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Chine, Hong kong, Taiwan, Corée du nord, Corée du Sud, Japon, Mongolie, Russie
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far eastern economic review
REVIEW 200/JAPAN
Cruise Control
Powered by record profits, Toyota Motor moved out in front this year
By David Kruger/TOKYO
Issue cover-dated December 27, 2001 - January 3, 2002
SOARING PROFITS and strong sales pushed Toyota to the front of the pack in 2001. As most of corporate Japan was pounded by falling demand and intense competition from China, Toyota reported record profit and topped Japan's Overall Leadership Ranking for the first time.
After eight years in second spot behind Sony, Toyota pulled ahead with No. 1 rankings in the fields of financial soundness, high-quality services and products and management's long-term vision. Sony fell to second spot overall, followed by Honda Motor and NTT DoCoMo, with Seven-Eleven Japan rounding out the top five.
Persistent cost-cutting, a weaker yen and a rush of new models helped Toyota to post a record ¥291 billion ($2.3 billion) profit in the April-September 2001 period, up 82% from a year earlier. The company controls 42% of the Japanese vehicle market.
Analysts say such rapid growth will be difficult to sustain as demand is expected to slow in the United States when zero-interest financing offers put in place after the September terrorist attacks end. Toyota, however, remains confident, predicting sales will reach 5.85 million vehicles in the year to March 2002, up 6% from a year earlier.
The global slowdown is having a more direct impact on Sony, which reported a loss of ¥43 billion in the six months to September 30 as price competition and slack demand hit its core electronics division.
In late September the company slashed its profit forecast for the year to end-March 2002 to ¥10 billion from an earlier target of ¥90 billion. Full-year profit of ¥10 billion would be 40% below a year earlier.
Despite the weak figures, REVIEW 200 respondents said Sony remains the top Japanese company in terms of capacity to innovate in response to customers' needs and is still the firm they most try to emulate
REVIEW 200/HONG KONG
Flash and Dash
Giordano and Mass Transit Railway make an odd couple, but our readers admire both
By Suh-Kyung Yoon/HONG KONG
Issue cover-dated December 27, 2001 - January 3, 2002
TOPPING HONG KONG'S rankings this year are two companies that couldn't be more different--Mass Transit Railway and hip and trendy Giordano Holdings. MTR topped the overall leadership ranking while the clothes retailer was voted the most innovative company in the SAR.
One thing the two have in common--solid and steady growth throughout a tough year. Money-making property developments allowed MTR to record net profits that were up 28% to HK$1.35 billion ($173.1 million) in the first half of 2001. That's even with subway revenues down over 2%-- turnover for the Airport Express train alone decreased more than 13%.
Giordano was also able to grow its bottom line despite dismal market conditions in Hong Kong. It reported net earnings of HK$191 million in the first half of this year, a 10% increase from the same period the year before. Not surprisingly, China was Giordano's main engine of growth. The clothier's turnover there was up 17% as it added more than 100 outlets to its chain. Another 150 Giordano stores were opened on the mainland in the second half of the year.
What about the losers this year? Cathay Pacific Airways suffered the largest stumble, falling 11 notches in the leadership ranking. Traditionally one of the most profitable airlines in the world, Cathay was hit by a double whammy--first there is the still-unresolved labour dispute with its pilots and then the massive decline in business after September 11. Following a stellar 2000 when his companies were ranked No. 1 and No. 2, Li Ka-Shing's enterprises faltered a couple steps in the rankings this year. But don't count him out yet--Hutchison Whampoa and Cheung Kong were judged by our readers to have the best long-term management vision for the fifth year in a row
REVIEW 200/SOUTH KOREA
Familiar Faces
In this year's Korean rankings, it's the Samsung chip-making giant and then everyone else
By John Larkin/SEOUL
Issue cover-dated December 27, 2001 - January 3, 2002
TWO CHARACTERISTICS of the South Korean business scene emerge as strong as ever in this year's rankings. The first is the dominance of Samsung Electronics. It places first in all but one of the categories. The second is the unflagging power of the family-run business groups known as chaebols.
Samsung Electronics, the world's biggest producer of computer-memory chips, takes first place in every category except financial soundness. Though its efficient chip operations have made huge profits in recent years, it manages only sixth position on finances behind Housing and Commercial Bank. Even that is a notable improvement from its 23rd placing in 1998.
The chip maker takes pole position in the overall leadership ranking, followed by telecoms powerhouse SK Telecom and steel giant Posco. Twenty of the 31 overall placings are held by chaebol affiliates.
A few of these, like Hyundai Electronics Industries, now called Hynix, have recently disaffiliated from their parent group. The list shows nonetheless that chaebols, which are usually characterized by family ownership of the constituent units, remain the key drivers of Korea's economy.
But their dominance is not total. Another trend is the rising influence of state utilities like Korea Electric Power, which the government has pledged to privatize. Kepco debuts at No. 13 in the overall rankings, No. 3 in terms of financial soundness and No. 19 on its management's long-term vision. Tobacco monopoly Korea Tobacco and Ginseng, another privatization target, also had a strong debut.
Other standouts are Hyundai Motor and its subsidiary, Kia Motors, which placed 22nd overall in its first year in the survey.
Also noteworthy is the appearance at the tail end of the charts of two companies which have come to symbolize the worst of Korean corporate excess. Hynix hung on to 30th place overall despite its massive debts. Bankrupt Daewoo Motor, which United States car giant General Motors recently agreed to buy, debuted in 31st position.
REVIEW 200/TAIWAN
Home Base
Taiwan's top producer of semiconductors has weathered the hi-tech storm by looking inward
By David Lague/HONG KONG
Issue cover-dated December 27, 2001 - January 3, 2002
IN A YEAR when the pull of mainland China appeared irresistible to many Taiwan businesses, Taiwan Semiconductor Manufacturing retained its REVIEW 200 top ranking while sending strong signals that it planned to stay at home.
In the midst of a savage hi-tech downturn that has seen up to 60% of its production lines fall idle, the company has announced plans to spend $20.3 billion on new local plants, the biggest investment in the island's corporate history. It is not clear if Chairman Morris Chang has abandoned plans to expand on the mainland, but the new investment should go some way towards maintaining Taiwan's leadership in semiconductors and the company's position as the world's biggest made-to-order chip maker. While planning to expand and modernize, TSMC has also weathered the downturn better than many of its competitors, with demand holding up from most of its key customers. Analysts think that the worst of the slump is now over, and expect orders to pick up again gradually over the next year.
For Formosa Plastics, again No. 2 in the REVIEW 200 rankings, the focus is definitely on the mainland. Group Chairman Wang Yung-ching was a driving force behind the decision of Taiwan's President Chen Shui-bian to lift restrictions on investments on the mainland ahead of the December 1 parliamentary elections. "There is only one road for Taiwan to walk and that is the road of liberalization," said Wang in a recent statement.
Lastly, shipping giant Evergreen Marine jumps from No. 6 to No. 3 in the rankings as it begins a major restructuring of its world-wide services to suit changing global trading patterns.