Korea Chaebols sometimes employ fake CEOs to keep control Have continued to

Korea chaebols sometimes employ fake ceos to keep

This preview shows page 31 - 34 out of 48 pages.

- Korea Chaebols sometimes employ ‘fake’ CEOs to keep control - Have continued to expand - Sell stocks to family members for lower price - Unions/political unrest in 90s encouraged Chaebols to tighten A key difference between Keiretsu and Chaebols: - Bank
Image of page 31
IBUS20001: BUSINESS IN ASIA - Chaebols cannot own shares in banks: so what did they do? - Internal market transactions – setting the price so low that it does not cover the overhead for R&D - Other firms within the group must make up the difference in other ways without external monitoring Singapore - Population: 5.60 million (of whom 3.3 million are Singaporean) (113 th ) - Economy: GDP (nominal) Total USD 508 billion (39 th ) - Politics: o Independent on 9 th August 1965 o Political system is a representative democracy - Business o Successful and transparency market economy o The least corrupt country in Asia, and among the world’s ten most free from corruption countries o Government-link companies (GLCs) are dominant in various sectors o Strong in labour force, skilled-labour, strong HRM - Multicultural and multi-religious country - Languages o Official languages are English, Malay, Mandarin and Tamil o English is the administrative language since its independence Lee Kuan Yew: The founding father of Singapore - First prime minister 1959-1990, also former senior minister and minister mentor - Former chairman of the board at government of Singapore investment corporation (GIC) - Led Singapore to a financial and industrial powerhouse, and the most prosperous nation in Southeast Asia - One of the most influential political figures in Asia - Retired on 14 th May 2011 - Died on 23 rd March 2015 Lee Kuan Yew’s 3 Business Principles: - Domestic firms should globalize (not just regionalise) - Reregulation of telecommunications and financial sectors, removing 40% shareholding limit for local banks - Nominating committees for all local banks (that required government approval) Singaporean government: - Government drives economic development - 1960s, establishing state enterprises (GLCs) in key sectors - 1974, established Temasek Holdings (the ministry of finance) - GLCs strong financial performance o Many listed on the Singaporean exchange o Viewed as proactive supportive, effective and controlling
Image of page 32
IBUS20001: BUSINESS IN ASIA - Current challenges and changes: o Economic development is a collaborative process o Liberalisation of domestic markets, e.g. telecom o Support internationalisation of Singaporean companies Government-linked Company (GLC): - It is a corporate entity that may be private or public where an existing government owns a stake using a holding company - Helped improve efficiency of SOEs and help Singaporean companies compete on a global scale - Becoming less important, 13% of GDP in 2002, dropping down to below 10% now - Global leaders/companies - Plans to privatise more in the future The Temasek model: - SOE to GLCs - Allows the state to distance itself from GLCs (but retain ownership) - Not day to day, no hiring either - Meets regularly - Hires outside consultants to do reports Regulations on GLCs - Institutional checks on GLCs by performance benchmarks -
Image of page 33
Image of page 34

You've reached the end of your free preview.

Want to read all 48 pages?

  • '19
  • Business, Asian Financial Crisis

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes