To help boost sales of men’s casual wear last month, Lotte Department Shin Heon started to wear jeans to work and encouraged other top officials to do the same

Lotte CEO looking for a little magic

Oct 03,2013

Shin Heon, Lotte Department Store CEO, wearing a navy suit with a red bow tie, entertained 100 or so customers at its department stores in downtown Seoul yesterday with the help of magician Lee Eun-kyul. The show lasted for half an hour. The magic show, presented by the top executive of one of the nation’s leading retailers, was part of a strategy to boost sales as Lotte along with Hyundai Department Store and Shinsegae Department Store, which all started their autumn sales yesterday.  Read more of this post

Samsung’s family feud under way over inheritance

Samsung’s family feud under way over inheritance

Sohn Jae-gwon

2013.10.02 14:25:02

“Late chairman Lee Byung-chul, founder of Samsung Group, did not want the current chairman Lee Kun-hee to inherit the conglomerate singlehandedly. The founder formed a group ‘Seung-ji’ to reach major decisions concerning Samsung Group.” “No. The deceased founder set up the Seung-ji in an effort to allow Lee Kun-hee to have management right overarching other subsidiaries.” The legal dispute between the late founder’s eldest son, Lee Maeng-hee, and Samsung Group is shifting its focus to Seung-ji group and what the founder intended to accomplish with the group. In the second round of a civil appeal case brought to the Seoul High Court Tuesday, lawyers representing Lee Maeng-hee, former chairman of Cheil Fertilizer, said “the late chairman created Seung-ji group to check Lee Kun-hee’s sole inheritance of management right,” unveiling Seung-ji group publicly for the first time. Both Lee Maeng-hee and Samsung Group acknowledge the existence of Seung-ji group. Reportedly, late Samsung founder Lee Byung-chul ordered five figures – then Samsung Group’s chief secretary, chairman Lee Kun-hee, Shinsegae Group chairwoman Lee Myung-hee and Lee Mang-hee’s wife Sohn Bok-nam – to discuss major issues at the ‘Seungji’ meeting. “The existence of ‘Seung-ji’ lies in leading Samsung Group under five leaders, not solely by Lee Kun-hee,” noted a close aid to Lee Mang-hee. However, Samsung noted, “Lee Kun-hee had willingness to succeed the group and other companies including Cheiljedang (currently CJ) whose ownership is transferred to other brothers and sisters should be under the control of Lee Kun-hee as well.”

Korean retailers fostering fashion brands; Homeplus, Korea’s No. 2 supermarket chain run by British retail giant Tesco, first introduced their fashion brand Florence& Fred in 2010

2013-10-02 17:53

Retailers fostering fashion brands

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Seen above is the inside of a Florence & Fred store run by the country’s second largest retailer Homeplus. The fashion brand was launched in 2010 in Korea

By Rachel Lee
The country’s major retailers are stepping up efforts to grow their own fashion brands to the level where they can compete with the world’s global SPA brands.
SPA brands are those that produce their own clothing, distribute and sell it exclusively. Names such as H&M, Zara and Uniqlo are classified as SPA brands
According to industry sources, large discount chains including E-Mart and Homeplus have been aiming to do the same with their fashion labels Daiz and Florence& Fred, by launching and expanding the range of high quality products at competitive price. Read more of this post

Prosecutors are investigating Hyosung Group Chairman Cho Suck-rae for allegedly creating a massive slush fund and evading taxes

2013-10-02 17:11

Hyosung under prosecutors’ probe

By Kim Tae-jong

Prosecutors are investigating Hyosung Group Chairman Cho Suck-rae for allegedly creating a massive slush fund and evading taxes, sources said Wednesday.
The move could potentially result in Cho becoming yet another ill-fated conglomerate owner who may be put on trial and jailed, following Hanhwa Group Chairman Kim Seung-youn, SK Holdings Chairman Chey Tae-won and CJ Group Chairman Lee Jae-hyun. Read more of this post

Criticism mounts of FSS oversight of debt-ridden Tongyang

 

Criticism mounts of FSS oversight of Tongyang

 

‘There’s growing doubt over the role of the financial regulator.’

 

Oct 03,2013

 

In June, a 47-year-old office worker surnamed Jeong received a call from an employee at Tongyang Securities, the brokerage arm of debt-ridden Tongyang Group. According to Jeong, he was introduced to investing in bonds issued by the conglomerate and was told he would get an annual interest rate of 7 percent, more than three times higher than the market average. Read more of this post

How Prime Focus Broke into Hollywood; Prime Focus started out as a teenager’s garage operation in Mumbai and is now a global force in the post-production of films

How Prime Focus Broke into Hollywood

by Sohini Mitter, Deepak Ajwani | Oct 2, 2013

Prime Focus started out as a teenager’s garage operation in Mumbai and is now a global force in the post-production of films

Prime Focus.indd topimg_22577_namit_malhotra_600x400

Namit Malhotra, founder, chairman and CEO of Prime Focus Ltd

The 2011 Academy Awards saw 10 nominations in the VFX (visual effects) category. Of these, five films (including X-Men: First Class, Transformers: Dark of the Moon and The Tree of Life) had engaged an Indian company for 2D-to-3D conversion and post-production work. Prime Focus Limited (PFL), a global visual entertainment services company, has been instrumental in altering the Hollywood perception that only US-based studios excelled in visual effects, 3D and animation. Today, 40 percent of Hollywood’s VFX and 3D work gets done in Asian countries like India, Malaysia, South Korea, Thailand and the Philippines, says a 2013 KPMG report.  Read more of this post

Port Expansion Trimmed as Slowdown Dents Trade: Corporate India

Port Expansion Trimmed as Slowdown Dents Trade: Corporate India

India plans to cut back expansion of a port that helps Ford Motor Co. (F) and Hyundai Motor Co. ship cars after an economic slowdown and rival facilities dented traffic for the first time in seven years. The Chennai Port Trust, which started 128 years ago in the southern Indian city, is hiring a consultant to help review its plans and advise on a reduced capacity, Chairman Atulya Misra said in an e-mail interview. The state-owned operator scrapped a bid this year to build a terminal that would have more than doubled its ability to handle 20-foot standard boxes or TEUs. Read more of this post

India’s Wealthy Must Open Their Gates and Fight Chaos

India’s Wealthy Must Open Their Gates and Fight Chaos

Lately India has been in the news for all the wrong reasons. Its once tigerish economy is growing at its slowest rate in more than a decade. Newspapers are filled with ever more depressing stories of rape, official plunder and gut-wrenching poverty. To an outsider the headlines can seem surreal: Last week the cabinet actually voted to allow convicted criminals to serve in Parliament and state legislatures, before being forced to back down. Read more of this post

India’s dangerous political vacuum

September 30, 2013 6:35 pm

India’s dangerous political vacuum

As elections loom, voters confront a dearth of good options

In times of crisis, people turn to desperate solutions. In India, desperation has a name: Narendra Modi. Mr Modi, once politically crippled by his alleged complicity in the killings of several hundred Muslims in Gujarat, is visibly edging towards the premiership. Business, especially, is turning towards him as a saviour. Read more of this post

Dividend stocks are losing their allure

October 2, 2013 1:28 pm

Dividend stocks are losing their allure

By John Authers

Post-Lehman outperformance has reversed in US since ‘taper talk’ began

For a while, dividend investing paid dividends like never before. And then, five months ago, it stopped. There are ways for investors to take advantage, but they are counter-intuitive. In the post-Lehman years, investors put more weight than ever on the dividend yield they received from equities. In some ways, this was irrational. Under the Miller and Modigliani framework, still taught in business schools, they should have known that dividend yield makes no difference. Cash belongs to the investor whether it stays in the company’s bank account or is paid out in a cheque. If you need income, you can just sell some shares. For many decades, investors took M&M seriously, and yields dwindled. Read more of this post

Twitter ad strategy aims to be on target as it looks beyond US

October 2, 2013 3:11 pm

Twitter ad strategy aims to be on target as it looks beyond US

By Rob Budden in London and April Dembosky in San Francisco

Twitter was relatively late to the advertising game, but as its market debut looms, it is making up for lost time, and a big part of the catching up is happening outside of its core US market. In the past few months, the site has opened a number of offices outside the US as it begins to sell advertising internationally. In addition to the US, Twitter now has sales teams in eight other countries including Brazil, France, Japan and the UK. It is also working with resellers in theMiddle East and Africa, in southeast Asia, and in Spanish-speaking Latin America. The US still accounts for the lion’s share of revenues – about 83 per cent of estimated global ad revenues of $580m for Twitter, according to eMarketer. But revenues in the rest of the world are growing fast. By 2015, non-US countries are expected to make up almost a quarter of Twitter’s total revenues, the research company predicts, helping propel a doubling of ad revenues next year to $950m. Read more of this post

Techs eye Japan’s ‘keiretsu’ as VC model

Last updated: October 2, 2013 8:47 pm

Techs eye Japan’s ‘keiretsu’ as VC model

By Richard Waters

Groups seeking venture capital success must mimic Japan’s example

When big corporations jump on the venture capital bandwagon, it is often an indication that a start-up investment cycle has peaked. Incumbents usually wake up to the idea of backing a new band of disruptive companies – some of which are out to eat their lunch – only when it is already too late. If so, then the extra $650m that SAP has just ploughed into venture capital – boosting the firepower of its venture investment arm to about $1bn – looks like a clear “sell” signal. As Nino Marakovic, head of SAP Ventures, ruefully puts it: “Corporations normally get in at the top and out at the bottom, which is exactly the wrong way to do it.” Read more of this post

The Death Of Social ROI — Companies Are Starting To Drop The The Idea That They Can Track Social Media’s Dollar Value

The Death Of Social ROI — Companies Are Starting To Drop The The Idea That They Can Track Social Media’s Dollar Value

JOHN HEGGESTUEN OCT. 2, 2013, 4:00 PM 2,066 2

social marketers-1

Many brands are moving away from metrics that purport to measure ROI on social media. They’ve realized that social media isn’t a transactional engine or sales machine, so they’re dropping half-baked indicators that gauge secondary effects, such as financial return. Instead, the new metrics evaluate social media strategies in terms of audience-building, brand awareness, and customer relations. In a new report from BI Intelligence, we look at the no-frills but powerful metrics that social media managers and analytics companies are focusing on, we explain how the end of the vogue for ROI has not meant a pullback on social media budgets (in fact, social media budgets are ballooning). And we dig into some of the misconceptions and misuses surrounding the more common reach and engagement metrics popularized by Facebook Insights, the built-in analytics dashboard for Facebook pages. Here’s how social media strategies are evolving:  Read more of this post

Social Networks in a Battle for the Second Screen

October 2, 2013

Social Networks in a Battle for the Second Screen

By VINDU GOEL and BRIAN STELTER

After “Breaking Bad” drew 10.3 million viewers to one of the most crowd-satisfying finales in television history on Sunday, Twitter and Facebook raced to tell the news media about the throngs who shared their instant reactions to the show on the social networks. The companies were seeking more than just bragging rights. Facebook and Twitter both see the social conversation around television as a way to increase use of their sites and win a bigger piece of advertisers’ spending, which eMarketer estimates will be $171 billion across all types of media this year in the United States. In recent months, they have engaged in an escalating battle — publicly and behind the scenes — to claim the title of the nation’s digital water cooler as they woo networks and advertisers. Read more of this post

A Watch That Sinks Under Its Features; Samsung’s Galaxy Gear watch is ambitious and even amazing. But it has too many components for one gadget.

October 2, 2013

A Watch That Sinks Under Its Features

By DAVID POGUE

In the beginning, computers were the size of buildings. To use one, you walked into it. Over the decades, they grew small enough to sit on a desk, then to carry in a briefcase, then to keep in your pocket. And now we’re entering the age of computers so small we wear them like jewelry. Just what kind of jewelry, however, has yet to be decided. Will we wear our computers on our foreheads, as with Google Glass? Or will we wear them on our wrists, as with the new Samsung Galaxy Gear smartwatch ($300)? Read more of this post

In Taiwan you can buy an Android tablet from 7-11 for $200

In Taiwan you can buy an Android tablet from 7-11 for $200

October 2, 2013

by Josh Horwitz

OpenTabletDongle-720x458

As mobile technology becomes cheaper to manufacture, an increasing number of low-end brands have emerged, selling simple devices at affordable prices. In Taiwan, one of these brands happens to be 7-11, the world-famous convenience store chain. The Taiwanese 7-11 (owned by domestic conglomerate Uni-President, and unaffiliated with the pit stop C-store most Americans are familiar with) announced yesterday it would release a private label tablet called “OPEN.” Manufactured by Taiwan electronics giant Foxconn, the device runs on Android 4.2 Jelly Bean and packs a quad-core 1.2 GHz Marvell processor, 16GB of storage, and 1GB of RAM.  Read more of this post

Merck believes ‘printable’ big OLEDs not far off

Merck believes ‘printable’ big OLEDs not far off

Oct 03,2013

Merck, a German-based chemical and pharmaceutical company, believes printable organic light-emitting diode (OLED) displays could be manufactured commercially within three years, allowing mass production of large displays. “You have to ask Samsung or LG for the exact date, but what I can tell you is that we have material available that serves that purpose,” said Walter Galinat, president of performance materials for Merck, who visited Korea for the “Displaying Futures” symposium yesterday in Seoul. ”We have manufactured displays in printing, and they worked very well.”  Read more of this post

Shares in accounting software start-up Xero have surged back towards all-time highs after it boasted it now has more clients in Australia than in its home turf, New Zealand, as it ramps up its global push

Sales soar as Xero ramps up global push

October 3, 2013 – 10:49AM

Brian Robins

Shares in accounting software start-up Xero have surged back towards all-time highs after it boasted it now has more clients in Australia than in its home turf, New Zealand, as it ramps up its global push. In the September half, revenues surged to $NZ30 million ($27 million) from $NZ16.9 million a year earlier, whikle at the end of the half, revenue was running at an annualised $NZ70 million. Read more of this post

iCar Asia’s growth strategy: Make a “land grab” on Asia’s car classifieds

Nassim Khadem Reporter

iCar Asia’s growth strategy: Make a “land grab” on Asia’s car classifieds

Published 02 October 2013 11:50, Updated 03 October 2013 07:38

Since iCar Asia, the company backed by BRW Young Rich lister Patrick Grove, secured a $13.4 million investment from Australia’s largest car sale website, Carsales.com, its share price has soared. Based in Kuala Lumpur, Malaysia, iCar Asia is the largest network of online automotive sites in ASEAN, reaching 2.5 million people every month across Malaysia, Thailand and Indonesia. Read more of this post

Silk Road collected 9.5 million bitcoin—and only 11.75 million exist

Silk Road collected 9.5 million bitcoin—and only 11.75 million exist

By Tim Fernholz @timfernholz 9 hours ago

Silk Road, the illicit online marketplace that first brought bitcoin to notoriety in 2011, was shut down today and its alleged founder was arrested. The criminal complaint revealed that the site had collected revenues of some 9.5 million bitcoin since 2011, the equivalent today of $1.2 billion in sales and $80 million in commissions for Ross Ulbricht, who allegedly ran the site under the moniker “Dread Pirate Roberts.” Read more of this post

At $47tn, the gross international investment position of the US is 20 times bigger than Brazil’s, 51 times bigger than India’s. Any movement into and out of US assets is sizeable relative to other and may translate into sharp asset price and exchange rate movements

October 2, 2013 10:03 am

Dollar-based system is inherently unstable

By Ousmène Mandeng

The international economy needs more currencies

The international monetary system does not work as intended. An international economy relying predominantly on one currency is inherently unstable. This is amply demonstrated by the recent turbulence in foreign exchange markets. Over the summer, several emerging markets faced sudden reversals in capital flows. Blaming economic fundamentals to explain such shifts misses the point. There are none sufficiently important. Read more of this post

Malaysia is encouraging Thailand to establish a “rubber city” to develop the key sector in both countries and ensure sustainable prices for farmers

Malaysia urges creation of ‘rubber city’ in deep South

PETCHANET PRATRUANGKRAI
THE NATION October 3, 2013 1:00 am

MALAYSIA is encouraging Thailand to establish a “rubber city” to develop the key sector in both countries and ensure sustainable prices for farmers. Under the proposed project, a city would be created in the border area linking Dan Prakob in Songkhla’s Na Thawee district and Kota Putra in the Malaysian state of Kedah. Malaysia wants Thailand to supply raw materials to support its industries producing items such as rubber gloves and tyres. Read more of this post

Stop Trying to Engineer Success

Stop Trying to Engineer Success

by David K. Hurst  |   11:00 AM October 2, 2013

Every organization that aspires to greatness has something to learn from relevant success stories of the past. But how should managers go about unlocking the lessons of those efforts? Many of their consultants advocate an engineering approach:

Find multiple examples of organizations that have coped with equivalent challenges successfully.

Reverse-engineer the reasons for their success, looking for features that they share in common.

Present these shared “success factors” as precepts, rules, and principles that should be implemented by all those who wish to achieve similar levels of success.

This approach sounds great, and the growth of the consultancies pushing it cannot be gainsaid. But it simply doesn’t work. The engineering approach can be described but not practiced. Start by considering an extreme and high-visibility case. At the outset of the Iraq War, President George W. Bush expressed the hope that Iraq would become a federal democracy and a beacon to all the totalitarian states in the Middle East. The Americans then set about creating facsimiles of various institutions – the critical success factors of its own democracy. But if these were necessary conditions then clearly they were not sufficient. Iraq is far from a viable democratic system. Similarly, in the management world, we constantly see the engineering approach being urged and falling short. As just one example, academics W. Chan Kim and Renée Mauborgne examined the emergence of outrageously successful companies like Cirque du Soleil, and claim to have discovered the keys. While never claiming that their case organizations, with their idiosyncratic histories and unique contexts, had consciously implemented their “blue ocean” principles, Kim and Maubourgne argued that it was “as if” they had. How else could they have moved their businesses into positions that so thoroughly defied competition?

Unfortunately this approach has done no more for corporate strategic success than it has for nation states. Managers are presented with inspiring stories from the past that they quickly discover cannot be replicated, and with abstract principles that sound incontrovertible yet cannot be implemented. They might, at best, produce facsimiles of certain features of great organizations, or get learn to say all the right words about what it will take to succeed. But while they can talk the talk, their organizations can’t walk the walk. The fundamental problem with the engineering approach is that simple mechanics do not drive outcomes in complex systems. Where causes and effects are constantly subject to dynamic adaptation, as they are in ecosystems, societies, and organizations, conditions cannot be reproduced. Read more of this post

Was Jesus an Effective Leader? Insights from Reza Aslan’s ‘Zealot’

Was Jesus an Effective Leader? Insights from Reza Aslan’s ‘Zealot’

Oct 01, 2013 Books Law and Public Policy Video Middle East & Africa North America

In his bestselling new book, Zealot: The Life and Times of Jesus of Nazareth, author Reza Aslan’s goal was to write a biography of one of history’s most influential people, drawing on historical sources instead of the traditional Gospels to help people understand the man who would one day be called the Messiah. Wharton legal studies and business ethics professorG. Richard Shell recently talked with Aslan about the life of Jesus, what Jesus taught us about leadership, and how a leader’s message can sometimes change after his or her death. 

An edited transcript of the conversation follows. Read more of this post

Because the results of China’s local government debt audit just can’t come fast enough

Because the results of China’s local government debt audit just can’t come fast enough

David Keohane

| Oct 02 11:15 | 2 comments | Share

SIV/ LGFV/ LGIV/ *shrug*

Whatever you choose to call the vehicles China’s local governments used to fund infrastructure when Beijing restricted financing (we are going with LGFVs here) they are very near the centre of Chinese debt fears. Which means it’d be nice to know how big they really are. From Stephen Green at Standard Chartered (our emphasis): The National Audit Office (NAO) is now carrying out a survey of local government debt. Thousands of officials have been running around the country trying to generate accurate estimates of liabilities at the four levels of local government, down to the township level. At least 10,000 separate legal entities carry this debt burden (some large cities have hundreds of such vehicles), and many have an interest in disguising their liabilities. In addition, a portion of the debt is in the form of inter-company loans and IOUs. The auditors have an extremely challenging task. Read more of this post

ADHD Pill Faces High Hurdle in Europe as Stigma Persists

ADHD Pill Faces High Hurdle in Europe as Stigma Persists

The European debut of a pill to treat children with attention deficit hyperactivity disorder faces a major hurdle: convincing people the condition exists. Shire Plc (SHP), the world’s biggest seller of ADHD drugs, has been rolling out the pill, Vyvanse, in eight countries while discussing the prevalence of the illness with doctors at psychiatry conferences around Europe. More than 90 percent of the Dublin-based company’s sales of ADHD drugs come from the U.S., where the illness is diagnosed about 25 times more frequently than in the U.K. Read more of this post

Tesla is suddenly the No. 1 car in Norway, where the government is using its oil wealth to smooth the way for battery-powered cars

October 2, 2013, 9:09 a.m. ET

Tesla Sedan Roars Ahead in Norway

Norway Has Relatively Small Market But Buyers Are Affluent

SVEN GRUNDBERG And NICLAS ROLANDER

Tesla Motors Inc.’s TSLA -6.24% Model S is suddenly the No. 1 car in Norway, where the government is using its oil wealth to smooth the way for battery-powered cars. The California company’s electric sedan, the Model S, vaulted to become the best-selling car in Norway in September, just its second month on the market. Tesla captured 5.1% of Norway’s total car sales share during the month. The total number of rechargeable electric cars on the road in Norway is estimated to total 14,500 vehicles. (In all of 2012, auto makers sold just 13,427 electric cars in the larger U.S. market, according to figures compiled by the Electric Drive Transportation Association.) Read more of this post

Tom Clancy, whose chillingly realistic novels reflected his knowledge of the military and the changing nature of threats to U.S. while providing Hollywood with fodder for blockbuster movies, has died. He was 66.

Updated October 2, 2013, 12:38 p.m. ET

Best-Selling Author Tom Clancy Dead at 66

STEPHEN MILLER And JEFFREY A. TRACHTENBERG

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Best-selling author Tom Clancy, pictured in 1997.

Tom Clancy’s tightly wound military thrillers grew into a multimedia entertainment franchise encompassing not just novels but also films, videogames and board games.

Mr. Clancy, whose death in Baltimore at age 66 was announced Wednesday by his publisher, G.P. Putnam’s Sons, incorporated current events into his books starting from his first, “The Hunt for Red October,” a Cold War submarine thriller that was a bestseller when it was published in 1984. Read more of this post

Best Buy Updates Decade-Old Site to Double Online Sales

Best Buy Updates Decade-Old Site to Double Online Sales

When Best Buy Co. (BBY) unveiled its new rewards program last month, riffing on the word “my,” the name had a familiar ring. “My Best Buy” sounds a lot like “My Macy’s” from the Macy’s Inc. (M) department-store chain, “MyLowe’s” from home-improvement retailer Lowe’s Cos. and even Zoeller Co.’s “MyPlumbingStuff.” Best Buy Chief Executive Officer Hubert Joly is borrowing that two-letter word and plenty more from rivals to improve the retailer’s e-commerce operations, which even his own colleagues say had fallen a decade behind. While the website won’t seriously vie with Amazon.com Inc. (AMZN) any time soon, Best Buy can harness its brand recognition and status as the largest consumer-electronics retailer to grab e-commerce share. The efforts may already be helping, with Best Buy’s online traffic rising 9.9 percent in August from a year earlier, according to data from Compete.com that the company uses. Read more of this post

The Most Destructive, Unpredictable Force in Tech

October 2, 2013, 1:26 p.m. ET

The Most Destructive, Unpredictable Force in Tech

FARHAD MANJOO

What’s the most destructive force in the tech world, the thing that has nearly killedBlackBerry, BB.T +0.98% pushed Dell DELL -0.07% to go private, and made a mess of Microsoft MSFT +1.01% ? Conventional wisdom in Silicon Valley would finger one of the following technologies: smartphones, tablets, social networks, “the cloud,” app platforms, or some other inscrutable bit of jargon. Actually, though, the most destructive, unpredictable, and fickle force in the tech industry is much closer to home: It’s you and me and everyone we know. Read more of this post