Itinerary: South Korea 3


Booz-Allen & Hamilton Japan Inc. 29



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Booz-Allen & Hamilton Japan Inc. 29


  • Kirin Brewery Co., LTD 29

  • GLOBIS GROUP 29

  • Netyear Group Corporation 29


    Credits:

    • Trip Organizers and Faculty 30

    • Team Members 31

  • Trip Itinerary

    SOUTH KOREA



    Day #1: Wednesday 21 March Boston Seoul Flight
    Boston to San Francisco United Airlines Flight # UA163

    Departure: Boston at 6:45 am.

    Arrival: San Francisco at 10:25 am.
    San Francisco to Seoul United Airlines Flight # UA 807

    Departure: San Francisco at 11:25 am.



    Day #2: Thursday 22 March Seoul Stay in Seoul


    Arrival: Seoul at 4:55 pm (Direct transport to hotel).

    Hotel: Ramada Olympia Hotel
    Dinner: TBA

    Day #3: Friday 23 March Seoul Stay in Seoul

    Academic Program: Company visit to “Samsung Electronics”


    Cultural Program: “Korean Folk Village”

    “Korean Night Flea Market”


    Lunch: TBA

    Dinner: Korean Performance Restaurant with Korean BBQ.

    Accommodations: Ramada Olympia Hotel
    Day #4: Saturday 24 March Seoul Kyoto Stay in Kyoto
    Academic Program: Company visit to “Korea Telecom”
    Cultural Program: “Fashion Street for the Young”

    Lunch: TBA

    Dinner: TBA
    Seoul to Osaka (Kansai International Airport) ANA Flight # NH 178

    Departure: Seoul at 7:40 pm.

    Arrival: Osaka at 9:10 pm (Direct transport to hotel in Kyoto).

    Accommodations: New Miyako Hotel.

    JAPAN

    Day #5: Sunday 25 March Kyoto Stay in Kyoto


    Full Day: Independent Cultural Exploration in Kyoto.

    Dinner: TBA
    Accommodations: New Miyako Hotel
    Day #6: Monday 26 March Kyoto Nagoya Gero Stay in Gero

    Hotel to Kyoto Station: On foot at 8:30 am

    Kyoto to Nagoya: JR Super Express Hikari

    Train #222. (Shinkansen)

    Arrival: Nagoya Station and Technical Tour in the district.
    Academic Program: “Toyota Plant” 11:00 am to 3:00 pm

    Lunch: Toyota Plant


    Nagoya to Gero Spa: Chartered bus (2.5h drive)

    Cultural Program: “Gero Spa”, Traditional Japanese “Onsen (Spa) Place”

    Accommodations: Suimeikan Hotel in Gero
    Day #7: Tuesday 27 March Gero Tokyo Stay in Tokyo

    Gero Onsen to Tokyo Via expressways. (6 hours)

    Lunch: TBA

    Dinner: TBA

    Accommodations: Nomura Facility

    Day #8: Wednesday 28 March Tokyo Stay in Tokyo


    Cultural Program: Tokyo Sightseeing Tour Sponsored by IMCA Inc.

    10:00am to 5:30pm
    Dinner with Sponsors: We will host a party with sponsors. 6:30 pm to 9:00 pm

    Accommodations: Nomura Facility



    Day #9: Thursday 29 March Tokyo Stay in Tokyo


    Academic Program 1: Company visit to “Sony” 10:30 am to 3:00pm

    Academic Program 2: Company visit to “Netyear” 4:30pm to 6:00pm
    Dinner: MIT Sloan Alumni Reception at Netyear Reception Hall 6:30 pm to 8:30 pm

    Accommodations: Nomura Facility



    Day #10: Friday 30 March Tokyo Stay in Tokyo


    Academic Program 1: Company visit to “NTT DoCoMo” 9:00 am to 12:00 pm

    President and CEO, Dr. Keiji Tachikawa Presentation (A Sloan Alumnus)

    Academic Program 2: Visit to Ministry of Economy, Trade and Industry (METI)

    1:00pm to 3:00 pm

    Afternoon 3:00pm~: Independent Cultural Exploration in Tokyo.


    “Mr. Rod Garcia Annual Welcoming Party” in Roppongi 5:30 pm to …

    Accommodations: Nomura Facility


    Day #11: Saturday 31 March Tokyo
    Boston
    Morning: Independent Cultural Exploration in Tokyo.

    Departure to Narita Airport around 1:00 pm.


    Tokyo (Narita) to San Francisco United Airlines Flight # UA 838

    Departure: Narita at 7:00 pm.

    Arrival: San Francisco at 11:05 am.
    San Francisco to Boston United Airlines Flight # UA 168

    Departure: San Francisco at 1:40 pm.

    Arrival: Boston at 10:13 pm.
    Hotel Information


    Ramada Olympia Hotel Seoul (2 nights)

    108, Pyongchang-dong, Chongno-ku

    Seoul 110-012, Korea

    Phone: +82-2-287-6200

    FAX: +82-2-287-6203

    http:/www.olympia.co.kr

    New Miyako Hotel (2 nights) 2-in-one room

    Hachijo-guchi, Kyoto Station,

    Kyoto 601-8412, Japan

    Phone: (075) 661-7111

    Fax: (075) 661-7135

    http://www.newmiyako.co.jp

    SUIMEIKAN (1 night) 3-in-one room

    Gero, Masuda-gun, Gifu

    Phone: (0567) 25-2800

    Fax: (0567) 25-4520

    http://www.suimeikan.co.jp

    Nomura Training Facility (4 nights)

    1-in-one room

    2-12-21 Takanawa, Minato-ku, Tokyo

    108-0074

    Phone: (03) 3444-7711




    South Korea

    Data Sources: www.geographic.org, www.cia.gov/cia/publications/factbook, prior Sloan handbooks



    Country Snapshot

    Country name:
    conventional long form: Republic of Korea
    conventional short form: South Korea
    local long form: Taehan-min'guk

    Capital: Seoul

    Government type: republic

    Location: Eastern Asia, southern half of the Korean Pen. bordering Sea of Japan and Yellow Sea

    Area: 98,480 sq km

    Area - comparative: slightly larger than Indiana

    Population: 47,470,969 (July 2000 est.)

    Population growth rate: 0.93% (2000 est.)

    Religions: Christian 49%, Buddhist 47%, Confucianist 3%, Shamanist, Chondogyo (Religion of the Heavenly Way), and other 1%

    Climate: temperate, with rainfall heavier in summer than winter

    Terrain: mostly hills and mountains; wide coastal plains in west and south

    Independence: 15 August 1945, date of liberation from Japanese colonial rule

    National holiday: Liberation Day, 15 August (1945)

    Constitution: 25 February 1988

    Legal system: combines elements of continental European civil law systems, Anglo-American law, and Chinese classical thought

    Suffrage: 20 years of age; universal

    Executive branch:
    chief of state: President KIM Dae-jung (since 25 February 1998)
    head of government: Prime Minister PAK Tae-chun (since 10 January 2000)


    History

    Ancient Korea: Ancient Korea consisted of clan communities, which combined to form city states. In the 1st century, these were followed by the establishment of the Three Kingdoms on the Korean Peninsula and part of what is now Manchuria. The Shilla dynasty (57BC –835CE) first unified the peninsula in 668. The single government rule of the peninsula continued until 1910 under the Koryo (918-1392) and the Choson (1392-1910) Kingdoms.
    History of Wars: Korean history has been plagued by wars. In 1592, the Japanese launched an unprecedented attack on Korea due to their refusal to join in the Japanese invasion of China. The war ended four years later due to resistance from Korean guerilla and under Chinese intervention. In the 17th century, Korea was caught in another entanglement with Manchuria. Korea’s alliance with the Chinese Ming dynasty infuriated the Manchu’s who turned their wrath on them after consolidating their power in China. In the early 1900s, Korea found herself, yet in another power struggle between the Russians and the Japanese. With the end of the Russo-Japanese war in 1904, Korea was occupied by the Japanese. In the years that followed, a series of public riots and anti-Japanese guerilla activity led to the abolishment of the last dynasty (Choson) and the annexation of Korea.
    Annexation of Korea (1910 – 1948)

    The period of Japanese occupation, from 1910 to 1948 was, to many Koreans, a time of economic exploitation and cultural genocide. Japanese farmers and fishermen were encouraged to emigrate to Korea and were given land free or at low cost. Large quantities of rice were exported to Japan, while Koreans faced a serious food shortage. Under the control of the Japanese, Korea was thoroughly logged and mined to support their war effort. As part of the official assimilation policy, Japanese was made the official language in school and the teaching of Korean history and language was banned. All public signs had to be in Japanese and thousands of Korea laborers were conscripted to assist in the Japanese invasion of China. Although struggles against the colonial rule did not succeed, the independence movements helped forge strong bonds of national identity and patriotism among the Koreans and led to the establishment of the Provincial Government in Shanghai.


    Korean War (1950 – 1953)

    The much hoped for peace and prosperity in the post-colonial period was very short-lived. The victory of the allied forces and their division over who would protect the peninsula twisted the fate of its people. The 38th parallel that divided the peninsula between the Soviet and US forces became the border that now divides Korea into what is now the Communist North and the Democratic South. By 1948 Soviet and American troops had been withdrawn, but on 25 June 1950, the North Korean army invaded. American and UN intervention prevented the capture of the south by communist forces of the North.


    Post Korean War: Starting in 1961, General/President Park Chung-hee led 18 years of a military dictatorship. Economically, Park created an efficient administration and was the architect of South Korea’s “economic miracle,” modeled after Japan. In an attempt to consolidate his position, he declared martial law in 1972 and clamped down on political opponents. A rigged poll in 1978 resulted in this reelection, but President Park was assassinated in 1979. The period of political freedom following the death of President Park was short-lived. The election of General Chun Doo-Hwan saw martial law being reestablished and opposition politicians (Kim Dae-jung being one of them). Student protest in Kim’s hometown in Kwangju led to what has come to be known as the Kwangju Massacre – the death of 200 civilians and injury of thousands of others. Due to continued opposition to this power, President Chun decided to step down in 1988, passing leadership to Roh Tae-woo who had been nominated by the ruling party to succeed Chun. Military dictatorship came to an end only after a massive student demonstration where thousands of students took to the streets against police with tear gas. The government of Roh relented only under intense pressure from the US to compromise. President Roh was subsequently succeeded by opposition candidates Kim Young-sam, and now, Kim Dae-jung.
    South Korea achieved amazing economic growth, with per capita income rising to 13 times the level of North Korea. In 1997, the nation suffered a severe financial crisis from which it continues to make a solid recovery. South Korea has also maintained its commitment to democratize its political processes.


    Economy

    Economy - overview: As one of the Four Dragons of East Asia, South Korea has achieved an incredible record of growth. Three decades ago its GDP per capita was comparable with levels in the poorer countries of Africa and Asia. Today its GDP per capita is seven times India's, 13 times North Korea's, and comparable to the lesser economies of the European Union. This success through the late 1980s was achieved by a system of close government/business ties, including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-99 exposed certain longstanding weaknesses in South Korea's development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. By 1999 it had recovered financial stability, turning a substantial decline in 1998 into strong growth in 1999. Seoul has also pressed the country's largest business groups to swap subsidiaries to promote specialization, and the administration has directed many of the mid-sized conglomerates into debt-workout programs with creditor banks. The major economic challenge for the next several years presumably is the maintenance of the pace of market reforms to restore the old growth pattern.
    GDP: purchasing power parity - $625.7 billion (1999 est.)

    GDP - real growth rate: 10% (1999 est.)

    GDP - per capita: purchasing power parity - $13,300 (1999 est.)

    GDP - composition by sector:
    agriculture: 5%
    industry: 45%
    services: 50% (1998 est.)

    Inflation rate (consumer prices): 0.8% (1999 est.)

    Labor force: 22 million (1998)

    Labor force - by occupation: services and other 68%, mining and manufacturing 20%, agriculture, fishing, forestry 12% (1998)

    Unemployment rate: 6.3% (1999 est.)

    Literacy: definition: age 15 and over can read and write: 98%
    Net migration rate: 0 migrant(s)/1,000 population (2000 est.)

    Infant mortality rate: 7.85 deaths/1,000 live births (2000 est.)

    Life expectancy at birth: 74.43 years
    Budget:
    revenues: $68.9 billion
    expenditures: $82.3 billion, including capital expenditures of $14.5 billion (1998)

    Industries: electronics, automobile production, chemicals, shipbuilding, steel, textiles, clothing, footwear, food processing

    Industrial production growth rate: 22% (1999 est.)

    Agriculture - products: rice, root crops, barley, vegetables, fruit; cattle, pigs, chickens, milk, eggs; fish

    Exports: $144 billion (f.o.b., 1999)

    Exports - commodities: electronic products, machinery and equipment, motor vehicles, steel, ships; textiles, clothing, footwear; fish

    Exports - partners: US 17%, Japan 9%, China 9%, Hong Kong 7%, Taiwan 4% (1998)

    Imports: $116 billion (c.i.f., 1999)

    Imports - commodities: machinery, electronics and electronic equipment, oil, steel, transport equipment, textiles, organic chemicals, grains

    Imports - partners: US 22%, Japan 18%, China 7%, Australia 5%, Saudi Arabia 5% (1998)

    Debt - external: $142 billion (1999)

    Currency: 1 South Korean won (W) = 100 chun (theoretical)

    Exchange rates: South Korean won (W) per US$1 - 1,130.32 (January 2000), 1,188.82 (1999), 1,401.44 (1998), 951.29 (1997), 804.45 (1996), 771.27 (1995)

    Fiscal year: calendar year
    NOTE:

    Diplomatic representation from the US:
    chief of mission: Ambassador Stephen W. BOSWORTH
    embassy: 82 Sejong-Ro, Chongro-ku, Seoul
    mailing address: American Embassy, Unit 15550, APO AP 96205-0001
    telephone: [82] (2) 397-4114
    FAX: [82] (2) 738-8845

    Japan


    Sources: www.geographic.org, www.cia.gov/cia/publications/factbook, prior Sloan handbooks



    Country Snapshot

    Country name:
    conventional long form: none
    conventional short form: Japan

    Capital: Tokyo

    Government type: constitutional monarchy

    Location: Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula

    Area: 377,835 sq km
    Area - comparative: slightly smaller than California

    Population: 126,549,976 (July 2000 est.)

    Population growth rate: 0.18% (2000 est.)
    Religions: observe both Shinto and Buddhist 84%, other 16% (including Christian 0.7%)

    Climate: varies from tropical in south to cool temperate in north

    Terrain: mostly rugged and mountainous

    Independence: 660 BC (traditional founding by Emperor Jimmu)

    National holiday: Birthday of the Emperor, 23 December (1933)

    Constitution: 3 May 1947

    Legal system: modeled after European civil law system with English-American influence; judicial review of legislative acts in the Supreme Court; accepts compulsory ICJ jurisdiction, with reservations

    Suffrage: 20 years of age; universal

    Executive branch:
    chief of state: Emperor AKIHITO (since 7 January 1989)
    head of government: Prime Minister Yoshiro MORI (since 5 April 2000)


    Introduction / History

    Early Years: In legend, Japan was founded in 660 BC, but reliable records date only to about A.D. 400. By the 5th century, Japan was unified by the Yamato clan, and the foundations of a centralized imperial state were laid by the 8th century. Court culture was influenced first by Chinese learning and institutions and then by a rebirth of native Japanese culture. By the 9th century, the powerful Fujiwara family ruled as regents, and imperial authority was undermined. The 12th century ushered in Japan’s medieval period with the development of feudalism, the rise of the warrior class called the Samurai, and establishment of military rule under Minamoto Yoritomo, the first Shogun. After civil war between rival warrior clans, the country was unified in 1600 under a new Shogun, Tokugawa Leyasu. For more than 250 years the Tokugawa family ruled over a Japan internally at peace and largely cut off from the rest of the world.
    Opening of Japan & Meiji Restoration:

    In 1853, the US naval officer Matthew C. Perry arrived in Japan to force the opening of trade with the west, and in 1868 the shogunate collapsed, when the Meiji Restoration returned formal power to the Emperor Meiji. A new government was established under the able leadership of former Samurai. Adopting the technologies of Western civilization, Japan modernized rapidly into an industrial state and military power. A constitutional monarchy and a parliament (diet) were established by the constitution of 1889.


    Militarization of Japan:

    The success of Japan in the first Sino-Japanese War (1894-95) and the Russo-Japanese War (1904-5) brought the nation to international prominence. An Anglo-Japanese alliance was formed in 1902. Japan annexed Korea in 1910, established a puppet-state in Manchuria in 1932, and began the Second Sino-Japanese war (1937-45) by invading North China. Japan formed a military alliance with Germany and Italy in WWII and opened hostilities against the U.S. with an attack on Pearl Harbor in 1941. After rapid initial success, the Japanese were defeated by the Allies. Following the dropping of the atomic bombs by the US on Hiroshima and Nagasaki, Japan surrendered in August 1945 and was occupied by US forces. The signing of a peace treaty in 1951 led to full Japanese sovereignty over the main islands in 1952. The US returned the Bonin and nearby islands to Japan in 1968 and the Ryukyu Islands (Okinawa) in 1972.


    Post-WWII: The constitution, which went into effect in 1947, established a democratic form of government. It declares the emperor to be the symbolic head of state and renounces Japan’s right to declare war. The national diet, which has sole legislative power is composed of the 500 member house of representatives and the 252 member house of councilors. Three hundred of the 500 members of the house of representatives are chosen by single-seat constituencies and the rest proportionally. Executive power rests with the prime minister, who is elected by the diet, and his appointed cabinet. Japan is divided into 47 prefectures, each governed by a popularly elected governor and a legislature.
    After its devastating defeat in World War II, Japan recovered to become the second most powerful economy in the world and a staunch ally of the US. While the emperor retains his throne as a symbol of national unity, actual power rests in networks of powerful politicians, bureaucrats, and business executives. The economy experienced a major slowdown in the 1990s following three decades of unprecedented growth.


    Economy

    Economy - overview: Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) have helped Japan advance with extraordinary rapidity to the rank of second most technologically powerful economy in the world after the US and third largest economy in the world after the US and China. One notable characteristic of the economy is the working together of manufacturers, suppliers, and distributors in closely knit groups called keiretsu. A second basic feature has been the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding. Industry, the most important sector of the economy, is heavily dependent on imported raw materials and fuels. The much smaller agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan must import about 50% of its requirements of other grain and fodder crops. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades overall real economic growth had been spectacular: a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in 1992-95 largely because of the aftereffects of overinvestment during the late 1980s and contractionary domestic policies intended to wring speculative excesses from the stock and real estate markets. Growth picked up to 3.9% in 1996, largely a reflection of stimulative fiscal and monetary policies as well as low rates of inflation. But in 1997-98 Japan experienced a wrenching recession, centered about financial difficulties in the banking system and real estate markets and exacerbated by rigidities in corporate structures and labor markets. In 1999 output started to stabilize as emergency government spending began to take hold and business confidence gradually improved. The crowding of habitable land area and the aging of the population are two major long-run problems. Robotics constitutes a key long-term economic strength, with Japan possessing 410,000 of the world's 720,000 "working robots".
    GDP: purchasing power parity - $2.95 trillion (1999 est.)

    GDP - real growth rate: 0.3% (1999 est.)

    GDP - per capita: purchasing power parity - $23,400 (1999 est.)

    GDP - composition by sector:
    agriculture: 2%
    industry: 35%
    services: 63% (1999 est.)

    Inflation rate (consumer prices): -0.8% (1999 est.)

    Labor force: 67.76 million (November 1999)

    Labor force - by occupation: trade and services 65%, industry 30%, agriculture, forestry, and fishing 5%

    Unemployment rate: 4.7% (1999 est.)

    Literacy: definition: age 15 and over can read and write: 99% (1970 est.)
    Net migration rate: 0 migrant(s)/1,000 population (2000 est.)

    Infant mortality rate: 3.91 deaths/1,000 live births (2000 est.)

    Life expectancy at birth: 80.7 years
    Budget:
    revenues: $463 billion
    expenditures: $809 billion, including capital expenditures (public works only) of about $94 billion (FY00/01 est.)

    Industries: among world's largest and technologically advanced producers of motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals; textiles, processed foods

    Industrial production growth rate: -0.1% (1999 est.)

    Agriculture - products: rice, sugar beets, vegetables, fruit; pork, poultry, dairy products, eggs; fish

    Exports: $413 billion (f.o.b., 1999 est.)

    Exports - commodities: motor vehicles, semiconductors, office machinery, chemicals

    Exports - partners: US 31%, Taiwan 7%, China 5.5%, South Korea 5.4%, Hong Kong 5.2% (1999)

    Imports: $306 billion (c.i.f., 1999 est.)

    Imports - commodities: fuels, foodstuffs, chemicals, textiles, office machinery

    Imports - partners: US 22%, China 14%, South Korea 5.1%, Australia 4.2%, Taiwan 4.1% (1999)

    Economic aid - donor: ODA, $9.1 billion (1999)

    Currency: yen

    Exchange rates: yen per US$1 - 105.16 (January 2000), 113.91 (1999), 130.91 (1998), 120.99 (1997), 108.78 (1996), 94.06 (1995)

    Fiscal year: 1 April - 31 March
    NOTE:

    Diplomatic representation from the US:
    chief of mission: Ambassador Thomas S. FOLEY
    embassy: 10-5, Akasaka 1-chome, Minato-ku, Tokyo 107-8420
    mailing address: Unit 45004, Box 205, APO AP 96337-5004
    telephone: [81] (3) 3224-5000
    FAX: [81] (3) 3224-5856


    Company Profiles
    Korea Telecom Inc.

    CEO: Sang-Chul Lee

    Headquarters: Songnam Kyunggi-Do, South Korea

    Revenues (last 12 months): $9.81 billion

    Number of Employees (last reported count): 52,533


    URL: http://www.koreatelecom.com/
    Korea Telecom Corp. is a provider of telecommunications services in Korea, listed on the Korean Stock Exchange in December 1998 and overseas via an ADR issue in 1999. The Company's services include local, domestic long-distance and international long-distance telephone services; interconnection services to other telecommunications companies; mobile telecommunications services through Korea Telecom Freetel Co., its 39%-owned consolidated subsidiary; Internet access, content and other Internet-related services; business and data communications services (including leased-line services), and other telecommunications services, including satellite communications services.

    The Company owns substantially all of the domestic public exchanges, the nationwide network of local telephone lines, the principal public long-distance telephone transmission facilities and the principal data communications network in Korea, as well as two satellites.


    The Company has a broad network of public telephones that provide services such as credit card operation and direct connections to foreign operators. In 1986, the Company began to complement its coin-operated public telephones with inductive card-operated public telephones. The inductive card-operated telephones have reduced costs and improved service to public telephone users. In recent years, the Company has increased the proportion of its lines that are connected to exchanges capable of handling digital signal technology. All lines installed since 1992 have been connected to digital exchanges and, at December 31, 1999, 18.1 million (approximately 73. 9%) of all installed lines were connected to digital exchanges.





    Ministry of Economy, Trade and Industry (former Ministry of International Trade and Industry – MITI)


    Minister: Takeo Hiranuma

    Main Office: Tokyo, Japan

    URL: http://www.meti.go.jp/
    The Ministry of International Trade and Industry (MITI) was founded in 1951 and renamed to Ministry of Economy, Trade and Industry (METI) in a governmental restructuring in January 6, 2001.
    MITI was the pilot agency that guided Japan’s industrial shift toward increasingly knowledge-intensive and higher-value-added industries. MITI coordinated and guided a variety of government efforts so as to achieve national objectives. In 1965, for example, Japan had virtually no computer industry. Business leaders decided that to meet the country’s goals of full employment and a rising standard of living, Japan had to become a leader in the computer industry. MITI shaped a national consensus: climbing the ladder of technology in a variety of related industries concerned with electronics, information, and knowledge was necessary to build the structures to create Japan’s comparative advantage.
    MITI in the 1970s arranged the trade protection required for the healthy growth of targeted industries. During the 1980s, MITI took the lead in reducing trade and foreign investment restrictions, because they were no longer required and were provoking retaliation in export market areas.
    One scholar described MITI’s role:
    “MITI has two primary roles: one is the gathering of massive amounts of information on Japanese and foreign economies and industries and developing of visions or scenarios of how Japan is likely to fit in the broader global economy a decade or two later, given different sets of assumptions. This role involves organizing meetings among business people, government officials, and scholars to discuss this information and to finalize a ‘vision’ outlining the best direction for Japan’s economy and the types and amounts of investment, production, employment, education, etc. that will be needed for this vision to be realized.

    MITI’s second primary role is that of targeting specific industries to gain benefits for domestic firms over the long term, at least in part at the expense of foreign firms.”1


    METI’s goals, as stated on its website, are:


    • Promoting Economic Restructuring with the Aim of Understanding the Total Economy, both Microeconomic and Macroeconomic

    • Promoting Regional Economic Development

    • Developing a Structure With Improved External Economic Relations

    • Greater Integration of Industrial Policy and Technology Policy and Coordination with Environmental Policy

    • Responding to Industrial and Economic Realities from a Broader Perspective

    • Enhancing Information Technology and other Economic and Social Infrastructure and Making the Economy More Responsive to Consumer Interests

    • Ensuring a Stable Energy Supply Consistent with Both Environmental Protection and Efficiency Concerns

    • Enhancing a System of Provisions Fundamental to Technological Development and the Protection of Intellectual Activity

    • Enhancing the Economy through the Growth and Development of Independent Small and Medium Enterprises

    • Promoting More Efficient, Better Operation through Devolution

    • Reorganizing for Faster Decision-Making and More Flexible Management


    Netyear Group Corporation

    President, Co-CEO: Fujiyo Ishiguro

    Founder, Co-CEO: Satoshi Koike

    Headquarters: Tokyo, Japan

    Number of Employees: approximately 100


    URL: http://www.netyear.net/
    Netyear Group is the first strategic Internet professional services (SIPS) company to be established in Japan. Since the company started and even to the present day, professionals in each specialty field work in close coordination, engaging in the construction of Web sites, strategy planning, and product development for large-scale projects in order to help customers succeed in the Internet business.

    Satoshi Koike, who is the founder of the Netyear Group Corporation, was dispatched to New York in April 1992 to work as a representative at Information Services International-Dentsu, Ltd., a joint venture established by Dentsu and the US firm GE. He took part in various Internet-related projects.


    In October 1997, Information Services International-Dentsu, Ltd., established Netyear Group Inc., in the US as a strategic subsidiary company that specializes in Internet-related business. Satoshi Koike took his post with this company as president and representative director and also held the concurrent post of CEO.
    In October 1998, he acquired management rights of Netyear Group from Information Services International-Dentsu, Ltd., through a management buy-out and he thus took the company independent. Fujiyo Ishiguro joined Netyear Group.
    In July 1999 Netyear Group moved into Japan armed with the expertise and experience it had accumulated over the years in the US. With its focus on the promising Japanese market, Netyear Group is now developing full-scale business operations.
    In March 2000 Satoshi Koike established another company, Netyear Knowledge Capital Partners, as an incubation business.

    NTT DoCoMo

    President and CEO: Keiji Tachikawa

    Headquarters: Tokyo, Japan

    Revenues (2000): approximately $32,036 million

    Number of Employees (last reported counted): 15,100


    URL: http://www.nttdocomo.com/
    NTT Group provides cellular telephone services and Personal Handy-phone System services through NTT DoCoMo, Inc., which changed its name from NTT Mobile Communications Network, Inc. in April 2000, and its eight regional subsidiaries (together, NTT DoCoMo Group). NTT DoCoMo is 67.1% owned by NTT. The balance of NTT DoCoMo's shares is owned by public investors.
    NTT DoCoMo is one of the world’s largest mobile communications companies, with about 31.6 million subscribers as of July 2000 for a domestic market share of 58%, far ahead of its nearest rival. The company is the second largest in the world by market capitalization, not far behind leader Vodafone Airtouch. Subscribers to DoCoMo’s i-mode, a mobile Internet platform, currently number over 10 million, and the company is attracting attention as a global pioneer in developing software and supplying contents.
    Earnings are buoyant. Over the past three years, consolidated recurring profits have expanded at an average annual pace of 27%, with EBITDA growing at 22%. The telecommunications business has an EBITDA to sales ratio of 38%, on a par with Vodafone Airtouch (33%) and far ahead of that for AT&T Wireless (16%).
    DoCoMo is on track to become the world’s first company to introduce wideband code division multiple access (W-CDMA), the next-generation standard for cellular phones. The company is aggressively investing overseas to promote the global diffusion of i-mode W-CDMA.


    Samsung Electronics Inc.

    CEO: Jong-Yong Yun

    Headquarters: Seoul, Korea

    Revenues (1999): $22,810 million

    Number of Employees: 43,000


    URL: http://www.samsungelectronics.com/
    Samsung Electronics, founded in 1969, is a world leader in the electronics industry. The Korea-based company has operations in over 45 countries with 43,000 employees worldwide. The company consists of four main business units, Digital Media, Semiconductors, Information & Communications and Home Appliances Businesses, which produce the worlds' most innovative 21st century digital components. The company is the world's leading manufactures of memory devices, and also leads the world semiconductor industry in development.
    Its major products include:


    • Multimedia & Home Appliances: monitor, multimedia PC, PDA, DVD players, HDTV.

    • Semiconductors: flash memory, alpha CPU, DRAM.

    • Information & Telecommunications: ATM LAN/WAN, key phone, CDMA PCS/cellular

    • Optic fibers & components.

    Samsung Electronics is an affiliated company of Samsung Group, founded in 1938 by Byung-Chull Lee as a small trading company. Since the 1980s, Samsung has grown rapidly to reach the upper ranks of the “Fortune Global 500” with revenues of $92.7 billion in 1996.


    Today, the Samsung Group is a conglomerate with five core business subgroups: electronics, machinery, chemicals, finance/insurance and automobiles. Other affiliates include trading, construction, advertising companies and hotels. The Samsung Group has attained a global presence with 492 operations and 260,000 employees in 68 countries.
    The group invested large amounts of money into Taegu and Sung Kyun Kwan universities to educate talented people. To return the company's profits to society, it created the Samsung Scholarship Foundation in January 1964. It also developed the Samsung Foundation of Culture in April 1965 to take a leading role in Korea's social and cultural development


    Sony Corporation

    CEO: Nobuyuki Idei

    Headquarters: Tokyo, Japan

    Revenues (2000): $63,082 million

    Number of Employees (last reported counted): 189,700


    URL: http://www.sony.co.jp/
    In the beginning there was Tokyo Telecommunications Engineering Company (TTK), founded in 1946 by Akio Morita and Masaru Ibuka. The company's name was changed to Sony Corporation in 1958. Nowadays Sony is Japan’s leading consumer electronics company, with one of the highest international profiles of any Japanese company. TVs, VCRs, and video cameras are the company’s mainstay products, but video game machines, audio equipment, and personal computers also contribute significantly to the bottom line. Sales in the United States are now greater than sales in Japan. The company is diversifying into the finance, telecommunications, and information fields.
    Sony is the world’s largest manufacturer of audiovisual equipment. The Sony brand has achieved extremely high consumer recognition. The company has led the development of global hardware standards with a string of successful products developed in house, including transistor radios, Trinitron cathode-ray tubes (CRTs), Beta VCRs, the Walkman, CD players, the Betacam for broadcasters, 8-mm camcorders, the MiniDisc (MD), and the PlayStation. In the second half of the 1980s, the company acquired leading entertainment companies in the US, including CBS Records and Columbia Studios, rapidly establishing a contents business. The company is currently focusing on strengthening its distribution operations to link its hardware and contents businesses with its customer base, mainly households. Since its 50th anniversary in 1996, the company has bolstered its efforts in areas such as management reform, the clarification of its business domain based on its IT strategy, and the formation of strategic alliances.
    Electronics

    Within the Electronics segment, sales are reported using five product categories: Audio, Video, Televisions, Information and Communications and Electronic Components and Other.

    Games

    Sony develops, designs and sells PlayStation, PS one and PlayStation 2 entertainment hardware and related software, principally in Japan, the United States and Europe, and enters into licenses with third party software developers.

    Music

    SMEI and SMEJ produce recorded music and video through contracts with many artists worldwide in all musical genres. SMEI and SMEJ manufacture, market and distribute CDs, MDs, DVDs, Super Audio CDs and pre-recorded audio and videocassettes, and produce and manufacture CD-ROMs. The Music business has an extensive and geographically diversified software manufacturing capacity. Software is manufactured principally for the Music business, the Games business and third parties.

    Pictures

    Pictures business global operations encompass motion picture production, acquisition and distribution, television programming and syndication, production, acquisition and distribution, home video acquisition and distribution, television broadcasting and operation of studio facilities. Sony's motion picture arm, the Columbia TriStar Motion Picture Group, includes Sony's principal motion picture production organization, Columbia Pictures, Screen Gems, as well as Sony Pictures Classics, Sony Pictures Releasing and Columbia TriStar Film Distributors International. SPE's Columbia TriStar Television Group is principally comprised of Columbia TriStar Television, Columbia TriStar Television Distribution, Columbia TriStar International Television, the Game Show Networks and various investments relating to television broadcasting. Sony's home video operations are conducted through Columbia TriStar Home Video. SPE's digital production, online distribution and broadband services will be operated through the newly formed Sony Pictures Digital Entertainment. Sony also manages two studio facilities, Sony Pictures Studios and The Culver Studios, both of which are located at SPE's world headquarters in Culver City, California.

    Insurance

    Insurance includes insurance-related underwriting businesses, primarily individual life insurance business in Japan conducted through Sony Life, and individual automobile insurance business in Japan conducted through Sony Assurance.

    Other

    The Other business consists of various operating activities, primarily including a leasing and credit financing business through Sony Finance International, Inc., a business focused on parts trading services within the Sony group through Sony Trading International Corporation, satellite distribution services including program supplying businesses in Japan, principally through Sony Broadcast Media Co., Ltd., and location-based entertainment businesses in Japan, the United States and Germany.

    Toyota

    President, Director: Hiroshi Okuda

    Headquarters: Toyota City, Japan

    Revenues (2000): $109,609.2 million

    Number of Employees (last reported counted): 184,000


    URL: http://www.global.toyota.com/
    Toyota Motor Corporation sells cars, trucks and buses worldwide, and manufactures those vehicles in 26 nations and regions. The companies market their vehicles under the Toyota, Lexus and Daihatsu brands. Toyota accompanies its automotive business with a large business portfolio in financial services, including sales finance, vehicle insurance and credit cards. It also has an extensive presence in telecommunications through a subsidiary that is a provider of cellular services in Japan. Other diversified businesses include industrial equipment, prefabricated housing and leisure boats.

    The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from Toyoda Automatic Loom Works, one of the world's leading manufacturers of weaving machinery. The Toyoda Automatic Loom Works was then headed by Japan's "King of Inventors" Sakichi Toyoda. The patent rights to one of his machines had been sold to Platt Brothers (UK) and provided the seed-money for the development and test-building of Toyota's first automobiles.

    Production systems were improved in the late 1950s, culminating in the establishment of the 'Toyota Production System.' It became known as TPS in 1970 but was established much earlier by Taiichi Ohno. Based on the principles of Jidoka, Just-in-time and Kaizen, the system is a major factor in the reduction of inventories and defects in the plants of Toyota and its suppliers, and it underpins all Toyota’s operations across the World.

    Today, Toyota is the world's third largest manufacturer of automobiles in unit sales and in net sales. It is by far the largest Japanese automotive manufacturer, producing more than 4.5 million vehicles per year, equivalent to one every six seconds.


    Annual production of Toyotas in North America exceeded one million vehicles for the first time ever in the fiscal year ended March 31, 2000. The Company's four vehicle plants in the United States and Canada manufactured 1,094,498 vehicles during the year. Projects announced in the past year will increase production capacity there to about 1.45 million vehicles a year.





    Sources of Information for Company Profiles



      • Companies’ webpages

      • Yahoo!

      • ING Barings’ reports

      • Goldman Sachs’ reports

      • HBS Case # 9-793-034

      • Samsung Electronics’ 1999 annual report

      • UBS Warburg’s reports

      • Institutional Shareholder Services - Samsung

    SPECIAL THANKS TO ALL OUR SPONSORS!!!


    South Korean Sponsors


    www.samsungelectronics.com
    Samsung Electronics is currently composed of four main business units, Digital Media, Semiconductors, Information & Communications and Home Appliances Businesses, which produce the worlds' most innovative 21st century digital components that everyone will recognize as the best in the world.


    www.olympia.co.kr
    Looking out to the spectacular peaks of Buk-Ak National Park, the Ramada Olympia Hotel is just 10 minutes from the heart of Seoul. Its standards of modern comforts are as refreshing as the pristine surroundings. Ramada Olympia Hotel is located near the City Hall, the National Museum, the Government Building, and is only minutes from the business quarters.


    Mr. HYUN-JONG SONG (SLOAN ALUMNUS)

    Japanese Sponsors



    www.imca.co.jp
    Japanese Leading Executive Search Firm Since 1967
    R
    ecruiting specialty: top executives, middle managers (technical, sales, marketing, accounting, personnel, etc.), engineers (hardware, software, technical, multimedia, telecommunications, semiconductors, biotechnology, and other specialists)
    IMCA America Inc. ("IAI") is the U.S. subsidiary of IMCA Inc., a top executive search firm in Japan and a pioneer in executive searches. Since its inception in 1967 by Seiro Takehara, IMCA Inc. has placed more than 18,000 executives and engineers with some 5,000-client organizations. To broaden its geographic reach, on February 1st, 2000, IMCA announced the opening of a strategic and pivotal new IAI Palo Alto office in the birthplace of Silicon Valley. IAI is evolving into a global high-tech enterprise, partnering with clients to assist them to strategically deploy their human resources and build leadership teams for tomorrow.


    www.nomura.co.jp
    Nomura Securities is an integrated services group, providing a broad range of services worldwide. Its customers include individuals, corporations, financial institutions, and government agencies.

    www.fujifilm.co.jp
    Products include: Films and imaging systems, digital imaging systems, graphic arts and printing systems, medical imaging and diagnostic systems, recording media, office imaging information system, and highly functional industrial materials.



    www.bain.com
    With approximately 90 professional staff, Bain Tokyo has the resources to provide high-quality consulting services to Japanese, American, and European corporate clients in Japan, as well as coordinating the Asia-wide strategies of clients with Bain's other Asia offices.


    www.bah.com
    Booz·Allen & Hamilton, a global leader in management and technology consulting, provides services to major international corporations and government clients around the world.


    www.kirin.co.jp
    Kirin Brewery sees as its top order of business offering an assortment of products and services created from the perspective of the customer in the beer and happo-shu market.


    www.globis.co.jp

    GLOBIS GROUP aims to create new businesses in Japan and Asia by establishing the optimal business infrastructure of people, money, and management know-how, and changing the Asian business environment, as we know it.




    www.netyear.net
    Netyear Group is a strategic Internet professional services company. Netyear enables customers to implement the best business model with our in-depth knowledge of business strategy, technology, and information design.

    Faculty

    Professor D. Eleanor Westney



    Society of Sloan Fellows Professor of International Management
    Professor Toni Robinson

    Ombudsperson, Office of the President

    Staff


    Laura Wilcox

    Assistant Director, Student Affairs


    Trip Organizers
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    Cover Design


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    1 Marie Anchordoguy, “A Challenge to Free Trade? Japanese Industrial Targeting in the Computer and Semiconductor Industry”, Japan’s Economic Structure: Should It Change? Society for Japanese Studies, University of Wisconsin, 1990, p. 305.


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