Asian australian trade issues: comparative study of Asia and Western business logic

Résumé du document

The differences between Western and Asian behaviors are very significant, especially if we focus on the aspect of organizational behavior. The Asian values are fundamentally very different from the Western norms; and therefore it becomes quintessential to identify the main characteristics of the Asian business environments before dealing with Asian partners as this is a key step to succeed. Moreover, it is crucial to define the cultural norms of the various business factors. In order to compare the logic of Asian and Western business strategies, four elements will be studied: the role of government, the role of relationships, the importance of culture and finally their implication for competitive and business logic.

Extraits

[...] Paperback edition. Mead, Richard (2004) International Management: Cross-cultural dimensions. 3rd ed. Oxford: Blackwell Publishing. Selmer, Jan (1998) International Management in China: Cross-cultural Issues. London: Routledge Advances in Asia-Pacific Business. Schermerhorn, (2004), Management, an Asia-pacific perspective, Campling edition. Van Ruysseveldt, Joris et al. (2003) International Human Resource Management. London: Sage Publications. [...]

[...] In China, the Confucian values are present since the childhood to all the life and moreover in every day business life. Culture, tradition and religion have always influenced the business. Finally, Western and Asian companies approach competition differently. Three main differences exist: goal setting, competitive behaviour and decision-making. Goal setting includes time, outcome and social orientation. The high degree of Asian nationalism leads them to think of a long-term orientation. Indeed, employees help and work for the firm thinking as long-term. [...]

[...] Often, a lack of this knowledge determines the success or not of the business, as the case of Cardno MBK. The Australian firm was not aware of the importance of a good relationship and ignored the main traits of Asian Business environment. Bibliography Bruno Marion (2005) Make a success with the Asian, of business and of good manners. France. Organisation. Fletcher R. and Brown L. (2005) International Marketing: an Asia-pacific perspective. 3rd edition, Pearson Prentice Hall. Lasserre P. and Hellmut S. (1999) Strategies for Asia Pacific: Beyond the crisis. [...]

[...] Asian strategy on price bargaining attitude is to determine the required level of technological performance and quality. After this, they select a supplier and use competitive rivalry to negotiate price advantages. Asian firms make serious effort on downing prices rather than in Western firms which look to emphasise technological sophistication and guarantee margins. Finally, numerous Asian firms imitate products. They produce illegal copy, counterfeiting of trademarks or replicate the success of a competitor by adopting the same product or service concept. [...]

[...] In fact, because of the gap between the two cultures, many companies fail in doing business with this region. The importance of the network and relationships is a barrier to the entry. So, even without any protectionism strategy from local government, those usages must be respected. In addition, since Asian companies often extend their network to government members foreign corporations should adapt to those habits. Hall says that the adaptation to local culture is essential to ensure a comprehensible deal (Hall: 1959). [...]