They were supposed to be international corporate heroes; they not only ended up behind bars destroying incredible amounts of shareholders’ moneys, but also had their characters assassinated under prime global spotlights.
I remember sitting with my grandfather many years back in the
living room, excitedly watching an Italy versus South Korea football match (it was the 2002 FIFA World Cup pre-quarter finals), minutely following every kick, every header, every shove, every whistle, waiting too expectantly for Italy to win. How could South Korea be any match to them? Italy always won. They had to win. They were my favourites... I was surprised the game went into extra time with both teams tied at one each. I wondered, how lucky of South Korea to have even scored! I went to the study to grab a box of Wendy’s. I remember too clearly that that was the moment when grandad shouted for me; I had missed the goal... I rushed back wanting to see the replay. Was it Totti who’d scored? No, must have been Maldini? My fav was Alessandro del Piero, should be him! I stumbled into the room to see the replay. Everything went silent around me... South Korea had scored. Twenty six minutes into extra time, an unknown Ahn Jung-hwan of South Korea had headed Maldini’s Italy out of the FIFA 2002 World Cup... South Korea had arrived!
The similarities were not only ironic, but too intrinsically déjà vu loaded. It was the heat of May 2008, at the World Economic Forum (WEF) in Egypt, and President Bush was addressing global corporate leaders. Talking gloating paeans about how the “American ideals” of liberty and justice had sparked a revolution across the world, his next statement caught me unprepared, where he named and praised, of all the countries, South Korea for having imbibed these ideals. Like I told you, the déjà vu was unmistakable. South Korea had arrived!
The country is now prettily perched atop the socio-economic Asian ladder, giving company (competition?) to China, and in certain aspects, giving business heads and economists of the dragon nation many sleepless nights. So what super-marvellous efforts led to this stupendous South Korean growth post the East Asian crisis? It surely wasn’t some-flick-in-the-pan or a temporary moment of self-truth either that enabled this great revival tale.
So what was it? The answer is short – Chaebols! Yes, it was the small army of ‘family-run conglomerates’ like Samsung, Hyundai, Lucky Goldstar, Daewoo, SK Corp and many others that made oil-drilling easier for Chaebols in South Korea than ConocoPhillips could in Alaska, literally! And as the economy grew, these Chaebols too expanded in stature and magnitude. Soon, these companies had a stranglehold over almost all sectors in the country. And yes, this victory didn’t come sans some capitalistic Rambos – Chung Mong-koo (Hyundai, minus his much later stint as a jailbird), Kim Woo-choong (Daewoo, minus his ill-famed strategic decision that vapourised the company’s spine), Lee Kun-hee (Samsung) et al, – that emerged during Korea’s period of much-frenzied growth. Once they had established their foothold in the South Korean market, these companies started eyeing the whole world and went on a major expansion spree.
Diversification (both organic and inorganic) was most definitely the key that opened the ‘fortune’ lock in their favour. Take for instance Samsung, which I found out, today has 63 companies under its umbrella (ranging from electronics to infrastructure to resorts); LG has 51 (which includes electronics, chemicals & telecommunication); SK Group has 62 companies (right from oil refining to financial services to telecommunications) and Hyundai Group (which deals from automobiles to departmental stores to securities) has 9. These family-run conglomerates were well supported by the government, who gave them many incentives and the go-ahead to launch a full-fledged attack on Global Inc.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
I remember sitting with my grandfather many years back in the
living room, excitedly watching an Italy versus South Korea football match (it was the 2002 FIFA World Cup pre-quarter finals), minutely following every kick, every header, every shove, every whistle, waiting too expectantly for Italy to win. How could South Korea be any match to them? Italy always won. They had to win. They were my favourites... I was surprised the game went into extra time with both teams tied at one each. I wondered, how lucky of South Korea to have even scored! I went to the study to grab a box of Wendy’s. I remember too clearly that that was the moment when grandad shouted for me; I had missed the goal... I rushed back wanting to see the replay. Was it Totti who’d scored? No, must have been Maldini? My fav was Alessandro del Piero, should be him! I stumbled into the room to see the replay. Everything went silent around me... South Korea had scored. Twenty six minutes into extra time, an unknown Ahn Jung-hwan of South Korea had headed Maldini’s Italy out of the FIFA 2002 World Cup... South Korea had arrived!The similarities were not only ironic, but too intrinsically déjà vu loaded. It was the heat of May 2008, at the World Economic Forum (WEF) in Egypt, and President Bush was addressing global corporate leaders. Talking gloating paeans about how the “American ideals” of liberty and justice had sparked a revolution across the world, his next statement caught me unprepared, where he named and praised, of all the countries, South Korea for having imbibed these ideals. Like I told you, the déjà vu was unmistakable. South Korea had arrived!
The country is now prettily perched atop the socio-economic Asian ladder, giving company (competition?) to China, and in certain aspects, giving business heads and economists of the dragon nation many sleepless nights. So what super-marvellous efforts led to this stupendous South Korean growth post the East Asian crisis? It surely wasn’t some-flick-in-the-pan or a temporary moment of self-truth either that enabled this great revival tale.
So what was it? The answer is short – Chaebols! Yes, it was the small army of ‘family-run conglomerates’ like Samsung, Hyundai, Lucky Goldstar, Daewoo, SK Corp and many others that made oil-drilling easier for Chaebols in South Korea than ConocoPhillips could in Alaska, literally! And as the economy grew, these Chaebols too expanded in stature and magnitude. Soon, these companies had a stranglehold over almost all sectors in the country. And yes, this victory didn’t come sans some capitalistic Rambos – Chung Mong-koo (Hyundai, minus his much later stint as a jailbird), Kim Woo-choong (Daewoo, minus his ill-famed strategic decision that vapourised the company’s spine), Lee Kun-hee (Samsung) et al, – that emerged during Korea’s period of much-frenzied growth. Once they had established their foothold in the South Korean market, these companies started eyeing the whole world and went on a major expansion spree.
Diversification (both organic and inorganic) was most definitely the key that opened the ‘fortune’ lock in their favour. Take for instance Samsung, which I found out, today has 63 companies under its umbrella (ranging from electronics to infrastructure to resorts); LG has 51 (which includes electronics, chemicals & telecommunication); SK Group has 62 companies (right from oil refining to financial services to telecommunications) and Hyundai Group (which deals from automobiles to departmental stores to securities) has 9. These family-run conglomerates were well supported by the government, who gave them many incentives and the go-ahead to launch a full-fledged attack on Global Inc.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs
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