Instructors Manual Course Design
 
 

Instructor’s Manual

 

Global Logic:

The Challenge of Globalisation

for Southeast Asian Business  

 

Christopher Reynolds

  Prentice Hall, Singapore (2002).  ISBN: 0-13-009318-1.

 

   

Contents

Overview

 

Course Design and Teaching Guide

 

Introduction: Challenges to Conventional Wisdom

 

Section 1:  The Impact of Globalisation for Southeast Asian Business

 

Chapter 1: A Review of the Growth of Global Business

Chapter 2: Globalization Defined

Chapter 3: The Southeast Asian Economic Miracle and International

        Trade Theory

Chapter 4: The Growth of Regionalism

Chapter 5: Global Finance and Southeast Asia

 

 

Section 2: The Challenge of Globalisation to Southeast Asian Business Systems

 

Chapter 6:  Southeast Asian Business Systems

 

Chapter 7: The Financial Crisis as a ‘Critical Event’ for the Guanxi

        Business System

 

Section 3: Global-Minded Business

 

Chapter 8:  Redefining Competition

 

Chapter 9: A Global Management Approach

 

Chapter 10:  A Global Marketing Approach 

 

Chapter 11:  Global Business Strategies for Southeast Asian Business

 

Chapter 12: Engaging the Future: Critical conversations for Southeast

         Asian Business  


Overview:

 

 

Global Logic proposes that a new and global logic of business management is emerging across the world and explores its impact upon SE Asian business. It challenges conventional wisdom about the growth of SE Asian economies and the dynamics of business systems in the region and argues that all aspects of business are currently adapting to the demands of a global paradigm. The SE Asian financial crisis of 1997-98 is used as a case study to demonstrate how globalisation is affecting business dynamics and bringing about a metamorphosis in business logic, everywhere. 

 

Since the time of the financial crisis of 1997-98 there has been much criticism of SE Asian business and financial systems with the view that they were of themselves a fundamental cause of the crisis. SE Asian business systems were said to lack transparency and the foundations of a modern financial system. Yet, economic analysis provided little substantive explanation of the growth and then decline of SE Asian business growth. Alternatively, from a business perspective, the crisis is best explained as a clash of business management paradigms. A clash, not between Western and Eastern business paradigms, but between the logic of previous eras and the global information era. Global Logic explores the external influences affecting SE Asian business growth. It explores the business systems that comprise the context in which global business has developed. And it explores the impact of globalisation on SE Asia.

 

In applying Peter Drucker’s (1995) thesis that management itself has become the decisive factor in business success, the financial crisis is best understood as essentially a crisis brought on by outmoded or inadequate management styles. It is argued here that the change in the process of management starts with the realisation that the global era is not so much concerned with the management of routine - as it was in the industrial era - but with the management of innovation and change.

 

The thesis to this book is that the dynamics of globalisation are changing the nature of business across the world as a global interactive model of business logic takes hold, and that this will have implications for the business systems in SE Asia.  The challenge for SE Asia is to discover new styles and new approaches to business, which, while still ‘Asian’, are also global in character.

 

 

Course Design and Teaching Guide

 

 Intended Audience.

 

·        Global Logic has been written for students of Globalisation or Asian Business.

 

·        It is an ideal text for MBA students and senior undergraduate students.

 

·        As a secondary text, Global Logic will serve students of Management, International Business, Strategic Management, Marketing, Economic or Asian Studies.

 

 

This course will be most effective with some preliminary study in business subjects, such as marketing, management, strategic management, economics and particularly international business. 

 

Of course, it is possible to teach this course on Globalisation, or SE Asian business, without this grounding, but the Instructor will need to spend time in explanation of basic concepts. Each Chapter begins with an historical overview of the subject matter in hand, in order to introduce basic concepts and the history of the subjects development, and then presents issues of significance for the study of how business is being affected by globalisation. In many instances, new and somewhat provocative ideas are presented as a contribution to the development of the theory of business. 

 

Teaching Approach

 

Global Logic offers a systematic and comprehensive approach to the subject of SE Asian business in the global information era. It is constructed in parallel with the syllabus for international/global business courses taught in most universities. This text- based course discusses major subjects considered essential in the study of  Global Business, SE Asian Business, and International Business.  At the same time, it seeks to introduce some new ideas and challenge conventional wisdoms.

 

In providing the material for a full semester course, the objective is to encourage the student to think beyond the descriptive approach of basic texts. Accordingly, it incorporates theoretical research with historical overview and current affairs to stimulate thoughtful discussion. The teaching approach is one of hermeneutics – of seeking to interpret the meaning and discover the significance of past and present theories and practice of business management. Ultimately, the course seeks to provide practical means to manage and develop business in the global era.

  

While the ideas of Peter Drucker and Alvin Toffler are fundamental to this discussion on globalisation, it is George Herbert Mead’s social interaction theory which provides the basis to an appreciation of how globalisation is changing the world’s paradigms of social and business interaction.

 

Thus, the course reviews the theories on business and business management, using SE Asia to illustrate the dynamic changes that are taking place, and discusses how business management paradigms are undergoing change in the context of globalisation.

 

Accordingly, some fundamental business growth theories are addressed:

 

-         Comparative Advantage

-         Competitive Advantage

-         Liberalisation and Free Trade

-         The Flying Geese theory of Asian Growth

-         The Guanxi System of Business Management

-         The Marketing 4Ps Approach

-         Strategic Management Theory

-         International and TNC Growth Theories

 

And, some new concepts are discussed:

 

-         Knowledge Management

-         The Virtual Business

-         Interactional marketing

-         Change as a Constant

-         Alliance Management

-         E-Management

 

As a course in business studies, the presentation of SE Asia growth is given from a business management perspective rather than a purely economic perspective. It suggests that an appreciation of the cultural-laden business systems of SE Asia is necessary to understand the region’s dynamics. In proposing in the Introduction that there are, infact, two business management models, with their distinct business agendas, operating in SE Asia: a model of global business growth in SE Asia, and a model of SE Asian business management. The course seeks to explain how these business agendas operate and then ventures to explore the issues of the continued influence of globalisation upon SE Asian business systems.

 

It is argued that Anglo-American industrial era models do not adequately depict SE Asian business strategies and are not relevant to future SE Asian business growth in the global marketplace. Accordingly, it is suggested that it is misleading to teach and impose Anglo-American international business approaches to students of SE Asian business. Teaching SE Asian business requires a global approach because SE Asian business has developed in a global context and is currently experience radical shifts in its business management behaviour brought on by the demands of external global forces. The same is true for practicing business in SE Asia. While providing a resource for the theoretical background to business growth in SE Asia, Global Logic also present some provocative ideas.

 

·        Chapter 6 reveals introduces the concept of  Foreign Indirect Investment (FII) as a new designation for investment funds and demonstrates the power of FII to affect economic stability.

 

·        Chapter 7 introduces George Herbert Mead’s Social Interaction Theory as a criteria for examining social and commercial stability and change. The Chapter presents a theory of business system evolution by way of perceived-benefit adaptation.

 

·        Chapter 8 challenges the supply-side approach to business competition arguing for a demand-side approach whereby competition advantage is virtual reality deriving from the value-perception of the consumer. Interactive focused see competitive advantage arising out of quality encounters not production efficiencies.

 

·        Chapter 9 suggests that the global information era renders the assumptions of business management of the industrial era obsolete. A new Management Matrix is introduced to depict a model of management by interaction.

 

·        Chapter 10 describes the stages of marketing theory and suggests that, again, the supply-side approach to marketing with its emphasis on product delivery and promotion is misdirected. The idea of the marketing virus is introduced along with a new Marketing Mix Model.

 

·        Chapter 11 introduces a teleological approach to strategic planning and presents an Action-Response Strategy model to depict strategic planning by way of business environment interaction.

 

·        Chapter 12 presents a Matrix of Engagement to demonstrate the multi-facited contexts of socio-commercial life and suggests that the creation and management of knowledge comes through encounters of meaningful engagement.

 

Key Ideas:

 

  • Globalisation is more than an increase in technology and communication. It is a revolutionary change in human and business interaction and the emergence of global reasoning.

  • Business systems in every part of the world are being affected by the emergence of a global logic of interactive creativity.

  • The global logic of the global era is creating new business paradigms. The essential concepts of  management, competition, marketing, and strategic planning will all be redefined; for Asian and Western business alike.

  • SE Asian growth has occurred in the context of globalisation of business and financial activity. SE Asia’s growth was indeed global business growth in SE Asia

  • The financial crisis was essentially a clash of management paradigms. The environment for the crisis was brought about through a combination of global capital and export market growth opportunities, with an Asian laisse faire (cin cai) approach to management arising from their relationship-networking building style.

  • That, as a ‘critical event’, the financial crisis will have only minimal impact upon the Overseas Chinese guanxi business management model, for example. While‘significant interactions’ are likely to bring evolutionary change to SE Asian business systems.

  • For business in SE Asia, the emergence of the global era means new opportunities for business growth. This growth, however, will be defined by an ‘Asian’ response to the global era.

   

Organisation of Material

 

1.      For Instructors, the book is supported by:

 

·        A slide presentation which overviews the structure and reasoning to the book’s development – slides that can be used in class

 

·        Tables and Figures of the book together and in a separate file, again, to aid in the construction of class presentations

 

·        Power Point lectures for each Chapter

 

·        A Video presentation spanning the book and providing a visual aid to instruction.

 

 

2.      For Students, the book is supported through the Global-logic.net website by:

 

·        Access to other articles written by the Author on associated topics

 

·        Links to a number of key websites to review economic and business literature

 

·        Direct access to the Publisher in order to purchase the book.

  

3.      The material in the course is divided into three Sections:

 

Section 1:  The Impact of Globalisation for Southeast Asian Business

 

Section 2: The Challenge of Globalisation to Southeast Asian Business

        Systems

 

Section 3: Global-Minded Business
 

            The purpose in presenting the material in this way is to allow for a systematic

approach for consideration of theoretical application to the changing and dynamic

global business environment.

 

4.      The course can be built from the textbook. Each Chapter presents enough information to form a complete session. With 13 presentations – including the Introduction, and allowing for a revision week and exams there is sufficient, if not more than sufficient material to cover a course of study. If necessary, each Chapter contains enough material for several class presentations.

 

5.      Each Chapter contains an historical and theoretic overview to the subject at hand. Each Chapter also contains discussion of relevant theories and events but, further, seeks to stimulate thinking by presenting new ideas. Accordingly, the material in the Chapters is compiled in such a way as to enable students to make tutorial presentations on each subject.

 

6.       Chapters in the first Section of the book contain quite a number of Tables and Figures to allow students to consider the current-affairs aspect of the subject. Indeed, the whole ethos of the book is to have students consider economic and business theory, and history of economic and business events, in the context of business-today; that is, global business.

 

7.      In this Instructors Manual, the Introduction and each of the Chapters is set out to aid in the drafting of class or lecture presentations. Each Chapter Review contains:

 

Chapter Summary  

Theme  

Key Ideas  

Word List  

Teaching Objectives  

Overview of the Chapter  

Study Review Questions  

Essay and Discussion Questions

 

Chapter Quick-Review

 

Introduction:  Challenges to Conventional Wisdom  

Proposes that the world is undergoing a process of globalisation that is changing social,  political and commercial interaction. The Introduction presents the background to the growth of the global economy and its impact on SE Asia, and proposes that there are two models of business growth and management have been responsible for SE Asian development.  

 

Section 1:  The Impact of Globalisation for Southeast Asian Business

 

1.      A Review of the Growth of Global Business

Overviews the changing profile of ‘International’ business with reference to the historical development of the world economy, international agreements and considers this change along side of the growth of transnational companies.

 

2.      Globalization Defined

Defines globalisation by way of the growth of global information infrastructure and the global information society. Discusses the history and development of the global-information era and the advent of the ‘liberalised’ global economy. Reviews the shift of power to business and the market, away from politics and national economies, and discusses consequences, such as the changing nature of work.

 

3.      The SE Asian Economic Miracle and International Trade Theory

Discusses the Asian economic ‘miracle’ and why the miracle fizzled against a background of detailed trade theory analysis. This Chapter takes a detailed look at the financial crisis.

 

4.      The Growth of Regionalism

Reviews the trend toward regional trade agreements and the history and purpose of ASEAN and APEC. Looks at the shift of power away from politics to business as business interrelationships come to define Asian regionalism.  

 

5.      Global Finance and Southeast Asia

A detailed analysis of capital flows into SE Asia and the impact of private capital by way of bank loans and foreign investments. Some surprising and contemporary numbers are presented  

 

Section 2: The Challenge of Globalisation to Southeast Asian Business

        Systems

 

6.      Southeast Asian Business Systems

Discusses the issue of the influence of culture upon business systems and the mosaic of cultures within SE Asia. The guanxi business management system is designated the predominant system and consequently an Overseas Chinese guanxi business management model is developed – a highlight of the book and influential of Chapters hereafter. 

 

7.      The Financial Crisis as a ‘Critical Event’ for the Guanxi Business System

George Herbert Mead’s social interaction theory is used to examine whether the financial crisis as a ‘critical event’ could affect the Overseas Chinese business system. The criteria for change in a socio-commercial system are examined with the proposal that possible evolutionary change occurring through adaptation to perceived opportunities.  

 

Section 3: Global-Minded Business

   

8.      Redefining Competition

Reviews the concept of competition as developed from the time of Adam Smith and how competitive advantage has however remained an exercise in ‘production efficiency’. It then looks at new approaches to competition in the ‘virtual’ world of business and presents competition as marketing and demand responsive.

 

9.       A Global Management Approach

Discusses the demand for a new global management approach and the move to global business strategies. Presents a new Management Mix of 7 contingent factors – replacing old stereotypes - to suit the contemporary business environment.

   

10.    A Global Marketing Approach 

Reviews the theoretical background to the development of global marketing. Presents a picture of the new SE Asian customer and presents a case study of marketing in Vietnam.

 

11.    Global Business Strategies for Southeast Asian Business

Looks at traditional approaches to strategic planning and the need for a different approach to forming global strategies. The two models for business operating in SE Asia – the global model of business growth, and the ‘Asian’ business management model - are here revisited and reviewed for their longer-term strategic significance.

 

12.   Engaging the Future: Critical Conversational for Southeast Asian Business           

As a concluding chapter, the topic here is the management of change. The issues of the financial crisis are raised and the challenges it has presented for SE Asia’s future development. Of particular concern the development of business systems and entrepreneurial strategies that reflect both Asian business culture and the need to compete in a global marketplace.

 


Back

 

 

 

setstats 1