Solbridge interanational school of business |
Korean Organizations and Management |
Final paper |
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Pinaev Lev 201203022 |
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Social capital
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Home > Business
Lg Electronics Donates Solar Power Systems to Typhoon-hit Philippines
November 15, 2013 13:40 l November 15, 2013 13:42
LG Electronics will donate solar power generation systems worth US$100,000 to the islands of Leyte and Cebu in the Philippines devastated by the recent Typhoon Haiyan. Hyundai Heavy Industries will also allow local relief workers to use its heavy equipment such as excavators.
LG Electronics said on November 14 that it would provide photovoltaic power generators to areas affected by the tropical storm before the power grid system is restored. The company also donated $500,000 on November 13 by visiting the Philippines Red Cross. The money will be paid for emergency relief supplies such as food and drinking water. LG Electronics Philippines will set up service camps in areas affected most severely to repair LG home appliances and mobile phones free of charge. The company's union and the employees' volunteer organization also make about US$10,000 in donations.
Nam Sang-geon, LG Electronics vice president responsible for management support, said, "We will try to lend support to those affected with a variety of measures within our capacity."
Hyundai Heavy Industries also said on the same day that it would donate $200,000 through the Korean Red Cross, with 21-ton excavators and equipment operators.
Analysis
Action : Donation of Power Systems and $500,000 to Typhoon-hit Philippines.
First of all, I want to say that LG is multinational corporation, that means that their actions under observation of millions of people all around the world. According to the article LG donates Solar Power systems to victims of typhoon, and everybody saw this act of mercy in news. Through this action LG shows their social responsibility, and this is very important because in modern Korea, where level of social distrust one of the highest, action like this is very valuable, even it was outside Korea.
Affect: Social capital
Donation of Power Systems and money has significant impact on Social Capital of LG Corporation at all. As we know rivalry between Chaebols is extremely high, and here in conditions of tough competition Samsung Corporation is the undisputed leader. Of course fight for customer loyalty is continue every day in different ways and one of these ways is fight for increasing of social capital. I believe that by this action LG increased their social capital because people will know that, by purchasing LG products, they support victims of cataclysm. And when donation will done, customers will still keep in mind that in tough times LG Corporation will help. And this is totally different view on firm because level of social trust to LG will significantly increase.
Authority Prosecutors to probe Celltrion CEO By Na Jeong-ju
Seo Jung-jin, CEO of the country’s largest bio firm Celltrion, will be investigated by prosecutors for allegedly manipulating the stock price of his company, the Securities and Futures Commission (SFC) said Tuesday. The commission, which has conducted its own probe into Seo’s involvement in stock manipulation, said it has decided to refer the case to the prosecution. The fraud case represents a dramatic fall from grace for Seo, once called the living legend of the bio industry. He founded Celltrion in 2002 in the midst of a venture boom, and nurtured it into becoming the biggest firm on the tech-laden KOSDAQ bourse in terms of market capitalization. But he is now on the verge of becoming another venture company CEO who may end up in prison. According to the SFC Seo engaged in illegal stock trading, along with some friendly investors, early this year, using insider information. Earlier, regulators said they found evidence showing Seo and some others bought shares just before the firm unveiled favorable measures for stock investors. He is also suspected of having misused his status to inflate Celltrion’s stock price. Seo may face charges of stock price manipulation and engaging in insider trading. The investigation began in April after Seo vowed to sell his entire stake and find a new owner for Celltrion in an effort to protect the firm from short-selling investors. At the time, he criticized regulators for taking little action against short-selling, saying his firm and the rights of minority shareholders had been damaged for years by speculative traders. However, regulators concluded that there was no manipulation of the stock price by short-selling investors. Seo scooped up shares just before the company announced a share buyback plan in April. One day later, it unveiled another plan to issue new shares. After these announcements, the firm’s stock price skyrocketed. Analysis Action: Prosecutors to probe Celltrion CEO Target: Seo Jung-jin, CEO of the country’s largest bio firm Celltrion. He is accused for fraudulent with stocks of the company. Nowadays the influence of the owner’s families on business in Korea is extremely high. According to the article he used his authority in illegal actions such as stock price manipulation and insider trading. Through his authority he encouraged some other people to do illegal things. Affect: Article shows us how powerful and respectful businessman can use his authority in bad purpose. As he was caught and now everyone knows about it, this fact will have bad influence on his authority in the future. Before this, he was called the living legend of the bio industry and founder of Celltrion, but after this scandal he will became well known also as a fraudulent. He and his family will face distrust in business sphere and it will take years before he get back trust among ex-partners and government.
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Ownership
Groupon to buy Ticket Monster
By Kim Rahn Ticket Monster, one of the nations’ major social commerce service providers, will be acquired by Groupon, the world’s No. 1 player in the sector, according to company officials, Friday. The takeover comes about two years after Groupon’s rival deal-of-the-day website LivingSocial acquired the Korean firm in 2011. It was part of Groupon’s mobile business expansion plan in Asia, especially in Korea. Announcing its third-quarter performance, Groupon said Thursday it is buying Ticket Monster for $260 million in cash and stocks. They expect the merger process to be completed in the first half of next year. Ticket Monster will be wholly owned by Groupon if the country’s anti-trust regulator approves the deal. After the merger, Ticket Monster will maintain the brand name, and its key executives and staffers will be able to keep working there. Officials of Ticket Monster said the acquisition and Groupon’s support will give the company competitiveness for sustainable growth in Korea where the social commerce market is growing at the world’s fastest pace. “I’m glad to join the vision and scale of Groupon, which seeks innovation for sellers, buyers and partners as the world’s representative social commerce service provider,” said Daniel Shin, CEO and co-founder of Ticket Monster. “We’ll create a bigger business opportunity by combining Ticket Monster’s knowhow on social commerce built in the last three years and Groupon’s global networks,” Shin said. Groupon CEO Eric Lefkofsky said in a statement, “Ticket Monster is a perfect fit for Groupon as we continue to transition our business globally from a flash sale email model to a mobile commerce marketplace.” “Ticket Monster has a vibrant and growing marketplace in one of the world’s largest ecommerce markets. Coupled with outstanding mobile penetration and expertise in local, travel and products, they will help us accelerate our overall growth, provide immediate scale and serve as a cornerstone for our operations in Asia.” Groupon Korea started business here in March 2011. Despite the global presence, it has had a tough game against strong rivals of Ticket Monster, Coupang and WeMakePrice. Ticket Monster, which started operating in 2010, has grown rapidly to become one of the nation’s top social commerce service providers. It recorded annual transactions worth more than 900 billion won as of this month, the largest among local service providers. More than half of its transactions were done on mobile devices.
Analysis
Action: Purchasing of Ticket Monster by Groupon. “Ticket Monster is Korean major on-line platform for buying and selling of products and services online. The company provides offers online discount offers. Ticket Monster Inc. was founded in 2010 and is based in Seoul, South Korea.”(crunchbase.com).
Target: Groupon wants to buy Ticket Monster in purpose of expansion Asian market. Groupon already exist in Korean market, but market share is low. That’s why Groupon decided to acquire Ticket Monster.
Affect: According to the article, acquisition of Ticket Monster will change only ownership, all significant managers and CEO will keep their positions. Before action, Ticket Monster has 4 Co-founders which were owners. After that they will keep only co-founders statuses and different high positions, but not ownership.