What Is So-Called Asian Business Model How Well Does The Indian Essay

What Is So-Called Asian Business Model How Well Does The Indian Business System Fit That Model - Essay Example The business model of Asia is also quite dissimilar from other western nations. The Asian business model has progressed through several periods of transformations. Several aspects such as globalization, improvement in information and communication technology, and deregulation along with evolving competition have influenced the business model of Asia (Crown, â€Å"Challenges in Asia†). Thesis Statement The discussion is based on analyzing the different aspects of the Asian business model. The objective of the discussion is to observe how the Indian business system or organizations fit in the Asian business model and to describe one other Asian system which fits the Asian business model either better or worse than India’s business system. What Is So-Called Asian Business Model? Asian business paradigm has developed through three major phases of improvement. In the first phase, i.e. during 1970s to 1980s, Asia used to pursue the features of ‘Japanese Model’ of business. According to that model, organizations tended to follow quality products and operational superiority in business. The Japanese model focused more on business growth rather than earning profit. Lifetime employment was a vital part for that Asian business model. At that period of time, the central elements of this Asian business model were huge investment, large savings and financial growth. These elements were described as success-deriving factors for organizations by the professionals. However, in the third phase, i.e. from 1990s to present day, professionals have highlighted certain systematic deficiencies of the Asian business model, which had resulted in Asian financial crisis in the year 1997. The Asian business model had also resulted in the collapse of several Asian organizations (Delios and Singh 1-20). At this point of time, it is vital to outline the major differences between the Asian business model and the US business model. During the period of 1950s to early 1990s, the Asia business model was associated with the so-called ‘crony capitalism’. Crony capitalism is usually related with strong government participation in business. Thus, it can be observed that close association existed between the government and the organizations in this kind of business model. Such close association was directed through discussion board which was used to organize investment plans. Government assistance to organizations was related with strict performance standards about exports and technical values. In Asian business model, the relationship between business and financial system comprised long-term association between organizations and banks. This aspect had empowered Asian organizations to consider long-run vision in the investment decisions. Thus, organizations were not constrained by the threat of aggressive take-overs. Asian organizations pursued internal business practices which were different from those of Western organizations. For instan ce, Asia business model is related with maintaining loyal association between management and employees. Conducting business in this model is based on interpersonal relationships