Define and Describe the Relevant Business Traditions of the Region in Which It Has Developed and Now Operates.

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Define and describe the relevant business traditions of the region in which it has developed and now operates. Chaebols are large business groups in the Korean economy that are family-controlled with diversified business operations and have influences over the economy. For the Koreans, family means blood-related. So, the major corporations like Lucky-Goldstar are run by the founder and the family members. Chaebols emphasize on the importance of having their family members controlling their own businesses. Hence, the blood-related family members are also responsible for the management and decision-making process. The children of the founders hold key positions in the company, with one of them often succeeding their elderly. E.g Lucky-Gold Star. Confucianism has also played an important role in the business traditions of Chaebols, with the eldest son of the families enjoying priorities and benefits from the businesses, and other family members will have the due shares. Inhwa (harmony), also a concept derived from Confucianism, is the key managerial principle in South Korea. It stresses the harmony between unequals in terms of rank, prestige and power. It means that the managers should have good interpersonal relationships with his/her workers. Harmony-oriented leadership is essential, with the managers taking into account of the feelings of the subordinates before the final decisions are made. As Korea has a seniority-based culture, The Chaebols had adopted a strong authoritarion style of management, with a top-down decision-making style. In other words, the Chaebols’ organizational structure are highly centralized. The upper management level will have the most influence; while the middle and lower management levels will only have limited influence over the decisions made. There is an inverse relationship between

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