...Australia and New Zealand: Doing business with Indonesia Questions 1. Using this case and the cultural dimensions explored in this chapter, discuss some of the ways in which citizens of Australia and New Zealand are members of cultures very different from any other in Asia. Although Australia and New Zealand are very close and geographically a part of Asia they have many differences that separate them from most of Asia. For example in Indonesia it is a higher priority to develop a long-term relationship to produce a profit than it is in Australia or New Zealand. How first contacts are made, how deals are closed, and how time is managed are just a few of the differences between Australia, New Zealand, and the majority of Asia. By analyzing Hofstede’s four value dimensions of power distance, uncertainty avoidance, individualism, and masculinity we can understand just how different these two countries are from Asia. 2. In what respects is the Indonesian archipelago unique in Asia? Indonesia is unique in several ways. One example is that Indonesia is continues to open up its markets to world enterprise while the majority of Asia is pulling back. There is a great imbalance of social power in Indonesia and it is the world’s fourth most populous country. Indonesia has very strong nationalistic ties and feelings throughout the country. 3. What characteristics of Indonesian workplaces are referred to in this profile? Some characteristics include sensitivity to the employee...
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... Learning Objectives L01 Describe the various postpurchase processes engaged in by consumers L02 Define and discuss postpurchase dissonance L03 Discuss the issues surrounding product use and nonuse and their importance to marketers L04 Summarize disposition options and their relevance to marketers and public policy L05 Explain the determinants and outcomes of satisfaction and dissatisfaction L06 Describe the relationship between satisfaction, repeat purchase, and customer commitment 18-3 Consumer Behavior In The News… Can emotional attachment sell brands? What are the top 5 brands in terms of consumer emotional attachment? What is the relationship with emotional attachment, loyalty, and repeat purchase? Source: J. Pollack, “Tech Tops in Creating Emotional Connection,” Advertising Age, October 17, 2011, p. 38. 18-4 Consumer Behavior In The News… Can emotional attachment sell brands? What are the top 5 brands in terms of consumer emotional attachment? iPod iPhone GoogleSearch Disney Parks Google Emotional attachment is important because it increases loyalty and purchase frequency. Source: J. Pollack, “Tech Tops in Creating Emotional Connection,” Advertising Age, October 17, 2011, p. 38. 18-5 Postpurchase Consumer Behavior 18-6 Postpurchase Dissonance Postpurchase Dissonance occurs when a consumer has doubts or anxiety regarding the wisdom...
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...CASE STUDY IIa Australia and New Zealand: Doing Business with Indonesia There are thousands of Australians, both individually and as members of organizations, who share trade and education with Indonesia as do New Zealanders. Yet, though geographically part of Asia, citizens of Australia and New Zealand are members of cultures very different from any other in Asia. As increasingly they seek to trade in Asia, so also do they need to learn to manage such differences; and doing business in Indonesia is a good example. Travelling time by air from Perth, Western Australia, to Indonesia is slightly less than four hours, yet the cultural distance is immeasurable. In January 2007, the Jakarta Post reported GDP growth had risen to over 5%. Consumer consumption drives the economy but exports are thriving, and therein lay opportunities for Australia and New Zealand. Indonesia is a country of more than 17,000 islands and the world’s largest Muslim nation. In her lecture, Dr. Joan Hardjonoof of Monash University discussed the historical and geographic contexts of modern Indonesia. She spoke of the many clusters of islands worldwide that have come together as nation states—for example, the Philippines and some island groups in the Pacific—but described the Indonesian archipelago as in a class of its own. It is unique in terms of extent and diversity. For example, Java and Bali have fertile volcanic soils, while elsewhere the land is rich in mineral resources such as oil, natural gas, and coal...
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...Australia and New Zealand: Doing business with Indonesia SECTION 1 CULTURAL DIFFERENCES Numerous Australian and New Zealand organisations are looking for business opportunities in Asian nations as Asian nations are in developing stage and they offer limitless business chances to officially created countries. Here, we are going to examine the business development of Australian and New Zealand associations in Indonesia. To start a business in a foreign country, it is crucial to understand the culture, social, customs and language of the country to be successful (Morrison & Conoway, 2006). Culture Hofsetede has sorted social contrasts into three wide classifications i.e. National society, Business Culture and Organizational society. National society delineates the political and social limits of the country. Business society includes rules, regulations, qualities and convictions of working together in a specific society (Deresky & Christopher, 2012). National Culture measurements are as per the following: 1. Power Distance 2. Independence/Individualism versus Collectivism 3. Manliness versus Femininity 4. Vulnerability/Uncertainty Avoidance 5. Long term Orientation 6. Indulgence (Kullen & Parboteeah, 2014). The visual chart joined in Appendix 1 indicates how these three nations vary from each other on the premise of aforementioned measurements. Indonesia is at high power separation as contrast with other two nations which implies more reliance...
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...Australia and New Zealand: Doing business with Indonesia John Edma Keiser University Australia and New Zealand: Doing business with Indonesia The cultures of New Zealand and Australia, to a great extent, differ from the cultures of the rest of the Asian countries. Focusing specifically on the relationship between the two countries with Indonesia, there is a great cultural diversity. Indonesia, just as the rest of the Asian countries, believes in creating long term relationships so as to gain profits in business. Australian business cultures, on the other hand, aim at making fast profits before creating a long term relationship. Indonesian company managers care about the people they deal business with to keep them motivated and happy (Kearney, 2006). The Indonesian companies tend to believe in mutual respect to achieve effective and productivity. The managers believe western companies should adjust to the culture, the taboos and languages of all the Asian companies. Indonesia is unique in its diversity and extent among the clusters of islands in Asia. Over 60% of the country’s population resides in Java Island. Through the diversity in culture, the national ties remain strong. Despite the difference between the cultures of the countries, they still have to reach a consensus in dealing businesses. The countries have to adapt to the cultures of the fellow business partners. In dealing in Business for a long with Asian countries, Australia and...
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...Case Study: Australia and New Zealand doing business with Indonesia 1. In this chapter we were able to study cultural dimensions and we are able to see how different cultures through out different parts of the world distinguish from each other and make them unique. In this case we are able to see a few of the differences between the cultures in New Zealand and Australia compared to the cultures found through out Asia. Obviously a majority of the countries in the world along with different parts and regions are not going to be culturally the same, this is what makes the world very unique. And as we see in this case there are many cultural differences that distinguish they way New Zealand and Australia conduct business compared to different Asian cultures. As the case mentions in Indonesia, as in the rest of Asia, there is more need to develop a long-term relationship to produce a profit than there is in Australia or New Zealand. Unlike Asian countries, in New Zealand and Australia the companies there would be more concerned about making profits now and as fast as possible rather than building long term relationships. In Indonesia managers care more about the people as in like a father figure than how they perform. It’s important to establish good relationships with the employees in order to keep them happy and motivated. Indonesian managers care a lot about mutual respect and believe that it may be the most effective way to achieve productivity and effectiveness. Indonesian...
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...of the way in which Australian and New Zealand are members of cultures very different from any other in Asia. Differences in the behavior of individuals and groups within an organisation in foreign subsidiaries can be a result of differences in societal or sociocultural variables of culture such as religion and language. These variables affect cultural dimensions. Which in turn affect an individual’s motivation and expectations in the work place. The predominant religion in Indonesia is Islam, while Australia is considered to be Mixed Christian and New Zealand Roman Catholic (Deresky 2014). Companies operating in Muslim countries or that have a large Muslim workforce are expected to make provisions for pray time and religious commitments such as Ramadan. In Australia and New Zealand Christianity employees typically have a number of day off during religious holidays, and the respect for people not wanting to work on Sundays (Deresky 2014). The official language in Indonesia is Bahasa Indonesia (Riza 2008), and in Australia and it is English (Australian Bureau of Statistics 2011) The GLOBE project investigates how cultural variables are related to organizational practices. GLOBE dimension scores of Australia and Indonesia are as follows. Assertiveness: Australia 4.28 Indonesia 3.86 Future orientation: Australia 4.09 Indonesia 3.86 Performance orientation: Australia 4.36 Indonesia 4.41 Humane orientation over Australia 4.28 Indonesia 4.69 (Ashkanasy & Roberts 2000; Irawanto...
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...Cierra Miller 9-16-2014 MGT-446 Australia and New Zealand: Doing Business with Indonesia 1. Using this case and the cultural dimensions explored in this chapter, discuss some of the ways in which citizens of Australia and New Zealand are members of cultures very different from any other in Asia. There are many differences between New Zealand and Australia, and Asia. Even though New Zealand and Australia are neighbors to Asia they hold very different cultural values. For example, in the Indonesian culture, it’s important to build and maintain long-term relationships to be successful and to produce a profit. In contrast, New Zealand and Australia rely on shared expectation such as how first contacts are made, how deals are closed, and how time should be managed. Another major difference is how business situations are handled. For example, mid-level Indonesian managers may attempt to resolve an issue on their own instead of being the “bearer of bad news” to the boss because they feel that bringing bad news implicates the bearer. In contrast, a Western boss would want their employees to tell them any bad news that they should be informed of because issues that are left unresolved could lead to inefficiency and lose of profits. 2. In what respects is the Indonesian archipelago unique in Asia? Indonesia’s archipelago is unique to Asia in terms of extent and diversity. It has 17,000 islands which span around 3,200 miles eastward from Sabang in northern Sumatra to Merauke in...
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...Corporate Management There are thousands of Australians, both individually and as members of organizations, who share trade and education with Indonesia as do New Zealanders. Yet, though geographically part of Asia, citizens of Australia and New Zealand are members of cultures very different from any other in Asia. As increasingly they seek to trade in Asia, so also do they need to learn to manage such differences; and doing business in Indonesia is a good example. Travelling time by air from Perth, Western Australia, to Indonesia is slightly less than four hours, yet the cultural distance is immeasurable. In January 2007, the Jakarta Post reported GDP growth had risen to over 5%. Consumer consumption drives the economy but exports are thriving, and therein lay opportunities for Australia and New Zealand. Indonesia is a country of more than 17,000 islands and the world’s largest Muslim nation. In her lecture, Dr. Joan Hardjonoof of Monash University discussed the historical and geographic contexts of modern Indonesia. She spoke of the many clusters of islands worldwide that have come together as nation states—for example, the Philippines and some island groups in the Pacific—but described the Indonesian archipelago as in a class of its own. It is unique in terms of extent and diversity. For example, Java and Bali have fertile volcanic soils, while elsewhere the land is rich in mineral resources such as oil, natural gas, and coal. Climatic conditions vary from island to island...
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...Blundstone that are sold all over the world and John Bull, which are sold only in New Zealand. Up until now Blundstone has maintained modern facilities in both Australia and New Zealand, which make it one of the most recognizable boots brands in the world. The report’s purpose is to determine whether Blundstone should expand their manufacturing production to Indonesia or not, based on PESTL and SWOT analysis. 2.0 Political Environment 2.1 Government Stability The political environment in Indonesia during the last decade was unstable, the performance of the government was rated unsatisfactory and they could not bring welfare to Indonesian citizen (Okezone 2014). SBY (Susilo Bambang Yudhoyono) as the former president of Indonesia himself admitted that SBY and his cabinet have not succeeded in clearing the corruption problems in Indonesia during his leading period (The Jakarta Post 2014). However, the new president of Indonesia, Joko Widodo, has applied some new changes in the government affairs in order to improve efficiency and effectiveness of government performance and to reduce the number of corruption problem in Indonesia (Kompas 2014). Therefore the new government are hoped to bring welfare to the Indonesian citizen. 2.2 Government Relations The relationship between Indonesia and Australia in the past seems to be unstable. Both countries started the diplomatic relation since 1947 when Australia took part as Indonesia’s representative for UNGOC (United Nations Good Offices...
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...Page 4 4.1.1 GDP and GDP Growth Page 4 4.1.2 GDP per capita and GDP per capita PPP Page 5 4.1.3 Income Distribution Page 5 4.1.4 Major Exports and Imports Page 5 4.2 Business Environment Page 6 4.2.1 East of Doing Business Page 6 4.2.2 Economic Freedom Page 7 4.2.3 Perceived Corruption Page 7 4.2.4 Tariffs and Trade Agreements Page 7 4.2.5 Competitive Analysis Page 8 4.3 Per Capita Spending Page 9 4.4 Technological and Physical Infrastructure Page 9 4.4.1 Transport Infrastructure Page 10 4.4.2 Physical Infrastructure Page 10 5.0 Social Characteristics and Market Potential Page 11 6.0 Political and Legal Environment Page 11 6.1 Political Risk Page 11 6.2 Legal Risk Page 11 7.0 Trade and Diplomatic Relations with Australia Page 12 8.0 Country of Choice Page 12 9.0 Mode of Entry Page 12 10.0 Conclusion Page 13 References Page 14 Executive Summary This report examines and assesses the market suitability of two countries for the company Octahedron’s SWIM software. This report analyses and compares Singapore and Indonesia’s political, economic and business environments. The report examines and compares key economical, political and business environment factors identified as impacting upon the profitability of the two markets, as well as the current retail jewellery industry and amount of consumer spending on retail jewellery goods...
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..........................................................5 B. Literature Review......................................................................................................6 C. Collection of Data…………………………………………………………………………………….…..7 3rd Chapter: Case Study………………………………………………………………………………………….8 4th Chapter: Conclusion……………..…………………………………………………………………………11 References…………………………………………………………………………………………………………..12 CHAPTER 1 INTRODUCTION A. BACKGROUND President Joko Widodo, often regarded as Jokowi, announced in Washington during his first official visit to the U.S. on 26th October 2015, said that Indonesia intends to join the Trans Pacific Partnership which contains measures to lower trade barriers such as tariffs and non-tariffs. It is a 21st century free trade agreement. In the period of President Susilo Bambang Yudhoyono, Indonesia, refused to...
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...WHY AUSTRALIA BENCHMARK REPORT 2016 WHY AUSTRALIA 25 YEARS OF CONSECUTIVE GROWTH. A SMART, SKILLED WORKFORCE. A CULTURE OF INNOVATION. INTEGRATED WITH ASIA, EUROPE AND NORTH AMERICA. READY FOR BUSINESS. GROWTH INNOVATION TALENT LOCATION BUSINESS Australia offers a powerful combination of solid economic credentials, a highly educated labour force, legal and political stability, and proximity to the fast-growing markets of Asia. With a resilient economy, a AAA sovereign risk profile and diverse, globally competitive industries, Australia remains well placed to build on an impressive record of prosperity. Australia has strong business and cultural ties with Asia, and longstanding trade, investment and research links in Europe and North America. Recently completed free trade agreements will make Australia even more competitive and further increase prospects for greater two-way investment. There are significant commercial opportunities in sectors where Australia has specific strengths and expertise, such as agribusiness, resources and energy, and financial services. Australia’s north in particular offers untapped possibilities. Australia’s world-class scientific and academic institutions, and commitment to research and development encourage innovation and the commercialisation of new technologies. There is no better partner for trade, investment and collaboration than Australia. 01 SECTION GROWTH // // Economic...
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...Trade and Other Receivables 8. Inventories 9. Other Financial Assets 10. Investment in Joint Venture Entity 11. Investments in Bottlers’ Agreements 12. Property, Plant and Equipment 13. Intangible Assets 14. Impairment Testing of Investments in Bottlers’ Agreements and Intangible Assets with Indefinite Lives 1 2 3 4 6 7 14 14 59 59 60 61 62 63 64 64 72 74 74 76 77 78 79 79 79 80 81 82 83 15. Trade and Other Payables 16. Interest Bearing Liabilities 17. Provisions 18. Deferred Tax Liabilities 19. Defined Benefit Superannuation Plans 20. Share Capital 21. Shares Held by Equity Compensation Plans 22. Reserves 23. Employee Ownership Plans 24. Dividends 25. Earnings Per Share (EPS) 26. Commitments 27. Contingencies 28. Auditors’ Remuneration 29. Business Combinations 30. Key Management Personnel Disclosures 31. Derivatives and Net Debt Reconciliation 32. Capital and Financial Risk Management 33. Related Parties 34. CCA Entity Disclosures 35. Deed of Cross Guarantee 36. Investments in Subsidiaries 37. Events After the Balance Date Directors’ Declaration Independent Auditor’s Report Shareholder Information Company Directories Share Registry and Other Enquiries Calendar of Events 2014 84 85 86 87 88 90 91 91 92 95 95 96 96 96 97 97 100 101 113 114 115 116 117 118 119 120 122 122 123 ANNUAL GENERAL MEETING The Annual...
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...Privatization of Telecoms in Asia John Ure and Araya Vivorakij* Privatization viewed as a panacea for the most pressing problems besetting the modernization and development of telecommunications has become, in recent years, a widely accepted part of orthodox thinking. Wellenius, Stern, Nulty and Stern (1989) illustrate the point. ‘How should privatization be defined?’ asks the International Finance Corporation (IFC, 1995). ‘A generous stance would admit any transfer of ownership or control from public to private sector. A more exacting definition would require that the transfer be enough to give the private operators substantive independent power.’ 1 Hence, by privatization is usually meant the transfer of state-owned assets to private sector ownership, management and control typified by the sale of part or all of the shares of a state owned (and operated) telecommunications enterprise (SOTE). We shall argue that the ‘more exacting definition’ is exactly appropriate for the experience of Western economies from which it originates - see below - while it is too narrow, too precise, insufficiently ‘generous’ to capture the less clearly defined lines of demarcation between public and private capital in the context of Asian telecommunications. We shall argue that this is because the delineation between state (political society) and civil society is less well developed in Asia, certainly less well articulated in law, and unevenly developed even within single large Asian countries...
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