Yataro (A)

1. Yataro Iwasaki's Entrepreneurial Vision: Yataro Iwasaki, born into a samurai family during the
Edo period, recognized the transformative potential of the Meiji Restoration and identified
business as a means to contribute to Japan's progress. He played a pivotal role in establishing
Mitsubishi as a leading force in the Japanese shipping industry, demonstrating his
entrepreneurial acumen and commitment to national development.

2. Impact of External Pressures: The arrival of Commodore Matthew Perry's "black ships" in the
mid-19th century signaled the end of Japan's isolationist policies and forced the country to
confront Western imperialism. This external pressure catalyzed internal reforms and eventually
led to the Meiji Restoration, marking a period of rapid modernization and institutional
transformation.

3. Meiji Restoration and Modernization: The Meiji government embarked on ambitious reforms
aimed at modernizing Japan's institutions, economy, and society. These reforms included the
abolition of feudal domains, the introduction of a new prefectural governance system, tax
reforms, compulsory education, and military conscription. The government's slogan of
"Civilization and Enlightenment" underscored its commitment to embracing Western ideas and
practices to propel Japan forward.

4. Challenges and Opportunities: Despite the progress made during the Meiji era, Japan faced
numerous challenges, including unequal treaties with Western powers, domestic unrest, and
economic competition. Yataro Iwasaki's struggle to navigate these challenges, particularly in the
face of bankruptcy threats to Mitsubishi, reflects the broader complexities of Japan's transition
from a feudal society to a modern nation-state.

5. Social and Economic Change: The Edo period witnessed significant social and economic changes,
including population growth, urbanization, commercialization of agriculture, and rising literacy
rates. However, stagnation and inequality persisted, leading to social protests and challenges to
the traditional hierarchical order.

Overall, the case of Yataro Iwasaki and the founding of Mitsubishi exemplifies the intersecting forces of
tradition, modernization, external pressures, and entrepreneurial innovation that shaped Japan's
trajectory during the Meiji era.

Key findings from Yataro Iwasaki's background and his role in transforming Mitsubishi and the Japanese
shipping industry include:

1. Early Life Challenges: Yataro Iwasaki was born into a lower-class samurai family in Tosa, facing
financial difficulties due to his father's mismanagement. Despite these challenges, his mother
ensured he received a good education.

2. Early Career Struggles: Yataro initially pursued studies in Chinese classics but faced setbacks
when his father was injured in a fight. He was imprisoned for vandalism but later became
involved in Tosa politics under the mentorship of reformer Toyo Yoshida.

3. Entry into Business: Yataro's involvement with the Glover Trading Company and the Kaien-tai
exposed him to trade and shipping. He later took charge of the Tosa business center in Nagasaki
 and engaged in ventures with foreign merchants, accumulating wealth and experience in
business.

4. Foundation of Mitsubishi: Yataro acquired control of the Tosa trade center, renaming it
Mitsubishi in 1873. The name represented his family and business, symbolizing his commitment
to both. He gathered employees and declared his dedication to business, marking the beginning
of Mitsubishi's rise.

5. Rivalry with Japan Mail: Despite competition from Japan Mail, which had government backing,
Yataro instilled a strong corporate culture at Mitsubishi. He emphasized efficiency, discipline, and
customer service, contrasting with the bureaucratic style of Japan Mail.

6. Contribution to National Endeavors: Yataro supported the Meiji government's endeavors,

including the Taiwan Expedition, by providing ships and logistical support. This earned him trust
and favor from government leaders and solidified Mitsubishi's position in the shipping industry.

7. Government Support and Development: The Meiji government recognized the importance of
the shipping industry and entrusted Mitsubishi with its ships. Yataro's vision and leadership led
to the establishment of policies promoting the shipping industry's growth, culminating in
Mitsubishi's significant role in national defense and commerce.

Yataro Iwasaki's journey reflects resilience, adaptability, and strategic vision, which were crucial in
navigating Japan's transformation during the Meiji era and establishing Mitsubishi as a powerhouse in
the shipping industry.

Yataro's transformation of Mitsubishi from a traditional, family-owned business to a modern corporation

involved various strategies and challenges. Here's a breakdown of key elements:

1. Centralized Control: Yataro centralized decision-making power within Mitsubishi, reflecting a

traditional feudal ownership structure. This ensured that every decision was authorized by him,
consolidating power in the hands of the Iwasaki family.

2. Recruitment and Education: Despite his autocratic leadership style, Yataro focused on hiring
young, educated staff and promoting them to positions of responsibility. He recruited graduates
from Japan's new university system and invested in education by establishing schools to train
future managers.

3. Adoption of Western Management Techniques: Yataro introduced Western-style management

techniques, including a Western-style double-entry bookkeeping system and the notion of
depreciation, which modernized Mitsubishi's corporate accounting practices.

4. Global Expansion: Yataro aimed to expand Mitsubishi's presence globally, challenging

established competitors like Pacific Mail and P&O. He strategically fought back against
competitors through price cuts and innovative service schemes, ultimately establishing
Mitsubishi as a dominant force in Japan's shipping industry.

5. Diversification: Yataro diversified Mitsubishi's business interests beyond shipping, investing in

industries like mining, camphor, and silk. However, government restrictions limited Mitsubishi's
 expansion into certain sectors, leading Yataro to invest in related industries like maritime
insurance.

6. Challenges and Criticism: Yataro faced criticism, particularly from business leaders like Eiichi
Shibusawa, who advocated for a more decentralized approach to corporate ownership.
Mitsubishi's aggressive competition with rivals like Kyodo led to financial strain and government
intervention.

7. Legacy and Succession: Yataro's dedication to Mitsubishi's success was evident in his final
testament, where he urged his successors to maintain the company's commitment to the
shipping business. Despite his passing, Yataro's vision laid the foundation for Mitsubishi's
continued growth and success.

Overall, Yataro's leadership and strategic vision played a pivotal role in transforming Mitsubishi into a
modern corporation, setting the stage for its future expansion and success.

Yataro Iwasaki: Founding Mitsubishi (B)

Here are some key findings from the provided text:

1. Leadership Transition and Business Strategy: Yanosuke Iwasaki played a crucial role in managing
Mitsubishi following the death of his brother Yataro Iwasaki. He immediately took charge of the
company, ensuring business continuity and implementing strategic decisions to maintain
Mitsubishi's competitiveness in the face of competition, such as the declaration of invalidity of
the cease-fire agreement with Kyodo.

2. Merger and Formation of NYK: Yanosuke's negotiations with Masazumi Morioka resulted in the
merger of Mitsubishi and Kyodo, leading to the formation of Nippon Yusen Kaisha (NYK). The
merger was aimed at saving the Japanese maritime transportation industry and involved the
transfer of assets and employees from Mitsubishi to NYK.

3. NYK's Growth and Success: Under the leadership of Renpei Kondo, NYK experienced significant
growth and became a major player in the global shipping industry. Kondo's strategic initiatives,
such as expanding into passenger ship business and opening new ocean routes, contributed to
NYK's success and reputation for high-quality service.

4. Diversification of Mitsubishi: Following the merger with Kyodo and the loss of its primary
shipping business, Mitsubishi diversified into coal mining, shipbuilding, banking, and other
industries under Yanosuke's leadership. This laid the foundation for Mitsubishi's transformation
into a conglomerate.

5. Post-World War II Challenges: Mitsubishi faced challenges during World War II, and its
dissolution was ordered by the Allied Powers due to its alleged involvement in supporting the
Japanese government's war efforts. However, the company eventually resumed operations and
began a new era as the Mitsubishi Group after the end of the Allied occupation in 1952.

Overall, the text highlights the dynamic leadership, strategic decision-making, and resilience of both
Mitsubishi and NYK in navigating through challenging times and driving growth and development in
Japan's shipping and industrial sectors.
Tencent

1. Financial Performance: In 2016, Tencent achieved record sales and operating profits, with sales
up 48% from the previous year to ¥152 billion ($21.9 billion) and operating profits up 38% to ¥56
billion ($8.0 billion). Despite these impressive results, the stock price closed down slightly due to
falling slightly below market expectations.

2. Business Transformation: Tencent evolved from a simple messaging service founded in 1998 to
become China's largest online games provider, social networking service provider, and internet
portal by 2017. It also ventured into online payments systems, challenging Alibaba's Alipay, and
formed strategic relationships to explore opportunities in online-to-offline (O2O) services.

3. Competition and Market Dynamics: Tencent faced fierce competition from other major Chinese
internet companies like Baidu and Alibaba, as well as thousands of startups vying to enter the
market. Founder and CEO Ma Huateng emphasized the importance of execution over ideas in
China's competitive landscape.

4. Early Years and Growth: Tencent, founded in 1998 by Ma Huateng and colleagues, initially
launched its first product, a PC-based instant messaging service called OICQ (later renamed QQ),
which became immensely popular in China. Tencent's early success was fueled by foreign
investments, such as the $34 million investment from Naspers Group in 2001.

5. Expansion into Mobile Services: Tencent recognized the potential of mobile phones early on and
launched Mobile QQ in 2000, offering value-added services like personal dial tones and
subscription-based services. By 2003, mobile value-added services accounted for the majority of
Tencent's revenues, surpassing PC-based online advertising.

6. Product Offerings: Tencent offered a wide range of products and services, including instant
messaging, online portals (such as QQ.com), social networking applications (like QQ Dating and
QQ Alumni Club), entertainment services, and enterprise solutions. The company also licensed
its popular penguin logo for various consumer products.

7. Billing and Revenue Collection: With limited credit card usage in China, Tencent relied heavily on
billing systems operated by major telecom companies like China Mobile and China Unicom for
revenue collection. The company also sold prepaid cards and virtual currency (QQ Coins)
through these operators.

8. IPO and Valuation: Tencent went public in June 2004 with an initial public offering (IPO) in Hong
Kong, selling 25% of its equity and raising ¥1.9 billion ($230 million) at a valuation of ¥7.6 billion
($918 million), which was 10 times its 2003 sales.

These findings illustrate Tencent's remarkable growth trajectory, its strategic evolution into various
business sectors, and its ability to navigate a highly competitive market environment in China's rapidly
evolving internet industry.

Here are the key findings from the text:

1. Tencent's Growth and Diversification (2004-2009):

 • Tencent expanded its user base significantly, reaching 523 million active instant
messaging (IM) users by 2009.

• The company diversified its offerings, establishing two major new businesses in online
gaming and social networking on its PC platform.

• Tencent also made forays into online search and e-commerce, although these ventures
were less successful compared to its gaming and social networking ventures.

2. Challenges with Telecoms and Government Regulations:

• Tencent faced challenges in its relationships with telecommunications companies, which

threatened its existence at times. State-owned China Mobile terminated some fee-
sharing contracts, affecting Tencent's revenues from mobile and telecommunications
services.

• Government regulations, such as restrictions on online content purchases and

crackdowns on virtual currency trading, also posed challenges for Tencent.

3. Online Gaming Expansion:

• Tencent aggressively expanded into the online gaming market, offering a wide range of
games, including casual, advanced casual, and massively multiplayer online games
(MMOGs).

• The company invested in both in-house development and licensing agreements with
other game developers, leading to significant growth in its gaming user base and market
share.

4. Social Networking Growth:

• Tencent experienced substantial growth in its social networking services, with platforms
like Qzone becoming increasingly popular among users.

• The launch of Xiaoyou (later renamed Pengyou) targeted university students and young
alumni, further expanding Tencent's presence in the social networking space.

5. E-commerce and Online Search Ventures:

• Tencent ventured into e-commerce with platforms like Paipai and Wanggou, but faced
stiff competition from established players like Alibaba.

• In the realm of online search, Tencent developed its own mobile search service called
SoSo, aiming to compete with established players like Baidu and Google, although it
struggled to gain significant market share.

6. Financial Performance:

• Tencent's revenues grew significantly from ¥735 million ($89 million) in 2003 to ¥12.4
billion ($1.8 billion) in 2009, with a compound annual growth rate of 60%.
 • Despite setbacks in the mobile sector, Tencent maintained strong operating profits, with
a mix of revenues shifting from mobile to PC-based services and advertising.

Overall, Tencent's growth during this period was characterized by diversification into multiple sectors,
including gaming, social networking, e-commerce, and online search, although it faced challenges from
regulatory changes and competition from established players in these markets.

Tencent's journey from 2010 to 2016 reflects a dynamic shift in strategy, marked by openness, strategic
partnerships, and a strong focus on mobile innovation.

1. Opening the Walled Garden: Facing criticism for its closed ecosystem, Tencent began embracing
openness, allowing third-party applications and links to external websites on its platforms. This
shift aimed to foster innovation and create a richer ecosystem. Tencent's president emphasized
collaboration and innovation to cater to evolving user needs, leading to the establishment of the
Tencent Collaboration Fund to support new ventures.

2. Retreat from E-commerce and Search: Tencent strategically withdrew from e-commerce and
search, opting instead to partner with established players like JD.com and Sogou. This move
allowed Tencent to focus on its core strengths while still leveraging e-commerce through
partnerships.

3. Expansion in Gaming: Tencent solidified its position in the gaming industry through strategic
investments and acquisitions, such as Riot Games and Supercell Oy. By acquiring stakes in
prominent gaming companies, Tencent became a dominant force in both PC and mobile gaming,
securing its position as a global leader in the industry.

4. Social Networking Evolution: Tencent's social networking platforms, including Qzone and
Weixin/WeChat, experienced significant growth, particularly in mobile users. Despite challenges
from government regulations and censorship, Tencent expanded its social networking
functionalities, enhancing user interaction and integration with online and offline services.

5. Mobile Remobilization: With the rise of smartphones, Tencent shifted its focus back to mobile,
restructuring its organization to provide a seamless user experience across PC and mobile
platforms. The company's mobile payment services, including Weixin Payment and Mobile QQ
Wallet, experienced rapid growth, positioning Tencent as a major player in China's mobile
payments market.

6. Diversification into Content, Cloud, and AI: Tencent diversified its portfolio by venturing into
video streaming, cloud services, and artificial intelligence. Investments in exclusive content deals
with HBO, NBA, and music labels strengthened Tencent's position in online content delivery,
while its cloud services witnessed significant revenue growth.

Overall, Tencent's strategic evolution during this period propelled its revenue growth and market
expansion, establishing it as a formidable player in various sectors, including gaming, social networking,
payments, and digital content delivery.

In 2017, Tencent continued its trajectory of growth and diversification, while also facing new challenges
and opportunities:
 1. Payment Systems: Tencent's payment systems, including Weixin Pay, experienced significant
growth, particularly during festive periods like Lunar New Year's Eve. With market share
comparable to Alibaba's Alipay, Tencent aimed to differentiate its platforms, with QQ targeting
younger users and Weixin/WeChat focusing on convenience and O2O functionality.

2. Gaming Dominance: Tencent solidified its position as the world's largest gaming company,
driven by data mining to understand user behavior and improve performance. Games like
Honour of Kings propelled Tencent's revenues and profits, albeit drawing criticism for potential
negative impacts on youth, prompting Tencent to implement playtime restrictions.

3. Expansion into New Frontiers: Tencent expanded into virtual reality with plans to launch a VR
headset and augmented its AI capabilities by establishing AI labs in China and the U.S.
Additionally, Tencent made unexpected investments, such as acquiring a stake in Tesla, signaling
its foray into the electric car market.

4. Return to Search: Tencent reentered the search market by integrating news feed and search
functions into Weixin and WeChat, challenging Baidu's dominance. This move aimed to leverage
WeChat's vast user base and increase user engagement within its ecosystem.

5. Advertising Growth: Tencent's advertising revenues surged, although there was room for
expansion compared to global counterparts like Facebook. Despite this, Tencent remained
cautious in expanding advertising efforts.

6. Challenges Ahead: Tencent faced challenges in managing shareholder expectations and

sustaining user growth in its primarily China-based user base, especially with nearly 1 billion
active users on Weixin and WeChat. Competition from global players like Facebook, eyeing the
Chinese market, posed a threat to Tencent's dominance.

Overall, Tencent's strategic moves in 2017 reflected its ambition to innovate, diversify, and maintain its
position as a global tech giant, while navigating the evolving landscape of the digital market and
addressing emerging challenges.