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Management in Asia (south& south-east Asia the engine (PRC &…
Management in Asia
south& south-east Asia the engine
PRC & Indian, the two most populous and
largest transition economies in the world
Former (Japan) & current (PRC) greatest competitor to US
Tiger economies of Taiwan, S’pore, Hong Kong & South Korea
Global brands: Samsung, Toyota, Honda, Hyundai, HSBC, Acer, Tata, Lenovo, Alibab
Rapidly expanding skilled labour force – both within as well as outside the region
why is understanding management in Asia important?
Home to 4.4 billion people (approx. 60% of world population)
Over the next four years, even with slightly declining momentum, stands to deliver nearly 2/3 of global growth
Accounts for 40 % of the global economy
Rising middle class - size of the middle class in Asia predicted to double by 2030: > three billion
Impact of cultural, economic, & political factors on East-Asian Management
cultural factors
Confucianism
– High morals, ethical conduct, and loyalty
to others are stressed
– Three key teachings - loyalty, reciprocal obligations, and honesty - may lower cost of doing business
§ Emphasis on education
§ Value hierarchy/seniority
§ Relationships important – are all?
saving driven
economic factors
Rising powerhouse of global economy
§ Embracing capitalistic pursuits despite limited political freedom
§ Privatisation of previously state- controlled entities
§ Growing income gaps within countries
political factors
§ Tension within East-Asia due to shared complex history
§ Close relationship between political and business leaders, often men
§ Growing political influence in other regions through business expansion (e.g. Africa)
§ Protection of IP – ownership & enforcement
§ Due to significant exposure to western education (i.e. US, UK, Aus) future political & business leaders may embrace more ‘western’ values
Western vs. Eastern Management
east
– Reluctant followers of capitalism
– Long-termism
– Steep hierarchy
– Seniority-based
– Multiple equally important stakeholders
-collectivist
west
Individualist
– Early adopters & proponents of capitalism
– Short-termism
– Limited hierarchy
– Merit-based
– Shareholders – primary stakeholder
East-Asian Management Systems
characteristics
Support for long-term planning and risk minimisation through diversification
Closely linked with ruling political elite
Social & business relationships critical for success
Historically, significant state intervention (e.g. price controls)
Growing focus on IP protection
Underrepresentation of women in labour force