The Changing Business Scene in Pacific Asia

There are three issues of particular relevance to the western world as it comes to terms with understanding Pacific Asia: 1. There are currently five successful forms of capitalism able to compete effectively in world markets. In simple terms these are: a) the western individualist form represented in the large divisionalized firm; b) the western communitarian form found commonly on the European mainland; c) the large Japanese network of firms now usually called keiretsu; d) the Korean chaebol; e) the Chinese family business. It is necessary for managers who work in one form to understand that the other forms are viable alternative structures answering organizational challenges by the use of methods grounded in historical traditions of their own societies. 2. The emergence of new large business groups built by the ethnic Chinese of the Asian region is a new feature now having an impact on world markets. For western firms going to do business in Asia these are potentially very significant as partners, competitors, suppliers or customers. Their significance in western business environments is so far limited, except in the context of parts supply or made to order (MTO) manufacturing where their impact is not obvious, but is substantial.