology than 'U-tube'. But they were not invested properly.To avoid those vicious circle for establishing venture business and keeping it growing steadily, they say we should change the paradigm of supporting capital and educationg how to survive in Korean market.
**Citation**
An article from Chosun.com
"3 pioneers said 'Why isn't there a Sillicon Valley in Korea?'"
website address
http://news.chosun.com/site/data/html_dir/2007/04/06/2007040600618.html
Kim Jeongsun 덧글 내용...
Korea is famous for automobile companies but its position gets threatened by greatly developing China companies day by day. What is the reason? Here is a case.
An automobile company in Beijing makes 68 cars an hour and worker's basic salary is 360$(340,000won) but the case of Ulsan factory in korea is that they make 55 cars an hour and their money is 4580$(4,300,000won) a month. It's ten times more than the money china workers get for the same period of time making less products. This difference is said as a main reason why korea business keeps going down while china keeps growing.
*citation*
from Chosun newspaper
"Seoul sleepwalk : why an Asian export champion is at rist of losing its way"
http://paper.cyworld.nate.com/leeyangza/2067419/
LG Electronics is under pressure to decide whether to halt its PDP TV production, which is currently suffering from chronic deficit. As PDP TVs continue to lose ground to Liquid Crystal Display TVs in the market. As a result, LG's Digital Display business posted a 146.7 billion won operating loss during the fourth quarter last year. LG also has felt a burden due to price competition with the PDP models put out by Japanese rival, Matsushita Electric Works, Ltd. The outlook for the industry is gloomy.
*Citation*
The Hankyoreh(Apr.10,2007.15:06)
LG faces pressure to can its plasma TV business. The Hankyoureh.
Retieved April 10, 2007, from http://english.hani.co.kr/arti/english_edition/e_business/202050.html
It seems that it is time to recognize that Korea is not the strongest nation in terms of IT (information technology) industry any more in the world. This is because this industry faces a critical situation such as the structural weakness, the dropping in prices and the challenge of developing countries, even though it records a great numeral value in annual growth rate. The main reason of causing this kind of problem will be explained. First, the components and materials highly depend on an import item. Second, it places too much emphasis on the specific field in IT industry. That is why the pride of nation of IT is shaken.
*Citation*
An article from digital daily
"Korean IT faces a critical situation"
http://www.ddaily.co.kr/news/?fn=view&article_num=21683
An industry spy is one of the most ancient jobs in the history of man. In ancient times, silk and ceramics of China were drained away to Rome and France. Ik-jeom Moon who got cottonseed and cotton growing from China was a great industry spy. As Korean economy and technology have grown rapidly, China and Southeast Asian countries are trying to steal Korea’s high technology. Small and medium enterprises may be the target because they have an inferior security system. A recent poll said that 7 among 10 small and medium enterprises have experienced illegal technology outflows. Those companies should be conscious of industry security.
*Citation*
An article from JOINS.COM
http://article.joins.com/article/article.asp?total_id=2690250
Do you know ‘U-mille’? She was famous person as success career women with her creativity and intelligence. In 2003, she had found her own company which called 'Republic of U-mille' in Seoul. The company is comprised of cloth shop, play all kind of performance, culture event. She was just 23 years old. At that time many people envied her and she was described a special icon of our generation. Her story was broadcasted in many TV program. They said she is so clever and smart that she made a big contract with Rampage who is president of American Clothes Company. However, now she is not a president of this company any more. Her business lost competitive capability. The company’s profit has been more and more decreased. The most serious problem was that Image of the U-mille was very strong. People remember only her image; fresh, clever, smart. The company also consider just image how they were shown good for public. Quality of product is second problem for them. Therefore, U-mille left just one icon in public’s head, not one good company. In addition, public even think she is a liar. They disappointed her, the product which she made and her company. To U-mille, it was not good. Because she worked at the same time as a VJ, singer and so on, she had to be dragged many lawsuits.
*Citation*
An article in a newspaper www.breaknews.com
Hee Jae BEON. (2005, March 10). U-mille syndrome; a myth or capital deception. break news.
Bang Gil-sun
Dae-Gu complex terminal company which promoted construction business of Dae-Gu west a freight depot is beginning to liquidate. The reasons of fail are that they did not examine business prospects closely before promoting the business. Also between the central government and the local government, they could not get mutual cooperation. When they were promoting it, the Ministry of Construction and Transportation was promoting the other similar business. It would be weaken their competitiveness.
Citation
"Dae-Gu complex terminal is going into liquidation"
An article from Maeil Newspaper 2006.04.06
Gye-Hyung Kim
A venture business was boomed for a while. However many of them were fell down in the long run and some remaining venture companies still have a hard time to increase their business size. Five researchers of many abilities quitted their job and established venture business in 2000. Yet, they had a hard time to make up a sum of expansion. There were too many requirements to get some support from a venture capital. Even if they're acknowledged by their clients, they still rely on OEM and OCM. The reasons of hardness in start an enterprise and dullness in promotion of an enterprise are first, difficulty and complexity of establishment process and second, environment when they start up is in bad condition. However, the most difficulty is not to start an enterprise but to carry it to final success. A venture business as a small proprietorship or a partnership has a full responsibility for all of their company's debts. In other words, it accompanies high liability.
*citation*
from Chosun.com Weekly Biz
"Korea, difficult to start up an enterprise, is hard to grow up."
http://news.chosun.com/site/data/html_dir/2007/04/06/2007040600569.html
The article that I read is about how to prepare for starting a small business and make it succeed in Korea. It shows a specific process to prepare it over 100 days. These days many people are unwilling to open their own business in a rapid depression market that caused by inflation, foreign exchange fluctuations and a dispirited consumer sentiment. It doesn't take exactly 100 days to prepare for staring up the new business, but describes the outline of it in each certain period. I will introduce main three. First, you should choose a right business and analyze the information on it getting advice form a startup business consultant. Next, you need to decide a proper location to operate your business; a busy street is preferred. Finally, after founding your company, you should have a plan to let people know about your company well. It would be better if you conduct your business in advance by way of showing an example before opening the real company.
Lee, Sang-hoen. 100days Strategy of staring a new business.
Retrieved April 10, 2007, from
http://www.icanbiz.co.kr/
http://tong.nate.com/hcb0508/35797299
A best seller, Al Ries, set a high value on Korean Internet infrastructure. But he took a skeptical stance toward marketing skills of using the Internet, saying that Korean companies ignore fundamental rules of marketing. The reason he’s saying this is that there is no Korean companies which have global brands. So, he said that it is important to build global brands and give customers impression, and suggested that Korean traditional companies throw away their brands that are difficult to pronounce and are vague to understand. In addition, big companies like SAMSUNG and HYUNDAI should invent the second global brand.
Kang hyejong (Sept.24,2003.17:54)
"Korean companies should make global brands"
http://www.inews24.com/php/news_view.php?g_menu=021200&g_serial=99515
The probability of success of a company is known as around 1~2%. The Venture business can not reach 1% at most because in the venture business, particularly Technology Business, new establishments are created frequently and fluctuation of the market is severe. It happens in the world.
In South Korea, the government made the law of special action about fostering the venture business and underwent several revisions. Through them our venture businesses have had some benefits under conditions government have made.
The companies in my country, which have taken advantage of them and have had their special working principles, could have existed and some of them are now in success. Moreover they have accepted new things helping them to improve their companies and adapted them to suit their own companies. There is example: NC soft corporation.
citation : www.naver.com
In 1994, Ji Seung-ryong(Ji) set up the cafe, ‘MINTO'. In 1993, he dropped in for coffee at a coffee house. At that time, an employer urged him to get out the cafe because his appearance was not good. Ji decided to open the warm-hearted cafe. Till now. he has studied how he can make customers be happy. Ji has used 'MATHER' marketing strategies that he always tries to understand customers' mind and place himself in their shoes. At 'MINTO' if we pay just 5,000won, we can eat noodles, bread and snack, and drink coffee or tea. In a study room, students can talk about their papers or presentation for free. Nowadays, there are 21 branch shops in Korea. In 2007, Ji is going to open branches in China and America. Although opening a cafe was not a blue ocean, he made a success because of his warm-hearted mind.
**Citation**
An article from 'Yahoo.co.kr'
"MINTO- the reason of success"
An article from 'minto.co.kr/'
**website address**
http://www.yohoo.co.kr
http://www.minto.co.kr/
In Korea, many coperation just focus on donestic site. They don't want to develope product quality as much as globalization company.
It means that they don't want to develope their quality but thy want to make lots of money. For example, Hyunda sell the same product to have different price between Korea and America. It's the big problem to us. i think that we have enough power to have even though we have it, we just focus on present things. But I think that China has some different thigking they try to learn all part of thing. So we easily see Chinese all vover ther world to study some subject. Government support this kind of a man of ability. They have enough people and natural resource.
So korea business keeps going down while china keeps growing.
An advantage of small business is that it is easy to start off.
Compared to other bigger-sized company, small business has less regulation from the government when starting your own business.
On the other hand, it is difficult to raise finance from banks due to its uncertainty.Even though it has high potential to grow, they are also exposed to high risk to go bankrupt.
For exmaple, there was venture business boom in the IT sector in 2000, as people dreamed of becoming the next Silicon Valley. Also a big amount of fund was planned to support this boom at that time. However, the number of venture businesses decreased significantly next year, as many people concerned about this boom.
**Citation**
The Korea Times, Ventures Business Boom Cooling Off. Retrieved April 9, 2001 from http://search.hankooki.com/times/times_view.php?term=venture+boom++&path=hankooki1/kt_tech/200006/t20000607180254451117.htm&media=kt
The Korea Times, Nation Riding on Hopes of Spreading Teheran Valley Success,
Retrieved June 7, 2000 from http://search.hankooki.com/times/times_view.php?term=venture+boom++&path=hankooki1/kt_tech/200006/t20000607180254451117.htm&media=kt
Considering the structure of company, medium and small companies have lots of problems. Lack of funds and ability of the management are main problems. If they cooperate with other small companies, they can solve these problems, even though their structure is not as big as major companies. Then they should make their own development strategies to show a distinction. The subcontract work is a example of these companies. However, in this case they can't stand out with the despotism of big companies.
**Citation**
from daily economy
web site address http://news.mk.co.kr/newsRead.php
http://blog.naver.com/hamin2000?Redirect=Log&logNo=150015316135
These days, there are many restaurants which specialize just one kind of food like Chinese, Italian, Japanese or French. Jo, Sung-eun is a professional cook for Italian food and runs a Italian restaurant called 'Fresco'. He said that the price of his food is overall cheaper about half comparing with other similar restaurant. But, instead of cheap price, he cut the system of discount by acquaintance with many affiliated concern. Also, he suggests three tips for succeed. One is the specialization of just one menu for Italian food. Another is that he focuses on the popularity with cheap price, and the other is that he raises the satisfaction with good taste and service.
**Citation**
An article from Money today by Song, Gwang-seob
web site address
http://blog.empas.com/cho4890
Analysing the price of stock and price fluctuations, market is not in serious depression. However, the top subject of car market in Korea is that the market will avoid the latest state of stagnation.
First, car market should read the changes of the times. In many advanced nation, they produce a great quantity of kind and produce a small quantity production, but in Korean car market is totally opposite.
Second topic is the expanding the market of diesel car. All over the world, diesel car is already recognized as eco-friendly. So substantially the solution will come whether how the customers in Korean car market will accept it.
Third, in earnest of the price cutting in import car will be other points in Korean car market.
**Citation**
An article from naver blog
"A topic and outlook of Korean car market in 2007"
website address
http://blog.naver.com/qtian?Redirect=Log&logNo=80035365837
Kong Ji-hye
An article that I read is about the financial situation of small corporations. According to one survey from KCCI(Korea Chamber of Commerce & Industry), 45.2% of the 500 enterprises have a little or severely bad cash flow problems. Only 13.3% of them have satisfactory one. It is very ironical that although there is much cash flowing in the current market, a half of them are in economically critical condition.
There are three following reasons: dropping sales figure due to poor progress in domestic demand lasting for so long, rising manufacturing cost resulting in soaring price in the raw materials, and failing to revolve fund caused by uncollected loans. Based on this fact, some experts said that those companies need supportive policies to resolve the problem, such as lowering the interest on a loan.
Once venture business was considered as a alternative thing to substite korea's a conglomerate.
But now, numerous venture company have gone out of business.
One of reason that many venture business has failed is they didn't find enough selling circulation route. Another reason is that even though they started business they didn't build regular profit making way. Investing too much money in particular department can be another reason. No experience of running business ever was one of serious problem for leading company to go bankrupcy.
They say the short of knowleage to their venture business is problem.
**Citation**
http://my.dreamwiz.com/istock/
Sorry for not writing about the citation.
+ Citation +
www.munwha.com
http://www.google.com/accounts/VE?c=5025070226185177342&hl=ko
In 1999, a designer launched his own company, Raincom that will be more familiar to people as a name of ‘Iriver’. This company has gone well with various products, especially MP3 players. At first, the company ‘Iriver’ started as a small business company with some products such as CD players. But, the company just focused on design of the products. The company made innovation on the products which they made, but they just focused on design rather than capacity or A/S. So, nowadays, most of users who bought and use 'Iriver' products are getting angry. To maintain their honor among companies which make MP3 players should support what customers really wants.
**Citation**
http://www.laputian.net/398
INI Steel yesterday expressed an interest in buying Hanbo Steel, the bankrupt steelmaker which has been up for sale for the past seven years.The group told the South Korean Stock exchange it was considering acquiring Hanbo and would report again when more details were available.
Korean Creditors have been struggling to sell the steelmaker since it collapsed in January 1997 with debts of $4.4bn. This will be Hanbo's sixth attempt to offload the business, following the group's most recent failure to sell it to AK Capital, a company controlled by South Korean leasing firm Junghu Industry, in a deal valued at $377m.
Hanbo's bankruptcy was one of the first signs that South Korea's economy was falling into crisis, 10 months before the International Monetary Fund was forced to launch a $58bn bail-out of the country
Hanbo is one of many debt-laden South Korean manufacturers that remain in deep trouble six years after the economic crisis. Nearly one-third of South Korean manufacturers do not generate enough income to cover the interest on their debts.
**Citation**
COMPANIES ASIA-PACIFIC: INI interested in buying Hanbo Steel
By Jung-a SongFinancial Times; Mar 18, 2004
Recently, the core technology of Wibro which is a wireless broadband Internet technology has been almost drained out. According to the National Intelligence Service, there were 343 technology outflow disclosures. Among those are contained 192 cases of small & mid-sized company (SMC). The core technology in SMC is more important thing than any other competitive powers. If the core technology is illegally drained out, the future of SMC will become dark. Similarly brain drain is also what SMC should prevent. Considering the difficult situation of SMC in terms of maintaining these resources, national support should be considered.
**Citation**
An article from Segye Daily
"Stop the core technology theft"
http://www.segye.com/Service5/ShellView.asp?TreeID=1052&PCode=0007&DataID=200705201801000301
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