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1 Case Studies in Asian Management

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3 Case Studies in Asian Management Editor Parissa HAGHIRIAN Sophia University, Japan World Scientific NEW JERSEY LONDON SINGAPORE BEIJING SHANGHAI HONG KONG TAIPEI CHENNAI

4 Published by World Scientific Publishing Co. Pte. Ltd. 5 Toh Tuck Link, Singapore USA office: 27 Warren Street, Suite , Hackensack, NJ UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE Library of Congress Cataloging-in-Publication Data Case studies in Asian management / edited by Parissa Haghirian (Sophia University, Japan). pages cm ISBN (hardcover : alk. paper) 1. Management--Asia--Case studies. I. Haghirian, Parissa, 1970 HD70.A7C dc British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. Copyright 2014 by World Scientific Publishing Co. Pte. Ltd. All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the Publisher. For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher. In-house Editor: Monica Lesmana Typeset by Stallion Press enquiries@stallionpress.com Printed in Singapore

5 Contents About the Authors Introduction 1 Section I: The People s Republic of China 9 FamilyMart s China Expansion 11 TsingHsuan Kuo Alibaba: Facing its Thieves 33 Xiaozhou Wu Li Ning: Make the Change 55 Jiawen Tu Shiseido in China When Politics Interferes with Business 67 Kaoutar Lazrak vii Section II: Japan 85 UNIQLO: A Stitch in Time 87 Beatrice Reboux The Suntory Highball Revolution: Can a Type of Drink Save an Industry? 103 Thomas Anderson III v

6 vi Contents A Tale of Three Companies: The Survival Strategies of Sony, Hitachi, and Canon 119 David Trappolini Section III: India 147 Doing it the Toyota Way in India? Managing Unsettled Labor Relations at the Toyota Subsidiary in India 149 Christian Knuth Section IV: Korea 169 KIA Motors Facing Globalization Challenges 171 Marc David Hercaud Section V: The Philippines 183 Brightening Philippine Airlines (PAL): Strategizing for the Future of Asia s Pioneer and Sunniest Air Transporter 185 John Paul D. Antes The Birth of the WATERCCOOP in Cagayan de Oro City 201 Anselmo B. Mercado Section VI: Cross-Cultural Encounters 217 Visiting my Australian Friend s House 219 Mai Kaneshiro A Peck on the Cheek 223 Emi Inamoto Index 227

7 About the Authors Thomas Anderson III received his BS in Economics from St. John s University in Minnesota, USA and his Masters in International Business and Development from Sophia University s Graduate Program of Global Studies in Tokyo. He currently works as a tax associate for PricewaterhouseCoopers in Tokyo. John Paul Datugan Antes is a career civil servant in the Philippine government. He has served the Philippine Senate and the Philippine Council for the Welfare of Children. He is presently connected with the Philippine Sugar Regulatory Administration. He earned his Master s degree in Public Administration from the University of the Philippines-Diliman in 2008 and his Master of Arts in International Business and Development Studies from Sophia University, Tokyo, Japan in 2011 through Japan Development Scholarship (JDS). He plans to pursue his Ph.D in the near future. Parissa Haghirian is Associate Professor of International Management at the Faculty of Liberal Arts at Sophia University in Tokyo, Japan. She is a visiting professor at Groupe HEC in Paris, Aalto University, Keio Business School, and an adjunct professor at Temple University in Tokyo. Parissa holds a master s degree in Japanese Studies (University of Vienna) and a master s and doctorate degrees in International Management (Vienna University of Business, vii

8 viii About the Authors Austria). She has published several books and articles on the topic and is the author of Understanding Japanese Management Practices. Marc David Hercaud graduated in 2012 from the ESSCA School of Management, France, holding a Master s degree in Banking and Risk Management. He did in 2010/11 a one-semester exchange program at Sophia University s Graduate Program in Global Studies, Tokyo. He is now working as a Treasury & Corporate Finance Officer for RTL Group (leading European mass media network), Luxembourg. Emi Inamoto graduated in 2010 from the Faculty of Liberal Arts at Sophia University, Tokyo, Japan, with a major in International Business and Economics. Upon graduation, she attended Waseda University for one-year to focus on the Japanese Language. She now works as an assistant buyer for Storage plants, mainly, Liquified Natural Gas (LNG) plants at Japan s leading heavy industries company. Mai Kaneshiro graduated in March 2012 from the Faculty of Liberal Arts in Sophia University, where she majored in International Business and Economics. After graduation, she has been working at Google inc. Japan office. TingHsuan Kuo received her BS in Economics from National Taiwan University and did a one-year exchange program at Hokkaido University in Japan. She is currently pursuing her Masters in International Business and Development at Sophia University s Graduate Program of Global Studies. Her research primarily focused on Japan Taiwan business alliance in the Chinese market. Christian Knuth graduated as Industrial Engineer majoring in Chemical Process Engineering at the Berlin Institute of Technology. He studied abroad at Sophia University from 2010 until 2011 in Tokyo with a focus on International Business and Development issues e.g., resource economics and environment. He finished his diploma

9 About the Authors ix thesis on process costs of carbon dioxide capture and storage technologies at Volkswagen Group s R&D department in Kaoutar Lazrak received her Master s degree in Marketing in Rouen Business School, France. She was an exchange student at the Sophia University s Graduate Program in Global Studies in Tokyo, Japan. Kaoutar worked as a Sales & Marketing intern in luxury hotels like Aldrovandi Villa Borghese, Rome and La Mamounia Marrakech, Morocco. Dr. Anselmo B. Mercado is a retired Professor of Rural-Social Development in the College of Agriculture, Xavier University, Cagayan de Oro City, Philippines. He was Director of the South East Asia Rural Social Leadership Institute (SEARSOLIN), Xavier University ( ), former Dean of the College of Agriculture, Xavier University ( ). He holds a Bachelor s Degree in Agriculture, major in Animal Husbandry, from Xavier University (1963), a Master s Degree in Adult Education from the Virginia Polytechnic Institute and State University, USA (1973), and a Doctorate Degree in Education from North Carolina State University, USA (1985). He has chaired the Study Committee and the Steering Committee in the crusade for making the Water District a cooperative (since December 2007 up to the present.) He was elected as chairman of the interim Board of Directors of the WATERCCOOP. Beatrice Reboux grew up in Charente Maritime, South West France. She graduated from ESLSCA American business school in Paris with degrees in Management and Entrepreneurship. She moved to Japan in 2010 and entered Sophia University in There, she studied International Business and Development Studies while working parttime for a japanese consulting company. Beatrice Reboux is interested in cross cultural behavior, mainly Japanese corporate behavior. She practices yoga and loves traveling.

10 x About the Authors David Trappolini graduated in 2013 from Louvain School of Management in Belgium with a Master s degree in Business Engineering. From 2012 to 2013, he attended in an exchange program at Sophia University in Tokyo where he participated in the Graduate program in Global Studies. During his internship in an energy company in Brussels, he completed a Master s thesis on the application of activity-based costing concepts to transmission tariffs of electricity. Tu Jiawen received her Bachelor s degree in Law from Wuhan University, China and a Master s degree from Sophia University in Japan majoring in International Business and Development. Xiaozhou Wu is currently a consultant in the Transaction Advisory Services Ernst & Young in Germany. He holds a Master of Science degree in business administration at Ludwig-Maximilian-University of Munich, Germany. He received his bachelor's degree in business administration from Zhejiang University, China in 2010.