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