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International Management: Focus on Asia - Coggle Diagram
International Management: Focus on Asia
REGIONALLY UNIQUE MANAGERIAL IMPLICATIONS
CULTURAL FACTORS
Confucianism
Emphasis on education
Value hierarchy/seniority
Relationships important
Savings driven
ECONOMIC FACTORS
Rising powerhouse of global economy
Embracing capitalistic pursuits
Privatisation of previously state-controlled entities
Growing income gaps within countries
POLITICAL FACTORS
history
political and business
leaders
regions
Protection of IP
‘western’
1.WHY ASIA; SPECIFICALLY SOUTH
& SOUTH-EAST ASIA?
REALITY OF INTERNATIONAL MANAGEMENT
‘Diversify or Die’
Internationalise imperative
Blurring of international borders
Global expansion for competitiveness & surviva
Ongoing & increasing globalisation
WHY FOCUS ON MANAGEMENT IN ASIA?
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
Accounts for 40 % of the global economy
Over the past decade, the region’s total greenhouse gas
(GHG) emissions grew faster than the global average.
Home to 4.4 billion people (approx. 60% of world population)
WHAT IS 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, Alibaba
Rapidly expanding skilled labour force – both within as well as outside the region
2.WEST VERSUS EAST: WHAT’S DIFFERENT?
EASTERN MANAGEMENT
Multiple equally important stakeholders
Seniority-based
Steep hierarchy
Long-termism
Reluctant followers of capitalism
Collectivist
WESTERN MANAGEMENT
Short-termism
Limited hierarchy
Early adopters & proponents of capitalism
Merit-based
Individualist
Shareholders – primary stakeholder
EAST ASIAN MANAGEMENT SYSTEMS
CHARACTERISTICS OF EAST ASIAN MANAGEMENT
Support for long-term planning and risk minimisation
Social & business relationships critical for success
Saving face
Historically, significant state intervention
Growing focus on IP protection
Underrepresentation of women in labour force
Large private sector organisations are major employers
Closely linked with ruling political elite
CONCLUSION & A LOOK AT NEXT WEEK
Asia, especially South & South-East Asia, as a region is rapidly jumping into prominence
there is significant overlap between western and eastern management systems
East-Asian Management systems have a number of unique characteristics that must be understood
Cultural, economic, and political systems have and will continue to shape East-Asian Management systems