JAPAN - Massachusetts Institute of Technology



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Table of Contents

Itinerary:

• South Korea 3

• Japan 4

• Hotel Information 5

Country Profiles:

• South Korea 6

• Japan 10

Companies Profiles:

Korea Telecom Inc. 14

METI 16

• Netyear Group Corporation 18

• NTT DoCoMo 19

Samsung Electronics Inc. 20

• Sony Corporation 22

• Toyota 25

Sponsor Profiles:

South Korea

• Samsung Electronics Inc. 27

• Olympia Hotel Seoul 27

• Mr. Hyun-Jong Song 27

Japan

• IMCA Inc. 28

• Nomura Securities Inc. 28

• Fuji Photo Film Co., LTD. 28

• Bain & Company Japan, Inc. 29

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:/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



SUIMEIKAN (1 night) 3-in-one room

Gero, Masuda-gun, Gifu

Phone: (0567) 25-2800

Fax: (0567) 25-4520



Nomura Training Facility (4 nights)

1-in-one room

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

108-0074

Phone: (03) 3444-7711

South Korea

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Data Sources: , 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

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Sources: , 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.

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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:

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.

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

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Minister: Takeo Hiranuma

Main Office: Tokyo, Japan

URL:

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

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President, Co-CEO: Fujiyo Ishiguro

Founder, Co-CEO: Satoshi Koike

Headquarters: Tokyo, Japan

Number of Employees: approximately 100

URL:

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

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President and CEO: Keiji Tachikawa

Headquarters: Tokyo, Japan

Revenues (2000): approximately $32,036 million

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

URL:

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.

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Samsung Electronics Inc.

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CEO: Jong-Yong Yun

Headquarters: Seoul, Korea

Revenues (1999): $22,810 million

Number of Employees: 43,000

URL:

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

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Sony Corporation

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CEO: Nobuyuki Idei

Headquarters: Tokyo, Japan

Revenues (2000): $63,082 million

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

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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.

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Toyota

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President, Director: Hiroshi Okuda

Headquarters: Toyota City, Japan

Revenues (2000): $109,609.2 million

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

URL:

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.

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|Sources of Information for Company Profiles |

o Companies’ webpages

o Yahoo!

o ING Barings’ reports

o Goldman Sachs’ reports

o HBS Case # 9-793-034

o Samsung Electronics’ 1999 annual report

o UBS Warburg’s reports

o Institutional Shareholder Services - Samsung

SPECIAL THANKS TO ALL OUR SPONSORS!!!

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South Korean Sponsors

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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.

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[pic] 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.

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Mr. HYUN-JONG SONG (SLOAN ALUMNUS)

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Japanese Sponsors

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imca.co.jp

Japanese Leading Executive Search Firm Since 1967

Recruiting 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.

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[pic] 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.

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[pic] 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.

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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.

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

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[pic] 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.

[pic] 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.

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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.

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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

Sung Ahn

Chung Lee

Junji Horinouchi

Junichi Nonami

Koji Sugaya

Team Member

Funding

Organizer: Koji Sugaya

• Haakon Brown

• Mario Lewis

• Berrak Dogruer

• Tamara Lucero

Company Presentation

Organizer: Junichi Nonami

• Grace Webber

• Madison Iler

Sponsor follow-up

Organizer: Junichi Nonami

Chung Lee

• Elizabeth Rounsavall

• David Harelick

• Julian Carey

Promotion

Organizer: Junichi Nonami

• Will Chu

• Rafik Ward

Trip Handbook

Organizer: Junji Horinouchi

• FabioArmani

• Tamara Charm

• Mazen Ferzly

• Wendy Miller

Resume Book

Organizer: Sung Lee

• Anupama Bhave

Travel Issue

Organizer: Junji Horinouchi

• Jennifer Goodwin

• Maria Metzger

Course Preparation

Organizer: Koji Sugaya

• Luis Pintado

Accounting Budgeting

Organizer: Junji Horinouchi

Chung Lee

• Yuki Wada

• Jose De Oteyza

Website

Organizer: Junichi Nonami

• Gary Mi

• Brian Toll

Trip Recording

Organizer: Sung Ahn

• Douglas Roach

• Nguyen Hiep

• Aaron Cowen

• Natalie Brain

Survival Book

Organizer: Junji Horinouchi

Chung Lee

• Tony Palumbo

• Fyke Aaron

• David Grosof

Cultural Activities

Organizer: Koji Sugaya

Sung Ahn

• Mario Lewis

• Xiuping Li

• Haakon Brown

• Jannifer Barker

• Gregoire Zelenka

Cover Design

• Mazen Ferzly

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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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