message from the dean 3
W arwick Business
School is a truly
global institution. Although
It is interesting to see the diversity of research interests
and careers – from more conventional interests such
as ﬁnance and consultancy, to improving agricultural
physically based in the heart productivity, and working with disadvantaged
of the UK we hope you feel women in Cambodia. The possible applications of a
that WBS is relevant wherever management education from WBS are countless.
you are. Taking a look at the
overseas events section of I would also like to applaud and thank the many
nexus (page 21), or on the volunteers who help to make WBS the leading
Alumni Association web site, institution that it is. I was delighted to present the
will give an insight into just how much WBS activity goes Chairman of the Alumni Board, Clive South (EMBA
on around the world. In this and future editions of nexus 1996–9), with the ﬁrst ever Distinguished Service Award
we hope to showcase our international links in terms of at the Annual Dinner at the House of Lords (see page 4
alumni, faculty, research and activity. for a full report). The Alumni Board is now a fully elected
representative body and I would encourage you to ﬁnd
Almost one third of our alumni live or work outside the out more about how they represent your views (page 17).
UK. The faculty here at WBS have a similarly international
perspective. One third of WBS faculty come from outside Over 1,500 of our 18,000 alumni have volunteered to
the UK, have signiﬁcant overseas experience or have non- get involved in some way with the work of WBS and my
UK qualiﬁcations. thanks go to each and every one of you. The challenge
for us is to ﬁnd ways we can take you up on your offers,
I believe WBS is educating students to cope in diverse and perhaps some of the stories in this issue will inspire
international communities, and articles in this edition you with your own ideas. I look forward to working with
show that not only are they coping but they are thriving. many of you in the future.
With around one in six of our alumni living in Asia and
numerous academics engaged in research and consultancy
activities, the difﬁculty for this issue lay in choosing what
to include and what to omit. The snapshots contained in
this are just that… snapshots. We cannot represent the
whole of such a vast continent, but we hope to give you a
ﬂavour of the depth of our involvement.
Designed by Morse-Brown Design Limited www.morsebrowndesign.co.uk
3–7 WBS news 5 10 8–9
8–9 China of dragons, tigers and ﬂying geese
Dr Simon Collinson
10 China adapting to succeed
10 China insight
11 Japan change in the ﬁnancial industry
Izumi Kubo & Professor Glenn Morgan
12 Asian Tsunami the logistics of relief
Professor Alyson Warhurst
13 Cambodia calling 14 15
14 North Korea project
15 India on track in Mumbai
Vishal Jhunjhunwala 20 22
17 WBS alumni board
18 keeping in touch
19 special interest groups update
20–23 alumni focus
4 nexus: summer 05 distinguished award
At the third WBS Annual Dinner held at supported the School on many levels, but has
the House of Lords on 22 April, Clive South been a tremendous advocate, engaging our
(EMBA 1996–9) became the recipient of the wider community and furthering our alumni
inaugural Distinguished Award for Service activities.
to the School. Clive has been Chairman of
the WBS Alumni Board since May 2004 and Reacting later to his award, Clive says, ‘I was
was instrumental in founding the successful completely in shock initially, but this has
Midlands alumni group. now been replaced by a sense of purpose.
The challenge is to create the environment
The Dean of WBS, Professor Howard Thomas so that the whole alumni community can
kept the award a surprise by not naming beneﬁt from and contribute to the continuing
Clive until he handed over to the Vice- success of WBS. I must also thank, on behalf
Chancellor, Professor David VandeLinde to of the alumni, all those who have worked
make the presentation. Howard thanked the hard over the last few years to rejuvenate the
as then unnamed recipient for his constant Alumni Association, both in the growing
support and expertise over the past ﬁve years, number of local groups and in more central
describing him as someone who has not only roles.’
Professor Jean Alumna Glenn Morgan,
hot off the press Hartley, Elizabeth Professor of
Professor of Maddison Organisational
Professors Organisational (MPA 2000–3) Behaviour
John McGee, Analysis, was Head of the (IROB)
Howard guest editor and Strategic collaborated
Thomas and contributed a Planning Unit, with
David Wilson, chapter on Innovation University colleagues Richard Whitley,
Marketing in Governance and Public of Brighton, coauthored Manchester Business School,
& Strategic Services: Past and present Managing Institutional Self- and Eli Moen, University
Management group (MSM) to the 25th anniversary Study with colleague of Oslo, to produce
have recently published edition of CIPFA journal David Watson. Changing Capitalisms?
Strategy: Analysis and Practice. Public Money & Management. Internationalism, Institutional
Other WBS academics also The heart of the book Change, and Systems of
This exciting new textbook contributed. ISSN 0954 0962 is the case for the Economic Organization.
sets out to provide students development of the Includes chapters by
with an understanding university as a mature, Professor Colin Crouch
of the core concepts and Alumnus Robert self-reﬂective community, and Dr Michel Goyer.
economics of strategy, W McGee (PhD capable of making full use
laying the foundations 1986) Professor, of its analytical and other w www.oup.co.uk
for analysing strategy on a Andreas School resources. /isbn/0-19-927563-7
variety of levels. of Business, w www.openup.co.uk
w www.mcgraw-hill.co.uk/ Florida, USA,
has another book published Nigel F First
by Springer. Accounting and Piercy, published
Financial System Reform in a Professor in in 1991,
Transition Economy: A Case Marketing Marketing:
Study of Russia. (MSM) and Concepts &
w www.springerpub.com colleague Strategies
David W was a co-
Cravens have production
Updated and had Strategic Marketing, between WBS’s Sally Dibb
revised versions 8th edition published by and Lyndon Simkin,
of alumnus McGraw-Hill/Irwin. (MSM) and two leading
Robert Craven’s A completely revised new US academics. Totally
Oxford University Press.
(MBA 1990–1) edition of a best-selling text re-written and updated,
The book examines the
two successful published in the USA as with a greater focus on
nature of knowledge in
business books, part of Irwin’s ‘Marketing strategic decision-making in
organisations, and how
Kick-Start Your Masters’ series. marketing and practitioners’
individuals and scholars
Business and use of the marketing
approach the concept of
Customer Is King have been w http://catalogs.mhhe.com process.
knowledge. w www.oup.
reprinted by Virgin Books. /mhhe/viewProductDetails.
w www.virginbooks.com do?isbn=0072966343 w www.dibbmarketing.com
research review nexus: summer 05 5
The Sales and Strategic Executive Programmes,
Customer Management the network’s goal is to
Network (SSCM) is a new provide a ‘think tank’ for
venture at WBS, developed innovation in strategic sales
out of the work of the Sales and account management,
and Account Management reﬂecting the massive
Strategy research unit changes taking place in
(SAMS) started by Professor traditional buyer-seller
Nigel Piercy and Dr Nikala relationships, and the
Lane in 2004. overwhelming demand
w www.sams.org.uk by major customers for
enhanced value. The aim is
Professor Bob Johnston, the competing objectives of Managed by Diana to share research ﬁndings
Operations Management proﬁt and customer service, Woodburn, Research and best practice across
Group (OM), specialises SIA has managed to apply Associate, and part of member organisations.
in service excellence and these dual objectives at all
has been conducting levels in the organisation to Professor Jean Hartley,
research with Singapore great effect. Our most recent Professor of Organisational
Airlines (SIA) for around study has investigated how Analysis, and her team
ﬁve years. SIA was identiﬁed SIA goes about innovation. developed the Warwick
as an excellent service Not only does the company Political Leadership
provider by focus groups have a specialist service Questionnaire (WPLQ),
held in the UK as part of and product development with funding from the Local
a study commissioned by department (highly unusual Government Improvement
the Institute of Customer in service organisations) but and Development Agency
Service in 2000. Since then it also involves its entire staff and the Joseph Rowntree focused on managers, but
Bob has been working with in its innovation process.’ Foundation. The research there are crucial differences
several organisations in Asia, has pioneered new thinking in the leadership exercised
including Shangri-La Hotels Bob has managed to weave about political leadership by politicians. For more
headquartered in Hong his data collection alongside and systematically analysed details, visit w www.wbs.
Kong and SIA, to better other visits to SE Asia; the core skills of political ac.uk/news/press_releases/
understand how they go He regularly teaches an leadership. Most research release.cfm?id=307
about delivering excellent MBA Service Management on leadership to date has
service. elective in Hong Kong or
Singapore and attends
Too often the focus on KIN’s aims are:
Bob explains, ‘While many conferences in the area,
business improvement • To create relevant new
organisations struggle with as well as hosting alumni
from managing intellectual insights in the ﬁeld of
the trade-offs created by events.
property has been on IT knowledge, innovation
tools or ‘collection’ rather and networks through the
Chris Doyle, Senior than ‘connection’. The funding of research.
Research Fellow, Centre Knowledge and Innovation • To help create business
for Management under Network (KIN) at WBS value for KIN member
Regulation (CMuR), connects academics and organisations by leverag-
was recently invited by practitioners from leading ing the network to ‘supply’
the Falkland Islands organisations with an knowledge to meet
Government to oversee the interest in organisational member ‘demand’
possible replacement of & behavioural aspects of • To promote, foster and
the camp telephone system Knowledge Management. support collaboration
which has served the Islands KIN emerged from the between practitioners
for years and is ‘nearing the Innovation, Knowledge and and academics (between
end of its life’. Organisational Networks industry and university) to
research unit (IKON), create new knowledge and
Despite his experience of for the introduction of established at WBS in 1997. practice. w ki-network.org
the telecommunications measures to address the
issues faced by other current communications Howard Davis, Research in local government. For
countries Chris says that challenges. Regulation Manager, LGC, is involved the Local Government
those faced by the Falkland of the services is another in two new research Association – study into the
Islands are unique. His issue he will examine since projects. For the Ofﬁce of impact of the activities of
report will look at the tariff even single operators with the Deputy Prime Minister the performance partnership
structures, investment exclusive franchises, such - scoping/ feasibility study central bodies on local
implications, infrastructure as Cable and Wireless, are for a long-term evaluation government improvement.
and time-scale required subject to regulation. of freedoms and ﬂexibilities
6 nexus: summer 05 WBS news
WBS is ranked 18th in the world by the HM Treasury’s ranking
of worldwide schools derived from salary and employment
data taken from the Financial Times ranking.
WBS open day
On Saturday 7 May, WBS Scarman Road opened its doors
to welcome alumni, students and friends to look around
the building as part of the University’s 40th Anniversary
celebrations. Professor Nigel Piercy’s taster lecture on ‘Superior
Buyer-Seller Relationships: It’s all about sex and money...’
proved very popular, as did the guided tours of the building.
WBS will celebrate its own 40th Anniversary in 2007.
on course winning team
WBS recently launched three new specialist masters courses, In February, participants on The Warwick MBA won prizes
due to commence in October 2005. The MSc’s in Finance, for innovation totalling £5,000 from Crown Castle UK, the
Information Systems & Management and Marketing & UK’s leading mobile telecommunication and broadcast
Strategy are all twelve month full-time courses. Dean Howard transmission infrastructure management company. The task
Thomas conﬁrms, ‘We are very pleased to be launching facing the winning team – Antonino Aversa, Jorge Elton, Paul
these new programmes, designed and taught by WBS faculty Olliver, Asli Solmaz-Kaizer and Zefeng Johnson Wu was to
who are among the leaders in their ﬁeld. We look forward to design, manufacture and market a new personal portable data
welcoming the new participants to WBS in the autumn.’ processing and communication device.
WBS news nexus: summer 05 7
WBS in the media
The new Specialist Masters courses starting this autumn have
been reported in both education and general media. Media
publications around the world, both online and on paper,
seem unendingly fascinated by the MBA qualiﬁcation and so
the WBS alumni are often reported on and proﬁled. In recent
months though, our tailored executive short courses, The
Warwick MPA and other public sector teaching programmes,
as well as undergraduate alumni have all received well-
deserved media coverage.
WBS faculty continue to provide expert comment and research
reports across the full range of media. In just the last three
months, WBS expertise and research ﬁndings have been
cited in overseas and international publications such as the
executive education Financial Times, Ethical Corporation, European Public Service
Pictured is the ﬁrst of 12 cohorts from energy giant Review, ipe.com (Investment & Pensions Europe), Mandag
E.ON UK undertaking a tailored WBS Executive Leadership Morgen (Denmark), and in national and local UK media such
Programme which includes a ‘life journey,’ identifying what as The Sunday Times, People Management, BBC Radio 4 and Radio
has inﬂuenced delegates’ life direction and leadership traits. Five Live, Utility Week, Marketing, Local Government Chronicle,
The course features sessions on regulation, energy, consumer Computer Weekly, and even Arts Professional and Men’s Health!
and customer paradigms, investor paradigms and strategic
leadership and uses alternative media to encourage delegates The topics covered are as diverse as the publications – ranging
to look at leadership from new perspectives. For more from pensions to human capital to football management. Here
information on WBS Executive Programmes: is just a selection from those featured recently:
• Dr Sue Bridgewater, Marketing & Strategic Management
Network Rail has commissioned WBS to provide the training at Group (MSM) – radio broadcasts and national proﬁles on
its new residential leadership centre. The centre will welcome her football management research, including a double page
over 4,000 managers and supervisors through its doors over feature in The Independent on Sunday in April
the next two years as Network Rail seeks to strengthen its
leadership capability. • Professor Anthony Neuberger, Accounting & Finance
– contributions to the pension problem debate in Professional
Pensions and ipe.com
• Professor John Benington, Public Management and Policy
Group – interviewed on public sector organisation on BBC
Radio 4 You & Yours, and in Public Finance
• Professor Alyson Warhurst, Director of the Corporate
Citizenship Unit (and featured in this issue) – article in
Public Service Review (European) on need for organisations to
help with solving AIDS crisis
• Professor Linda Dickens, Industrial Relations and
Organisational Behaviour Group (IROB) – quoted in article
on new EU employer consultation regulations in the
• Professor Martin Cave, Director, Centre for Management
under Regulation (CMuR) – featured in Utility Week as speaker
at seminar for economic regulators for water, energy and rail.
sponsored by WBS
WBS sponsored the Business in the Community Award, at the
prestigious Variety Club Awards held at the ICC, Birmingham,
in February. The evening was hosted by TV presenter Angela Professor Howard Thomas, Dean of WBS, has been appointed
Rippon and the award was won by the West Bromwich to the position of Vice-President of the European Foundation
Building Society. A party of invited guests was hosted by Ben for Management Development (efmd).
Plummer, WBS Head of Development and Nathalie Walker, For more information on the latest WBS news stories visit:
Head of Alumni Relations. w www.wbs.ac.uk/news/press_releases
8 nexus: summer 05 focus on asia China
of dragons, tigers and ﬂying geese
As businesses, government agencies and local communities in the Midlands region pick up the pieces from the collapse
of MG Rover, Dr Simon Collinson, Senior Lecturer in International Business, says there are lessons to be learnt about
the UK’s manufacturing competitiveness that should have been learnt some time ago. There are also a number of
assumptions about the future threats and opportunities posed by China’s ascendance that need to be challenged.
P erhaps the most dangerous assumption
we could make about China is that its
cheap manufacturing labour is its only
In each country the transition is marked by
a shift of employment from one sector
to another, within the broader move
competitive advantage. Many people seem from agriculture to manufacturing
to believe that although we may expect to and then to services. Overall,
lose manufacturing jobs to the ‘East’ we rising skills and improved
have unassailable competitive advantages technological capabilities,
in high technology industries and increased capital investment
knowledge-based services. and wage-inﬂation drive – in their
and are driven by – industries; Samsung
This is not so. Comparative advantage in the change process. (South Korea) and Acer
manufacturing is only the beginning of (Taiwan) took 20–25 years and
an economic transformation which we TCS, Wipro and Infosys (India)
have seen before. The Asian economies, 15–20 years.
including China, are arguably following
a predictable path in terms of their Chinese ﬁrms are on the same learning
economic growth, changing industry trajectory. Moreover, the Chinese
specialisation and evolving competitive economy overall appears to be developing
advantages. Moreover, the pace advantages in a range of industries (such as
at which potential competitors autos, consumer electronics, telecoms and
are emerging from the software) at the same time, rather than in
Asian region across a wide sequence.
range of business areas, not
just manufacturing, raises an There are two particular drivers of this
important question: whether there is ‘accelerated learning’ that we should
enough time for the West to adapt. be aware of:
China is following a familiar path... • First, multinational ﬁrms
The patterns of industrial transformation from North America, Europe
and growth of emerging economies in the and Japan (the mature ‘triad’
Asian region have been closely studied. regions) are helping local ﬁrms
One model to describe these changes is develop the capabilities they need
the poetically-named ‘ﬂying geese’ model to progress ‘up the food chain’;
by Japanese academic Kaname
Akamatsu. This suggests that • Second, local Chinese
Asian economies are follow- ﬁrms are expanding inter-
ing similar development nationally to get access to large
paths, but are at different markets in the triad and to acquire the
stages along this path, following the lead If we look at a particular industry the assets, technologies, brands and capabilities
‘goose’ Japan. Over time each country, or location of production activities and they need to compete more effectively.
group, will gain and then subsequently subsequent exports and trade ﬂows change
lose speciﬁc comparative advantage in a as different economies change their Foreign multinational ﬁrms are helping…
particular industry. For Japan historically it specialisation. China now dominates as the Foreign direct investment (FDI) into
has shifted from iron and steel, to textiles, world’s biggest exporter of clothing whilst mainland China is at unprecedented levels
clothing, to autos and electronics. The Singapore, South Korea and Taiwan have with over $62 billion ﬂowing into the
four ‘Tiger’ economies, Hong Kong, South thriving electronics industries. Japan is a country in 2004 (more than 10 times FDI
Korea, Singapore and Taiwan followed net-importer of televisions and over into India). Recent high proﬁle mergers,
a similar trajectory, although quicker. 70 percent of its economy is now based acquisitions and joint ventures include
Other ASEAN (Association of South East on services. HSBC ($1.7 billion for 20 percent of China’s
Asian Nations) nations such as Indonesia, Bank of Communications), Tesco ($260
Malaysia, the Philippines and Thailand are The process also appears to be speeding up. million for 50 percent of Le Gao Shopping)
a little further behind, but the sequence of For example, Toyota and Sony took about and Amazon.com ($75 million for
specialisation is similar. 30–35 years to evolve into leading ﬁrms Joyo.com). There was also something of
China nexus: summer 05 focus on asia 9
a beer-fest last year with Anheuser-Busch science and technology infrastructure. ability to innovate and to internationalise.
paying $600 million for the Harbin Brewery China spends more than double the UK China’s stock of outward FDI has grown
Group, Heineken buying 21 percent of on R&D and this is growing at 9 percent from $2.5 billion in 1990 to over $25 billion
Guangdong Brewery Holdings ($69 million) per year in line with its GDP growth. The in 2000 and $37 billion in 2003.
and Scottish and Newcastle buying 19.5 country has over 17 million students
percent of the in higher education and more than 60 In light
industrial parks are dedicated to of these
returning Chinese graduates large-scale
who have started up processes what
over 4,000 new has happened with MG
businesses. Rover makes more sense. It was never in
the interests of Shanghai Automotive
Industry Corporation (SAIC) to resurrect
any signiﬁcant manufacturing operation
in the Midlands. It wanted access to
some key technological assets, including
The result is that over 25 percent of the power-train, engine manufacturing
China’s exports were in high- capabilities and rights to the Rover 25.
technology areas last year, compared Once it had acquired these, to complement
to just 2.6 percent 20 years ago, and its manufacturing operations in China,
the proportion exported by foreign it left the remainder of the ﬁrm sink-or-
ﬁrms in China is falling rapidly. swim, with high labour and manufacturing
Companies like Huawei, Zhongxing and costs, a strong £-Sterling and general over-
Datang in telecoms; Bird, TCL, and Konka capacity in the auto industry. And, as we
in mobile handsets; Founder, Red Flag, know, MG Rover has sunk.
So, we know how the catch-up process
works and we know China is progressing
�������������������������������������������������������������������� rapidly across a range of industries at the
����������������������� same time. The two key questions for ﬁrms
������������������������������������� and economic policy makers outside China
¢����������������������������� �������������������������� 1 which industries will Chinese ﬁrms
�������������������������������� eventually come to dominate?
2 how long before they move from
���������������������������������������������������������������������������������������������������������� ‘learning’ to ‘leading’?
Chongqing Beer Group ($63 million) UFSoft, Neusoft, Kingdee, and Top Group in The author in minute
(China became the largest global market for software, show how quickly technological
beer in 2002). capabilities are evolving in China. Formerly at
Perhaps more signiﬁcantly there are over And Chinese ﬁrms are turning and Assistant Director
300 foreign R&D centres in China and multinational… Lenovo, originally a of the Japanese-
we know that the transfer of technological spin-off from the Chinese Academy of European Technology
know-how and managerial capabilities Sciences in the mid-1980s, made the news Studies (JETS) institute
via multinational operations in emerging in December 2004 when it bought IBM’s for seven years, Simon
has held visiting
markets is one of the main sources of PC business for $1.75 billion. It makes 30 positions at the
competitive advantage for local ﬁrms. percent of PCs in China and is number two National Institute of Science and Technology
in laser printers. It also recently opened an Policy (NISTEP) in Tokyo, Australia Graduate
Western multinationals are, to a certain R&D centre in California’s Silicon Valley School of Management in Sydney and the
extent, breeding their own future – as a ‘listening post’. Kelley School of Business in Indiana.
competitors. Their current strategic Research interests: the global organisation of
opportunities could turn into their future As shown by Lenovo, one route to accelerate R&D; international joint ventures, knowledge
competitive threats. the learning process is by outward foreign and technology management; international
direct investment (FDI). Chinese companies entrepreneurship; business infrastructures and
management practices in Japan & China.
Couple this inward FDI with already high are increasingly buying the assets, brands
levels of education and a strong local or capabilities they lack, to improve their
10 nexus: summer 05 focus on asia China
adapting to succeed in China
T he signiﬁcance of China’s rapid growth
rate is gradually becoming apparent
even to the casual observer. With 1.3
central government agencies have a
direct and strong inﬂuence over the ‘local
rules of the game’ and a ﬁrst priority is to
billion people and both GDP and per capita understand these rules and how they are
income growing at between eight and nine evolving.
percent it is fast becoming an economic
powerhouse. For foreign ﬁrms its attraction • Regulations governing business practices
lies in both the growing market and the are complex. Despite the expense it is
cost advantages of cheap labour, resources necessary to use local intermediaries such
and expertise. China is one of the largest as attorneys and accountants familiar
recipients of foreign direct investment, with Chinese requirements.
receiving $53 billion in 2003 ($144 million
a day), compared to India’s $4 billion and • There is little effective protection for
Russia’s $1 billion. intellectual property rights. respect are key. Group-orientation and
steep hierarchies characterise Chinese
WBS alumna Weihong (Alice) Huang • Contracting tends to based more around organisations.
(MBA 2000–1) runs Enter Consulting in relationships and connections (guanxi)
Shanghai which provides support, from rather than formal agreements and legal • Being too willing to do things the local
market research to language lessons, for documents. way may be a sign of compromise.
foreign ﬁrms looking to enter the Chinese Credibility comes from a balance between
market. Having helped companies such as • The right choice of local partner two cultures.
Lufthansa, Hoechst and Satair successfully is critical. A good one will be well-
break into the mainland market Alice has a networked to overcome obstructive red- • Despite the large pool of cheap labour,
range of insights that can help newcomers. tape and enable success; bad ones will not skilled managers, particularly those with
and may violate conﬁdentialities and/or marketing or engineering expertise are
Key issues for foreign entrants are: establish competing businesses. difﬁcult to ﬁnd and keep.
• Market-access rights vary by industry
and are changing rapidly. Regional and • Personal and company reputation and w www.enterconsulting.com.cn
China insight by Mike Bastin (MBA 1991–2) MD, Global Branding Ltd
N ot only did the Warwick experience
further my business knowledge,
skills and opportunities considerably, it
the development of innovative, creative
thinking as it is about knowledge transfer.
I am in regular contact with many Chinese
also opened my eyes to the exciting world Warwick alumni, all of whom also have
of business in very different cultures. nothing but praise for their Warwick
Combined with my interest in travel and experience. This group gathers not only
the Far East, this has resulted in a post- socially but makes frequent use of the
Warwick world of brand management Warwick network for business purposes
training and consultancy all over China. too.
I ﬁrst worked in China in 1998, delivering Finally, most of my memories of WBS
a short training course on International my experience, asking Chinese mangers remain clear but perhaps the clearest are
Marketing in Hong Kong. Since then I to provide examples of successful brand those of Peter Doyle. Like so many others I
have continued to deliver Marketing and extension has been met with complete was captivated by his teaching. I even ﬁnd
Brand Management training courses all silence. However, providing them with a myself repeating quite a few of his phrases
over China, at universities in Beijing, list of brand names, from which to choose during my training sessions (eg ‘Nothing
Shanghai and Nanjing, and to Chinese those that have extended successfully (eg fails like success’, ‘image is a function of
businesses as a far apart as Chongqing Haier, Lenovo and Yue Sai) receives much reality’…)
(South West China’s Sichuan province) and more attention and activity.
Hohhot (the capital of Inner Mongolia, As for the future, China continues to
one of China’s semi-autonomous regions). Perhaps the greatest difference between fascinate and probably always will….
While China’s continued rapid economic China and the West is that Chinese
development inevitably brings social businesses continue to lack a culture of Global Branding Ltd is a strategic brand
change, it remains very different culturally. innovation and creativity, one reason why management consultancy and training
there are still no global Chinese brands. organisation. Mike can be contacted at:
China does not have a management My training and consultancy, therefore, is
tradition of independent thinking. In as much about organisational culture and e email@example.com
Japan nexus: summer 05 focus on asia 11
change in the Japanese ﬁnancial industry
Over the last decade, the Japanese ﬁnancial sector has been undergoing substantial change and reform. Research
being conducted by doctoral student Izumi Kubo and Professor Glenn Morgan has been looking at how these
changes have been impacting on the organisation of work and careers in the stockbroking ﬁrms on the Japanese
ﬁnancial markets, and how this in turn relates to broader changes in Japan.
K ubo and Morgan’s particular focus has been on what are
known as sell-side company analysts and their changing
role in ﬁnancial markets and investment banking. This group
down their workforce in response to market conditions. Therefore
any move was a risk in the long-term. However, one offsetting
factor was that there were more ﬁrms looking for specialist
were traditionally employed inside stockbrokers to provide analysts from the external labour market, not just US-based but
recommendations to clients on which stocks to buy, sell or hold. also European ﬁrms and some Japanese banks now keen to enter
From the 1980s, this role began to change in Wall Street and the the stockbroking area.
City of London. Sell-side analysts became a
central part of the new investment banking Whilst many Japanese companies have
nexus which was emerging at this time. proclaimed their adherence to labour
market ﬂexibility, there are few sectors of
Sell-side analysts with their detailed
Previously, like most the economy where this process seems to
knowledge of particular ﬁrms and sectors Japanese employees in big have gone so far as in the case studied. This
increasingly provided advice internally has brought short-term material beneﬁts
to the ﬁrm’s investment bankers and ﬁrms, analysts had entered and an enhanced sense of professional
corporate ﬁnanciers on pricing shares the company believing specialist status to individuals though
and bond issues. Their rewards became it has also brought uncertainties and
linked to their role in these deals and this that this was a lifetime anxieties. In broader terms Japan now
has created a potential conﬂict of interest relationship... the entry of has an investment banking industry
for analysts seen most graphically during similar in structure to that in the US
the dot.com boom, when some analysts American ﬁrms into Japan and UK. These ﬁrms (and the analysts
were accused of acting as boosters for the changed this within them) are working proactively
shares which their companies wanted to to create more dynamic capital market
sell rather than providing expert, objective processes. In this they are supported by
advice to their outside clients. the growing presence of US as well as
Japanese institutional investors keen to see
The Japanese stock market was insulated from many of these higher returns to shareholders in coming years. In turn Japanese
trends until the mid 1990s. Large Japanese ﬁrms have tended manufacturing companies are also increasingly willing to use
to be owned by ‘friendly’, long-term investors (often associated the Tokyo market to raise funds, often as the ﬁrst step towards
companies and banks) and hostile takeovers remain virtually involving themselves in international ﬁnancial markets. These
unknown on the Japanese stock market. Recent deregulation in changes reﬂect the challenge which Japanese companies are
Japan, partly induced by outside forces and partly consequent facing in the 21st century as the old model of regulated ﬁrms and
on the desperate state of the banking industry following the markets declines and new processes of competition are set loose.
collapse of the 1980s ‘bubble economy’ has resulted in a number
of changes for company analysts amongst others.
Previously, like most Japanese employees in big ﬁrms, analysts two authors in � minutes
had entered the company believing that this was a lifetime
relationship. As such, they were not specialists in any particular
task and tended to be rotated around the organisation so they Glenn Morgan, Professor of Organisational
Behaviour, Industrial Relations and Organisational
had a very good overview of the ﬁrm and how it worked. Even a Behaviour (IROB) group. Glenn previously worked
position such as a company analyst was not a specialist role. Most at Manchester Business School from 1992–8.
analysts would work in it for a few years and then move on to His research interests are comparative economic
another task elsewhere in the ﬁrm. organisation in Europe and East Asia; management
of change; multinational ﬁrms; global ﬁnancial
markets and international regulation.
The entry of American ﬁrms into Japan changed this. In order to
launch their investment banking business, these ﬁrms needed
good company analysts and the only source of such people was
Following graduation from Sophia University in
in existing Japanese institutions. They offered high short-term Tokyo, Izumi Kubo has worked in the Japanese
material incentives and a chance to specialise long-term in the ﬁnancial industry for a number of years both as a
role of analyst. This package was sufﬁcient to create some initial company analyst and an investment manager. After
labour mobility across ﬁrms. Many of the analysts interviewed undertaking a Masters in the UK, Izumi joined the
found this an agonising decision as it involved breaking with the doctoral programme at WBS on a part-time basis
and is currently completing her thesis.
strong expectations of lifetime loyalty. They knew that unlike
Japanese ﬁrms, US companies were much more likely to slim
12 nexus: summer 05 focus on asia Asian Tsunami
the logistics of tsunami relief
In January 2005, Alyson Warhurst, Professor of Corporate Strategy & International Development, published a paper¹
which looked in detail at logistics companies and the Asian tsunami relief. This is a brief outline of the activities at that
time and an update on progress to date.
The logistics and transportation sector role housing, sanitation and medical supplies end of May. The aim is to bring together
M onetary donations are an essential
part of any relief and recovery
effort and enable the large humanitarian
is vital. Accumulating and distributing
these resources effectively, and the
infrastructures to support their equitable
one or two relevant professionals within
each L&T company that are responsible
for humanitarian relief partnerships for
organisations to consolidate purchases and and effective dissemination, requires the a series of such workshops; the second of
ensure delivery of assistance is efﬁcient. In coordination of emergency infrastructures which would include humanitarian relief
addition, expertise, equipment and even and services on an unprecedented level. In organisations.
labour, when matched effectively with addition to the scope of need that includes
need, have proven to be just as important tents, helicopters, trucks, aircraft, landing The exciting element of this programme
crafts, boats, base camps with staff support, is that Professor Warhurst has been able to
fuel, water treatment units and generators, include these leading edge developments
there is the complexity of the logistical in her teaching. MBA students on the
By no means do these challenge this disaster poses. Corporate Citizenship module recently
enjoyed a presentation from DHL; and TNT
companies consider their Humanitarian relief – next steps executives will debate their company’s
work complete or that By no means do these companies consider partnership with the World Food
everything went as smoothly their work complete or that everything Programme and how to combine business
went as smoothly as it could have done. In and humanitarian objectives – and win
as it could have done January 2005, at Davos, the CEOs of these more customers – at their forthcoming
and other logistics and transportation WBS executive training course.
companies, advised by Professor Warhurst
who was their special guest, reﬂected on Her research shows that more than 90
in dealing with the challenges facing the lessons from the Asia disaster and percent of 75 Fortune top brands put ethics,
disaster areas – especially those challenges considered how, in partnership with the social and environmental requirements
relating to the transportation and logistics international humanitarian organisations into their supply contracts with logistics
of emergency relief. and the World Economic Forum’s DRN, providers and 22 percent expect their
they might contribute to fully ﬂedged logistics providers to have social
Leveraging their core competence to disaster preparedness, in respect of partnerships in place as good corporate
address dire need is among the core aims of emergency logistics and transportation, as citizens.
the Logistics and Transportation Corporate well as to evaluate and improve impacts.
Citizenship Initiative (L&TCCI) of the Two programmes of work have been ¹Alyson Warhurst, Susannah Anastasi and Kevin
Franklin, “Logistics companies and Asian tsunami
World Economic Forum. The L&TCCI recommended:
relief”, Ethical Corporation Magazine, January 2005
was formed in January 2003 by the CEOs
of a group of informed and proactive 1 Logistics Emergency Teams (like Airport
logistics and transportation companies Emergency Teams) – L&T companies to
– companies that are normally competitive. work together to develop 5 worldwide the author in minute
The commitment of these companies led LETs to ensure disaster preparedness with
to many of them being active in relief a multi-modal logistics capacity globally
Alyson Warhurst is
provision in tsunami affected areas; both – eg Americas, Europe, Southern Africa,
individually and by joining forces with Dubai (AET), Asia Paciﬁc. This effort is Citizenship Unit and
other companies and organisations such path breaking in terms of the wider role Director, Mining and
as the World Food Programme, IFRC and of business in society. Energy Research Network.
the World Economic Forum’s Disaster Previously Professor
Resource Network (DRN). Indeed, Professor 2 Learning from each other to Strategy and Director
Warhurst’s research was able to show that ‘professionalise’ emergency of International Centre for the Environment,
those companies that had partnerships in humanitarian relief preparedness in L&T University of Bath. Alyson is also a Fellow of
place were able to respond more effectively companies, developing a guide or set The World Economic Forum and a recipient of
to the crisis. of best practices and to share learning the European Faculty Pioneer – Beyond Grey
Pinstripes Award. She works with UNCTAD,
about partnerships with humanitarian OECD, World Bank, IDRC (Canada), World
Disaster relief across ten countries relief organisations amongst relevant Economic Forum and international companies on
– logistics competence at a premium professionals in a workshop. business and development.
The magnitude and impact of the
Research interests: environmental and social
earthquake and tsunamis has prompted TNT has so far offered to share its
performance and strategic decision making;
an immediate and ongoing set of disaster humanitarian relief expertise with the strategy and business challenges of working in
relief activities. Ensuring continued access sector and invited L&T professionals poor developing countries.
to clean drinking water, food, clothing, working in this area to a workshop at the
Cambodia nexus: summer 05 focus on asia 13
John O’Gara (MBA 1996–7) talks about Cambodia and his work as General Manager of Hagar Soya Company, Phnom
Penh, a company jointly owned by an NGO and the World Bank that seeks to generate income to fund community
projects, and winner of the Corporate Governance Award for Cambodia.
T he problems of endemic corruption
are slowing both development
and economic regeneration efforts
Secretary of State Colin Powell, and
the Hagar Soya business recently won
the Corporate Governance Award for
Salesian Mission project funded by USDA.
Hagar Soya is the only beverage company
in Cambodia with UHT and Tetrapak
in Cambodia. However, despite their Cambodia. packaging technology. At the moment we
hardships, which stem from the fact that have one commercial product, So!Soya and
the country is still trying to recover from Since then we have been developing 49 employees. We are developing eleven
the Khmer Rouge era and a long period a range of new ‘commercial’ products new commercial products and two new
of civil war, the Cambodian people are for the Cambodia and export markets products for school and maternal health
genuinely friendly and welcoming. and also fortiﬁed soya milk products feeding programs.
for maternal health and school feeding
I started working at Hagar Soya, based programmes, aiming to increase enrolment The short-term goals are to double sales
in Phnom Penh in November 2004 to and attendance, reduce dropout rates and and break even in 2005 and to double sales
help to improve the company’s business improve the nutritional status of poor again and make a proﬁt in 2006.
performance. children in rural areas.
I also plan to train a successor as I believe
Hagar Soya Ltd is jointly owned by Hagar We are now registering the new brands in it is important to build local capabilities
NGO and the World Bank and the idea Cambodia and will shortly be commencing and provide management opportunities for
behind the business is to generate income school feeding programme trials with Cambodian people.
to fund the NGO’s community projects. IRD, Care, World Vision and other leading
The NGO was recently recognised for their NGOs. Hagar Soya will start its ﬁrst large- w www.hagarproject.org
part in the ﬁght against human trafﬁcking, scale programme in January 2006 feeding
at a ceremony hosted by former US 22,000 schoolchildren in Poipet as part of a
spotlight on Cambodia
C ambodia is one of the poorest 20 nations in
the world with GNP below $300 per capita.
People living outside the main towns and cities
live in extreme poverty. Children of school age After completing
The Warwick MBA
in these areas do not receive a balanced diet and in 1997, I worked
are deﬁcient in micro nutrients that impair their as a Corporate
mental and physical development. We know Business Operations
children primarily go to school to get fed as the Consultant for
parents in the poorer provinces don’t have money Teleﬂex, performing
assignments including implementing an ERP
to buy food. system in Malaysia, setting up a distribution
network in China, manufacturing feasibility
The goal of the Hagar NGO is speciﬁcally to keep studies in India and Mexico, restructuring
the girls in school so they don’t become a burden a business in Belgium and managing a jet
engine aerofoil manufacturing plant in the US.
on their families and end up being trafﬁcked.
I then moved to Marconi Interactive Systems
as Asia Paciﬁc Sales Director just as the telecom
Hagar Soya received advice from nutrition experts bubble burst. I got married in 2001 and we
Helen Keller International and developed a travelled around Asia for a year. I then joined
fortiﬁed soya milk product that is both satisfying Farnell as Interim Business Development
Manager for Middle East and North Asia.
and addresses deﬁciencies in some key micro
nutrients. We are now in partnership with an organisation that provides fortiﬁed My wife and I then decided to do something
noodles in our school feeding programmes. completely different for a year or two and
set up a restaurant in Phnom Penh on the
If you are working for an organisation that has a designated trust fund to support such ‘Riverside’ where there are plenty of tourists
and where I had myself enjoyed business trips
initiatives as school feeding programmes in Cambodia, please do make contact. This in the past.
may key in with the organisation’s social and corporate responsibility programme.
Around this time I heard about the Hagar NGO
You can contact John by email on e firstname.lastname@example.org and the good work they are doing to help
disadvantaged women and children.
14 nexus: summer 05 focus on asia North Korea
project North Korea
All WBS academics are entitled to spend one day a week engaged in consultancy activity, to ensure the regular ﬂow of
information between research and ‘the real world’. Amongst Nigel Sykes’ external activities is a project including a group
from the UK, the Business Development Association (BDA), working with the North Korean government to promote
sustainable development and to encourage trade links between the Democratic People’s Republic of Korea (DPRK) and
other parts of the world.
S oil erosion is a major farming problem
in some parts of the world where
deforestation has occurred. Western
with two other members of the BDA (an
association of experts in various ﬁelds
who are committed to work together in
The hope is now that two of the FPUs will
be renovated in the UK using parts made
in DPRK, and then one will be shipped
methods of farming often lead to high economic and social regeneration through out to test whether the beneﬁts seen in
levels of soil compaction under tractors’ sustainable development). During this Bedfordshire and predicted with DPRK
wheels, which reduces the productivity visit the Field Power Unit (FPU) tractor, farms really can be replicated. Assuming
of the soil even further. In an attempt to combined with wide-track controlled this is possible, modiﬁcations can be
combat this an innovative agricultural trafﬁc farming, was considered as being made to the remaining FPU (three of
machine was designed, known as a of great potential beneﬁt to improving which are currently in the UK) and further
Field Power Unit (FPU). Ten prototypes agricultural yields in DPRK. A factory seen research and development carried out in
were made and one of these has been during the visit was also considered to collaboration with experts in the UK and
successfully used on a farm in Bedfordshire have the engineering and manufacturing DPRK.
The potential beneﬁts of this project have
far reaching implications and space does
not permit a full discussion, but as I teach
on the MBA module Entrepreneurship
and New Venture Creation, ‘For success
you need an envisioning, enabling and
enacting capability in the founding team.
With a shared vision and passion and a
shared language that afﬁrms others, a
culture develops which encourages rather
above: the team view the FPU tractor in than criticises and which builds others up
to do better than themselves. This non-
Bedfordshire. right: BDA members and
hierarchical way of working is attractive to
a delegation from DPRK visit WBS
other cultures that have not experienced
this way of working before.’
for almost ten years. The FPU has a very capability necessary to produce the FPU. Nigel was encouraged when on his visit to
broad wheelbase and when used in Plans were laid for future collaboration the DPRK a leader said, ‘You seem to have
conjunction with wide-track controlled between the DPRK and the BDA. The a different approach to the people we have
trafﬁc farming methods leads to a steady project would include seven main dealt with before – we feel we can work
improvement in soil structure over a components: organic fertiliser, agriculture, with you.’
number of years. Crop yields increase and renewable energy, food processing,
the energy efﬁciency of the farm (in terms manufacturing, trade and business
of man-hours and fuel consumption) is training. As a result of this agreement,
greatly improved. This is important in the certain areas of the project were identiﬁed the author in minute
UK, but vital in a country such as DPRK by both parties as being the most
where soils are in poor condition and fuel important to develop initially.
Nigel is a Senior Teaching Fellow at the Centre
in short supply.
for Small and Medium Sized Enterprises
With the support of Warwick University, (CSME), and teaches the MBA optional
In 2002 various links between Warwick the interested parties from DPRK were able module Entrepreneurship and New Venture
University and the DPRK led to the to visit the UK during March 2005, and Creation; and the Starting a Business module
proposal of an economic regeneration spend further time engaged in research and to undergraduates. Previously involved in
marketing and sales management in the leisure
project (EIRIN) in DPRK, involving analysis of the project. The main focus of industry, he ran his own business and acted as
agriculture, renewable energy, food the visit was to explore the possibility of an advisor and mentor.
processing, manufacturing, business manufacturing the FPU at the factory in
training and trade. A project site was DPRK. It has a large work force, and also He has supervised international projects in
identiﬁed in DPRK where various has many hectares available as farmland to Botswana, Uganda, Nigeria and Kazakhstan
and, following the collapse of the Iron Curtain,
sustainable technologies could be produce food to feed the workers and their helped run and teach part of an EBRD funded
demonstrated and disseminated, and an families. programme to encourage Russian scientists to
invitation issued to the BDA to visit DPRK. take their technology toward commercialisation.
I travelled to DPRK in November 2003
India nexus: summer 05 focus on asia 15
on track in India
Vishal Jhunjhunwala (MBA 2001–2) is a Senior Brand Manager with Tata Services Ltd, India. He is currently responsible
for marketing the association between his employers and Formula One as Tata have sponsored the ﬁrst ever Indian driver
in the F1 championships.
Considering I gambled by applying to
just one school, I am sure I made the
right decision and have no regrets.
I believe whatever you put into a
programme and campus life you get
twice as much out.
I made certain I had a life outside
of academic work – represented the
University at squash, and kept active
by playing sport or travelling. My ‘year
out’ as I like to call it, was one of the
best decisions I have ever made.
It also helps to have great professors –
those who not only know their subject
but also take pleasure in teaching it in
an interesting and interactive manner.
The ﬁrst name that comes to mind is
P ost WBS I took a four month break and
in 2003 I joined the Tata Group in the
corporate brand team. I am employed by
Currently, I am working on a very exciting
project – Formula 1 motor racing – as the
Tata Group has sponsored the ﬁrst Indian
the late Peter Doyle. Coming from an
advertising background, I thought I
knew what marketing was about, but
Tata Services, based in Mumbai, a division driver in F1 with the Jordan Team. I am he provided new and disruptive ways
of Tata Sons, the holding company for therefore responsible for marketing this of approaching the subject. In fact, all
all Tata Group companies. This division association which involves advertising, the professors had their quirks which
provides certain centralised services to promotions and events and on-line added to the academic edge that WBS
Tata Group companies in order to reap marketing. I even got to experience the provides.
the beneﬁts of economies of scale, on a Melbourne and the Malaysian Grand Prix
no-proﬁt no-loss basis and corporate brand races from the pits thanks to this project! I couldn’t have seen myself warming to
management falls within this remit. Operations Management or enjoying
Tata had a total revenue of US $14,251 the Strategy courses had it not been for
Apart from the fact that the Tata Group is million in 2003–4 and employs a total of people like Mike Lewis, Bob Johnston,
India’s most respected conglomerate, the 220,219 people. The Group incorporates John McGee and Duncan Angwin.
challenge to manage India’s most trusted over 90 individual companies.
brand is what primarily attracted me to
the job. In addition, the proﬁle included I plan to build on my experience and
sports marketing, brand advertising and within the next ﬁve years be in a position
event management – aspects that were in to head a corporate communications
line with what I was looking for in a brand department, either within Tata Services, the author in minute
management role. another Group company, or if opportunity
knocks, possibly even outside the Tata Vishal was born in Bombay (now Mumbai)
As a brand manager, I report to the Group. and went to boarding school in India. As an
Vice President and am responsible for undergraduate he gained a BA in Economics in the
developing, implementing and managing I would also like to dabble in academia and United States. He joined Triton Communications in
the marketing plans involving media, am considering some part-time lecturing 1994 as a Client Servicing Executive and worked his
way up to Account Director.
creative, TV, promotions, market research work in brand management at a nearby
and PR for the various projects assigned management school. Vishal was with the same advertising agency for
to me. This includes the responsibility nearly eight years and managed large Indian
for proposal writing, sourcing partners, brands in categories such as liquor, FMCG,
consumer durables and tobacco, before coming to
discounts/offers and ensuring efﬁcient
the UK in 2001 to study for an MBA at WBS.
success builds success
changing people’s lives
advancing business knowledge
creating the best learning environment
Be part of the process
‘There is no doubt that having gained my MBA in 1989 I was A recent and much belated return to the School found me
looking forward to re-gaining some of my life outside my standing in one of my old lecture theatres where happy
studies, only to ﬁnd that literally within a matter of a few memories of weekly robust discussions with Peter Doyle came
weeks I was really missing the intellectual stimulation of the ﬂooding back. This coupled with a realisation of what WBS
course and the camaraderie of my peers. I have no doubt that had done for me, made me determined to become involved in
the School played a fundamental role in helping me gain wider helping the School deliver its exciting future plans.’
expertise and experience in facets of the business outside
of those for which I had been professionally trained. Two Geoff Percy, MBA, Class of 1985
management buy-outs later and I remain grateful for all that I CEO Accantia plc & Warwick Business School Donor
have learned at WBS.
alumni strategy 17
Would you like to have a say in what goes on at WBS?
Would you like to help shape the alumni strategy for the School?
have your say
WBS is looking for volunteers from across of the School using our global network of
the decades, from all courses, and from all alumni volunteers. To have your chance to inﬂuence the
industry sectors, who are willing to share School’s alumni strategy, and to learn
their business expertise, their knowledge Current Board members work in more about the work of the Board,
and their enthusiasm to ensure that WBS banking and ﬁnance, consultancy, please contact Nathalie Walker, Head of
remains at the very top of management telecommunications, the public sector, Alumni Relations, on
education. manufacturing and education, span T +44 (0)24 7652 4176, or by email
four decades of education at SIBS/WBS, E email@example.com.
Current Board activities include setting represent nine different courses and are
up a programme of activities for recent geographically diverse. It is this mix Alternatively, you can send a CV and
graduates (to be known as GOLF … which ensures the actions of the Board are covering letter to the above email
Graduates of the Last Five years), relevant to the whole WBS community. address. The applications process will
benchmarking exercises against other close at the start of November. Details
leading business schools, planning Over the last four years the Alumni Board will be circulated via eNews, so please
activities for the Business School’s 40th has come to be a fully elected body that is ensure that you complete your details
anniversary in 2007, interaction with representative of the Alumni Association as online so we can get in touch.
current students and promoting awareness a whole.
undergrads in society
by Helen Brand, President, Warwick Business School Society (WBSS)
as well as excel in the WBSS sports teams
and of course in their degrees.
The WBSS Forum is the society’s ﬂagship
event. Focusing on strategic leadership in
2004 and entrepreneurship in 2005, our
new Forum coordinators have great ideas
on how to move this event forward. The
new social committee has already started
planning a multitude of social events
for which WBSS is renowned within the
University. As well as the unparalleled
‘Leamington bar socials’, we also plan to
repeat the success of the ﬁrst ‘Warwick
Business Ball’ (see nexus spring 05).
We have continued support from many
of our partnership sponsors and the
corporate committee is already working
hard planning tailor-made events for our
undergraduates in conjunction with these
President Helen Brand (front row right), with fellow members of the WBSS Executive Committee The society has gone from strength to
strength over the last few years and we
hope that 2005–6 will be no exception.
Congratulations go to the newly elected The Warwick Business School Society If you would like to get involved with
WBSS Executive Committee. All applicants (WBSS) provides an opportunity for the Society through sponsorship or
were extremely strong and we are sure that undergraduates from WBS and business participation in our Forum, please do not
those elected will work extremely hard to related degrees to socialise with like hesitate to contact me.
produce another outstanding year for the minded students, learn skills to make
society. themselves more saleable in the job market E firstname.lastname@example.org