The paper "Analysis of Asian Management" is a perfect example of a management case study. The high rates of self-employment among the Asian community illustrate the group strength of entrepreneurialism. The Chinese, Indian, and Pakistani individuals are more likely to be self-employed compared to the rest of the groups. Entrepreneurship is an effective and alternative means of social mobility within the Asian community. The growth in business ownership among the Asians is the fastest of any other group. Most Asian-owned businesses depend on family labor. Family ownership of businesses is partly a function of the “ relative youth of modern economic development in most of Asia, in the sense that many firms, even large ones, were founded relatively recently” (Witt and Redding 2013, 266).
In addition, due to the relative recency or absence of institutionalized trust; this deters delegation and the separation of ownership from a control that is very important for contemporary businesses. For Koreans, most of the firms are publicly owned however controlled by family via ingenious shareholding structures such as circular and pyramidal shareholdings. For Japanese, businesses control themselves; this is realized through combining high friendly levels, accommodating long-term shareholders as well as a quite weak implementation of formal strong company governance rules (Witt and Redding 2013, 267).
Most Asian owned businesses are in the retail, wholesale and business services sector and their systems are institutionally and socially embedded. Culture is an important determinant of business performance among the Asians and it dictates the hierarchical corporate structure, protecting thrift and values that were viewed as business drivers of economic growth (Axel, Wu, and Chow 2010, 18). This is referred to as Confucian capitalism and it leads to nepotism and hence leads to a lack of transparency, inefficiency and corruption.
According to some scholars such as Kulwant (2007, 421), this was one of the major reasons for the Asian financial crisis in 1997 (Hwa 2003, 481). Confucian concepts are evident in Chinese family businesses in Southeast Asia. A patriarchal manager who establishes morals and direction through exercising Confucian virtues manages these businesses (Neelankavil, Mathur, and Zhang 2000, 121). Nonetheless, this is usually reduced to crude dictatorship (Neelankavil, Mathur, and Zhang 2000, 122).
The chain of command normally follows a kinship composition where the position of those employed is dependent on their relationship with the leader instead of professional qualification. Although the leader monopolizes and shares at discretion most of the organizational knowledge, subordinates usually know their responsibilities and work within a particular level of autonomy. The performance of the business is very subjective and personal relationship play a vital function in the decision-making process. The performance of these businesses is usually not optimal due to their nepotistic character. Additionally, one of the key goals is to avoid conflict and uphold harmony in the business as a way of maintaining stability. Business process outsourcing and call centres are some of the major businesses that have emerged as major employers because of the availability of a large number of English speaking and highly skilled workers.
They largely contribute to the living conditions in among the Asian communities and countries. Outsourcing has significantly increased and this had led to the rise of China and India as financial centres. India has become a major hub for outsourcing due to its extremely competitive and large information technology industry.
The other major businesses are in the power and manufacturing and automobile industry. Among the Asians, the hydro, thermal, and power businesses have developed very rapidly. The last decade has seen an astonishing increase in nuclear power demand in Asia, particularly in South Korea, India, and China. A number of Asian states, including Vietnam, Thailand, the Philippines, Malaysia, Indonesia, and Bangladesh have put forward a plan of obtaining their first nuclear power plant. Some plants are under construction, proposed or planned.
From 2010, over two-thirds of the reactors being constructed are in Asia (Tellis, Marble, and Tanner 2010, 145). Currently, China is ranked second in terms of installed capacity of generators as well as generated electricity. The main power grid covers most rural areas and cities in China. The growth of this industry has created numerous related businesses in Asia as well as created employment opportunities. The sufficient power supply in most Asian countries has resulted from the rapid growth of fuel coal output. The gradual increase of coal output has resulted from increased investment from the government and businesspersons in coal mining; this has led to the realization of national economic development goals.
China has the capacity to design, administer, equip, construct, and administer medium and large-sized mining regions and open-cut mines. The growth of the manufacturing and automobiles industry has also led to numerous industry-related businesses that help support the living conditions of the Asian community. The governments have an important impact on business strategy; most of them accord economic development their highest priority and offer considerable financial and other incentives to support their development agendas.
These incentives have a major impact on business profitability, such as when financial and other incentives are offered for investments (Delios and Singh 2005, 34). The manufacturing industry provides complete sets of large advanced machinery, for instance, power generation equipment such as nuclear power sets, large pump storage groups, large gas turbines, petro-chemical and fertilizer equipment, transport equipment, textile and paper making machinery among others. Provision of these types of equipment has led to the establishment of related businesses. The automobile industry has also developed as one of the key industry in most Asian countries; it has created employment as well as related businesses.
In China, cars have become a commodity with a very fast growth rate. The potential development of the industry and related businesses is also very high and this has increased its attractiveness in terms of investment. The production of major industrial products such as power, steel, crude oil, raw coal, cement, automobiles, cloth, sugar, yarn, chemical fibres, colour TV sets, yarn, telephones, program-controlled switchboard, ethylene, fertilizers, and micro-electronic computers have led to establishment of related business for producing these products.