Global Business-Operational Concerns Essay

Submitted By savetheseagulls
Words: 1434
Pages: 6
Open Document
Indonesia is arguably the most populous Muslim-dominated democracy in the world and Southeast Asia’s largest economy. The administration has fought corruption and attempted to promote much-needed foreign direct investment. Despite this, the poor rule of law persists as a main hurdle to attracting resources. Indonesia is a member of the G-20 and a propelling force among the Association of Southeast Asian countries and consequently plays an increasing role in global economic policy deliberations. The increasingly diversified and contemporary economy has improved considerably from the recent financial crisis and recession (export.gov, 2013). Indonesia has embarked on a broad-range of transformations to tackle diverse structural challenges and enhance competitiveness. Latest reform programs have emphasized improvement of regulatory competence, improvement of regional competitiveness, and forming a more robust private sector through upgrading and modernization of the financial sector (C.I.A.gov, 2013). Despite considerable progress, the country’s development potential remains weak and hindered by incompetent investment and legal regimes. For example, political meddling in the private sector economy dampens vibrant economic growth, and persistent corruption, aggravated by a fragile judicial system, increases business risk. In the first half of year 2012, the administration reintroduced trade and investment hurdles that comprise restrictions on banks and ownership.
Engaging in local sales efforts
The Indonesia market is full of rivalry from companies in the neighboring nations such as Japan Singapore, China, and Malaysia. This implies that local intelligence and knowledge is critical to fend of or match the intense competition and this favor a local or regional composition of the sales team. The county and the region in general have different and unique culture that is necessary for the sales people to understand since they will be interacting with different distribution outlets and local consumers (export.gov, 2013). Even though it may be feasible in a number of cases to supply directly to the administration or state-owned entities, local partnerships of agents, domestic offices or distribution agents are regularly important to success of sales projects and development. The social networks and infrastructure are key elements in the Indonesian society. People tend to buy from outlets or distribution chains owned and managed by friends, relatives or acquaintances. Using of foreign citizens to manage distribution will not auger well with the large majority and may keep away potential buyers. The social network, values and norms embrace the support of one another. The local distribution equally has the experience and intelligent of the market and can make entry for the energy drink. Research study by the export office shows that small and medium scale U.S. companies venturing in the Indonesian market enhance their chances of performance by engaging strong local distributors (export.gov, 2013). The U.S. Commercial Service Jakarta helps U.S. companies identify and qualify potential Indonesian representatives (export.gov, 2013). The infrastructure is generally fairly well developed at a rating of 4.2 on a 1-7 scale. Specific areas such as roads, railway, port and energy are at an average score meaning that the direct engagement in direct selling efforts may prove a big challenge. The Indonesian marketing professional and marketing aspects are well developed. The country is rated at about 70 percent in marketing development by the global competitive index 2013. This means that the local sales and marketing team is equal to the task and can manage the distribution, sales and marketing effectively.
Undertaking local manufacturing operations
Although Indonesia publicly embraces foreign direct investment, numerous investors, both local and foreign, face unpredictability in the investment regulations and inconsistent enforcement.
Show More

Related Documents: Global Business-Operational Concerns Essay

Forum 2 Global Business Manager Essay

BUSI604: Forum 2 – Global Business Manager Tym Bunnell Liberty University Dr. John Karaffa May 22, 2015 KEY TERM and WHY YOU ARE INTERESTED IN IT The key term selected for this assignment was: Global Business Manager. Senior enlisted military service members are often thrust into positions that require them to manage personnel, assets, and resources across the globe. As the senior enlisted training and operations adviser for an organization of more than 350 personnel, this author frequently…

Words 1540 - Pages 7

Halliburton Case Study

Halliburton. They are: Drilling and Evaluating and Completion and Production. These two divisions accounted for 18 billion dollars in revenue in 2008. Halliburton employees more than 50,000 people in approximately 70 countries and offer two major business segments. The Energy Services Group provides the technical products and services for fuel exploration and production, and (KBR) Kellogg Brown & Root, Inc. KBR is a construction company that has refineries, pipelines and chemical plants. This paper…

Words 1236 - Pages 5

Essay on Internet and Organisational Adaptations

selected, contrasting business organisations to develop their use of e-business Explain how two selected, contrasting business organisations have responded to competitive pressures to develop their use of e-business D1: Evaluate how successful a selected business organisation has been in preparing for the growing use of e-business www.teachme.in M2: Lesson objectives Trends in internet development  Increasing speed, falling costs, rise of social networking, growing concerns over data security…

Words 1775 - Pages 8

Essay on Manager: Rapid Prototyping and 3 -d Systems

Charles W. Hull the inventor of the first Stereolithography rapid prototyping system founded 3-D Systems. Over the past twenty years, 3-D has grown into a global company delivering advanced solid imaging solutions to every major market around the world. According to the company President, Abraham N. Reichental, the company relocated its new global headquarters to Rock Hill to reduce its overall cost, and to display it state-of-the-art rapid manufacturing center. This decision was also in part to their…

Words 1851 - Pages 8

literature review Essay

Literature Review: The Impact of Monetary Policy Shocks on Commodity Price In modern global business operations, monetary condition has played a major role in determining commodity prices irrespective of the target market environment and the associated demographic factors. Commodity prices have been a source of great concern among policy makers due to the associated economic implications. This is attributed to commodity prices as essential elements defining consumer pricing index and determining…

Words 741 - Pages 3

Communication, Involvement and Participation Essay

China. 3.2 Current Situation Due to Financial Tsunami since October 2008, ABC Company forces to make a business decision to close down the business in Malaysia (last year in 2009) and made a redundancy activities in Hong Kong. This has brought a greatest challenge to the Executive Team (Top Management and Human Resources Department to find a way balancing between sustaining the business in Hong Kong for continuous improvement (e.g. ensuring its making profit and showing good projection to investor)…

Words 3778 - Pages 16

Essay about Richter Information Technology

Executive Summary Richter is the biggest pharmaceutical company in Hungary and is preparing a global expansion in one of the quickest alternating markets- the pharmacy industry. The firm currently belongs to the worldwide market leaders and faces the chance of losing their top market position. As a result their current information system (IS) has to successfully assist the firm’s expansion plans in order to guarantee a top market leader position. Currently the IS is not completely centralized…

Words 2589 - Pages 11

Inspire Financial Services: Project Investigation Proposal

working with Inspire Financial Services to help you build your future. We thank you for the opportunity to develop your project portfolio and assure you we are dedicated to Inspire’s success. In the following proposal, we analyze Inspire’s current business conditions and project ideas using a series of project analysis methodologies. The following paragraphs further explain our analyses. Let’s begin our journey toward ensuring Inspire Financial Services remains the premiere company in financial concierge…

Words 2645 - Pages 11

Mgt 498 Week 3

Environmental Scan Paper Your Name MGT 498 Week 3 Instructor Name Date For any company to survive in the business environment, they must be accustomed toward any situation within the environment because of certain issues, perceptions, chances, and resources. These are such reasons every business must observe any applicable changes, which can occur within the environment and invent from existing policies to adjust toward variations. For any company to succeed the company will need to conquer…

Words 1122 - Pages 5

Essay on RBC Project

Ethical and socially responsible 6 4.2 Negative ethical or social responsibility issues 7 5.0 Organization 8 5.1 Organizational Structure 8 5.2 RBC’s Corporate Culture 8 5.3 Review RBC’s organization 9 6.0 Planning 10 6.1 Strategic Planning and Operational Planning 10 6.2 Review of RBC’s planning 11 7.0 Leading 11 7.1 The Key Leaders and Leadership Styles 11 7.2 Review RBC’s Leading 12 8.0 Controlling 12 Reference 14 Appendix 16 1.0 Executive Summary This is a management review report about Royal…

Words 3001 - Pages 13