WEEK 5: International Management (Asia)

Regional unique Managerial Implications

East Asian Management Systems

Cultural Factors

Western vs Eastern Management

Charateristics of East Asian Management

Confucianism

Western

Why Asia

High morals

Assisting long term planning and minimise risk

Individualist

ethical conduct

Early adopters & supporters of capitalism

Loyalty to others is stressed

Reality of international management

Why FOCUS on management in Asia

South & South-east Asia: The Engine

Three key teachings

Merit-based

loyalty

Major employers are large private sector organisations

Limited hierarchy

Diversity or Die

Internationalize imperative

Blurring of international borders

Global expansion for competitiveness & survival

reciprocal obligations

Ongoing & increasing globalization

honesty

Primary stakeholders - shareholders

applying these teachings to your everyday management may help lower cost of doing business

Closely linked with ruling polictical elite

Empasis on education

Values hierarchy

Eastern

Collectivist

Long-termism

Social and business relationships are important

Reluctant followers of capitalism

Saving face

Economic Factors

Steep hierarchy

Rising powerhouse within the ecomony

Historically, significant state intervention

Accounts for 40% of global economy

Accounts for 1/3 of total global FDI inflows > 1/2 trillion USD

60% of world population- 4.4 billion

Region's total GHG emission grew faster than the global arg

Growing focus on IP protection

Insufficient women in the labour force

State-controlled entities are now beginning to become privatised

Company's are now embracing capitalistic pursuits, despite limited political freedom

Seniority based

Multiple equal stakeholders

Growing income gaps within countries (because of the rising middle class)

Former (Japan) & current (PRC) greatest competitor to US

Tiger economies of Taiwan, Hong Kong and South Korea

PRC (People’s Republic of China) & India 2 most largest transition economies in the world

Home to

Global brands: Samsung, Tyota, Hyundai

Political Factors

Tension between certain parts of Asia due to complex history

Close relationsips between politcal and business leaders (mostly men)

Growing political influence in other regions through business expansion (eg Africa)

Rapidly expanding skilled labor & relatively cheap