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WEEK 5: International Management (Asia) - Coggle Diagram
WEEK 5: International Management (Asia)
Regional unique Managerial Implications
Cultural Factors
Confucianism
High morals
ethical conduct
Loyalty to others is stressed
Three key teachings
loyalty
reciprocal obligations
honesty
applying these teachings to your everyday management may help lower cost of doing business
Empasis on education
Values hierarchy
Economic Factors
Rising powerhouse within the ecomony
State-controlled entities are now beginning to become privatised
Company's are now embracing capitalistic pursuits, despite limited political freedom
Growing income gaps within countries (because of the rising middle class)
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)
East Asian Management Systems
Charateristics of East Asian Management
Assisting long term planning and minimise risk
Major employers are large private sector organisations
Closely linked with ruling polictical elite
Social and business relationships are important
Saving face
Historically, significant state intervention
Growing focus on IP protection
Insufficient women in the labour force
Western vs Eastern Management
Western
Individualist
Early adopters & supporters of capitalism
Merit-based
Limited hierarchy
Primary stakeholders - shareholders
Eastern
Collectivist
Long-termism
Reluctant followers of capitalism
Steep hierarchy
Seniority based
Multiple equal stakeholders
Why Asia
Reality of international management
Diversity or Die
Internationalize imperative
Blurring of international borders
Global expansion for competitiveness & survival
Ongoing & increasing globalization
Why FOCUS on management in Asia
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
South & South-east Asia: The Engine
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
Rapidly expanding skilled labor & relatively cheap