Anz Aisan Analysis
[pic 1]ANZ Asian Analysis Individual Research EssayDenise Richardson | BUMGT5920 | 22 November 2016The International Manager and Corporate Cultural Intelligence.International Managers’ with cultural intelligence (CQ) have become the tour de force within companies capitalizing on strong growth in emerging Asian markets e.g., HSBC in China (Zhou, Delios and Yang. 2002). Company managers pursuing international markets in developing countries can’t lead in these environments without it (Turk-Ariss. 2010). Companies without CQ are not even in the race e.g., CEO of Australia National Bank (ANZ) retreated in China.  CQ is now becoming a focus for boardrooms as Australian companies expand in the Asian Pacific (Enright. 2005). The International manager, (a title for a manager who oversees a companys global operations), with high levels of CQ can build global sustainable businesses capturing many and varied customers and providing best practice services (Roth and Kostova. 2003). Executives are tuning into CQ to improve corporate cultural understanding in Asia. This diversity competency is critical to success in today’s global business environment (Buckley, P. 2004). This paper has integrated an analysis of international challenges and opportunities, my personal views and expert opinions, provides suggestion solutions for implementation and focuses on ANZ in Asia as the case study.
When an organization is operating globally, managing cultural diversity is important (Barkema, Bell and Pennings. 1996). Both, in terms of overcoming cultural barriers and leveraging diverse knowledge and, perspectives of innovation and competitive access to new markets (Mitra and Golder. 2002). Global diversity efforts should include staff development of CQ so as to develop future culturally intelligent workforces.Cultural intelligence (CQ) is the capability to manage cultural diversity; the set of knowledge, skills and abilities required to recognize, understand, reflect on and adapt to cultural differences (Chung and Alcacer. 2002). CQ develops socially as individuals engage in authentic exchanges with individuals from diverse cultural backgrounds. Organizations which embrace a global mindset and engage in practices which promote authentic intercultural exchanges at work; global talent mobility, diversity and inclusion, cultural knowledge management, incentive systems which reward collaboration, international internships and formal training, support the development of a culturally intelligent workforce ensuring distinct advantages for Asian Pacific entry strategies (Enright. 2005).         The choice of location (Davidson. 1980), control decisions and entry method have important strategic implications for a companys future operations and weighs heavily on CEO’s (Mucchielli and Mayer. 2004). Enormous investments in time and money go into determining a successful Asian entry strategy, the choice is critical (Wei, Liu and Liu. 2005). Several key factors influence a companys Asian entry methodologies; the cultural environment, political and legal environments, market size, and international experience (Mudambi, R. 1998). Managers unfamiliar with Asian regional economic integration should initially exercise caution in their decisions and dealings as some inescapable facts about Asia warrant consideration as advantages and disadvantages (Mudambi, R. 1998). The following analyses the main entry strategies and modes International managers may use to decide how to enter into Asian markets.