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International Management: Focus on Asia - Coggle Diagram
International Management: Focus on Asia
Why Asia: specifically south and south east Asia?
Many organisations internationalising their operations, at least to some extent.
Reality of international management
Ongoing and increasing globalisation is making international management essential for organisations to be competitive and to survive
Blurring of international borders more trade routes
'diversify or die' - imperative to internationalise, supply chain or target market
Internationalise imperative
Global expansion for competitive and survival
Why focus on management in Asia?
Home to 4.4 billion people (approx 60% of the 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 and south east Asia:
Home to:
○ PRC (peoples republic of china) and Indian, the two most populous and largest transition economies in the world
○ Former (Japan) and current (PRC) greatest competitors to US
○ Tiger economies of Taiwan, S'pore, Hong Kong and 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
West versus east: what's different?
western management
Individualist
Early adopters and proponents of capitalism
Short-termism - less focus on long term goals
Limited hierarchy
Merit-based pay and promotions are the norm
Shareholders - primary stakeholders
eastern management
Collectivist - goals if group are prioritized
Reluctant followers of capitalism
Long-termism - small goals are not prioritized
Steep hierarchy - great power distant
Seniority-based pay and rewards system, the more responsibility or status the greater your pay
Multiple equally important stakeholders
east asian management systems
characteristics of east asian management
Support for long-term planning and risk minimisation
Large private sector organisation are major employers
Closely linked with ruling political elite
Social and 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?
Savings 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 business leaders, often men
Growing political influence in other regions through business expansion (e.g. Africa)
Protection of IP - ownership and enforcement
Due to significant exposure to western education (i.e. US, UK, Aus) future political and business leaders may embrace more 'western' values