Cgms 691

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3. Describe Japanese Zaibatsu and Keiretsu (including types).

-zaibatsu: earliest business group, helped Japanese pool talent and capital to catch up to the industrialized nations -owned by family or extended family

-Keiretsu: functioned similarly but formed around a central bank that controlled the flow of money and held equity, help avoid takeovers, as banks were seen as supreme power –no family ownership, and each firm is separate legal entity that works as part of a network of firms

4. Identify three current Japanese Keiretsu. Know the basics they offer.

-Mitsubishi, Toyota, Mutsui

5. Describe South Korea Chaebol (including categories).

-global multinationals and own numerous international enterprise, controlled by chairman with power over all the operations

-family owned business conglomerate

6. Identify two current South Korean Chaebol. Know the basics they offer.

- Hyundai, Samsung, LG family

7. Describe Indian Business House.

-must contend with complex relationships between members

-collection of publicity traded firms in wide variety of industries with significant amount of common control, usually by family

8. Identify two current Indian business houses. Know the basics they offer.

-Tata group, AdityaBirla Group

9. What are the advantages of Business Group?

-ability to leverage the resources of larger group of companies to gain competitive advantage

-risk sharing

-reduce transaction cost

–access to quasi-internal capital markets (able to obtain capital from cash-rich members of the group)

-provide source of scarce human capital (companies in need of top managers can source them from other members in the group)

- reputation signals quality (affiliated companies can benefit from that reputation)

10. What are the drawbacks of Business Group?

-minor shareholders can be locked out of decision making process

-poorly performing managers may be difficult to replace as they are selected by members of elite (controlling elites are top executive, managers/shareholders)

-powerful business groups can possibly become corrupt and exercise monopolistic powers instead of competing fairly.

Article "The Many Futures of Asian Business Groups"

1. Identify a business group in Singapore. How is it linked to the government?

2. What kind of business groups exist in Thailand, Malaysia, Indonesia, Philippines?

3. What are the Bumiputera groups in Malaysia and Indonesia?

4. What type of business group is in China?

5. Describe the brief history of Asian Business Groups. (article and Module 3)

Article "Business Groups and Their Types"

1. Separates business groups into three types based on ownership, what are the three types?

Learn the basic differences.

2. Following definition in the article, please identify the name of one business group for each of

the three types of business groups. They can be from any of the ten countries we cover.

3. This article considers business group as a type of firm network, and it identifies five types of firm

networks in terms of relationships among firms. Please identify the five types of firm networks

and know their basic meanings.

4. Please identify three potential problems of business groups outlined in this article.

CGMS691 Module 4 Sample Questions W2017

Questions about the World Bank Doing Business 2017 report:

1. How many economies are compared according to business regulations on domestic firms? -190 economies

2. What method does World Bank use to collect data from 190 economies?

3. There are three new areas included in 2017 Doing Business report (excluding country added), please identify them.

4. 2017 report identifies ten economies that improve the most across 3 or more areas measured by 2015/2016 report, which one is covered by CGMMS691?

5. Fill-in-the blank: Doing Business measures aspects of regulation that enable or prevent private sector businesses from starting, operating and expanding. These regulations are measured using 11 indicator sets: 1. starting a business, 2. dealing with construction permits, 3. getting electricity, 4. registering property, 5. getting credit, 6. protecting minority investors, 7. paying

taxes, 8. trading across borders, 9. enforcing contracts, 10. resolving insolvency and (11.) labor market regulation.

6. Please learn and understand the definition of the 10 Doing Business indicators (excluding labor market regulation).

7. Please identify two additional indicators not directly included in the ranking of economies.

-labor market regulation and selling to the government

8. Of the ten countries covered in CGMS691, if ranked by income level, please identify countries in each of the following categories: high income, upper middle income, lower middle income.

-high: Singapore, japan, south