Question Critical Evaluation with Authority

Q Critical Writing Exercise (150-250 words) submitted via Turnitin to your tutor (under 'Submit your Assignment Here') Critical evaluation with authority? What does that mean? Most problems aren't new, they have usually been considered before by very smart people. Indeed, for an academic researcher in any field, finding a new problem that hasn't already been much analysed is like finding a needle in the haystack. But times and contexts do change, and also problems compound by combining with other problems at the same time. So there are, in fact, always problems that need looking at through our current vision. As we do so, it makes sense to acknowledge the thinking of those respected thinkers who have gone before and developed many useful theories with concepts that may or may not apply to the current problem in the new time and context. This is where scholarship comes in. Good scholarship combines your original impressions and thoughts about a problem situation with critical reflection on what experts have already written about the same or similar problems. To critique is to ask and discuss answers to questions about things like: Does this theory apply here in this situation? Is this theory more useful than that theory? Does the theory need to be modified to allow for newer contexts? You don't need to come up with new theories to do well in the assessments in this unit, but searching for ones that apply to the problem you identify in business cases will make you familiar with the range of theories that are out there and learning to find, cite and reference them will help you to produce authoritative opinions which back your judgement with appropriate support when you present them in a written report. That is one reason why writing critical evaluation is also an important academic skill. CASA3 will require you to take some categories of problems with the expert and scholarly research sources already provided, and to practice this writing which combines your own insights with citations and references to the work of established authorities in management disciplines. Examples will be work-shopped in this week's Collaborate session and problems and sources to consider will be supplied. In preparation, you should look at an example presented online in EchoCentre titled "Critical Evaluation". For CASA 3 you are to provide a Critical Evaluation (with Authority) on the Management Problem Statement that you wrote on the Australian Banks Case Study (CASA 2). Brown (2005) maintains that leadership is an essential quality in nursing. This is confirmed by the recent requirements of the NHS Plan (DOH, 2002). This Plan has emphasized the importance of introducing the transformational model of leadership. Smith (2001) explains that this is a leadership which involves the use of charisma and interpersonal skills to enable achievement. Jones (2004) argues that the key characteristic of transformational leadership is empowering others to achieve.

In my own experience, a leader with transformational qualities can make any team member feel that they have a useful part to play in the organization. This is confirmed by Fea (2001) who argues that transformational leadership increases feelings of self-worth and capability in their team members.In years gone by, Australian business connected mainly to Europe and America. However, the past two decades has seen considerable shift to Asia, and this is likely to gain even further momentum given weak economic conditions and over-gearing in the United

States and Europe. You can see just how important trade with Asia is to Australia by looking at the tables at the beginning of this chapter. Also, some Australian businesses,

particularly the National Australia Bank (NAB), have recently suffered considerable losses or experienced difficulties in the United Kingdom and Europe. The Wall Street

Journal writes that 'Glasgow-based Clydesdale Bank and the Yorkshire Bank, both relics of the UK's once heavily regionalized banking industry, stick out like a sore thumb in

NAB's portfolio'.99 Perhaps this is the reason why NAB pulled the plug on its purchase plans for the Royal Bank of Scotland, and appears to be eyeing out opportunities in Asia instead.100

The idea of investing in Asia and China is not new. But it is not without controversy, as we saw at the beginning of this chapter. Brent Stewart, Austrade Commissioner stationed in Shanghai, has said that the Chinese market remains a challenging one for the Australian financial sector due to stringent regulatory limitations in many areas and a cultural and business environment considerably different from Australia.101 Conditions in the Chinese market have been difficult for other companies too. For example, Foster's brewery reportedly lost AU$1 billion during its 13-year investment in China.102 If a brewery finds it hard to cut it, why should things be any different for Australia's 'big four' banks, as well as Macquarie Bank, which is also now present in China? China's massive population makes it a very seductive market — something Chinese

business delegations to Australia are not shy of pointing out. The last of the big four Australian banks to actively promote its presence in China is NAB, and its brand new office in Shanghai's financial district suggests it wants to be there for the long-term.

However, it will need to be patient, as all foreign banks in China have to obtain a currency license, a process that takes at least three years. Australia and New Zealand Banking Group (ANZ) has been in China the longest. 'Doing business in China isn't easy', says its Chinese CEO Dr Charles Li, who stresses that you have to exercise lots of patience.103 Only time will tell whether the Australian banks succeed in China. Dr Li is optimistic, because ANZ also has a presence in Taiwan, Laos, Cambodia and Indonesia.104 He feels,

therefore, that it is well-placed to take advantage of inter-regional trade across these countries and with Australia. Indeed, ANZ wants to increase its inter-regional trade, and is seeking a license to set up its own wholly owned subsidiary in Thailand following talks

between the ANZ CEO and Thailand's prime minister. Meanwhile NAB, ANZ and the Commonwealth Bank have also entered India, presumably because of the huge market potential there too.105 There are other causes for optimism that the Australian banks should succeed in time too. Notwithstanding the difficulties mentioned in this case, several Australian companies have enjoyed success in China. Australia–China Gateway is an organisation with offices in Melbourne and Shanghai that offers assistance to firms interested in trading with, or establishing operations in, China. They note on their website that the huge Chinese market is attractive, but that culture is a major issue. They suggest that two keys to success

are relationship building and networking, and dealing with ethical, trustworthy 118 management people. They also provide several testimonials and client success stories on their website; for example: We have now been in China, thanks to your efforts and skills, for 12 months. Our trust in you has been well rewarded and our new [Shanghai based] Chinese partner shares your integrity and values. We can now look forward to further expansion in China and to tackling the US market. (Gerry Mussett, Sprockett Design, St Kilda Victoria/ Xa

Multimedia Technology Pty Ltd, Shanghai.)106 The Australian Trade Commission also lists several success stories on its website. These include an Australian agribusiness company The Woods International, which produces fertiliser made from earthworm droppings; and MtM, an Australian automotive manufacturer that established itself in Shanghai in late 2008. MtM had to achieve technical certification in order to assure the Chinese market of the quality of its products.107 This is similar to the banks requiring a currency trading license. Another similarity is that NAB

has set up in Shanghai where several of these success stories are to be found. However, Neuplex, a South Australian-based company, has enjoyed success developing and installing solar energy generating systems in Shaanxi Province, one of China's

most remote and poorest regions.108 Establishing a relationship with an ethical joint venture partner seems to be the key. Menzies and Orr note that: Foster's Brewing Company's joint venture (JV) in the Chinese city of Tainjin had a much

better relationship with the local government than the JV in Shanghai . . . As a result,

Foster's were more successful in Tianjin than in Shanghai.109 Questions

1. Notwithstanding challenging business conditions in China, do you think Australian business needs to exit Europe and America and focus on Asia? Justify your answer.

2. How would you set about building relationships with Chinese counterparts in order to establish a business operation there?

3. Would it be better to invest in other Asian countries like India (with just as big a population)?

4. What are the best investment strategies for Australian companies in China given the above case?