My opinion of this week(411):

Import of beef from US

US Government is getting irritated about the fact that Japanese Government
is still hesitating to resume the import of American beef. Condoleezza 
Rice, Secretary of State made a strong message to Japanese Government. 
The Lower House is going to submit a bill of economic sanction against 
Japan for their slow movement on this issue. 

Prime Minister Koizumi visited US and met President Bush in last October
when the presidential election was going on. President Bush requested 
strongly to Prime Minister Koizumi saying he has to resume beef import
with his political decision. Koizumi answered back to Bush saying the
matter should be decided scientifically rather than politically. Japanese
people must have supported what Koizumi said at that time. Bush could 
not push it any more with Koizumi's promise to solve this pending issue
as soon as possible.

Four months have passed since then, and there is no decision yet on this
issue. It is natural that US Government has started requesting early 
resumption of beef import by Japan. This matter will provide a serious 
bad effect for the current good relation between Japan and US.
 
There were many conflicts on trade issues between Japan and US in the past.
Japan have experienced somewhat aggressive and high-handed approaches on
trade issues in the past. Many of those issues were concerned with exports
to US from Japan. The issue at this time is the beef export from US to 
Japan. 

Those beefs are widely accepted by US consumers without any safety problem
as far as US side is concerned. Furthermore, many Japanese beef bowl lovers
are eagerly waiting for resumption of beef import from US. From US Government
point of views, they just wonder why Japanese Government is so slow to decide
that US  beef is safe alright.
 
Yoshinobu Shimamura, Minister of Agriculture, Forestry and Fisheries 
was said to comment that 100% testing system  does not meet the current 
need of the country. That comment caused a lot of fuss among political world
and he denied what he said later on. Yes, that is the main issue as far as 
this beef safety measures are concerned. While US side insists statistical
sampling testing system is good enough to guarantee the safety of beef, 
Japanese side insists 100% testing of beef is very necessary to insure the
safety of beef.

The whole point seemed to be summarized on this issue. Is 100% testing
is the only way to guarantee safety of beef? Or is sample testing system
scientifically right to guarantee safety of beef?  

The matter should be settled not by emotion but by science. I just wonder
why both sides cannot agree with this just on scientific base. If Japan
cannot agree with the basic principle of US testing method, they should
verify it with scientific facts and theories. US side should make more 
effort to convince Japan their testing method is theoretically right.

We have to admit that Japan side is too slow to settle the issue at any
rate. It seems that their approach is not quite scientific and theoretical
as far as their reaction so far is concerned.

2005/3/5
Tadashi HAYASE

My opinion of this week(412):

Court Favors Livedoor, Slaps Injunction On Nippon Broadcasting

The Tokyo District Court on Friday granted Livedoor Co.'s request for a
temporary injunction against Nippon Broadcasting System Inc. to block 
the issuance of equity warrants to Fuji Television Network Inc. 
(Nekkei Newspaper March.11)

I watched this news on NHK TV last night and believed that the court 
decision is quite right. The court judged that Livedoor's purchase of
Nippon Broadcasting System Inc's stock at outside hours is not illegal
as far as the current law is concerned. The court further said Nippon
Broadcasting corporation may gain some good synergy effects by coalition
with Livedoor in current social environment where internet become an 
important communication media  denying Nippon Broadcasting Corporation's
contention. 

This is just a start of pending suit and it will takes a long time to 
settle the issue following the decision by a higher court and the supreme
court. This is very unfortunate situation for both parties. 

I just wonder why both management of Fuji TV and Nippon Broadcasting
Corporation cannot accept the undeniable fact that Livedoor is now No.1
shareholder of Nippon Broadcasting Corporation sharing 45% of the total
stock. They may gain more than 50.1% of shares soon, the majority shares 
of the corporation. Although they expect  more favorable judgment in
the following law suit, there will only be a little chance to eliminate
the control power by Livedoor in one way or the other in the short-run and
long-run at any rate.

I have another serious doubt about comments made by many top executives
of business firms. Some of them have criticized President Horie of Livedoor
insisting he is against a business ethics for trying to control Nippon 
Broadcasting Corporation by sharing major shares of the firm. Why is such
approach against business rules or ethics?  The approach is nothing wrong
in the light of business rules and ethics in any means, isn't it? That is
the rule of capitalism itself but strangely enough, they call it something
like a kind of evil money game.  Are there any good money games and bad
money games in business world?

There is nothing wrong with President Horie's approach as far as I can
observe.

Needless to say, becoming major shareholders of a firm does not necessarily 
means succeeding in management of the firm. To succeed in business,
executives must integrate four elements of management game, i.e. money, 
human being, goods and software. Money, in other word, a capital is not
the only one element to succeed in business.

It is very strange and wrong that top executives of Nippon Broadcasting
Corporation and Fuji TV have turned down the request by President Horie
to meet each other to start some talks on possible tie-up between two major
shareholders. There is no reason why they continue to turn down such
very natural request as a big shareholders of the firm.

I believe that is seen as a serious betrayal for shareholders of the 
corporation. If I were a shareholders of the firm I would bring up to the
to court as representative suit insisting they are not making very necessary
efforts as top executives of the corporation. 

2005/3/12
Tadashi HAYASE

My opinion of this week(413)：

Tama Zoological Park in Hino City

Ten of MPC(Murayama PC Club) members visited Tama Zoological Park in Hino 
City on Friday March 18. My good friend Shigeo Sumida took us around the
whole site of zoon starting 10 o'clock in the morning till 4 in the evening
in very fine and warm weather. Mr. and Mrs. Yamada who have a long experience
on bird watching showed us many good views of birds on trees and animals
in distant place in the zoo. It was a really interesting and instructive
excursion.

Compared with many other city zoos in Japan, Tama Zoological Park  was 
fairly wide and open because it was constructed in Tama hill. When it comes
to zoo, I personally have no good impression about them. Many of zoos which
I visited with my children in the past was not quite large in space. Animals
were put into very narrow  cages and looked unhappy just to live for show　
for people. I took it natural to hear the news that many of such zoos had
been closed later on.

Tama Zoological Park is somewhat different. Sumida san made us a very 
explanation about many spots. I have been convinced that the zoo is trying
not only to show many interesting animals but also to keep good natural
environment for animals so that many of dying species can be preserved on
the earth.   

In addition to mammal animals, there are many interesting exhibits on insects
in the zoo. We were all amazed to see the exhibits on working ants which 
reminded us Aesop's Fables of ants and grasshoppers. I especially excited about 
the Butterfly House where thousands of different butterflies are flying in 
flower garden. 

Since it was a week day, we didn't meet  many families but many kindergarten
children. They were giving a glad cry whenever they found very interesting
animals. That kind of experience will really become a good education about
importance of natural environment for those children. I believe the visit to 
the zoo will become a good opportunity to remind the importance of environment
problem today for all adult and aged people. 

I recommend many of you to visit here someday. This will also provide a good
walking practice for all, too.

2005/3/19
Tadashi HAYES

My opinion of this week(414):

Value of the enterprise

A number of new words have appeared in the news report concerning 
struggle between LIVEDOOR and FUJI TV on control of Nippon Broadcasting
Corporation. Many of those new words especially about M&A have never been
heard before for general public. One typical example of such words is 
"value of the enterprise". 

The argument was  which one LIVEDOOR or Fuji group will be able to 
increase the value of business of Nippon Broadcasting Corporation. 
Many of general public can hardly understand what those arguments 
really means.

In summary, the value of enterprise means how the firm in question will be
able to maximize the profit per share of stock for shareholders. And in
order to attain that purpose, executives of the enterprise must gain
a good satisfaction of customers in their business by keeping a good
relation with their employees and many of their business partners to get
their corporation in the operation.

"What are you talking about? It's natural kind of thing, isn't it?" You
may say. Yes, that's right. The argument is nothing new at all. That is 
the argument we have heard in many occasions while many of business firms
have attained a great success or failed and disappeared from the market 
place. The main theme here is what is a business enterprise and what is 
the value of enterprise.

In order for the enterprise to continue to exist successfully, they have
to keep good relation with customers and their vendors in order to 
maximize the satisfaction of customers so that they can maximize the 
profit for their shareholders. Combination of any of those elements are
very necessary to succeed. 

It is wrong to accuse President Horie of LIVEDOOR for controlling power
to manage Nippon Broadcasting Corporation. He just followed the rule of
stock market to gain the control power. The lower and higher courts 
confirmed it from legal point of view. But whether or not he will really
be able to increase the value of the corporation is a different matter.

He intended to control Fuji TV in one way or the other based on the fact
that Nippon Broadcasting Corporation is a big shareholder of Fuji TV.
But it seems this is already not working well by some Fuji's protective
measures.

What we like to see is that how President Horie will be able to increase
the value of Nippon Broadcasting Corporation as he explained in news
conference by introducing many of new concepts and know-how's of internet
business. This is what President Horie do first before he tries to control
Fuji TV. 

2005/3/26
Tadashi HAYASE