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MGF Week 4: international Management: Focus on Asia - Coggle Diagram
MGF Week 4: international Management: Focus on Asia
Asia
Trading routes
Access to economies of scale
Commodities
Valuable resources
Home to 4.4billion people (60% of earth)
40% of the global economy
Accounts for 1/3 of global foreign direct investment (FDI) inflows $500billion
A foreign direct investment is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.
asia leads in reducing poverty
total green house gas emissions grew faster than the global age
rising middle class
predicted to double by 2030
Rapidly expanding skilled labour force
China
Applied to be apart of World trade organisation (WTO) to trade tax and barrier free but was denied to close econmoy
Are now apart of WTO because they opened up their economy
international management
ongoing increasing globalisation
Blurring of international borders
'diversify or die'
international imperative
global expansion for competitiveness and survival
major brands of Asia
Car manufacturing
Toyota
suburu
mitsubishi
Mazda
Hyundi
Kia
Nissan
Lexus
Honda
Technology
Samsung
Lenovo
Ecommerce
Alibaba
Western management
individualist
Competitive
Early adopters and proponents of capitalism
short terminsim
limited hierarchy
merit based
Promotions
Incentivised labour
shareholders are the primary stake holder
Training employees
Eastern Management
Collectivist
Reluctant followers of capitalism
Long terminsim
steep hierarchy
everybody knows their place
rigid reporting systems
seniority-based
Multiple equally important stakeholders
East asian management systems
Characteristics
Support for long term planning and risk minimisation
Diversify, don't put all eggs in 1 basket
organisations rank highly in risk aversion
Not worried about short term wins
Large private sector organisations are major employers
closely linked with ruling political elite
Social and business relations are critical for success
networking, who you know not what you know
saving face
Avoid humiliation
Historically, significant state intervention
growing focus on IP protection
underrepresentation of women in the labour force
Patriarchal societies
More mentorship compared to western management
Mentorinng i more indivdual and personel
Cultural factors
Confucianism
High morals, ethical conduct, loyalty to others
Three key teachings
Loyalty
Reciprocal obligations
Honesty
May lower cost of doing business
Emphasis on education
Focus on hard and technical skill development
hard and technical skills
Computer Skills
Analytical Skills
Marketing Skills
Presentation Skills.
Management Skills
Project Management Skills
Writing Skills
Value hierarchy/seniority
Those in authoritative positions need to be treated with the most respect
relationships important
Notion of value networks is increasingly important (Guanxi)
savings driven
National savings rate of 48% compared to 15% in america
the GDP that is saved rather than spent in an economy.
Relates risk aversion
Economoic factors
Rising powerhouse of global economy
Embracing capitalistic pursuits despite limited political freedom
Privatisation of previously state controlled organisations
Growing income gaps in asian countries due to rising middle class
Shift away from communist economic systems
Political factors
Tension within East-Asia due to shared complex history
Close relationships between political and business leaders
Generally men, subjugates woman from growing in the workforce
growing political influences in other regions through business expansions (EG Africa)
Protection of IP - ownership and enforcement
Push towards anti corruption practises
Exposure to western education
Future political leaders may embrace more Western values
Stan Shih
ambicultural approach to management taking best from both western and eastern styles of management
"West meets East"
founder of acer group
requires organisation to know common set of values
decentralised management and retiring early
Chinese Practices Rejected
Mistrust
Centralized Authoritarianism
Ethnocentrism
Chinese Practices Embraced
Harmony and Collectivism
Seniority and Membership
Long-Termism
Global Economic Crisis
Estimated $34.4 trillion worldwide was erased between the autumn of 2008 and March 2009