Management Practices in Asia: Case Studies on Market Entry, CSR, and Coaching PDF
Preview Management Practices in Asia: Case Studies on Market Entry, CSR, and Coaching
Christiane Prange · Ralph Kattenbach Editors Management Practices in Asia Case Studies on Market Entry, CSR, and Coaching Management Practices in Asia (cid:129) Christiane Prange Ralph Kattenbach Editors Management Practices in Asia Case Studies on Market Entry, CSR, and Coaching Editors ChristianePrange RalphKattenbach SchoolofEconomicsandManagement SchoolofEconomicsandManagement TongjiUniversity TongjiUniversity Shanghai,China Shanghai,China ISBN978-3-030-19661-5 ISBN978-3-030-19662-2 (eBook) https://doi.org/10.1007/978-3-030-19662-2 #SpringerNatureSwitzerlandAG2019 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartofthe materialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation, broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionorinformation storageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology nowknownorhereafterdeveloped. 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Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland Contents PartI Introduction Asia:TheContinentofSuperlativesandContradictions. . . .. . . . . . . .. 3 ChristianePrange OverviewoftheBook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 RalphKattenbachandChristianePrange PartII AspiringGlobalGiants neolid:AFrenchStart-UpinJapanandSouthKorea. . . . . . . . . . . . . . 27 NoémieDominguezandUlrikeMayrhofer TakingtheRoadtoIndia?UnderArmour’sInternationalization Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 JoristenHave GarudaIndonesia:ATurbulentJourneytoGlobalExpansion. . . . . . . . 49 FarrahAlmiraAli NewGame:ShouldtheMultinationalCropProtectionCompany CPGEnterChina’sM-CommerceMarket?. . . . . . . . . . . . . . . . . . . . . . 63 MarcPoetzschandZhengHan PartIII EthnocentrismRevisited TrungNguyenGroupandtheGlobalCoffeeDream:Advantage atHomebutAlsoAbroad?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 QuynhAnLu LatetotheParty:CanStarbucksBecometheLifeofIt?. . . . . . . . . . . . 101 KhoiBui-Kinh ParisBaguette:HowaSouthKoreanBakeryIsEnteringEurope ThroughtheCapitalofFrance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 HeeJoHannahKimandSimonFietze v vi Contents PartIV CorporateSocialResponsibilityontheMove Lipton’sTeaPlantationsinIndia:IsThereaGapBetweenSaying andDoinginSustainability?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 GwenvanDriel ANewHomeforMusHome?PositioningMushroomGrowing KitThroughSocialMediaMarketing. . . . . . . . . . . . . . . . . . . . . . . . . . . 141 AstrianiDewanto PizzaHutVietnam:AdaptingaGlobalCodeofConduct. . . . . . . . . . . . 153 Marie-ThereseClaes ABreathofFreshAir:CreatingSharedValueinthePhilippines. . . . . . 167 AustinChiaandPrakashSingh SchneiderElectricIndiaPrivateLimited:TheCSRDilemma. . . . . . . . 187 AmandeepDhaliwalandArunadityaSahay Materialise:TeachingAlongtheSilkRoad. . . . . . . . . . . . . . . . . . . . . . . 203 PascalWolffandJohannesKern PartV CoachinginAsia Guidancevs.Facilitation:ACriticalJuncture forCoachingServices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 RalphKattenbachandMilaDorosh Coach!TheChallengeofLeadershipCoachingandMentoring intheContextofInterculturalWorkEnvironments. . . . . . . . . . . . . . . . 229 AlexCouleyandJuliaMilner FemaleCareerCoachingforaMultinationalCompanyinChina. . . . . . 239 BettinaAl-Sadik-LowinskiandRalphKattenbach FosteringaCollaborativeMindset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 AnnetteMetz PartVI Conclusion TheRiseandFallofBoundaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 RalphKattenbach Part I Introduction Asia: The Continent of Superlatives and Contradictions Christiane Prange It takes 10 hours to fly from Amsterdam to Beijing, 9.5 hours from New York to Mumbai, and 8.4 hours from Melbourne to Ho Chi Min City. Does that mean the worldisbecomingmoreintegratedandinterdependentwithinternationaltrademade easierandsmoother?Well,yesandno. Yes, because with increasing globalization, countries have become more simi- lar—atleastonthesurface.Apple,Starbucks,Ikea,andMcDonaldscointhefaceof metropolitancitiesandreconfirmtheimageofmillenniumelites,exponentiallymore awareofinternationallifestylesandmodernbrands.Walkingthroughthestreetsof Shanghai feels like lingering around the Avenue des Champs-Élysées or window- shoppingonOxfordStreet.ButweallknowthatShanghaiisnotrepresentativefor thewholeofChinaorforotherdevelopingcountries.Thisisconfirmedbyhardfacts, suchasanaverageGDP/capitaofUS$6.894inmainlandChinaversusGDP/capita of US$ 17.548 in Shanghai and US$ 4.162 in Gansu, the poorest province in the country(forcomparison:US$52.195intheUnitedStates,US$45.552inGermany, andUS$75.726inSwitzerland)(TradingEconomics2017). Such disparities notwithstanding, again yes, countries have become similar because the ease of doing business, as reported in recent studies, solidifies that barriersareshrinkingwithAsiashowinghighereaseofdoingbusinessthanbefore (scale from 0 to 190, from easy to difficult), e.g., Singapore (2), South Korea (4), Hong Kong (5), Thailand (26), Vietnam (68), Indonesia (72), China (78), India (100),andthePhilippines(113)(WorldBankGroup2018).Inmostcases,globali- zationhasenabledustoovercomegeographicalandeconomicboundariestocreatea borderlessworld.Agrowingnumberoftransnationalcorporationsandthedissemi- nation of ideas around the world have had an impact on different cultures. As bestselling author Thomas Friedman (2005) argues in his book The World is Flat: AHistoryoftheTwenty-FirstCentury,theglobalcompetitiveplayingfieldisbeing C.Prange(*) SchoolofEconomicsandManagement,TongjiUniversity,Shanghai,China #SpringerNatureSwitzerlandAG2019 3 C.Prange,R.Kattenbach(eds.),ManagementPracticesinAsia, https://doi.org/10.1007/978-3-030-19662-2_1 4 C.Prange leveled.Today,itispossibleformorepeoplethanevertocollaborateandcompetein real time, to authorize instantaneous online transactions, and to connect with each other. However,thereisalsoaNotothequestionofinternationaltradebecomingeasier. Part of the answer results from the unbalanced outcomes of globalization. It is unquestionable that wealthhas increased for therich nations, while poverty reduc- tion for the poorer countries has also succeeded, but critics say that debt relief has increaseddependenceoninternationalorganizations. AprovocativeformulationoftheseissueswasofferedbyPeterSinger,renowned professor of bioethics at Princeton University and co-author of the path-breaking bookOneWorld—TheEthicsofGlobalization.Heaskedthefollowingquestion: Ifsomeonetellsyouthatthegapbetweenthepoorestthirdandtherichestthirdhasnarrowed andthepoorestthirdarebetterthantheyusedtobe,butthegapbetweenthepooresttenth andtherichesttenthhaswidenedandthepooresttentharenobetteroffthantheyusedtobe, isthissomethingthatyouwelcomeordeplore?(Wenar2003) Obviously,inaworldwithextremeincomeinequalities,businesscannotfollowa one-size-fits-allapproach,butneedstostartfromindividualcountrymarketresearch toadjustproductsandservicetopurchasinglevelsandconsumerneeds.Aninterna- tionalstrategyscholar,PankajGhemawat(2007),forinstance,saidthattheworldis by no means flat. Introducing his Ten-Percent-Presumption, he presents data for a variety of activities, such as telephone calls, direct investment, tourist travels, education, and others ranging on a level between 0 and 10% when it comes to the degree of internationalization. Consumer preferences are not unified across the world: differences exist, anchored in ideological history, values, conceptions of society, and the individual, among others. In sum, we live in a pretentiously globalized world with reality bringing us back to the strong undertow of national differences. We will look at some of those differences in Asia, as one of the most exciting continents today with innovative developments at gargantuan speed. Asia is not homogeneous, however, and we need to distinguish between the highly developed PacificRimGeographiesalongthePacificOceancontinuallygainingstrengthinthe world economy (Hong Kong, Singapore, Taiwan, and South Korea) and the emerging markets that are just about to take off (e.g., Vietnam or Indonesia), with mainlandChinaandIndiaamongthemostadvanced.Anemergingmarketeconomy hasrapideconomicdevelopmentandgovernmentpoliciesfavoringeconomicliber- alizationandtheadoptionofafreemarketsystem(Hoskissonetal.2000).Theterm “emerging market” was coined by the International Finance Corporation (IFC) in 1981 and was initially used to describe stock markets in developing countries that are considered either low or middle income as defined by the World Bank or that have low investable market capitalization relative to GDP (The World Bank and International Finance Corporation 2013). Today, emerging markets have come to represententirecountriesratherthanstockmarketsand,inparticular,thosecountries thatholdthepromiseofhighratesofeconomicgrowth. Asia:TheContinentofSuperlativesandContradictions 5 InAsia,wewillfindpovertyandwealth,powerandfragility,andlocaladaptation andglobalaspiration.Thesecontradictionsmakethecontinentbothexcitingbutalso unpredictableandconflict-laden.Irrespectiveofthestatusintheworld’seconomic peckingorder,wealsoseearisinglevelofnationalprideinindigenousproductsand servicesthathasstimulatedethnocentricconsumerbehavior,formerlytheexclusive domainofdevelopedcountries.Ethnocentrismdepictsapreferencetobuyproducts from one’s home country rather than purchasing items from foreign locations (Perlmutter 1969; Siamagka and Balabanis 2015). The concept not only stands for significantchangesinconsumerbehaviorbutalsomorefundamentallyrepresentsa changeintheperceptionandawakeningimpactofAsianproductsonaglobalscale. While several Asian companies still need to catch up with regard to quality and branding,attributingadeliberatelyAsiantouchtothebusinessisasignofincreas- ingly self-conscious national identities and mindsets. While rapid growth endows millions of consumers with new spending power, companies experiment with new businessmodelsandwaystoignitecustomerinterest.Thebattlegroundiscomplex andtough,andtechnologyisunleashingclosecustomerengagement,whilepurchas- ingisinfluencedbyrulesoftenunknowntotheWesternmanager. This is the breeding ground for many innovations and start-up companies that revealflexibilityandcreativityintheirDNA.TherearealsomajorplayersfromAsia, likeXiaomi,thathaveemergedasglobalgiantschallengingtheircompetitors.Allof thesecompaniesarecrossingmanifoldboundaries—betweencultures,mindsets,and perspectives. Some Western companies also experience the vibrant speed of operating in Asia and face challenges that are very different from those on their home turf. In this book, we will explore some of those challenges and share the fascinationfordoingbusinessinAsia. A Short Overview on Selected Asian Countries AsiaisthelargestcontinentonEarth.Coveringabout30%oftheworld’slandarea, ithasmorepeople(4.9billionin2016)thananyothercontinentwithabout60%of the world’s total population. Stretching from the icy Arctic in the North to the hot andsteamyequatoriallandsintheSouth,Asiacontainshuge,emptydeserts,aswell assomeoftheworld’shighestmountains,longestrivers,andtallestbuildings.Italso hasthemostvariedlandscape, forinstance,withboththehighestpoint,situatedin the Tibetan region of the Himalayas (Mount Everest at 8848 m), and the lowest points(theDeadSea—397m)onEarth. NorthAsiacontainsSiberia,thelargestlandareainAsiathatismostlycoldand has the fewest people. Central Asia is the land of the former Soviet Republic. Southwest Asia is called the Middle East, the crossroads of the world where the three continents Asia, Europe, and Africa meet. South Asia is the home of the Himalaya Mountains and India as the largest country. Southeast Asia consists of 11 countries that reach from Eastern India to China and is generally divided into “mainland” and “island” zones. The mainland (Burma,Thailand, Laos, Cambodia, and Vietnam) is actually an extension of the Asian continent. Island or maritime
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