War Against Fast Food Chains
U.S. Government’s Financial Shutdown and Aftermath
Will Kimchi Be On UNESCO’s List?
Expensive Wedding Expenses
The High-Handedness of Big Corporations
Smart Phone Addiction: Students Can Go Through Serious Side Effects
Apple’s New Items – iPad Air & iPad Mini2
The True Meaning of Comparative Advertisements
Fast-Food Burgeon in Africa
Dong-Yang Company Abandons People’s Expectations
McDonald's Bids Farewell to Heinz, and Its Effect
The Only Way to Survive: Sustainable Management
Sugar Industry Jeopardized?
Euro Records Highest Point in 2 Years
Economics in Professional Baseball
China Attacks Foreign Tech Companies
Greenland, the Last Pure Land
Writer: Na Eon Kim Editor: Jungyun Choi
Fast Food Chains
U.S. Government Shutdown
Kimchi on UNESCO
High-handedness of corporations
4 5 5-6
Africa Fast Food
McDonald’s & Heinz Sustainable Management Sugar Industry Jeopardized Euro Records High Point Economics in Baseball
Volume 2. News 11.
War Against Fast Food Chains
Apple’s iPad Air & Mini2
The TeenBiz Editor: Stephanie Y.
This Month’s Hot News:
The Entirely Student-Run Business Newspaper:
7 8-9 8 9 9-10
China Attacks Foreign Tech Companies
Fast food strikes are occurring all over the U.S as angry employees argue for a raise. For years, the industry had remained relatively safe from such activity. The high turnover rate for the job and the extremely complicated corporate structure made it difficult for many workers to actively engage in a uniform movement against the industry. Rather than opting for a strike, many workers would usually just quit and seek other more higherpaying jobs, and as for franchises, although they are partially responsible for the workers’ salary, they are tightly controlled by the official headquarters, leaving no room for them to arbitrarily raise pay for employees. In the case of the recent strikes, this movement seems to signify more of an effort to campaign for a higher minimum wage rather than an effort to truly form a union. The federal minimum wage is $7.25 an hour and fast food workers receive a salary that is seldom above this amount. Thus, rather than trying to face the industry in raising their pay, the workers are trying to promote public
awareness so that the minimum wage can be raised instead, which would fundamentally reduce their financial problems. Instead of the traditional ways, the strikers have adopted tactics from the “Occupy Wall Street” movement. Recently, a video released by the labor advocacy group “Low Pay is Not OK” has also gained great public attention. Telling the story of a 10 year McDonalds worker, Nancy Salgado, this video has shown how after Nancy called the company’s hotline for financial guidance, she was only told to sign up for food stamps and to visit food pantries. She was never given a raise in her 10 years at the fast food chain, receiving only a pay of $8.25 per hour. While McDonalds argue that “The video is not an accurate portrayal of the resource line as this is very obviously an edited video,” this situation has still brought great concern over this matter. Action against the fast food chains have spread
greatly across the nation, with the strikes going across seven major cities including New York and Chicago. However, recent news show that such problems may not be only limited to fast food chains as workers from stores such as Victoria’s Secrets and Macy’s join the movement to raise work pay.
Employees go on a war against fast food chains over a low pay / © FreeDigitalPhotos.net
U.S. Government’s Financial Shutdown and Aftermath Writer: Bongha Lee / Editor: Jungyun Choi The House voted the Senate proposal with overwhelming majority of 285 to 144. The proposal promised to fund the government until January 15 and raise the debt limit by February 7. The budget fight over the Obama's new health care, Affordable Care Act, was bitterly set on the agreement to avert a financial default, and to avoid potential economic repercussions. In consequence, a catastrophic economic crisis of $ 24 billion dollars was observed during the 16 days of government shutdown, according to an analysis from Standard & Poor. National debt's widespread effect furloughed a large number of employees in the government and fueled down the financial uncertainty with country's statutory debt ceiling.
debt will disable the U.S. to offer a global coverage at the risk of credit. Observing the greatest victim from the governmental recession were the national recreation centers, such as tourism, national park, childcare, and military services. $76 million per day was lost due to National Parks being shut down, according to the National Park Service. $217 million per day was lost from federal and contractor wages in the Washington D.C. metropolitan area alone. $152 million per day was lost from travel expenditures, according to the U.S. Travel Association; about $ 3.1 billion was lost from government services, according to the research firm IHS. Senate and House's proposal of economic recovery through government funding until January 15 should be the financial sprinter to achieve economic stability.
Governmental services which had been provided with millions of dollars ($450,000 / day) is now in the shuttered state. Business companies now call for compensation from the late checks and disruptions. In comparison to the estimated cost of $1.5 billion dollars, approximately $2.2 billion, from President Bill Clinton's administration to President Obama's, the economic doom had uncontrollably been at hand. The S&P has cut the annual U.S. growth rate from 3% to 2%, according to Bloomberg’s report. This means a 0.6% economic cut off from the yearly fourth quarter GDP growth. Should a default occur, the unplanned economic recession will wipeout 4% of the GDP. The independent research program from S&P reported that the depreciated U.S. credit rating from unpaid
U.S. Government Shutdown Imposes Problems / © Jimbakkershow.com
Will Kimchi Be On UNESCO’s List? Writer: Ha Yeon Kim Editor: Seunglee Lee UNESCO may officially acknowledge Kimchi, which is full of lactic acid and is well known as a Korean traditional side dish. The Cultural Heritage Administration (CHA), UNESCO’s subsidiary body, recommended registering “Kimjang,” which is an act of making Kimchi, as an intangible cultural heritage asset. The UNESCO will make its final decision in early December. If UNESCO determines to put Kimjang on its intangible cultural heritage list, Kimjang will be Korea’s 16th cultural element to be on the list. Korea’s traditional music ‘Pansori’ is one of them, as well as annual memorial services at the Jongmyo Shrine and the traditional “Dano Festival” in Gangneung. The CHA regarded Kimchi and the act of making
it very highly as its process is considered as a representation of Korean identity, which is best characterized by its cohesiveness. Korean government suggested the registration of Kimchi to UNESCO in March, 2012. UNESCO currently lists French, Mediterranean and Turkish cuisines as food culture heritage. It will announce the new additions during its Intergovernmental Committee for the Safeguarding of Intangible Cultural Heritage conference, which is scheduled to be held from December 2 to 7.
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Expensive Wedding Expenses Writer: Taeju Kim Editor: Annie Song The season for weddings is approaching, and many couples are getting ready for their wedding marches. However, due to the social perception that having a grand wedding ceremony is part of showing off one's social status, wedding expenses are becoming extremely high, imposing a great burden for young couples and their family. The Korea Consumer Agency has done a survey on 1000 people who had their weddings in the last two years. According to the survey, for the last two years, the average cost of a wedding was 51million 980 thousand won per person, without taking into account the money needed to get a house. The cost differed slightly according to gender. Men paid an average of 54,140,000 won, and women paid an average of 47,840,000 won. There is an even bigger gap from income. While low income houses had weddings of approximately 3,340,000 won, wealthy people had weddings worth of 336,500,000 won. In brief, the cost was about 100 times higher. Not only this, but there is also the cost of getting a house. which costs
Expensive wedding expenses impose burdens on Korean newly-wed couples / © Lalawin.com an average of 272 million won and thus, this research as the basis, the Korea making this item the greatest burden to Consumer Agency is thinking of ways people. to supply cheap and simple weddings, starting with the effort to increase 77 percent of the people who public facilities that can be used for participated in the survey thought weddings. positively of borrowing public facilities for a cheap price, but a lack of supply prevented them from using them. With
The High-Handedness of Big Corporations Writer: Youngju Kwon Editor: Annie Song Nowadays the high-handedness of big corporations is getting worse and worse. Medium and small firms have few market power and money. In contrast, big corporations have huge capital and power, and they can expand their area easily. Government pursue a harmony between small businesses and big corporations. However, big corporations have abused their power in reality.
from a master he met. He came back to Korea and started his own enterprise with a friend, Ahn. After only a week from their launch, they achieved great success and earned a lot of money. Kim even appeared in a TV program as a “Master” once. However, he was abandoned by Ahn a few days later for his appearance. As Kim resisted himself from the truth, Ahn threatened him more, saying, "You will never beat me."
A few days ago, a broadcasting company reported a case of the high-handedness of big corporations through their program, called “The Tear of Strawberry Glutinous Rice cake”. This program talks about Min Su Kim's heartbreaking story. While he was in Japan, he coincidentally tasted strawberry glutinous rice cake. Kim liked that flavor very much, he tried to learn the recipe of the strawberry glutinous rice cake.
In fact, Ahn had already signed a contract with Daewong Holdings, a big corporation, in secret. Kim did not do anything wrong, but his partner and the corporation have too much power over him. Kim felt that he could never win against them, so he wrote posts on the Internet. As more people read his post and cheered him, the fight between Kim and Ahn is still on-going.
Finally, Kim found out about the secret of the flavor
Continued on Page 4
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The High-Handedness of Big Corporations - Cont’d The high-handedness of big corporations appear in many areas in our current society. It is clear that there are many differences between small businesses and big corporations. Even so, both have the same advisable role in society: to improve our society's growth. In order to protect the small businesses, the government should set appropriate rules, and people should act according to conscience.
Small enterprises continue to suffer while big corporations become even bigger / © FreeDigitalPhotos.net
Smart Phone Addiction: Students Can Go Through Serious Side Effects Writer: Yei Rim Jun Editor: Jungyun Choi We can see many students who easily use smart phones with bending their heads in various places. Smart phones give convenient accessibility and information to people and they have become modern people's daily life necessities. However, because they do not keep their eyes off of their smart phone even for a short period of time, there are various side effects to smart phone addiction. Ministry of Science ICT and Future Planning in Republic of Korea announced in the "2012 Internet Addiction Actual Condition Survey", that adolescent's smart phone addiction percentage has increased by 7% compared to previous year (11.4%).: teenager 18.4%, young people in their twenties 13.6%, people in their thirties 8.1% , people in their forties 4.2%. The teenage addiction percentage showed the greatest increase. Shin Ui Jin pediatric psychiatrist specialist, the author of "the digital world makes children feel pain,” pointed out that digital devices like smart phones’ strong influence can disturb the children's emotional development and social development. Moreover, it can cause the frontal lobe growth problems. Also in the worse cases, a person’s brain would want even more impetuous action, more resplendencies, which can cause brain pursuing stimulus called the "Popcorn Brain".
Teenage smartphone addictions are risking teenage health / © Photo provided by Yei Rim Jun Smart phone addiction. They are not only mental problems like attention loss, game addiction, sociality problem, etc. They also consist of body type problems like forward head posture. Using smart phone for a long time causes teenager’ necks to bend, stretching forward like a turtle. Turtle neck makes a person’s side line look bad and becomes the reason of an undesirable body shape, causing one’s shoulder and spine to bend unnaturally. But most students do not know that smart phone addiction can change their body stooped. That is why it is important to straighten one’s body. Always let the smart phone in eye level, and every 30 minute we must stretch our
body, and do neck stretching. That way you can prevent your body from being hardened. Smart phone is a digital device that can bring convenience into people's lives but at the same time it give us several problems. We must straighten our posture while using smart phone to maintain a healthy body, and nurture a habit of using it, if possible, only when greatly needed.
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Apple’s New Items – iPad Air & iPad Mini2 Writer: Hyunsue Jung Editor: Seunglee Lee the current trend, Apple has created Apple introduced new iPads on these new items. October 22. Apple held a conference in San Francisco to showcase the new items. iPad air is new in that it is 28% They introduced iPad Air and iPad mini lighter and 20% thinner than the 2 at this time. previous model. According to the Senior Vice President of Apple, iPad air Apple had the strongest power has 72 times faster calculation rate than in the global market until Samsung rose the prior product. Meanwhile, iPad mini to power. Apple has been a forerunner 2 has higher resolution, the same as that in the tablet PC market and still is one of of an iPhone. the most powerful IT companies. However, they are now competing with In addition, Apple announced Microsoft, Amazon, Samsung, and other to offer a free software to customers, strong corporations. To outcompete meaning that they will be competing
with Microsoft, the largest software system in the world. Microsoft earns huge amounts of money every year by selling software system “Office.” Apple announced that they will provide their own program, iWalk, to customers who buy their new items. iWalk consists of Pages (similar to MS Word), Numbers (similar to MS Excel), and Keynote (similar to MS Power point).
Apple Inc. releases new items, iPad Air and iPad Mini2 to combat the over-crowded Smartphone market/ © Photo provided by Hyunsue Jung (left), © www.one.it (right)
The True Meaning of Comparative Advertisements Writer: Eunyoung Lee Editor: Stephanie Y. As a common notion, an advertisement is the act or process of notifying one company to public. But there is a particular advertisement that advertises another company and not one's own company. That is comparative advertisement: advertising the superiority of one’s company through comparison. America is the biggest market of comparative advertisements. Since 1972, when Federal Trade Commission allowed the action, a lot of companies have compared their own with another. Pepsi undermines its rival company, Coca-Cola through comparative advertising / © Pepsi.com
Continued on Page 6
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Fast-Food Burgeon in Africa Writer: In Hyuk Kim Editor: Annie Song These days, the sub-Saharan African nations have experienced the world’s fastest-growing economies. Consumer spending rapidly increased by about 60% of sub-Saharan Africa’s GDP. Even though many of them have suffered from economic problems, African nations are reviving. Nigeria, for instance, is one of the African nations that has been facing serious social problems such as huge gap between rich and poor, income inequality and poverty. However, the Nigeria’s GDP is assumed to grow by 6.6% in this year. Furthermore, South African plays as an important role in attracting many foreign companies to run business in the African continent.
Kentucky Fried Chicken and Domino’s pizza have started to expand their businesses toward the African continent. This means that other western fast food brands, such as Buger king, McDonalds, and Domino’s Pizza, are now targeting some African countries because of their stability in politics and economics. Furthermore, because of the success of those franchise restaurants in Africa, they are seeing big potential in the future.
Major fast-food companies tend to create new menus only for African customers. To be specific, Domino’s Pizza has opened its business in South Africa and in Nigeria, which has the largest population. Its launch of a new With Africa’s burgeoning dish “Chicken Jollof pizza”, which is middle class, many foreign fast-food made of a rice-based dish of West Africa, companies began to believe in the was a great achievement. Therefore, the possibility of earning profits in the future. CEO of Domino’s Pizza claimed that it Fast-food franchise companies such as would launch three more new menus as
adapting the menus to the local culture and food is essential for the company’s success. Looking back at the examples that show how fast-food companies are succeeding in African continent, other foreign nations clearly have the potential of being economically successful. Most of all, African countries are expected to grow their GDP by more than 5% in the next three years according to the World Bank. McKinsey & Company claimed, “African nations are exceptionally optimistic about their economic future.” Africa is a place where foreign companies can succeed along with the new “African Renaissance.”
The True Meaning of Comparative Advertisements - Cont’d The best examples of comparative advertisements are those between Coca-Cola and Pepsi. The companies use each other's brand logo and images in their own advertisements. Another example are the advertisements between McDonald’s and Burger King. They include each other's menu or brand characters in their advertisements. In South Korea, comparative advertisements have been allowed since 2001 by Fair Trade Commission. Usually, these are made full use of in communication, electronic and automobile industries. However, an advertisement without objective bases is not an advertisement. It is a defamation. It can bring about a contrary effect. Comparative advertisements should be focused on which company is superior to others, not on which ones are inferior to its own. The true meaning of comparative advertisements lies in giving consumers an opportunity to decide which products to consume.
Samsung engages in comparative advertising against its all-time rival company, Apple Inc. The advertisement purposefully lists the specifications of Apple’s iPhone and its Galaxy S III. / © Samsung Mobile USA
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Dong-Yang Company Abandons People’s Expectations Writer: Danhee Kim Editor: Seunglee Lee There was a big fraud scandal in Korea, which created nearly 3000 victims who suffered financially. Dong-yang Company has consistently had financial problems, and it finally requested for legal management. The problem is that the executives, including the CEO, focused only on maintaining their place. While encouraging people to buy their stocks, they sold all of theirs to minimize their financial losses. They even deceived the public by announcing that their stocks are stable enough to invest in. To prevent this mess from happening again, it is crucial to create a law that makes the executives take responsibility for their behaviors. They
must pay back the money the public lost because of their mistakes. The government must also create a legislation forbidding the abuse of legal management. The executives must also re-learn the business ethics, which dictate that they should not commit actions that are beyond common sense. Dong-yang, however, disappointed the people. They ridiculed the people and caused damage to innocent civilians. Many other Korean companies have similar problems, not just Dong-yang. We must be aware that such corruption may happen again. A sense of responsibility and conscience are the key characteristics an executive
must have. Still, the unaware and the weak are always the victims. Therefore, the public too should invest in stocks with much discretion.
Dong-Yang Company Disillusions Its Customers / © AsiaToday
McDonald's Bids Farewell to Heinz, and Its Effect Writer: Diana Cho (Hyeon Ju) Editor: Stephanie Y. McDonald's is the biggest fast food restaurant in the world which is so popular that there is a phrase called "McDonald's Effect". It originally means a familiar situation like ordering a food in McDonald's. Even if you do not know meaning of "McDonald's Effect", you might know how big McDonald's Effect can be. Simply changing a single law may affect several big companies. According to American local media on October 25, McDonald's declared that they will not use Heinz Ketchup any more, which they have been using for the last 40 years. The action seems to be a containment as Heinz recruited the former CEO of Burger King, the competitor of McDonald's, as its new CEO. McDonald's announced, "As Vernardo Heath, who was a CEO at the rival fast food brand "Burger
King World Wide," has recently been inaugurated as a new CEO of Heinz, we have opted out from maintaining our ties with Heinz." Also, according to local media like Market Watch or Pittsburgh Post, McDonald's notified on October 26, "We will no longer use the Heinz ketchup who recruited Vernardo Heath.” Earlier, an American investor Warren Buffett's Berkshire Hathaway took Heinz over for 28 billion dollars with 3G capital in June, the Brazilian private equity fund. In parallel with the buy out they changed Heinz CEO to Vernardo Heath. As for McDonald's, it feels betrayed by its primary source of supply. Consequently, Heinz that had been producing and selling massive amount of tomato ketchup is expected to experience a rapid decrease in sales.
Meanwhile, in America, McDonald's only used Heinz ketchup in Pittsburgh, Pennsylvania and Minneapolis, Minnesota. However, most of the 34,000 McDonald's stores worldwide are using Heinz ketchup. Thus, a change in the introduction line of ketchup will mainly apply to chain stores abroad. Now, Heinz will not only face decreasing sales, but also will need to know how to handle its ketchup sales. Due to all of these situations, Hunt's and Delmont's, the competitiors of Heinz, is expected to experience an increase in its sales.
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The Only Way to Survive: Sustainable Management Writer: Sooji Kim Editor: Stephanie Y.
and society. The Energy Management Award, an award that is newly established this year, was given to Lotte Hotel Busan. The hotel collected marvelous results such as retrenching 20% of fuel and 8% of electricity compared to last year.
Although the world economy has been going through a seemingly endless recession, Global Standard Corporations still survived and even leapt forward. On October 23, Korea Management Association Registration Inc. (KMAR) announced the 2013 Global Standard Management Award’s winners. Thirty-two corporations have been selected as Global Standard Management Award winners. They include KOSPA, LH, Homeplus, Lotte Hotel Busan, Leehan, KB Financial Group. KMAR choose corporations that have implemented the global standard management system in the domestic industries. The award system divides the world’s best corporations, organizations, and contributors into various theme management sections, innovation product sections, and special awards sections. Even though the overall economic development rate is low in Korea, these corporations are still developing and progressing forward. KOSPA received the Green Management Award by implementing CO2 collecting technology into large-
The corporations which won the 2013 Global Standard Management Award fostered globalized competitiveness by drawing an innovation centered on green management, social contribution, energy efficiency, and sustainability—the key factors of Sustainable development should be a priority sustainable management. among 21st corporations / © FreeDigitalPhotos.net Moreover, the common denominator of 100 best size power plants for the first time in the corporations selected by Fortune was surprisingly— sustainable world. KORAIL received the Social –not Contribution Award by carrying out the development. theme train travel event for the disadvantaged. The Sustainable Continued on Page 9 Management Award was awarded to Homeplus, which made equivalent development in economy, environment,
Sugar Industry Jeopardized? Writer: HyoJung Kweon Editor: Stephanie Y. As consumer awareness on well -being grows, food industries may face difficulties due to consumers turning their heads away from sugar-excessive products. Although sugar has already been vaguely known to be harmful to human body, the potential for a surge on negative public opinion and the looming threat of regulation and taxation are clearly a menace to food and beverage industries.
the World Health Organization being confident about the strong link between sugar and diabetes. Governments around the globe are enforcing regulations to impose sugar tax on drinks that contain sugar, on the behalf of its citizens’ health. For example, Mexico, which ranks first in global obesity rate (32.4% of its total population was obese, according to a survey done in 2012) decided to impose sugar tax on soft drinks containing sugar. By imposing 1 peso per liter, it is expected to collect about 900 million dollars per year.
Sugar has long been a decisive cause for various health problems, let alone obesity. For instance, although it is hard to prove if sugar is the By self regulating and adjusting main factor of diabetes, it is difficult to their product range, companies could ignore its influence on the society, with reduce the risk of government imposed such a high percentage of doctors from regulations and taxation measures.
Companies are using artificial sweeteners, and are looking to develop other sugar replacements. Sales of artificial flavoring are dramatically increasing, showing an amazing 60.5% increased sales (4,427ton in 2008 to 7,107t in 2011) in Korea. Although this may not be enough compared to sugar sales (117,160t to 99,424 ton in the same period of time), this shows 15.1% decrease in sugar sales, which means the use of sugar replacements have an effect in reducing sugar usage. There still is quite a lot of talk on controlling sugar usages, and whether sugar industries will face crisis moments like the tobacco industry have in the past, is a question of great interest.
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Euro Records Highest Point in 2 Years Writer: Youree Kim Editor: Stephanie Y. Starting from 2011, the Euro Zone has experienced serious financial crisis. This crisis did not only affect countries belonging to the European Union but also has led to a global economic depression. But fortunately, it is shown that the economy of Euro Zone has finally got out of economic recession after its six-quarter successive fall. Also, the unemployment rate of Euro Zone has decreased 0.1%, now becoming 12.0%, the first decrease in 2 years.
European Union is not perfectly getting out of recession. According to the “Le Figaro”, the daily magazine of France, Euro has recorded a level of $1.3806 with 1 Euro in October 25. The interpretation for this surprising increase, an economic expert mentions, is that the ‘Shut Down’ state of United States of America (USA) and the weakness of dollar have affected Euro to increase relatively.
However, it seems that the
Due to the increase in the Euro, economists are worried that this
increase might hamper the economic recovery of Euro Zone. The Minister of Industry has expressed his worries toward this situation. He said, “The 10% of increasing and decreasing value of Euro may affect increasing and decreasing of employment rate in France.” Also, the Minister of Finance has shown the same reaction as the Minister of Industry saying, “The business of Euro Zone has not perfectly got out of recession.”
The Only Way to Survive: Sustainable Management - Cont’d Now, the answer is clear. The way to survive and thrive in an economical depression is to pursue sustainable management. Then, what is sustainable management? Sustainable management is a way of managing a corporation via synthesizing economic, environmental, and social issues to pursue sustainability. In another word, the corporation not only puts emphasis on sales and interest but also on ethical, environmental, and social problems to constantly increase its value. There are some examples of corporation that successfully overcame the hardships by implementing sustainable management. The Globalized Energy Company ‘Royal Dutch Shell’ once encountered harsh
criticism for destroying environment. In spite of this criticism, Shell could gain people’s trust and establish more stable foothold by hiring local people to stimulate local economy and by arranging new transparent policies. In the current market, sustainable development is not just appropriate to run a company, but it is essential. The corporations which are yet to focus on only economic purpose should change their points of view to encompass social and environmental issues. In order to gain economically viable sustainability, corporation can work on its profitability, creating employment, creating added value, fair trade and fair competition. Also, it can be socially responsible by putting emphasis
on human rights, social contributions and product credibility. Lastly, reduction of greenhouse gas emissions, pollutants, harmful chemical substances and environment-friendly production can help a corporation’s environmental sustainability. Corporations in 21st century now play a dominant role in solving problems of human being. The fundamental change is needed at this moment. With a new sustainable management plan through precise market analysis, corporations will be able to find an innovative way to advance and grow in this severe, continual economic downturn.
Economics in Professional Baseball Writer: Sung Mo Koo Editor: Stephanie Y. Post-season games in the Korean baseball league have begun from the beginning of October; tens of thousands of fans gather at ballparks to cheer for their favorite team’s victory. Baseball has truly become one of the most popular sports in the nation. Thus, it might sound odd that firms that own professional baseball teams are losing immense amount of money annually from managing their teams.
In general, it is known that each firm is losing approximately 10 to 20 billion Korean won every year. Nonetheless, the amount of money firms invest in baseball is increasing and more firms wish to own a professional team with their names. Indeed, NC Soft joined the league starting this year and KT plans to form its own team beginning from 2015. Why is this? The answer is simple. The marketing effect of advertisements
made in baseball games is larger than the monetary loss of the firms, or at least so is assumed by the firms. Take SK Wyverns as an example. Every single player from the team wears a uniform and a helmet with brands and logos of SK. Continued on Page 10
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China Attacks Foreign Tech Companies billion to Apple’s profit during the first quarter of 2013, and that the China’s consumers made up 34% of Apple’s increase in revenue in December of 2013.
Apple apologized after the Chinese media covered its arrogant stance against customers / © Phys.org Writer: Larry Jeon Editor: Stephanie Y. A number of largest multinational IT firms in China has been receiving rising cases of complaints that they have directly attacked the reputation of other firms. China’s state-run broadcaster aired a diatribe against South Korea’s electronics colossus, Samsung. The program was 30 -minutes short, composed of investigations and interviews with consumers and repairmen in China. It openly castigated Samsung for selling faulty smart-phones to Chinese customers, arguing that Samsung’s one of Galaxy series handsets hold software problems that cause freeze-up. Concerning frequent Smart phone explosion accidents, China is focusing its spotlight on how Samsung should respond to their Chinese
customers. This is seemingly due to Chinese electronics firms attempting to threaten the rapidly growing reputation of Samsung in the Chinese IT market. Guangming Net( 光 明 網 ), the Chinese internet media, posted about the Smartphone explosion accidents and damages they have had on properties and people, which led to Samsung losing its trust among Chinese consumers. Samsung was not the only target of Chinese Media. People’s Daily, one of the Chinese media outlet, printed its front page about a coverage attacking Apple’s arrogant stance in the Chinese IT market. China claims that Chinese market contributed $7.3
Such an attack is one of the latest assaults on Apple that China had done since state broadcasting service China Central Television created a propaganda that criticized Apple. The complaints claimed that Apple does not follow a local law that requires a warranty of 2 year for electronic devices. Furthermore, the Chinese media were questioning why Chinese consumers who returned their malfunctioning Smartphones received refurbished products rather than newly produced replacements. Samsung has issued an apology to its Chinese customers immediately after the Chinese news media’s report on scandalous Smartphone accidents. CEO of Apple, Tim Cook also gave a public apology when People’s Daily newspaper blamed Apple for giving blank responses to warranty complaints. Those two tech companies must overcome criticism that they faced in Chinese media in order to achieve a greater success in the Chinese market.
Economics in Professional Baseball - Cont’d New smart phone applications and services are demonstrated in ballparks. The more customers are exposed to the brand, the more they will become loyal to the brand. Baseball game successfully attracts twenty to thirty thousand people per day, with more than hundred twenty games in a season. And it is not to be forgotten that there are about additional sixty thousand viewers who watch baseball games through their phones or TV on a daily basis. Other firms also effectively advertise their products in different
ways to familiarize their names and products to customers. While this is not quantifiable in monetary value, gathering such a huge crowd is not an everyday chance for firms. As a whole, economy in professional baseball industry annually includes more than 1 trillion Korean won. Tickets, additional services in and out of ballparks, broadcasting, employments, and much more factors lead to the flourish of regional economy and profit
of firms. The fact that this industry is rapidly growing makes owning a professional baseball team even more attractive. Baseball nowadays has become one of the necessary entertainment industries in Korea.
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Greenland, the Last Pure Land Writer: Jane Park Editor: Stephanie Y. Do you know Greenland? Greenland is located in North America, and it “had been” covered with ice. Wondering why “had been?” Actually, 85% of Greenland had been covered with ice. The resources, however, have been discovered because global warming caused the ice to melt. Also, as the route to Greenland was developed, the other countries that wanted the resources buried in the land have discovered easier ways to approach Greenland. The government of Greenland allowed the United Kingdom to develop their resources. Therefore, UK got a right to develop about 15,000,000 tons (per year) mines for 30 years. In addition, Greenland canceled prohibitions of uranium, a rare Earth resource, by canceling Zero Tolerate, a policy for protecting the environment. Because of these liftoffs, the government's total income has increased up to about 28,500,000,000 Krone (equivalent of 5,600,000,000,000 won or $5,300,000,000) and will be in the top 10 of uranium-exporting countries.
However, there is a problem called social responsibility. Social responsibility is what a country (government) or company has to be responsible for something that it did. If the Greenland government really allow s UK to develop its resources, it would hire about 3,000 Chinese workers for mining. Social problem arise because 5% of the Greenland's population (57,000 people) would suddenly flow into Greenland. If much resources are developed and used, there would be various industrial pollutions such as air·water·soil pollution. For instance, a new clear energy named palm oil was discovered. Palm oil is made from palm tree and it is used for bio-diesel, foods like oil and margarine·ice cream·dairy products, cosmetics. However, to construct farms for producing palm oil, a lot of land is required. Why? Because the more the farm grows the oil, the larger the land it requires. When it is a small tree, a required distance between one and the other is only 90 centimeters, but later, when it grows bigger, it requires a distance of 9 meters long!
Therefore, 85% of Indonesia's natural forest has disappeared while the size of farms increased. Also, during the process of burning fields, pollutants like carbon dioxide are created and contribute to global warming. This means that the number of orangutan is decreasing and the inhabitants are exposed to various diseases. Just like Indonesia, Greenland also has a possibility of undergoing many problems like above. The worldwide environment protection group disagrees to the permit mining of Greenland to UK. Once Greenland finally takes over the mining rights, the UK government must be responsible for the social problems its development has entailed.
Happy Halloween! In the blink of an eye, the entire October seems to have gone by very quickly. The TeenBiz hopes that all of you had a fantastic time enjoying your Halloween. As November is approaching, the weather seems to have gotten colder; one can literally feel the coldness outside. We hope that all of you will stay warm, safe and most of all, we wish that you will enjoy the last two months of 2013. Once again, thank you everyone who sent us articles and revisions despite your busy schedules. We would appreciate it if you could continue to show us your great efforts. We are very impressed with this month’s articles as well. Many interesting topics and eloquent articles will certainly grasp even more audience. If you have not done so already, feel free to “Like” our Facebook page! Simply type The TeenBiz on the search bar. Thank you all. Enjoy your November! The TeenBiz
This Month’s Writers: Thank you for your contribution. In Hyuk Kim, Youngju Kwon, Taeju Kim, Ha Yeon Kim, Danhee Kim, Hyunsue Jung, Yei Rim Jun, Na Eon Kim, Bongha Lee, Jane Park, Hyeonju (Diana) Cho, Eunyoung Lee, Sung Mo Koo, Sooji Kim, HyoJung Kweon, Larry Jeon, Youree Kim, Jungyun Choi, Annie Song, Seunglee Lee
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