...the world to experience the pleasure, happiness, and fulfillment of wearing such incredible garments. The company also doing business in China, France, Hong Kong, Malaysia, the Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, the United Kingdom and the United States (uniqlo.com). The corporation was basically a division of Fast Retailing Co. by reason of its success it has developed to have its own stock on the Japanese equity market. In view of Businessweek.com Fast retailing co Ltd is currently worth 14,330 yen on Tokyo marketplace (fashionmodeldirectory.com). It does not make a difference who you are or where you live, UNIQLO makes clothes that transcend all classes and social organizations. Its apparel is made for all, going beyond age, sex, occupation, ethnicity, and all different ways that describe people. They also offer shoes, socks, scarves, tights, caps and different accessories. All the clothes are simple and basic yet common, so people can liberty join them in their own distinctive style (uniqlo.com). As the founder stated that UNIQLO clothes are created for all highly completed elements of style in clothes that fit your values wherever you live. The special clothes concepts locate apart from clothes companies whose only for the purpose to seek for fashion trends (uniqlo.com). 2.0 Country Profile Political The Indonesia politics occur in a framework of a presidential representative democratic republic, the both head of state and head of government...
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...Nike doing business in Indonesia Firm Profile Indonesia is a difficult entrant country environment for corporations to do business in which have constraints like: child labor, low wages, mandatory overtime, and education. Low wages are beneficial for Nike; on the same token the constraints like child labor, unfair work conditions, and mandatory overtime can harm the world renowned brands repetition. The media has painted negative picture of Nike, because productivity of shoes and other athletic apparel comes with the cost of unethical work conditions and labor practices. Arguments have been made that the effort of Nike outsourcing it’s manufacturing to factories in Indonesia, is the wrong choice. Furthermore, Nike has a social responsibility to maintain a satisfactory standard in the facilities where its products are manufactured. Condoning mandatory overtime is unethical. Importance should be placed on upholding the dignity of its workers. We will determine if doing business in Indonesia is a decision that Nike should maintain, due to the negative back lash that they receive in the United States from the Media. Along with indicating what is the best strategy should be applied for doing business in Indonesia. Operation The name Nike is the Greek goddess of victory (Ballinger, 1997) .Nike Corporation was originated by Phillip Knight an athlete from Beaverton Oregon. Knight in his beginning started importing shoes from Japan in efforts to compete with athletic companies...
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...type and style of government aid Suharto in his command of the political system to favour the business enterprises of his supporters and family. Suharto placed the country’s money into declining and failing companies rather than placing the money in developing and further improving the country’s infrastructure or possibly putting the money into better companies to economically improve Indonesia. In the end, Suharto was overtaken by a massive debt up to over $43 billion due to placing money into the failing businesses of Indonesia. Eventually, The International Monetary Fund stepped in with a rescue package enough to cover the entire debt of Indonesia. Suharto, being who he truly is, was then revealed that much of the money found its way into his personal coffers and his cronies. There was an uprising, people took to the streets and protest, a democracy quickly moved in, and Suharto was forced to resign. The two factors, political and economic short failings, are very much related. Suharto supported failing companies instead of the best companies for his country. Instead of further improving and developing the country’s infrastructure, he personally benefitted and favoured from the country’s money. 2. Why do you think foreign firms exited Indonesia in the early 2000s? What are the implications for the country? What is required to reverse this trend? Foreign firms exited Indonesia due to the country experiencing a significant drop in foreign direct investments. Probably,...
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...being cannot live alone without others people. They must communicate with each other. Language is the way of communication. Therefore, the purpose of this paper is to show to the people how to communicate with each other in different background especially in Global Business Communication. The expectation is the readers will learn how to using and understand the way people communicate, base on every aspect of their background. Business definition itself is a commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities (WebFinance, 2012). In this paper, there will be the research and analyzing personal behavior and attitudes in a country and the relationship with others country. The countries that will be research and analyze are: Indonesia-Malaysia, Indonesia-China, Indonesia Singapore. Chapter II: Research The research divided into three groups: Indonesia-Malaysia, Indonesia-China, Indonesia-Singapore. Because those countries located in the same area that is Asia and also because those countries is Relationship-Focused Country, and there’s so much interesting about issue that happened in those countries, so that will be more challenge working on it. Indonesia-Malaysia Firstly this is more...
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...France and Indonesia Chapter2. Business culture for negotiation 2.1. Concept of business culture 2.1.1. Study of culture and national culture 2.1.2. Effect of national culture on business culture 2.1.3. Essence of business culture study in negotiation Chapter3. Business culture in France and Indonesia 3.1. Hofstede’s dimensions of culture 3.1.1. French national culture according to Hofstede 3.1.2. Indonesian national culture according to Hofstede 3.2 Business culture in France 3.3. Business culture in Indonesia Chapter4. Conclusion and recomendation Appendix Reference 1 3 4 4 5 6 6 6 7 8 9 9 10 11 12 15 18 20 21 1 List of figures: 1. Figure 1 France and Indonesia’s Hofstede scores in graph 20 2 Executive Summary This report firstly examines how actually national culture indirectly affects business culture and negotiation result. The topic about culture is raised knowing that globalization comes as trend that forces business people all over the world to interact and work together in order to survive and compete. To negotiate with people from very contrast background is not similar with business dealing between executives from the same culture. Lack of cultural awareness can fail business people from achieving their aims. Culture is very sensitive matter; an insult to culture not only will ruin the deal but also the relationship. Narrowing down the topic, two countries are picked by the writers to be analyzed for their national and business cultures....
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...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 Committee). A big conflict happened during 1986 when one of Australia’s newspapers took former Indonesia president, Soeharto, regarding their family’s financial issue as the newspaper’s main topic, but this problem was solved...
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...PROFILE: INDONESIA Indonesia’s Profile • • • • • • • • • • Official name: Republic of Indonesia Population: 242.8 million (UN, 2012) Capital: Jakarta Area: 1.9 million sq km (742,308 sq miles) Major languages: Indonesian, 300 regional languages Major religion: Islam Life expectancy: 68 years (men), 72 years (women) (UN) Monetary unit: 1 rupiah (Rp) Main exports: Oil and gas, plywood, textiles, rubber, palm oil GNI per capita: US $2,940 (World Bank, 2011) (BBC, 2013) General Etiquette Meeting and Greeting (Ediplomat, 2014) • • • Greetings can be rather formal as they are meant to show respect. A handshake is the most common greeting. Many Indonesians may give a slight bow or place their hands on their heart after shaking your hand. Sometimes, younger ones would bring your hand to their forehead as a respect. This is normally among the Muslims. • • Always start your greeting with eldest person (or higher hierarchy) first. Titles are important in Indonesia as they signify status. If you know of any titles ensure you use them in conjunction with the name. • Some Indonesians only have one name, although it is becoming more common for people to have a first name and a surname, especially in the middle class. • Many Indonesians, especially those from Java, may have had an extremely long name (hence my last name!). Be very careful to pronounce them. If in doubt, just refer to them as Mr/Miss along with their first names. There are several ethnic groups in Indonesia for example...
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...ACKNOWLEDGEMENT In the name of Allah the Most Gracious and the Most Merciful. Alhamdulillah, all praises to Allah for the strengths and His blessing completing this group project for this subject IBM530/535 (International Business) Firstly, we would like to express our deepest thanks to our dedicated lecturer, Miss Riza Emifazura Bt Jaafar who had guided us a lot during this semesters session March-July 2013. Her invaluable help of guidelines support and suggestion in order to finish up our project. Not forgotten deepest thanks and appreciation to staff from Adabi Consumer Industries Sdn Bhd, Madam Azatul Izan Bt Mohamed Nordin as a product manager for giving us details information about Adabi’s product in local market and international market. We also thanks to all of group member that have been contributed by supporting this work and give fully cooperation, commitment and help during this project progress till it is fully completed Last but not least, thanks to our parents, family and friend for their constructive suggestion, idea and full of support for the report completion from the beginning till the end. Thank you. PART 1: MARKET ANALYSIS i. General Information The country that our company chooses is Indonesia. The name Indonesia has its roots in two Greek words: "Indos" meaning Indian and "Nesos" which means islands. It is an appropriate description of the archipelago as there are estimated to be a total of 17,508 islands, of which only about 6,000...
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...Indonesia and its Future Indonesia, the world’s fourth-most populous country after China, India and the US is the largest economy in Southeast Asia. Although there had been a little concern over economy slowdown, the country has grown rapidly in past years. According to the Economist, “gross national income per head doubled during the decade to 2012, to $4,730 and the proportion of the population living in poverty fell by half, from 24% in 1999 to 12% in 2012”. Indonesia recently had the 3rd presidential election last July. The new president will set a future path of Indonesia and hence, not only the people in the nation, the world has paid attention to the result. Joko Widodo, the winner of Indonesia's presidential election is expected to take office in October and a question Indonesia’s economy faces with the new government is that whether its economy will remain on the rise or face downturn. I. Opportunities Many investors and global corporations believe that there are growing opportunities in Indonesia. Especially consumer-focused companies like Ikea and automakers are looking at the bright side - young generation, growing middle class, and increasing demand - putting great investment into Indonesia. Indonesia is known to have its half the population aged below 30; the median age being 29. The number is definitely a striking when compared to aging societies like China and the West. Also, the number of middle class is expected to almost double to 141 million while...
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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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...1.0 Question 1 Indonesia began a process of rapid government decentralization in 1999 from a formerly strong centralized government structure (Keith Green, 2009). According to Darmawan (2008), under former president Habibie, this reform process was conducted due to the introduction of new decentralization guidance in 2001 under Law 22/1999 on regional governments and Law 25/1999 on fiscal balance between the central and regional governments have changed the intergovernmental relations in Indonesia. Then, they were replaced by Law 32/2004 and Law 33/2004. The World Bank declared that decentralization is defined as “the transfer of authority and responsibility for public functions from the central government to intermediate and local governments or quasi-independent government organizations and/or the private sector”. Decentralization is also regarded as a way of diffusing social and political tensions and ensuring local cultural and political autonomy (Bardhan, 2002, p. 185). Local governments in Indonesia started to develop and to govern their regions by gaining huge transfer of authority and ability to make their own decision-making from central government with these laws. Indonesia begins with the components in political decentralization and then move forward to fiscal decentralization and finally the administrative decentralization. According to Cheema, Nellis and Rondinelli (1999), political decentralization aims to give citizens or their elected representatives more...
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...Case Study: Indonesia, Asia’s Stumbling Giant What political factors explain Indonesia’s poor economic performance, what were the factors and were they related? From 1967 to 1998 President Suharto used a “crony capitalism” style of government to control his country, (Hill, 2013). In this style of government, leaders such as Suharto can favor the business enterprises of his supporters and family. Instead of placing money in the country’s infrastructure or possibly better ran companies, Suharto placed the countries money in failing enterprises. When President Suharto placed enough money into the failing businesses of Indonesia he eventually ran the countries debt up to over $43 billion, (Hill, 2013). When The International Monetary Fund stepped in to assist with these debts, the people of Indonesia were realizing where the money was really going back into companies that Suharto had an interest in. There was an uprising, and a democracy quickly moved in to replace Suharto’s dictatorship. The political and economic short fallings are very much related. Instead of President Suharto supporting the best companies for his country he supported failing companies. Instead of Suharto putting money into the infrastructure of his country, he placed money in his own pocket. Why do you think foreign firms exited Indonesia in the early 2000s, what were the implications and what is required to reverse the trend? Lack of infrastructure repairs placed 90% of the population without...
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...Indonesia-Asia’s Stumbling Giant Marty J. Ragnone Excelsior College BUS 435 11 May 2013 1. What political factors explain Indonesia’s poor economic performance? What economic factors? Are these two related? There are several political factors that contribute to the economic state of Indonesia. I will explain a few of them in this paper along with economic factors that weaken the overall state of Indonesia. Economic and political factors together make up the part of the political economy “the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the level of economic well-being.” (Hill, 2012) Indonesia’s economy grew steadily for 30 years under the rule of President Suharto, but at great cost to the people. He used “crony capitalism” to ensure the business success of his family and those closest to him. Massive debts were accumulated during the 1990s, and poor use of a $43 billion rescue package caused the people to protest and force Suharto out of office. Democracy was on the horizon with the first directly elected president in 2004. The changes in politics have improved conditions in Indonesia, but many problems still exist. The current economy is struggling due to poor infrastructure investments that have resulted in a broken road and electrical system for the country...
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...Indonesia – Asia’s Stumbling Giant Case Prepared for Prepared by Case Analysis The political, economic, and legal systems are the most important implication for international business. Those systems influence each other and build the attractiveness of a country as an investment site. This attractiveness is connected with potential long-term benefits and costs, and related with both those sides risk of running business activity. The central issue of this case is solving the problem which is connected with inappropriate, low level of foreign investment in Indonesia which is strictly related with the current economic, legal, and a lesser extent political systems. Indonesia was under the strong, totalitarian leadership of President Suharto over 30 years and this country has still struggled with problems deriving from lack of free market and democracy. The political system in Indonesia was an example of right-wing totalitarianism where some individual economic freedom was permitted. The corruption was rampant and bribes were necessary to running any businesses. Investments in this totalitarian country were not effective because even the economics was growing up, most benefits were consumed by Suharto and his “crony capitalism”. Nowadays, Indonesia is a young democracy with the excessive red tape and the endemically high level of corruption. In my analysis, I would like to define Indonesia’s goals which can enhance the economic development. I will...
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...Indonesia—Asia’s Stumbling Giant Indonesia is a vast country. Its 220 million people are spread out over some 17,000 islands that span an arc 3,200 miles long from Sumatra in the west to Irian Jaya in the east. It is the world’s most populous Mus- lim nation—some 85 percent of the population count themselves as Muslims—but also one of the most eth- nically diverse. More than 500 languages are spoken in the country, and separatists are active in a number of provinces. For 30 years the strong arm of President Suharto held this sprawling nation together. Suharto was a virtual dictator who was backed by the military establishment. Under his rule, the Indonesian econ- omy grew steadily, but there was a cost. Suharto bru- tally repressed internal dissent. He was also famous for Market Potential Index (MPI) is a yearly study con- ducted by the Michigan State University Center for International Business Education and Research (MSU- CIBER) to compare emerging markets on a variety of dimensions. Provide a description of the indicators used in the index. Which of the indicators would have greater importance for a company that markets laptop computers? Considering the MPI rankings, which de- veloping countries would you advise such a company to enter first? “crony capitalism,” using his command of the political system to favor the business enterprises of his support- ers and family. In the end, Suharto was overtaken by massive debts that Indonesia had accumulated during the 1990s. In...
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