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Managing Diversity in Asia: An Intercultural Approach


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Guest Lecture "Strategic Management in Global Context" at the Ohm Hochschule, Nuremberg - Germany on Oct 8th 2010.

Managing Diversity in Asia: An Intercultural Approach by Prof. Dr. Hora Tjitra, Zhejiang University, China.

Published in: Business, Travel

Managing Diversity in Asia: An Intercultural Approach

  1. 1. Managing the Diversity in Asia Professionalism in doing business internationally by Prof.Dr.Hora Tjitra,Zhejiang University
  2. 2. Managing Diversity in Asia_v1.0 / 2010-10 2 14 years in Germany 7 years in China Born and grew up in Indonesia Prof. Dr. Hora Tjitra - Cross-cultural and Business Psychology Dipl.-Psych.,Technical University of Braunschweig Organizational Psychology and Human Resource Management Dr.Phil.,University of Regensburg Intercultural Psychology and Strategic Management Executive Education,INSEAD HR Management in Asia
  3. 3. Managing Diversity in Asia_v1.0 / 2010-10 Index 3 1 Regional Diversity in Doing Business in Asia 7 The four regional culture anchors in Asia Japan - the land of the rising sun India - the largest democracy in the world Southeast Asia - the new old stars (Overseas) Chinese Diaspora 2 China - the New Super Power 16
  4. 4. Managing Diversity in Asia_v1.0 / 2010-10 Large majorities of people in China,India and Indonesia say their country’s current economic situation is good (see chart 3),expect conditions to improve further and think their children will be better off than they are. This is a region that,to echo Churchill’s phrase,sees opportunities in every difficulty rather than difficulties in every opportunity. 4 The potential market is huge: populations are already much bigger than in the developed world and growing much faster (see chart 1),and in both China and India hundreds of millions of people will enter the middle class in the coming decades.
  5. 5. Internationalization Chinese Enterprises/2010-09 Most of the High-Tech Product is a Global One 5 source
  6. 6. Managing Diversity in Asia_v1.0 / 2010-10 Regional Diversity in Doing Business in Asia 6
  7. 7. Managing Diversity in Asia_v1.0 / 2010-10 The Map of Asian Region and its four “culture” anchors 7 China India Japan ASEAN
  8. 8. Managing Diversity in Asia_v1.0 / 2010-10 Japan - the Land of the Rising Sun 8 Global Competitiveness Ranking: 8 (2008: 9) Japan's economy may have underperformed for the last decade but the country still outshines globally on many economic indicators. It ranks No.1 in business sophistication and fourth in innovation.With companies like Sony and Toyota calling Japan home,the Asian giant continues to out-muscle such rising regional competitors as China.
  9. 9. Managing Diversity in Asia_v1.0 / 2010-10 India - the largest democracy in the world 9 The world’s fourth largest economy by PPP (2009) A pluralistic,multilingual and multiethnic society,India is also home to a diversity of wildlife in a variety of protected habitats.It is the seventh-largest country by geographical area,the second-most populous country,and the most populous democracy in the world. In 2009,India's nominal GDP stood at US$1.243 trillion,which makes it the twelfth-largest economy in the world.[107] If PPP is taken into account,India's economy is the fourth largest in the world at US$3.561 trillion,[108] corresponding to a per capita income of US$3,100.[109] (Picture left) Infosys campus in India, and (picture right) A street in New Delhi
  10. 10. Managing Diversity in Asia_v1.0 / 2010-10 Chindia - the next global superpower ...? 10 the Economist Intelligence Unit -- CEO survey answers into the forces that might stop/slow China & India’s unending growth.
  11. 11. Managing Diversity in Asia_v1.0 / 2010-10 11 China and India are large,populous Asian neighbors,but the similarities end there.The differences between them make the whole greater than the sum of the parts. Tarun Khanna Harvard Business Review,Dec 2007
  12. 12. Managing Diversity in Asia_v1.0 / 2010-10 China Plus ASEAN FTA (CAFTA) 12 ASEAN Founding Members ★ Indonesia ★ Malaysia ★ Philippines ★ Singapore ★ Thailand ★ (Brunei) ★ Cambodia ★ Laos ★ Myanmar ★ Vietnam
  13. 13. Managing Diversity in Asia_v1.0 / 2010-10 The Association of Southeast Asian Nations (ASEAN) 13 Fact Sheet General information: Fact sheets are updated biannually; June and December Headquarters: Jakarta Secretary-General: Surface area: 4,481 thousand sq kms Dr Surin Pitsuwan Population: 591.3 million (2009) Members: Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam. Recent economic indicators: 2004 2005 2006 2007 2008(a) 2009(b) GDP (US$bn) (current prices): 811.4 903.5 1,082.9 1,291.2 1,502.7 1,460.2 GDP PPP (US$bn) (c): 1,983.0 2,161.8 2,369.8 2,596.7 2,768.5 2,824.4 GDP per capita (US$): 1,473 1,616 1,910 2,249 2,579 2,470 GDP per capita PPP (US$) (c): 3,601 3,867 4,179 4,522 4,751 4,777 Real GDP growth (% change yoy): 6.7 5.8 6.2 6.5 4.0 -0.3 Current account balance (US$m): 42,876 46,976 85,820 99,686 66,529 66,091 Current account balance (% GDP): 5.3 5.2 7.9 7.7 4.4 4.5 Inflation (% change yoy): 4.0 6.0 6.9 4.0 8.5 1.9 Australia's merchandise trade with ASEAN Australia's merchandise exports to ASEANReal GDP growth ASEAN-10 10,000 A$m 2003-04 2008-098 % 50,000 A$m
  14. 14. Managing Diversity in Asia_v1.0 / 2010-10 The Economic Role of the Chinese Diaspora in Asia A:China D: Assimilated Chinese C: Overseas Chinese B:„Chinese Abroad“
  15. 15. Managing Diversity in Asia_v1.0 / 2010-10 the New Super Power China 15
  16. 16. Managing Diversity in Asia_v1.0 / 2010-10 Four Great Inventions of Ancient China 16 Compass • The earliest version of the compass was invented in China in the year 1044. • The first concept of a compass was glimpsed in the use of a needle that was kept in a bowl of water. • Basically, a compass is used to find the magnetic North Pole of the Earth. Mariners also used the compass to calculate the latitude and the longitude as well. • Today, the basic Chinese invention is modified and one can see many more advanced versions being used by professions across the globe. Gunpowder • The discovery of gunpowder has been credited to certain Chinese alchemists around 9th century. • The first recorded reference of the gunpowder was found in a passage of Taosism text, which was dated to the mid 800s. • Gunpowder was the result of many scientific experiments. There were various Chinese formulas that were used and these contained different proportions of nitrate. • The gunpowder was used not only for fireworks but instances were found in the Chinese military treatise as well. Printing • The method of printing and the invention of Woodblock printing was seen before the first dated book in 868. Woodblock printing was first seen in China in 220. Thereon, it spread to other areas of the world. • The first example of the movable type method was around 1040 AD. • Bi Sheng was credited for having invented the ceramic movable type of method for printing, which proved to be quite cumbersome at times but was useful when the number of books to be printed was on the higher side. Papermaking • Paper is also one of the Chinese inventions, and the process of papermaking was also first developed in China. • In the earlier years, during the Shang and the Zhou dynasty, any form of documentation was done with the help of bamboo. • Cai Lun is regarded to have invented the paper and also the entire process of papermaking, about 105 AD. Cai Lun is also considered to be the one who played a major role in the improvisation of the process.
  17. 17. Managing Diversity in Asia_v1.0 / 2010-10 17 The People of Republic China - 中华人民共和国
  18. 18. Managing Diversity in Asia_v1.0 / 2010-10 18 The new (bubble) world’s superpower ? The world largest car’s market The world largest export country The world largest Forex reserve (2.4 Trillion USD,30% of the world) The fastest growing country in the world The second largest economy in the world Four of the top 10 Global Bank (the first top 3,market value,FAZ 2010) Rank first in Engineering Citation Index, and rank three in Science Citation Index The Republican to beat Obama? Helping Pakistan Thestrangesuccess ofGovernmentMotors What to do about space junk The politics of wind energyAUGUST 21ST–27TH 2010 Contest ofthe century China v India
  19. 19. Internationalization Chinese Enterprises/2010-09 Hot Topics in Recent Years 19 •What is fashion??? •Want to be super idol? Let’s make our dream true! •Don’t do anything bad,we can find you out!
  20. 20. Managing Diversity in Asia_v1.0 / 2010-10 From the Low-Cost Manufacturer to the High-Tech at a Low Cost 20
  21. 21. Managing Diversity in Asia_v1.0 / 2010-10 China Poised to Lead World in Patent Filings 21 • Patents are considered a measure of technology prowess and innovation. Nations that file the largest number of patents are generally home to innovative corporations and Nobel prize winners. • A new study released in early Oct 2010 by Thomson Reuters says that by 2011 China will most likely pass the United States and Japan in new patent applications. • In 2009, China filed about 279,298 patent applications, ranking third behind Japan, which led the world with 357,338, and the United States, which had 321,741 filings, according to Thomson Reuters. • Experts acknowledge that it is difficult to measure the value of China’s patents (many may be for low-end, incremental technologies), but they say the quality appears to be improving and that China is on a path to becoming a more innovative country. source:
  22. 22. Internationalization Chinese Enterprises/2010-09 Chinese Enterprises Dominates the Fortune 500,... 22 • International Sales / Market / customers • Production / Factories abroad • Foreign Talents • Global Top Managers • ... ...,but
  23. 23. Internationalization Chinese Enterprises/2010-09 23
  24. 24. Managing Diversity in Asia_v1.0 / 2010-10 24 Challenges of Chinese Goes Global
  25. 25. Managing Diversity in Asia_v1.0 / 2010-10 Challenges and Opportunities of Chinese Enterprises 25 Opportunities for Globalization • Huge home market with strong growth • Very Competitive and increasingly Innovative • Lots of Cash (in particular the SOEs) • Excellent infrastructure (and partly policy) • Culture and Values (hardworking, learning etc.) Challenges for Globalization • Lack of International Experiences • Building Global Brands / International Marketing • Moving-up the Value-China / Innovation • Management and International Talents • Culture and Values (In-Out groups, hierarchy etc.)
  26. 26. Thank You contact us at visit us at follow us at twitter@htjitra