Managing Diversity in Asia: An Intercultural Approach

Managing the Diversity in Asia
Professionalism in doing business internationally
by Prof.Dr.Hora Tjitra,Zhejiang University

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

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

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.

Internationalization Chinese Enterprises/2010-09
Most of the High-Tech Product is a Global One
5
sourcehttp://blog.chinatells.com/2010/08/4575

Regional Diversity
in Doing Business in Asia
6

The Map of Asian Region and its four “culture” anchors
7
China
India
Japan
ASEAN

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.

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

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.

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

China Plus ASEAN FTA (CAFTA)
12
ASEAN Founding Members
★ Indonesia
★ Malaysia
★ Philippines
★ Singapore
★ Thailand
★ (Brunei)
★ Cambodia
★ Laos
★ Myanmar
★ Vietnam

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

The Economic Role of the Chinese Diaspora in Asia
A:China
D: Assimilated Chinese
C: Overseas Chinese
B:„Chinese Abroad“

the New Super Power
China
15

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.

The People of Republic China - 中华人民共和国

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 Economist.com
Contest ofthe century
China v India

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!

From the Low-Cost Manufacturer to the High-Tech at a Low Cost
20

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: http://economix.blogs.nytimes.com/2010/10/06/china-poised-to-lead-world-in-patent-filings/?

Chinese Enterprises Dominates the Fortune 500,...
22
• International Sales / Market /
customers
• Production / Factories abroad
• Foreign Talents
• Global Top Managers
• ...
...,but

Internationalization Chinese Enterprises/2010-09 23

Challenges of Chinese Goes Global

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.)

Thank You
contact us at hora_t@mac.com
visit us at http://sinau.me
follow us at twitter@htjitra

Managing Diversity in Asia: An Intercultural Approach

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