Issue link: https://www.e-digitaleditions.com/i/54913
Charged by South Korea's Battery Market by Ian Cropp As a full-time MBA student at the George Washington University School of Business, I completed a two-week cap- stone international experience at the end of the first year. Students could choose one of five residency projects with com- panies facing global business problems. I chose to accompany a group of students to South Korea, where we would work with one of the country's chaebols, or business conglomerates: SK Energy. Our job would be to identify opportunities for the company to strengthen its position in the lithium-ion battery market for electric vehicles as part of its increased venture into green technology. Our professor, Danny Leipziger, had worked extensively in South Korea; before we departed, he taught us about the general economic policies that could affect the company. For instance, we looked extensively at the South Korean government's new Green Growth policy, the result of its passing the recent Framework Act for Low Carbon Green Growth. The act encourages the development of green technologies and clean energy sources. Once in South Korea, we met with economists, politicians, jour- nalists, and business leaders, who answered our questions and helped us better understand how to work for SK Energy effectively. We also visited the industrial city of Daejon, where we toured the extensive main research center of SK Energy. We learned that, by taking advantage of its footprint in different industries, the company can enhance its ability to innovate. Its executives predict an enormous global demand for electric vehicles once prices drop. However, even with the country's adoption of the Green Growth policy, the company will be unlikely to directly influence the government's interest in green energy. During our discussions with government officials and policymakers, we learned there really isn't a form of lobby- ing in Korea. As an American familiar with how public policy is formed in the United States—where lobbyists wield a great deal of influence—I found this aspect of South Korea incredibly surprising. Our work with SK Energy was a great learning experience, but we also gained perspective on global business in other ways. In our discussions with business leaders, we learned that Korean consum- ers are attracted to brand names, but are likely to purchase Korean-made goods when available. We made new discover- Ian Cropp in the hall of South Korea's General Assembly ies by riding the metro and attending a baseball game. I was amazed by the proliferation of digital technology—even grandmothers on the metro streamed TV shows on their cell phones. The crux of the trip—our presentation to the company—challenged us to apply the skills we'd been honing all year in our classes, from crunching financials to tailoring the presentation to a foreign group unaccustomed to business-school jargon. For many of us, this was the first time we had worked on a real-world business project where high-level deci- sion makers asked us tough questions. It was the first time we were truly held accountable for our work. By the end of the trip, I was hooked on green energy—I still scan news sto- ries about lithium-ion batteries. More important, I now have tangible international work experience, which I would not have gained through a simple tour of businesses in a for- eign country. As a second-year business stu- dent, I value the opportunity I had to participate in a hands-on consult- ing project and engage in learning that extended not just beyond the classroom, but outside the country. Now that I've begun my job search, I know that my future employer will require me to produce solid work as a part of an international team. I'll be able to contribute effectively with what I learned from this experience, which combined green energy, cul- tural exposure, and immersion in the Korean business climate. Ian Cropp is a second-year MBA candidate at The George Washington University School of Business in Washington, D.C. BizEd May/June 2011 49