Ask Business Management Expert

Objective

The Case will focus on issues related to the cultural aspect of international business; sustainable business practices including CSR issues; foreign investment; and the benefits of regional integration for the countries within, and companies doing business in, that region. The case study analysis will be completed on an individual basis.

Instructions

THE CASE: Kaizer Consulting

Kaizer Consulting is an international management consulting firm that specializes in business strategy and serves as a key advisor to the world's leading companies. It provides its clients with the unique insight to drive critical decision making and solve their most pressing problems.

Every year, the majority of Kaizer's business comes from clients with whom they have worked in the previous year - an indicator of Kaizer's ability to achieve lasting results for its clients. Kaizer's client relationships are enduring, as many clients have remained customers for more than a decade and many have become project partners.

The Client has a Problem:

The manager of a product category at a Fortune 50 technology company (The Client) approached Kaizer to analyze the complete range of supply chain challenges his company would face when they entered Indonesia - a new market in South-East Asia that was presently dominated by large single competitor. Initially, it was agreed that The Client would benefit most from a set of detailed analyses of the market which would focus on a providing a deep understanding of:

  • the market's culture and business practices; and,
  • the manufacturing, distribution, and retail operations required to execute their market development plans.

The Client was aware of some cultural differences in the new market, but was under the impression that it would be able to proceed as it normally did when entering a new market. Further, the Client believed that the competitor's primary advantage was based on optimized management of the distribution network and aggressive retailing. The Client thought it could proceed on that basis with its usual market entry strategy, but wanted to obtain Kaiser's opinions on this before proceeding.

Kaizer's Approach:

Based on extensive research about the market generally, but specifically with individuals, focus groups, cultural experts, CSR and legal experts, suppliers, industry experts, vendors, and employees of companies in similar situations, Kaizer realized that:

  • The Client's competitor had committed a number of culturally-based mistakes, primarily with respect to age and gender issues and local social taboos. Although these were not disastrous, the mistakes were covered in the media and had created the general impression that the competitor didn't really care about the target market's traditional cultural values, beliefs, customs and norms.
  • The Client's competitor had selected the target market in part because of lax enforcement of environmental protection laws and government corruption. Social media and the mass media soon discovered how the competitor was conducting business in the target market. Subsequently, the competitor had to perform substantial damage control to protect its international reputation of being socially-responsible. The competitor is currently facing legal action in Canada and the US for its alleged corrupt business practices.
  • The Client's competitor's key business advantage was actually based on long-term production contracts; in effect, the competitor had become partners with its suppliers. By doing so, the competitor's had leveraged its foreign investment in a number of ways: it had created a supply chain that achieved a number of cost savings on commodities, equipment, machines, and technologies; helped improve the local economy by providing relatively high-paying jobs to local people; and contributed to social and political stability in the country.

Kaizer's Findings:

With the new knowledge provided by Kaizer, the Client:

  • Refocused its market entry and distribution strategies from enhancing warehousing and retail systems to more innovative production plans that incorporated local benefits and added a plan to use Indonesia as a base for expansion into other countries in the region particularly India, Vietnam, the Philippines and China.
  • Challenged its managers and employees to develop highly ethical Codes of Conduct and CSR strategies that supported its long-term operations in the target market.
  • Most importantly, was able to develop an overall approach that was culturally sensitive and appropriate, even humorous. This approach was reflected in all the client's negotiation and partnership development activities and clearly demonstrated its respect for the target market's culture.

Next Steps:

Kaizer has recognized that this work could become a model for future work with this client and others in similar situations. They've asked you to provide comments and a framework to analyze these situations more efficiently.

Questions:

Each answer must be based on facts from the case and all of the course materials. Each answer should be 1 - 2 pages long, for a total submission length of 10 pages maximum (double spaced, 12 pt font), and must be prepared in APA style format.

1. Cultural understanding is a key element of this situation. Comment on the importance of this aspect of market entry and development being sure to discuss the key elements of understanding and working effectively in Indonesia

2. Using the Hofstede Framework analyze the Indonesian culture with reference to concepts covered in the course materials.

3. CSR and business practices are another set of critical issues in this case. Describe four CSR issues and explain how these issues can impact a company's international business activities. 

4. The Client, in order to develop its Market Entry Strategy fully will be required to make an investment in Indonesia. Explain each of the four means of incorporating risk into market entry strategies if The Client wanted to use an 'Adaptation Strategy'.

5. The Client will benefit from trading with other countries in the region. Briefly describe the Association of Southeast Asian Nations (ASEAN); and discuss the benefits and drawbacks of regional integration.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92068259
  • Price:- $25

Priced at Now at $25, Verified Solution

Have any Question?


Related Questions in Business Management

Name a company that addressed a recent ethical problem in a

Name a company that addressed a recent ethical problem in a positive way. Also, explain how or if this positively affects us as a community?

When it is appropriate to use the trade-off process what

When it is appropriate to use the trade-off process. What conditions apply, and the technical evaluation criteria that might be used?

Need help with a essay with the following phrase for

Need help with a essay with the following phrase for analyzing : " Capitalism is at the heart of how people and organisations are managed in contemporary society" May i ask for a better explanation of the question? Also ...

How could these three tenets of the auburn creed be used to

How could these three tenets of the Auburn Creed be used to motivate others: "I believe that this is a practical word and that I can count only on what I earn. Therefore, I believe in work, hard work." "I believe in educ ...

How can these two tenets of the auburn creed by used in

How can these two tenets of the Auburn Creed by used in addressing teamwork issues: "I believe in honesty and truthfulness, without which I cannot win the respect and confidence of my fellow men." "I believe in the human ...

Discuss the advantages of having and interacting in a

Discuss the advantages of having and interacting in a diverse workplace. Consider the wide range of ideas and perspectives that a range of team members bring to a team, that are of differing ages, ethnic backgrounds and ...

Parmigiano-reggiano global recognition of geographical

Parmigiano-Reggiano: Global Recognition of Geographical Indications What historical factors have helped support the consortium's claims for the geographic specificity of Parmigiano-Reggiano and Parmesan? What are the eco ...

Communication planthis communication plan will be a roadmap

Communication Plan This communication plan will be a roadmap on how the new division will best be able to communicate with Biotech's corporate headquarters, suppliers, other divisions, and internally. This should lay out ...

Discuss strategies to obtain feedback from a customer and

Discuss strategies to obtain feedback from a customer and clients when working in sales.

Describe different networking methods and the advantages

Describe different networking methods and the advantages and disadvantages of them?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As