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International Management: Asia - Coggle Diagram
International Management: Asia
WHY ASIA; SPECIFICALLY SOUTH
& SOUTH-EAST ASIA?
WHY FOCUS ON MANAGEMENT IN ASIA?
Home to 4.4 billion people (approx. 60% of world population)
Accounts for 40 % of the global economy
Accounts for 1/3 of total global FDI inflows: > 1/2 trillion USD
Rising middle class - size of the middle class in Asia predicted to double by 2030: > three billion
Over the past decade, the region’s total greenhouse gas (GHG) emissions grew faster than the global average.
SOUTH & SOUTH-EAST ASIA: THE ENGINE
▪ Home to:
▪ 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, Alibaba
▪ Rapidly expanding skilled labour force – both
within as well as outside the region
Characteristics of Eastern management
CHARACTERISTICS OF EAST ASIAN MANAGEMENT
▪ Support for long-term planning and risk minimisation
▪ Large private sector organisations are major employers
▪ Closely linked with ruling political elite
▪ Social & business relationships critical for success
▪ Saving face
▪ Historically, significant state intervention
▪ Growing focus on IP protection
▪ Underrepresentation of women in labour force
REGIONALLY UNIQUE
MANAGERIAL IMPLICATIONS
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?
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
▪ Savings driven
WEST VERSUS EAST: WHAT’S DIFFERENT?
EASTERN MANAGEMENT
▪ Collectivist
▪ Reluctant followers of capitalism
▪ Long-termism
▪ Steep hierarchy
▪ Seniority-based
▪ Multiple equally important stakeholders
▪ Shareholders – primary stakeholder
▪ Merit-based
▪ Limited hierarchy
▪ Short-termism
▪ Early adopters & proponents of capitalism
▪ Individualist
WESTERN MANAGEMENT