Lovas, B.and Ghoshal,S.(2000),Strategy as Guided Evolution

This is a thesis in Strategic Management Journal. The paper shows relation between strategic intent, top management, and human capital and social capital, organization and workers, and tries to make a model of it from an international company’s case study.

The model consists of follows;

・Objective Function(strategic intent)

・Source of Variation (all employees)
・Units of Selection (strategic initiatives, human and social capital)
・Agents of Selection and Retention (people working on strategic initiative)

・Administrative Systems (formal structure and organizational routines)

In this article, the model was inspected with the example of Oticon, Danish hearing aid company, and its reconstructing strategy and organization. The example is so interesting because it shows “Structure follows Strategy”. But it is so complex that author could not theorize the case sufficiently. I think studies of management became more difficult if more close it looks example. From the beginning, it is impossible to theorize activities of human beings. By the way, this thesis is hard to understand for me.


URL:www.thinkoticon.com/

Magretta,J.(1998),Fast, Global, and Entrepreneurial: Supply Chain Management, Hong Kong Style

This is a record of an interview with Victor Fung who is a chairman of the Li & Fung, which is said as “Hong Kong based multinational trading company”in his words. As the title, the interview focused on “Supply Chain Management” and demonstrates its importance for global company in twenty-first century dates back to the Li & Fung’s history.

The Li & Fung’s started as an interpreter and a broker which mediated businesses between Chinese factories and American merchants. However, the fee of intermediate became squeezed and it has started to change the business model in three stages.

In the first stage, it became “a regional sourcing agent”, which tells buyers when and where they should start buying. This is valuable for buyers because exports were controlled by government with quotas and information of other country is complex. In the second stage, it became “a manager and deliverer of manufacturing programs”; not introduce best provider of ready-made products, but organize production process of new goods. In the third stage, it expand second model globally and started “dispersed manufacturing”, not construct whole value-chain but separate and integrate parts of it.

This is different type of global company, which does not own value-chain but “configure” and “coordinate” them. I think it seems similar to Japanese governments because they want to control industries they taking charge of and collect more information about the industry than any other.

URL:http://openlearn.open.ac.uk/mod/resource/view.php?id=177167

Li & Fung: Beyond “Filling in the Mosaic”, 1998-1998(HBS Case 9-398-092)

This is a case of Li & Fung Group, a Chinese textile company which is run by two brothers who have Ph.D. at Business Economics at Harvard University or MBA at the Harvard Business School. The article describes the firms from its start up to 1998, when it has established and making strategy for twenty-first century.

Li & Fung’s business model is “a virtual factory” or “private label manufacturing program”, means it specializes providing product itself, not brand or promotion. Though there is big scale merit in production of textile industry, it is difficult each company has big factory because there are lots of competitors and fashion of the clothes are always changing. For company which has good talent of design or marketing, it is better not having its manufacturing and outsourcing it. This is why Li & Fung is needed from many customers and Li & Fung has developed the relation through its network to get the textiles at high speed and good quality in lowest cost.

Li & Fung’s strategy is the 4Cs;.
1,Connection
2,Communication
3,Control of quality
4,Consolidation of shipments

Its way of business is simple, developed good manager and construct reasonable evaluation, collect information and invest promising company. But most interesting for me is it made investing company, LFI, to find customer in future and collect money. In the twenty- first century information is important but collect information only is so costly. To have invest company is good strategy for other company, I think.


URL:http://www.lifung.com/eng/global/home.php

“the creators class"?

Today’s class was an open course, there were many people in the class room because today’s guest was Piers Fawkes, just a Trendspotter itself! I did not him so much, but expectations of my friends and the number of audience coming class told me how he is famous.

He has been running PSFK, which provide ideas of future or trend on Internet; blogs. The important point is that he earns money through PSFK this is why PSFK has activities such as consulting and workshops. Anyway, it is extremely difficult to keep running “Web2.0” as a business, I think.

His speech was organized by two parts, the first one was methodology and the second one was his view gotten from the method. About method, he explained how he have made PFSK’s blogs;

1, scanning and digesting ( search the fact, collect information a lot)
2, scout network (find interesting people and share visions with blogs, sometimes interview directly)
3, trend report (make report of trends)
4, ideation (work together and make plan)

(main parts are 1 and 2, 3 and 4,are for business, I think)

In the second part, his vision of future, he stressed corporations of creators, companies, and communities. In the Web2.0 world and Globalization, both of which are hard to define, everyone can become creator and can create a trend. This is amplified by community, groups of people have same mind, parties of creators. However, activities of communities are hard to maintain because they can not make money for keeping themselves running. Companies helps them and transfer a trend to a business trend, social big trend, the future.



I think his ideas themselves are not so novel, but valuable as his saying. One thing I cared was he said “the creators class” ,in the last part. This means in future, a few established people make the trend, future, the world. Even in future, however advanced IT, social structure would not change, I was felt by the lecture.

essay about “Finding a Coach in the Land of Oz”

Today’s class was ” In-class writing”, we only had a test, this is first one for me in SSE. The test was to write an essay about “Finding a Coach in the Land of Oz”, which we read in previous class. We had told a form of the test, which had 4 questions and we could choose one of them, but not told the questions. Of course, we could not bring the script in the exam.

In the test, I have finished early than I had expected. I think it is done because of two reasons. First, I had reread the text and prepared for the test in this morning, with making summery of the essay and answers to questions in course resume. Second, in first part of the test, I made structure of my essay and share number of words because essay had to have 300-400 words.

Next two classes, I can not attend because of a job ceremony in Japan. See you the week after the next!

Overcoming the Liability of Foreignness

Yesterday’s IBS lecture was about Hartford Part2, challenge and strategy of foreign country. The lecturer was also PhD student. The lecture was so systematic that we could easily tell how he would organize next. Some of my friends complained about that, but for me, it was good because it was easy to understand.

The conclusion is “Foreigner should understand how it are seen by host country, and exploit its advantages and mitigate its disadvantage”. Foreign firm usually have both of negative and positive image. Hartford success in Japan was archived by the reducing negative image such as unreliable by communication with government or compliance and using local network, and using its “innovative” image for partnership with Nikko and relationship to government which wanted to make its market more competitive.

Looking back on the case, it was so beautiful because its strategy was easy to understand and actually, the strategy has worked well. I think this was the reason why PhD student took this lecture.



URL:http://metacool.typepad.com/metacool/page/2/

(It is just "beautiful" image, does not directly relate this post)

"Cradle to Cradle"

Today's speaker was Christina Cheng and Magnus, of course guest was Christina. She is a business person who works mainly with food companies, and supports them to catch a trend. Thanks to her background lecture was rather practical than academic. She used many transparencies and told us some example of company.

“Cradle to Cradle”, I had never heard about that, was most interesting concept for me,












This is so nice! This is what I am considering because my major is agricultural economics! This city can self-produce sustainable food and energy.


Her Trendspotting steps is following:

1,Start on familiar ground
2,Make it their business
3,Go practice
4,Inspire to change
5,So what analysis

Feed back!

Today’s title was “CV and cover-letter feedback”, but CV and cover-letter was returned at the last time of the class. In the class, we discussed about examples of sentence in someone’s CV or cover-letter.

In the discussion, I learned about uses of words that alike each other but different. They were following:

Driven (is negative)
Got/was (was is more formal than got)
A lot of/ lots of( is informal and we should use many, much, instead of them)
:/;(: is used for presentation something, ; is used as conjunction)
An FX person
Feel healthy( is OK)
Primarily(=mostly)
A, B, and C is different from A, B and C (“B and C” is pair)

Long subject is bad



In the feedback of CV and cover-letter, I got to know there were too many language problems in my assignment, especially in article and vocabulary. I will improve myself so quickly!

Collis, D.J.and Montgomery, C.A(1995),Competing on Resources: Strategy in the 1990s.

This is one essay of the Harvard Business Review, use easy words to read or understand. In the first part of the article, it describes the changing stress of “Strategy”, from market structure to resource of a firm and integration of both. In main part, it tells us( mainly for manager of companies) how to capture “Core competence”(it says “distinctive competence”) with some active examples.

The role of manager is so important to make strategy and keeping the firm profitable in the competition, as the essay says. In making strategy, it is important evaluate the firm, typically core-competence. However, managers often make mistake in the process. This article gives them solutions.

First of all, managers have to know what makes a resource valuable, they are following;
・Demand(does it meet customer’s needs, and is it competitively superior?)
・Scarcity(is it imitable or sustainable, and is it durable?)
・Appropriately(who owns the profit?)

Second, they should ask following questions;
１、 The test of inimitability: Is the resource hard to copy?
２、 The test of durability: How quickly does this resource depreciate?
３、 The test of appropriability: Who captures the value that the resource creates?
４、 The test of substitutability: Can a unique resource be trumped by different resource?
５、 The test of competitive superiority: Whose resource is really better?

Of course, these questions have to be asked continuously, because firms and markets are always changing.


URL:http://www.fsc.yorku.ca/york/istheory/wiki/index.php/Resource-based_view_of_the_firm

Barom,D.P.(1995),Integrated Strategy: Market and Non-Market Components

This is an article for international business especially in “Non-market strategy”. “Non-market strategy” means market environment or outside of the market such as interactions that are intermediated by the pubic, stakeholders, government, the media, and public institutions. This is important especially for firms that act internationally or sensitive business such as biology or medicine, deeply effected by law or tariff.

This view is very interesting for me because I thought such “non-market” activity was seen only in Japan. The thesis says it is important to build good non-market strategy and integrates it to market strategy. In addition, the saying ”competitors of a market is allies of the non-market”, that means non-market’s externalities, is also interesting.

Regrettably, however, this can not clearly explain relations to Porter’s Five Forces. The Five Forces assume market environment as stable or receive through the Forces. I think non-market strategy is on different dimension from the Five Forces.


URL:http://www.soccerbusinessonline.com/soccer/Soccer09/Resumen_NONMARKET09.asp

Liability of Foreigness

Today’s lecture was so easy to understand for me, because it was about Japanese case, the entry of Hartford Life Inc. to Japanese annuity market.

Of course, I spoke something in class, and indicated a mistake in the article of Japanese government’s name, FSA (is not Financial “Supervisory” Agency, but Financial “Service” Agency).

The teacher, he is PhD. student and not regular lecturer, was good than I had expected. He started the lecture describing the characters and environments, this is very orthodox. One thing I minded was we could see what was the “right” answer, or what he expected, it was a kind of “too organized” lecture. However, it was so interesting in the last part of the lecture, we talk about the example of disadvantages of foreigners, because there were student from different countries.

I think the requirement of good lecturer is “to exploiting audience competence”. This is very difficult, but someday I hope to get the ability.

Let’s watch student’s presentations!

“Today, I have two lecture at the same time, in the same room!”. In the morning my roommate said me. The schedule changed and this brought me a chance to attend another class of Management Consulting.

The lecture was student presentation about some suggestion for a local company, this is one of highlights of the lecture and my roommate and his teammate had been preparing the presentation for a week. It was very lucky for me to see his presentation.

There were three student presentations and this was taken in front of two consultants who works with the company students analyzed and suggested to. I thought these work was so hard but extremely exciting.

The consultants told us about the point of presentation, these are following;

F…factual basis
L…layout
A…analysis
S…structure
K…communication

Surprising thing in the presentations for me was there ware a lot of communication in presentation. If one transparency was projected, the consultants said “How much?” ”How to?”. I had not known the presentation was such interactive.

Most impressive thing was there were same question ”How much?” “How to?”. Of course students calculated the figure and well explained why, there seems to be not enough. I think, especially in presentation, the following is important;

Good Structure
1,Fact (=How we see the company, and what is problem)
2,Result (=How much we can contribute, or output. Of course in concrete figure)
3,How(=How we can achieved the result. Understandable reason)

I felt three suggestions is best, because four is much and two is scarce. Much more, English is much more important.

R.Eugene Goodson(2002)”Read a Plant-Fast”

This is one article in HBR and not a case study or strategy, but a tool to assess factories within a hour or day. The tool is called “RPA”(=Rapid Plant Assessment), and use only two sheet, one is questionnaire and the other is rating sheet. In use of the tool, we can evaluate the plant by the score, which range between 11 and 121.

Rating 11 categories are following;
1,Customer Satisfaction(=whether workers know their client or whom they produce their part)
2,Safety, Environment. Cleanliness, and Order(=How well the workplace is organized)
3,Visual Management System(=How much they use visual cue in line or work)
4,Scheduling System(=How every part’s schedule is integrated to one, and modified by daily communication)
5,Use of Space, Movement of Materials, and Product Line Flow(=How effective the move or transfer of workers and products)
6,Levels of Inventory and Work in Process(=How high or low the inventory is and the widget that is stopping)
7,Teamwork and Motivation(=How motivated workers are, or whether there are any picture or poster that indicates teamwork)
8,Condition and Maintenance of Equipment and Tools(=How equipment is well-maintenance)
9,Management of Complexity and Variability(=How many workers engage in recording or entering date)
10,Supply Chain Integration(=How suppliers paid)
11,Commitment to Quality(=How workers understand their quality system or goal)




These are fresh for me because I have recently been reading economic article that analyze firms by figure. I think visual information or interactive communication is more important than some figure such as “bottom line”. However, to find useful information by tangible thing is difficult, so I have to develop my eyes to see directly what it is.


URL:http://webuser.bus.umich.edu/Organizations/rpa/

Case:Hikma Pharmaceticals(HBS Case 9-598-019)

Can vision change?


This Case is about Hikma Pharmaceticals, a pharmaceutical company in Jordan, also going international.

The purpose of company was “an Arab company that serves the Arab world”, but it has changed because Arab market was not so profitable. This was the trigger that the firm expanding Europe and United States.

This case is ended when the CEO of the company got two offers of buying the products, and student can discuss about which offers better. However, neither offer is good I think, because the firm has lost its vision no longer, its nonsense to discuss about un-visionary company.

Brannen,M.Y.(2004),When Mickey Loses Face: Recontextualization. Semantic Fiat, and the Semiotics of Foreignness

If you have fallen in love with a girl, what do you do next? Do you mail her? Do you ask for a date? Do you propose to her? Of course, it is important to know about her, character, liking, cultural background, address, impression for you, and so on, but to know everything about her is difficult, and if she is so charming, someone might get her when you collecting her information…



This article is about international management, especially in a process of MNE’s entry in different culture, in the use of Disney’s. This is interesting because author uses linguistic method or frame work.

The conclusion is “to know everything about country or people to enter, and always carefully observe them”. This is true and important, but difficult for companies because they have so much time or money to spend. Important thing is not language but more watchable thing or aspect, I think.




To get her, not observation but direct action is important, I believe.


URL:http://www.biwa.ne.jp/~mickey32/sub1-9-tdl.htm

TRENDETHNOGRAPHY

Today's guest was Katarina Graffman, who was trendspotting trends with ethnography.

Her way of trendspotting was unique because it started observation of people such as life, culture, generation, and so on. This was so fresh for me, because my major was economics and it started some figure of people or economy. However, this diffrence was interesting that I'm now taking another course about international business strategy, and articles in the course writes about culture. Ultimately, economics is simillar to antipology, because both subject are human being, I believe.


Most shocking word for me was "digital native", a generation born after IT spreaded. By her speech, they do not talk friends and not get interested in school because they take some entertainmants for granted by internet. This is extreme example but partly true, I think.


I hope someday study anthropology.

"This is nice thing"

"This is nice thing" means nothing....



In today's Business English class, we handed in our CV and cover-letter and discuss small about article wirrten by Ehrenreich, so famous journalist, and checked some error or inpoliteness in a letter and sentences.

Today, I sat first line of class because I found this is easier to ask questions to teacher. Thanks to that, I could spoke and ask sometimes!


In checking error and telling defference among words close to each other, I could not tell the differences, these are following;

・advice/advise(n/v)
・affect/effect(infulence/to achieve something)
・altogether/all together(completely/every body)
・corporation/cooperation(firm/working together)
・council/counsel(exective people/lawyer)
・data/information(c/u)
・disburse/disperse(pay money/spread)
・disinterested/uninterested(not selfish/not interesting)
・guess/suppose(have no idea/have a idea)
・loose/lose(not fastened/lost)
・precede/proceed(happen before/go ahead)
・principal/principle(person/rule)
・stationary/stationery(stay/tool to write)

I hope I memorized all...

What is strategy?

The title of today’s lecture was “What Is Strategy?”, and professor was Claes Bohman, different from before.

The lecture was well organized and had a lot of power point picture, but regrettably, class was not so interactive.

The contents of lecture were focused on a method or a guide line to make strategy, especially corporation of some subsidiaries and business.

By the lecture, “Strategy” is not only “how to make money”, but also “creating unique and sustainable competitive advantage” to “run a different race”. To make the strategy, we have to took four steps, “Inner-Out”(=strategy formulation), “Outer-In”(=strategy formation), ”Outside-In”(=analyzing an industry), “Inside-Out”(=making competitive advantage).

I got a question about relation of philosophy, firm specific and sometimes not reasonable or match to make money, to strategy, but I could not get meaningful answer because I could not express my intention clearly.

At any rate, I got some inspiration about my individual international project, so I will get down to making the project soon.

Who makes VISON?

(This is a kind of future class!)




Today's class was taken in KTH, the big university about engineering. Today's guest was a company, the foresight group, professional of consulting or management of firm. Therefore, they used their skills in lecture. Though lecture was interesting, organizing of lecture was more meaningful for me.


The lecture title was "Making Change", and lecture was organized in three parts, chgange of individual, change of organization, and change of (social) system. I thought this was beautiful.

Moreover, they used methods of "Positive Change". I have known that by some books, but this was first time to practice. "Positive Change" is the skill of motivate people with their positive experience. This was nice, but if it were in Japanese I would be boring.

Most inpressive word was "Vision is made by you". I had thought "vision" was made by top such as CEO, GM, President. But he said "you". This means everyone in organization can make or have the vision, and can change environment even if he or she is not exective. Following, his point of change;

・vision "driving force", the tool to make someone join changing process.
・action/doing
・self-selected extremely important to give self confidence


And follwing is picture of last person's ppt. It is big dream, but I think in the same way.

Let's write my CV !

In today's Business English class, I was gotten back a result of diagnostic test, and taught about CV.

About diagnostic test, I got a score of 38/64...maybe, I was worst in the class. In the comment of test, teacher said I was weak "by","the","a",and "an". This is absolutely right. In adittion, in other writing, I made mistakes spelling "r" to"l", "s".and use of the present perfect.I will get the use of these in class.


following, my weakness in writing;
・by
・the
・a,an
・r,l
・s
・present perfect


About CV, I learned a difference between normal sentence and attractive one. Latter one needs result of action.Not where or how, what is important for attractiveness.


In Japan, we do not write CV or cover letter, but "rirekisyo". It is shorter than CV, and written in all full sentence. I do not have any experience to write CV, but I will try tomorrow!

Hartford Life Japan,Part2 (Bohman and Edman,2006,mineo)

This is sequel to the Part1, about entry of Hartford Life in Japan. In Part1, story ended when manager decided to enter Japanese market. Part 2 describes Hardford’s strategy to enter “close” Japanese market.

Their strategy can be summarized to two points. One is exploiting customer’s preference insurance than investment, local companies than foreign companies. Hartford downplayed the characteristics of mutual fund, and replaced words of life insurance. Moreover, Hartford sold it through local company to give more relief to customers.

Second is to communicate closely with Japanese government, Financial Supervisory Authority (actually, the correct name is “Financial Service Agency”). Japanese government, always seemed to protect domestic market, usually wants to reform markets that they administrate. In this case, Hartford’s aim to enter Japanese market agreed with the aim of FSA to change Japanese financial market more effectively and completely.

For me, as government official in near future, this case is so meaningful. I believe Japanese system can be changed by exploiting some incentives of existent player.



URL：http://www.fsa.go.jp/

“What do you recommend?”

“What do you recommend?”




Unfortunately, I could not attend first part of the class because I did not know which classroom the class has changed. Because of that, I missed to have the most front seat, and could not say any remark.

Most impressive things in the class that professor said “What do you recommend?”. Usually in the class, students avoid to conclude their opinion because they are so brilliant and know everything has positive and negative aspects and there is no right answer and “right” answer depends on the situation.

Of course, professor knows that. But he dare to need us to give ”recommendation” because in the real business, we have to decide something and to make “right” answer even if the answer is proved to be error afterwards, I believe.

Grant, R.M.(2008),Contemporary Strategy Analysis, 6th ed.

This book(or chapter) is written for explaining steps of analyzing firm. By writing, firm’s ability consists of “resources” and ”capabilities”; former is assets and later is possibility.

The resources are divided three; tangible, intangible and human.(I think this way is not good because this is not MECE), and says intangible is much more important than tangible and people are not owned by firm, as Marx said.

The capability, much more difficult to define than resources, is strongly related to human resource. To classify capability, it is important to see function and value-chain.

To analyzing company, we have to integrate resources and capacities. In the process of analyzing, it is useful to compare other firm of same industry in the view of outer and inner of the firm.

To make strategy, it is basic theory to exploit strength and manage weakness, and outsourcing is good way to manage weakness, but is not only way.


URL:http://www.amazon.com/Contemporary-Strategy-Analysis-Techniques-Applications/dp/1405163097/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1221421596&sr=8-1

Not what it is, but how I am

Today is the second day of Weekend Workshop.

I had had worried that I could finish such an interactive course in my poor English, but such an anxiety disappeared when the workshop started.

In the morning, we had lecture about psychological factors affect negotiations;

・ Anchoring(=reference point)
・ Prospect theory(=we need secure in equal expect value)
・ Reciprocity(=feeling of obligation to whom was given me something)
・ Commitment and Consistency(=commitment makes people devote themselves)
・ Social proof(=one does what others do)
・ Liking(=offer of someone you like is more acceptable than that of others)
・ Authority: application(=authority is useful to persuade some people)

In the evening, we had last workshop, negotiation practice. That was so exciting and my team get more benefits than others.


Through two days, I have learned following;

・ Understanding
This means it is important to understand not only opponents but only myself And we have to have premise opponents have different information.

・ Not what it is, but how I am
This means position in negotiation changes by negotiator. In the workshop, I was same team with one man, very good person to negotiate someone. Every time he speaks we had good position, but actually, other team did not say that. So, he was good at position making, and created favorable situation by himself.

I hope I apply this experience in future, and become good negotiator someday.

Porter, M.E.,(2008),The Five Competitive Forces That Shape Strategy

This is a renewal of Porter’s well known book, “How Competitive Forces Shapes Strategy”(1979). It was his first HBR article, and it started a revolution in the strategy field. In this article, he corroborating “Five Force” with some date and useful examples and adding common misunderstandings, provides professional strategists with a framework to make their business strategies.

The five forces are followings;

(present value-chain force）
・ Bargaining Power of Suppliers
・ Bargaining Power of Buyers
(future rivalry force)
・ Threat of New Entrants
・ Threat of Substitute Produce or Services
(present rivalry force)
・Rivalry Among Existing Competitors


These are very sophisticated, but difficult to find because these force can not be measure figure, and there are no clear definition each of these force. In addition, there is no firm originated information. I think this is not enough for make strategies.

Negotiation!

Today, I went to SSES, and joined weekend workshop, "Negotiation & Bargaining".
The workshop started at 10:00am, ended 4:00pm, but is was so exciting that I could not see clock, so time has passed so quickely.

I played three games,some of which took root in basic economics or game theory. First one was to experience "prisner's dilemma", and second one was "information assymetry" and last one was more practical one.

Moreover, discussion was more exciting because anyone has same background, so everyone asked different questions. Class was hard for me because my English was poor, but even so, it was so interesting.


From today's lecture, I have learned three things.

First was "understanding", that means most important thing is to understand positions of incentives of opponents and myself.

Second was "alternative". Alternative plan is important not only to compromise but also to know opponent's situation.

Third was "quickness", that means we have to think or decide more quickely than opponents.


I hope I can ask own question or play by myself in tommorow's class!

Kostova,T. and Zaheer,S.(1999),Organizational Legitimacy under Conditions of Complexity: The Case of the Multinational Enterprise

What is "legitimacy"?




This article deals with “legitimacy”, being correct or allowable, or operating according to the law. In the article, there are only a few example of legitimacy, there are 10 clear propositions. They were acceptable for me because I necessarily got same feeling about MNEs when they entering Japanese market.

The propositions say it is more difficult for MNEs or their subunits to establish and maintain their legitimacy than domestic firms, and bigger the MNEs, greater the difficulty become. If they have other experience in establishing legitimacy the process become easier, but more distance between their home country and host country, more difficult it becomes. A lot of things, parent company’s activity or home country’s stereotype images or other firm in same organizational classes, has spillover effect in establishing legitimacy, but if local firm is less legitimate, it has positive effect to MNEs in same area

This is very interesting but its I feel it less economic, because we can not judge extent of the ”legitimacy” in figure.


URL:http://www.cartoonstock.com/directory/l/legitimacy.asp

Probably true future

Today's class was also guest lecture.
The guest was Henrik Blomgren,International Economics and Management Head of Department Royal Institute of Technoligy.

His air was intellectural and I felt he was established, actually he was.

His view of future has three points, those are;

・Welfare & Health
・Globalization
・ICT & Biotechnology

This is probably true, but I felt something regrettable because even I can tell those, realistic but not so dreamy, so I wanted to hear what I had not had imagined before.

And, I felt he tried hard to finish his presentation, not to discuss or arrenge student's opinion.


I guess business man, who works long time, can not say funny thing because in business, it is important to tell future just few years later.

same words, different sounds

Today, I had second class of Business English.

Today's theme was "interview & presentation", so we interviewed ourselves each other and presented interviewee's profile.

This was interesting because this was good chance to know other classmate's personalites. There were students who has various experience. One comes KTH, one comes after working companies, one had lived in Columbia...etc.

The most impressive thing for me was everyone speaked well and good at presentation.
I think my English was worst in the class, actually.



After class, I remenbered my friend's soliloguy "It is regrettable that they speak same words as us, but sounds much better than us"


At all cost, I will catch up with other classmates, and will make my English so improved!

Hartford Life Japan,Part1( Bohman and Edman,2006,mimeo)

This is about entering Hartford Life, U.S. market leader in financial services, into Japanese “close” market. This paper is only introduction because it is Part 1, but it is very interesting and strange for me Japanese.

In the paper, Japan is described as different country from others, for example pension or life insurance are thought as not invest but saving, and moreover, power’s of government is so strong to do some business for foreign firms. However, these descriptions are not so strange for me.

I think Japan is so “controlled” country by the government, and if someone “disturb” its regulation, the government always “modify”. I don’t know why, but it is so.


URL：http://www.hartfordlife.co.jp/

Why internationnalize?

Today’s theme was about SADAFCO, one of large food company of KSA, but the lecture spends almost of all time to review of previous lecture about Arcelik.

The lecture was interesting because it was so interactive. I think I got accustomed to this lecture style that a lot of students give comments of readings and teacher arranges and shapes points of study by using student’s comments.

The point of today’s lecture is “Why firms internationalize?”. Reasons are two, first is to get money for using economics of scale, risk diversifying, or global brand. Second is to get new experience for improve themselves.

I have gotten this view, but could not speak in class. So next time I will speak something in class!

The role of Economics for future.

Economics narrows possibilities.



Today's lecture was guest lecture.
Guest, so young businessman, told us history of technological change.
They are following;

①mechanization
②steam-engine
③enginialing
④mass-production
⑤information technology

Moreover he added ⑥minitualization, that meas everything is thought or created in atmic level. This view is very interesting because if we handle everything in atomic level, we can create everything with control material itself.

In the minitualization, "BANG" is keyword. This means followings;

B…Bits
A…Atoms
N…Neurous
G…Genes


Most important thing I got from lecture, the role of economics.
By his presentation, I felt I was so narrow-minded and my idea looked more easy to realize than his view for future. However, I thought that my mind was typical of students studying economics because today, there are a lot of plan or idea that can come true technically, but they are not realized economical reason.


I think Technology expand possibilities and make dreams, but economics narrows them.
However, I believe economics has ability to realize the idea in the last part of some plan.



(This is interesting because this was witten in 1862)

First Test!

Today I had first lecture of "Business English".
So, I took three courses this term!

In class, I took diagonistic test.

I have known the test has taken, but I did not know the test has short essey about reason to take course and expectation for course in more tha 150 words.

It is so surprising for me...I had not thought the reason or expectation clearly.
I did not write well, but I thought I had had to think about them before class.

What I wrote for expectation is to get English skill of speaking and discussion.
However, after some examination, I realized I have to know how I can improve English more effectively and correctly because I have learned English for more tha 10 years, but I can not speak yet. I believe I took some mistake somewhere.

…such as this, I should have written.


When I finish writting, there were only 4 people in class room.

I hope I can finish as earlier 4 in the end of the course.

Barkema,H.G,Bell,J.H.J.and Pennings,J.M(1996)Foreign Entry, Cultural Barries and Learning

”Difficulty to prove simple fact”


This paper is for theoretical verification of firm activities of internationalization. The authors intend to explain the process of firm`s internationalization in view of cultural distance and ownership, and add new suggestion to “Uppsala model” or other international theory.
The structure is very clear, starting from INTRODUCTION, following BACKGROUND(review of past study or theory), HYPOTHESES, METHODOLOGY, RESULTS, DISCUSSION,CONCLUSION, ACKNOWLEDGEMENTS, and REFERENCES.
The conclusion is very simple. This is that, when firm gets into foreign market, it takes more “cultural cost” in case of acquisition or majority and 50/50 JVs. Moreover, if the firm has previous experience of same country or other country in same cultural block, the cost can be reduce.
This is very simple and we can tell that intuitively. I think it is ironic that it is difficult to justify something already know.


URL:http://jefmenguin.wordpress.com/public-workshops/programs/appreciating-diversity/

Which Multinational Corporation?

Today’s lecture consists of two parts. One is review of last lecture, another is new one.
Before class, I talked Gusto, student majoring in business. His view is very sophisticated because he explain the case with some theories in readings listed for class; besides, he indicated miss-choice of readings!

Review: Cola War
Coke Cola is changing because of flat of demand and bad image of firm or its product. So Coke is now addressing environmental problem such as water supply or save electricity. It cost so much, but it more costly do nothing.

Case: Which Multinational Corporation?
Most interesting point for me was functions of undeveloped market. In such market, import tariff is good for domestic company, and conglomerate is also beneficial because there, market is not move functionally. However, if market developed or more compete one, the situation reverses, so conglomerate is not beneficial. Firms ultimately internationalize to get more money, but more directly, they enter other market to learn.

Foresgren,M. and Hagstrom,P.(2001),Ignorant Internationalization? The Uppsala Model and Internationalization Patterns for Internet-Related Firms

This article is more theoretical than others. The aim of paper is to inspect “Uppsala Model”, economic theory of firm’s internationalization, with some sample of internet companies.

In “Uppsala Model”, firms are assumed to internationalize after building experimental knowledge in their home market. However, especially in internet business, firms often internationalize without getting home market knowledge. This thesis explains the reason.

The reasons are characteristic of Internet and equipment of investing market. Characteristic of Internet means cost of not internationalization. Industry of internet service has large first-mover advantage, and no leading company to imitate because of freshness of market. This makes company to expand their business as soon as possible. Moreover, investor or venture capital supply firms the capital needed to internationalize. In other words, internet firms internationalize not voluntary, but compulsory.

I think business changes “money game” by internet, but ironically, this brings us a lot more conveniences than before.


URL:http://www.livinginternet.com/i/iw_mgmt.htm

Natura: Global Beauty Made in Brazil (HBS Case 9-807-029)

“Beauty of a company”

This is the case of the Natura, one Brazilian cosmetic company. Through the case, we can see changing process of the Natura from domestic company to global one. This is very ideal for company because it satisfies the point of globalization, ”Configuration” and “Coordination” in meaning of M.E.Porter's(1986).

About ”Configuration”, Natura meets this beause it have had and built strong supply-chain system for direct selling or getting raw materials. More important aspect is “Coordination”, this simply means to exploit global(other markets) experience and integrate them in high level to make one’s advantage, and ultimately, push the advantage globally. Nature has made their philosophy, make good human and environment, in Brazil and they are trying to give this concept globally.

All process or history of Natura is well-organized and so strategic. I think this is made by mechanism of making decision. In Natura, four men, who are founder, having strong passion, philosophy, and experience, are making important decisions. This makes strong, clear, flexible strategy, I believe. In other words, this system of decision making is the “beauty” of Nature.


URL:http://www.naturabrasil.fr/Default_GVS.aspx?CurrentStoreId=2&CurrentLanguageId=2

Post a plant !

This is my tenement's post in the morning.
What have happened?
Have a seed in someone's letter grown for one night?



(Following is just a memo of last course, not involved with the picture)



What is "future thinking"
…making a story

What is "trendspotting";
the art of telling persuasive stories about present and future.

Why
…

How?

We think about
・technology
・economics
・emotion
・sociaty

And it should contain
・coherent
・conclusions(some provocative)
・convince us, use hard evidence
・make us laugh !

Trendspotter is who
…make people change

And we have to
…be an opportunistic collector, gethering many things, be DJ of idea.

and usually we have to
・provoke myself at least once a week
・attach new sources
・do new things
・new places
・play games
…live one week without media
…spend one week without saying

Moreover,we should

・look back at least as far as we are trying to
・not be afraid of uncomfortable idea
・accept contradiction
・Trust your instinctics. but do'nt flow
・dare to change your mind
・challenge everything!

Uppsala!

Today, I went to Uppsala.

Un...marvelous!!!

How to trendspot

Today's title is "Theory".


Before lecture, we made some groups. So I got in group 5 and group project theam is "Future of Train"!

What will be going on us...?



The lecture was well organized because it contained cleary "Why", "What",and "how". Moreover, this was done so interactively.


Most important thing in project is make "laugh"!!!

So, we have to make funny train. From now on, I have to study laugh more...

Saudi Arabia: Getting the House in Order(HBS Case 9-702-031)

"Saudi resembles Japan"


Because of huge public debt(exceeding its GDP), Saudi Arabia has been force to change their economy from oil-dependent to non-oil-economy. However, this reform wanted a lot of changes in not only economic system but also social system such as custom of Islam. This is a essay of such “Changing Saudi Arabia”.

This article, because it is HBS Case, characterizes Crown Prince Abdullah―leadership of the reform―is good person, and traditional Muslim―opposite of the reform―are bad. However, this is a view of economics or “Westernize culture”, so in Muslim’s view, the situation may be reverse.

I am Japanese, and Japan sometimes said as“mysterious country” because of its closeness, got same feeling by this case to economic reform of Japan. In Japan, it is easy to design good reform or reasonable system, and there are a lot of wonderful ideas, but it is quite difficult to realize them. Why? No one knows. But I think Japan has original sense of value alike Saudi Arabia, and this disturbs some reforms or changes, and makes “mysterious country”.

(URL:http://www.aii-t.org/j/saudi/files/saudi_japan.gif)

SADAFCO（HBS Case 9-599-021）

"Difference of market and strategy"



“SADAFCO” is an abbreviation of the Saudi and Dairy Foodstuff Company Limited formed in 1990 by combining some food companies. This Case describes the history of SADAFCO or its subsidiary and their strategy to adapting “unique” Islam market.

“Uniqueness”, for instance, woman can not go shopping, can not get driver’s license, every one use not coin but bill, makes business-model or business strategy different. SADAFCO’s business is not strategic but opportunistic, but they can make money because of uniqueness, I believe.

I think theory of strategy varies to each the market. If customer has different custom in a market, the strategy should be different from another. SADAFCO’s business is not seen as strategic, but we can say it is strategic for their market.




(URL:http://www.sadafco.com/revised/mainpage.htm)

Teacher's role

"There is no right answer in strategy."


Today I had second lecture of “International Business: Int. Business Strategy”. Actually, this is first lecture because last one is used for introduction.

Today’s topic is “Cola War”, that is a Case of HBS about competition among Coke and Pepsi and for thinking “globalization”. I got a lot of things from the lecture, that are to definite “industry” is difficult, brand-making becomes high drag for entry, mix of diversify and vertical integration means internationalization…etc.

However, most impressive thing for me is the styles of lecture. Professor doesn’t teach us, but ask us, and organize our opinion for his aim of lecture. In my school, generally, teachers are the people who give us “the right answer”, and I unconsciously have taken that for granted. However, I realized from the class that, especially in strategy or business such as that some situation in real world, there is no right answer and it is much more important to know difference of other people’s thinking than know teacher’s answer.

First lecture

Today is first class of "Trendspotting and Future Thinking".

I worried about registration because I have another class in SSE just before this class. But, course director has accepted me!

My aim for this course is to get future-view about role of agriculture and influence of ecology to business.


Next class is about "Theory". How we can think future? What is important for creativity?

I'm very looking forward about that.

Grant,Robert M(1991)The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation

How firms and we should live?


This is so nice article because it has clear object, beautiful structure, and suggestive contention.

The object is relation between resourse and strategies of companies.

The structure is that, starting from where the study is in,or how and why it is valuable, and continuing main point and conclusion.

The contention or main idea is "Understand and exploit our advantage, and seek next one", the idea that strategies of companies should be made not from their environment but from their advantage.


This idea is useful not only for companies but also for people.

“Bloom’s Taxonomy of Learning Objectives”

In today’s lecture, I got a paper about learning skill. This is “Bloom’s Taxonomy of Learning objectives”, the concept of six levels about learning skills or something in general. This is very useful and interesting, so I will introduce you this in the following:




Level 1: Knowledge;
Description; Memorization of facts, theories and principles
Sample skills; recall, list, name ,state, define, identify, match

Level 2: Comprehension;
Description; show basic understanding
Sample skills; discuss, paraphrase, compute, extrapolate

Level 3: Application;
Description; apply knowledge (ideas or theories or principles) to new situations; application to situations where there is one correct answer
Sample skills; solve demonstrate, apply, interpret, choose, classify, use, calculate, relate

Level 4: Analysis;
Description; decompose a topic into its constituent parts, show relationships among the more basic ideas; solutions where there is not necessarily a specific correct answer
Sample skills; separate, recognize, test, differentiate, solve

Level 5: Synthesis;
Description; put parts of knowledge together, discover relationships among different parts, create new patterns
Sample skills; design, order, develop, create, summarize, combine, propose

Level 6: Evaluation;
Description; make judgments regarding extent to which something satisfies chosen criteria
Sample skills; evaluate, justify, critique, appraise



Generally, we think the skill is from level 1 to 3, but this concept has even more, 4 to 6. From wide viewpoint, 1 to 3 are “inner” skill, such as solving problem, necessary in business situation, and 4 to 5 are “ outer” skill, like abstraction, essential for academic work, and 6 is “total” skill to connect “inner” and “outer”. I will want to get those ability, through this exchange program!

What is "Strategy"?

Today, I had first lecture at SSE, "International Business Strategy: Int. Business Strategy".

The lecture was very interesting and exciting for me because the professor, who has taught at HBS before, was very energetic, students from a lot of country attended, the lecture was well organized, the course was taken in English…so, everything is fresh for me!

I got two impressive words from the class. First is “We live in good time, we can learn history”. This is said when the professor talked about definition of “Globalization”. He say we can’t define the term because “Globalization” is changing. Second is “Try to market not work”. This is his definition of “Strategy”. He said that if market was complete in Capitalism, no one or no company can make profit.

Such a definition is unusual, but is very interesting because this means natural competition of firms makes unnatural situation such as imperfect market. In other words, in economics, people and companies are thought to seek their profits naturally, but these processes are seeking unnatural situation.