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MGF1010 Week 4 - Coggle Diagram
MGF1010 Week 4
Reality of International Management
Small to Medium enterprises are expanding parts of their operations overseas (primarily to the east)
Ongoing & increasing globalisation
Making international management essential for orgs to be competitive & survive
Blurring of international borders
Resulting in more trade agreements & routes becoming available to orgs
Orgs need to take advantage of this otherwise could case them to stagnate
Common term of 'Diversify or Die'
Orgs need to keep up with consumers changing wants & demands
Have to have variety of products to reduce risks
Internationalise imperative
Global expansion for competitiveness & survival
Focus on management in asia
Home to 4.4 Billion People (approx. 2/3 of world population)
Accounts for 40% of global economy
Accounts for 1/3 of FDI (Foreign direct investment) inflows: >1/2 trillion USD
Rising middle class
Size of middle class in Asia predicted to double by 2030 >3 Billion
Although rising middle class there is also predicted bigger income discrepancy in the south east
Past decade, Asia total greenhouse gas emissions grew faster than global avg
Concern for global warming
Asia needs to be of particular attention of management theory and practice
Up and coming powerhouse in the economy
Geographical localtion - close proximity to Aus
REGIONALLY UNIQUE MANAGERIAL IMPLICATIONS
cultural factors
emphasis on education
value hierarchy
savings driven
economic factors
income gaps
rising powerhouse
embracing capitalistic pursuits
despite limited political freedom
Political factors
tension with east- Asia due to history
protection of IP
close relationship between political and business leaders
West Vs East Management
West
Individualist
Merit Based (Regarding Things Such as Pay or Promotions)
Limited Heirarchy
Short Termism (Small Goals & Immediate Impact)
East
Steep Hierarchy (Everybody Knows Their Place)
Seniority Based (Greater Status = Greater Pay)
Long Termism (Bigger Picture Focus)
East Asian Management Systems
Characteristics of East Asian Management
Great Support for long-term planning and risk minimisation through diversification
Large private sector organisations are major employers
Hence they are critical to each countries’ national economy
Organisations are closely linked with ruling political parties
Social & business relationships critical for success
Managers need to avoid highlighting individual deficiencies and mistakes
Nuanced and high context approach needs to be employed
Historically involves significant state intervention (especially price control)
Growing focus on Intellectual Property (IP) protection
Minimal women in the labour force