08 percent of the population. Indonesia gained

08 percent of the population. Indonesia gained

08 Fall Student Project in the subject Cultural Management Adidas – Market Entry in Indonesia I. Table of Contents II.

List of Abbreviations3 1. Scope of the topic4 2. Indonesia as the Lead Economy in Southeast Asia5 2. 1The Competitive Advantage of Labor6 2. 2Unity through Diversity? 6 3. Cross-Cultural Dimensions7 3.

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1Culture at national and organizational levels in Indonesia8 3. 2The German culture at national and organizational levels9 3. 3A Cross-cultural Comparison10 4. Challenges of Entering Emerging Markets12 . 1Market Entry Strategy12 4. 2Meeting the Challenge13 5. Recommendation15 I Love you soooooooooooooooooo much!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 15 III.

Bibliography16 IV. Appendix20 Declaration23 II. List of Abbreviations BRICCBrazil, Russia, India, Indonesia, China and South Africa IDVIndividualism MASMasculinity NGONon-Governmental Organization OECDOrganization for Economic Co-Operation and Development PDIPower Distance Index SOEStandards of Engagement UAIUncertainty Avoidance Index 1. Scope of the topic The internationalization of business is creating new needs for effective communication across language and cultural barriers. ’ In the last decades numerous multinational companies have switched labor-intensive productions from Europe to Asia for the sake of reducing the cost of labor. This piece of work deals with the market entry of the German-based company Adidas in the Southeast Asian republic Indonesia.

Adidas shifted parts of the production to the archipelagic state and faced cultural clashes ever since.When entering a foreign market the critical factor to success is the coherence of the different cultures and values. Thus the core of my work will be to outline how Adidas as a multinational company dealt with the problems arising from cultural and national diversity.

In the first part I am going to analyze Indonesia’s main characteristics focused on general data, economic development and important cultural impacts. Building upon this, I will identify the values that are critical to the success of conducting business in Indonesia in the second part.The third chapter focuses on differences in the culture at national and organizational levels 2. Indonesia as the Lead Economy in Southeast Asia With a population of 232 million people Indonesia is the fourth largest country in the world after China, India and the United States. Moreover, the Republic of Indonesia is Southeast Asia’s largest economy and home to the world’s largest Muslim population, representing 88 percent of the people although officially not being an Islamic state.

Islam, being the main religion in Indonesia, was established by Arab traders in the early 1600s.The Dutch who colonized the country from 1602 to 1945 brought Christianity, nowadays representing only 10 percent of the population. Indonesia gained its independence from the Netherlands in 1945 but still uses the legal system based on Roman-Dutch law modified by indigenous concepts.

Belonging to the newly advanced economical developed BRIICS states (Brazil, Russia, India, Indonesia, China, South Africa), Indonesia is in possession of significant trade associations with OECD (Organization for Economic Co-Operation and Development) member countries.The OECD is a forum that provides member countries with the opportunity to share experiences and find solutions to common problems. Moreover, the co-operation helps to protect democracy and a free market economy.

The majority of member states are so called further developed countries with a high per capita income. Thus, apart from its natural resources, Indonesia nowadays offers new opportunities as an emerging market and, partly due to its strong co-operation with the OECD, it plays a major role as a lead economy in Southeast Asia with important trade associations.At the beginning of the 21st century Indonesia faced economic progress difficulties due to an imbalanced allocation of resources among the regions, high unemployment, prevalent corruption, the lack of reliable legal systems in case of a contract dispute, a decentralized decision-making system and acts of terrorism. However, within five years, Indonesia managed to decrease its unemployment rate from 12 percent in 2005 to 7,14 percent in 2010 and therefore increased the standard of living.Today, the Indonesian economy can be described as robustly and steadily growing while still struggling mainly with corruption and unequal distribution of wealth. As a competitor in the global economy Indonesia first of all has to focus on internal stabilization to then gain stability in an international environment. ‘Future economic progress is dependent upon internal reform and on building the confidence of international and domestic investors …’.

2. 1The Competitive Advantage of LaborEven though Indonesia is well endowed with important exportable minerals such as petroleum, tin and bauxite, it does not have a wide variety of large known deposits of minerals utilizable as industrial raw materials. Consequently the industrial progress will inevitably remain dependent on its ability to trade. And yet there is another major factor influencing economic development. Since the rapid global growth of labor-intensive manufacturing the industrial sector takes advantage of low-paid workers and shifts labor-intensive production sites to newly developed countries such as the archipelagic state.

On the one hand this leads to higher wages and more jobs as workers move from low-productivity jobs in agriculture to higher productivity jobs in industry and services. On the other hand this has a huge impact on the working conditions. Especially women working in industries are treated differently from men. For women this may result in lower wages, sexual harassment and intimidation. It is the government’s duty to establish and maintain a safe and adequate working environment.

In fact, labor market policies fail to provide effective unions to protect the rights of the workers as well as binding adequate minimum wages.Most importantly, basing Indonesia’s growth and export strategy on cheap labor is not only a threat to workers but also difficult to maintain in the long run since other Asian markets offer even larger and therefore more competitive supplies of cheap workforces. These footloose industries may attract investors today but with rising wages in the future investors could shift to even cheaper industries, as Indonesian labor globally cannot be regarded as cheap anymore. This is a high risk for Indonesia and could result in a loss of its major competitive advantage. . 2Unity through Diversity? ‘Bhinneka Tunggal Ika’ is an old Javanese phrase often translated as ‘Unity in Diversity’ but literally meaning ‘Although in pieces, yet One’. There is probably no better way to depict the diverse ethnicity, culture and religion of Indonesia being the largest archipelago in the world with over 17000 islands and 81000 km of coastline.

Due to its geographical position as a bridge between Asia and Australia the country has been for centuries an intersection of trade between the two continents and the Indonesian islands themselves.Hence, numerous ethnic groups have influenced the Indonesian culture over decades. Nowadays, approximately 300 distinct ethnic groups, the largest and most influential being the Javanese, are distributed over 65 million households.

With each ethnic group there exists a unique language or dialect. Consequently, more than 250 distinct languages are spoken with Bahasa Indonesia being the official tongue uniting the country’s individual groups. Due to these diverse influences Indonesia is shaped by a range of belief systems which are reflected in society.Although Indonesia’s numerous islands are interconnected through history, politics, trade and the formation of the Republic of Indonesia in 1945, each island remains distinctive in terms of culture, society and even looks. Today approximately 50 percent of Indonesians are located on the island of Java, which is also the fiscal focal point of Indonesia with its capital Jakarta.

Today as much as 65 percent of Indonesia’s population still inhabit the rural areas. The uneven distribution of the population yields in a growing independence of each distinct society trying to establish and cultivate their own culture.Thus, various cultures and societies coexist while not having the opportunity to be part of one unique national culture. 3.

Cross-Cultural Dimensions When talking about culture one has to distinguish between three levels of operation. On the first level, culture can be seen and observed. For example attitudes and explicit artifacts visible in society through architecture, rituals, dress codes, making contact, contracts, language or food. On the second level, norms and values form beliefs that guide the society, such as cultural rules which explain observable facts that exist at level one.Values are basic convictions that people have about what is right or wrong, good or bad and about where to set priorities. These convictions are learned from the culture in which the individual is reared.

The third level forms the implicit, basic assumptions that guide people’s behavior. Being the deepest level it deals with asking why people behave according to certain patterns and rules. Here, only interpretations of the first and second levels can be made but will not resolve in no more than assumptions lying at the very bottom.The most important work analyzing and explaining cultural differences and their impact on operating business was by Geert Hofstede who depicted how values in the working environment are influenced by national culture.

He primarily identified four dimensions in differentiating cultures: ‘power distance’, ‘uncertainty avoidance’, ‘individualism versus collectivism’ and ‘masculinity versus femininity’ and rates them on a scale from 0 to 100 with 0 being the lowest rank. He later added a fifth dimension called ‘long term orientation’ which will be disregarded in this piece of work.Cultural values are probably an issue that is most often neglected and underestimated in the process of internationalization of companies although there exists an undoubtedly need to improve the intercultural capability and adaptation of firms entering foreign markets. 3.

1Cultural dimensions at national and organizational levels in Indonesia The ‘power distance index’ (PDI) which reflects the inequality of power and wealth within the society is set at 78 in Indonesia (compare Illustration 1, 3. 3) and is regarded as extremely high.However it does not indicate that this condition is forced upon society but is rather quietly accepted as part of the Indonesian cultural heritage. Since 88 percent of the Indonesians are Muslim, rank and position as well as respect to elders and superiors are part of their culture. This is reflected by a society that is strongly hierarchical with great distances between each organizational and national level. Businesses are organized through a tall hierarchy with a centralized decision-making at the top.

Consequently, connections to the upper level of the hierarchy are the key to success since the people with power have a high autonomy and are involved in political as well as economic issues. The ‘uncertainty avoidance index’ (UAI) depicts the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid such situations. Indonesia has a moderate uncertainty avoidance index at 48 (compare Illustration 1, 3.

3) and is therefore not as strictly structured in organizational activities and has fewer written rules.People within the society can be regarded as risk neutral and tend to accept changes without resistance. Individualism (IDV) is the tendency of people to look after themselves and their immediate family only. Indonesia has one of the lowest world rankings at 14 (compare Illustration 1, 3.

3). People in Indonesia are highly collective and team-oriented. They feel committed to their group and value loyalty at its highest. However social tensions exist between the distinct ethnic groups, as mentioned in 2. 2.This is why collectivism is rather high within small peer groups or villages but comparatively low on the national level.

Within business, personal relationships are characterized by a strong bond and compassion in which the group is more important than individual profit. An individual’s achievement is considered to be the group’s reward. Masculinity (MAS) is an index for the social values dominating the society. Masculinity stands for values such as success, money, status symbols or profit orientation. Masculinity is only ranked at 38 (compare Illustration 1, 3. ) therefore Indonesia can be described as a rather feminine society which places more emphasis on cooperation, caring for others, friendly atmosphere, group decision making, low stress and employee freedom. ‘Achievement is defined in terms of human contacts and the living environment.

’ 3. 2Cultural dimensions at national and organizational levels in Germany The German culture is characterized by a strong belief in equality. The PDI consequently is ranked relatively low at 35 (compare Illustration 1, 3.

3).Germany is a social state in which the government intervenes to protect the socially deprived by allocating taxes paid by the wealthier segments of society and thereby achieve a certain level of social justice. Hence the gap between the poor and the wealthy is comparatively small. When operating business, firms tend to be organized rather flat with little supervision and higher responsibility for the individual. Especially decision-making takes place on every layer of the organization and is not solely conducted by the top management.The UAI is rated at 65 (compare Illustration 1, 3.

3) and indicates that people in Germany are relatively risk averse. This is reflected in the country’s regulations, laws and bureaucracy. Germans prefer rules and long-term stability ensured through insurances, an institutional health care system and retirement funds.

The high UAI also is an indicator for emphasizing punctuality and precision more than low UA countries do. People tend to need a logical framework, structured processes and defined goals. In Germany IDV is set very high at 67 (compare Illustration 1, 3. 3).Hence one can conclude that the German culture is based on the individual achievement rather than on the wellbeing of groups. Independence is a major trait, which is learned from childhood on. Personal interests are superior to the groups’ interests and consequently personal bonds are rather loose resulting in a less integrated social structure.

Apparently most economically developed countries have a higher focus on the individual so a strong inverse correlation exists between the PDI and IDV, which will be pointed out in 3. 3. With a MAS value at 66 (compare Illustration 1, 3. 3)Germany is a culture in which masculine attributes are strongly represented over feminine attributes.

These attributes can be seen as learned styles of interpersonal communication that are understood to be socially appropriate. The German culture is affected by values such as assertiveness and meeting challenges. Germans are also very focused on their career rather than on family and leisure time. The main purpose of conducting business is profit maximization and those who cannot keep up with the set benchmark will face intolerance while the strongest enjoy respect and acknowledgement. 3. A Cross-cultural Comparison When comparing Indonesia with the world export leader Germany the deep perceived differences of corporate governance are obvious.

Therefore when entering a foreign market, in this case Indonesia, it is necessary to adapt techniques and behaviors to be successful within the foreign working environment. Also it is a way of showing respect to the culture when using local resources and taking the opportunities offered by that specific country. Furthermore gaining and adapting knowledge of the local culture is a critical factor in determining future economic performance.While the German culture, being a social state, is based on equality the Indonesian culture is characterized by a great gap between the poor and the wealthy. As already stated in 3. 2, German firms are organized rather flat with widespread responsibility throughout the different organizational levels. Compared to Indonesia most German firms don’t exclude lower-level workers from actively contributing to the value-adding process.

Since respect for rank and position are inherited as important values from their culture Indonesian workers simply accept these conditions.It is likely that foreign companies entering the market are exploiting the obedience to superiors, the quiet acceptance of orders from managers and the avoidance of disagreements. The fact that Indonesians accept changes easily, as mentioned in context with the UAI in 3. 1, does not mean that there are only few regulations and laws. In fact, nowadays the implementation of regulations towards national industries can be seen as problematic rather than the establishment of the regulation itself. It is more a system of control rather than a registration and reporting system. In Germany, once assed the registration process, conducting business takes place under certain rules and laws and is a fairly fluent operation.

In Indonesia however further government approvals are constantly needed throughout the business process. Illustration 1: Index Values of the 5-Dimensions Model of Geert Hofstede for Germany and Indonesia Source: Own investigation. Values extracted from Hofstede 2003. Especially when looking at the Individualism value of Germany and Indonesia, as shown in illustration 1, it is obvious that there are significant differences concerning interpersonal relationships between the two cultures.In Indonesia, self-motivation in the working environment comes through group responsibility and group rewards whereas in Germany the individuals prevail over the interest of the group.

Motivation is incentivized by monetary rewards. There is a strong negative correlation between the economic performance at the national level of a country and its individualism. Namely in Germany people are assumed to decide and achieve alone to realize maximum efficiency. The following part depicts the coherence of the two cultures in the context of Adidas market entry in Indonesia.

. Adidas’ Challenge while Entering the Emerging Market of Indonesia The Adidas Group is a global player in the sports brand segment and the world’s second-largest producer of sporting-goods after Nike. The company and its approximately 170 subsidiaries are directed from their headquarter in Herzogenaurach, Germany.

Especially major parts of the footwear industry are located in the emerging markets of China, Vietnam and Indonesia, contributing for 95 percent of the total production of footwear.In Indonesia the Adidas subsidiary is running under the name P. T. Trigaris Sportindo. Their focus has been on projects and actions that promote multi-union coexistence in factories (35). According to their social environmental report in 2000 the company engages with local organizations such as non-governmental organizations (NGOs), religious groups and trade unions on a constant basis (10 -2000). Namely those who represent and stand up for the rights and freedom of the Indonesian workers.

4. 1Market Entry StrategyDue to the minimization of production cost Adidas shifted part of its production to the emerging markets Asia, Russia and Latin America. 71 percent of its suppliers are located in Asia where the production takes place while retailing, sales, marketing, research development and information technology is located in Europe and North America. The choice of the adequate entry strategy depends on the aim, degree and capability of a firm’s involvement in foreign business on the one hand, and the host country’s environment and the extent of risk involved on the other.Direct entry strategies are becoming less and less available due to growing trading blocs like the European Union or the OECD. Therefore subsidiaries are one of the only ways to implement businesses in developing market economies.

Subsidiaries belong to so-called greenfield investments and are advantageous compared to mergers and acquisitions of existing firms with regard to foreign direct investments in several ways. First, due to their capital investment they contribute to the manufacturing and export capabilities of the host country and thereby generate new jobs.Second, greenfield investments are build on long-term implementation and thus have a lasting impact on the economy and the improvement of the local environment and infrastructure. Third, the company is able to install customized machinery and technology based on their know-how. Fourth, they get more control over labor policies and fifth, firms can enhance their competitiveness through the transfer of experience between their headquarter and its subsidiaries. One cannot deny the existence of disadvantages like high risks in combination with high costs that can only be carried by large multinational enterprises.

Furthermore, the startup process takes considerably longer than through an acquisition or a merger. All in all, a greenfield investment asks for a great deal of commitment and expertise of foreign management since administration is under control of local supervisors. 4. 2Meeting the Challenge of Conducting Ethical Business Globalization is nothing new. Although today it is not only the mobility of goods, capital and labor, it can be understood as the access to a common pool of resources.Labor is one of these resources and admission to international labor is mainly motivated by cost reduction and economic reasons.

Labor undoubtedly is cheaper in newly developing countries. As mentioned in 2. 1, it is their comparative advantage and their engine of growth. But as businesses become increasingly global, it is getting more difficult to ensure ethical integrity in the supply chain.

Adidas itself had to face adverse publicity with regard to employment of child labor, forced overtime and sexual harassment in supplier factories in Indonesia.With regard to the company’s code of conduct, their Standards of Engagement (SOE) team also considers the following issues arising in Indonesia to be altered: poor age documentation, less than minimum wage, maximum working hours ignored, union members discriminated, rules not published and wages docked as punishment (26). In 2002, supervisor trainings such as a Grow Together training have been implemented to raise awareness of compliance issues and the needs of workers among factory supervisors and middle management.In addition to that the company commissioned a local NGO in 2001 to conduct a fair wage study as a response to concerns raised by workers and NGOs. The purpose of the study was to measure needs and wage requirements as a basis for understanding the fair wage conditions to match the local cost of living.

According to Oxfam Australia, a non-profit organization dedicated to fight poverty and injustice and an affiliate of Oxfam International, Indonesian women working in Adidas factories are paid as little as 47 cents Euro per hour. That is 3,76 Euro for a standard working day.The outcome of the fair wage study was that the workers are 80 to 90 percent female with a calculated fair wage for a basic worker with a family of 873236 Rupiah per month. This is as much as 74 Euro per month to cover all basic needs plus long term planning and savings. And still the national minimum wage was at 278530 rupiahs in 2001 and increased to 547000 rupiah in 2010. In fact, legal minimum wages do not come close to providing a living standard. Loans in Indonesia are not defined by Adidas itself but are strongly connected to the legal minimum wages set by government and the union’s representation of workers rights and needs.

As mentioned in 2. 1, it is the government’s duty to establish binding minimum wages and provide effective unions. Contradictory to Adidas engagement with NGOs and labor unions, Indonesian workers trying to form unions and bargain collectively in several cases had to face discrimination, harassment, threats of dismissal and intimidation. Women, contributing 80 percent of factory workers, are confronted with barriers to participating in trade unions due to gender discrimination within their workplaces.Although Adidas provides their suppliers with information on trade union rights namely freedom of association, 33 union members at a factory were fired in 2005 for actions associated to their participation in a strike, contrary to Indonesian law. Eventually the need for differentiating between the contribution of Adidas to the existing working conditions and the conditions forced by government laws and regulations becomes obvious.

5. Recommendation Culture, religion and history have shaped the Indonesian environment significantly. Anpassung ja aber in gruppen auch protest ethisch profitable when adapting?Dispute adidas richtlinien presse gegen billig produzieren particularly in the context of ongoing illegal discrimination by management against union leaders I Love you soooooooooooooooooo much!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! III. Bibliography Adidas-Salomon AG (2003): Social and Environmental Report 2002.

The Beacon Press. Agrawal, Nisha (1996): The Benefits of Growth for Indonesian Workers. East Asia and Pacific. The World Bank. Policy Research Working Paper Andaya, Leonard Y.

et al. (2008): World and its peoples: Eastern and southern Asia. New York. Marshall Cavendish Corporation.

Andop, Ken? ichi (2005): Japanes multinationals in Europe: A comparison of the automobile and the pharmaceutical industries. Cheltenham. Edward Elgar Publishing. Basri, M. Chatib, Eng, Pierre van der (2004): Business in Indonesia. New Challenges, Old Problems.

Singapore. ISEAS Publications. Berger, Christian (2008): Strategic Sports Marketing – The Impact of Sport Advertising Upon Consumers: Adidas – A Case Study.

Norderstedt. GRIN Verlag. Doctoral Thesis/ Dissertation Browaeys, Marie-Joelle, Price, Roger (2008): Understanding Cross-cultural Management.

Harlow. Pearson Education Limited.Doak, Robin S. (2004): Indonesia. Minneapolis.

Compass Point Books. Eichenberg, Tim (2007): Distance Leadership. Wiesbaden.

Deutscher Universitats-Verlag. Dissertation Universitat Hannover Epperlein, Anrdeas (2007): Foreign direct investment in Ireland under consideration of the financial services sector in particular. Norderstedt. GRIN Verlag. Bachelor Thesis Forshee, Jill (2006): Culture and Customs of Indonesia. Westport. Greenwood Press. Frost, Nicola (2002): Indonesia. Oxford. Oxfam GB. Gibson, Robert (1998): International Communication in Business Theory and Practice. Sternenfels; Berlin.Verlag Wissenschaft & Praxis. Gort, Jerald D. , Jansen, Henry, Vroom, H. M. (2002): Multifaith Ideals and Realities. Amsterdam – New York. Rodopi. Ham, Allert van den, Veenstra, Jan (2004): Shifting Logic in Area Development Practices. Aldershot. Ashgate Publishing Limited. Hodgetts, Richard M. , Hegar, Kathryn W. (2005): Modern Human Relations at Work. Mason. Thomson South-Western. Indonesia Unemployment Rate (2010): Graph. Badan Pusat Statistik Indonesia. Johann, Ralph (2006): Cross-Cultural Management – The case of the DaimlerChrysler Merger. Norderstedt. GRIN Verlag. Law, Wai K. 2007): Information Resources Management. Global Challenges. Hershey. Idea Group Publishing. Lloyd, Grayson, Smith, Shannon L. (2001): Indonesia today: challenges of history. Lanham. Rowman & Littlefield. Luger, Elisabeth (2002): Hofsteede’s Cultural Dimensions. Norderstedt. GRIN Verlag. Seminar Paper McCann, P. (2009): Globalisation, Multinationals and the BRIICS. In: Globalisation and Emerging Economies: Brazil, Russia, India, Indonesia, China and South Africa. Paris. OECD Publishing. Mead, Richard (2000): Projects in International Management – Cross-Cultural Dimensions. Malden, Massachusetts.Blackwell Publishers. Miyamoto, Koji (2003): Human Capital Formation and Foreign Direct Investment in Developing Countries. Development Centre of the Organisation for Economic Co-operation and Development. Working Paper No. 211 Oman, Charles P. , Brooks, Douglas H. (1997): Investing in Asia. Paris. Development Centre of the Organisation for Economic Co-operation and Development. Parker, Philip M. (2008): Piecing: Webster’s Quotations, Facts and Phrases. San Diego. Icon Group International. Poudeu, Felix C. (2005): Internationaler Kontext des Relationship Marketing. Rhodes, Ed, Warren, James P. Carter, Ruth (2006): Supply Chains and Total Product Systems: A Reader. Malden. Wiley-Blackwell. Stiller, Sabina (2010): Ideational Leadership in German Welfare State Reform. Amsterdam. Amsterdam University Press. Tata McGraw-Hill (2008): International Business. New Delhi. Tata McGraw-Hill Publishing Company. Tian, Qing (2004): A Transcultural Study of Ethical Perceptions and Judgments between Chinese and German businessman. Munchen. Martin Meidenbauer Verlagsbuchhandlung. U. S. Commercial Service (2010): Doing business in Indonesia. In: http://www. buyusa. gov/indonesia/en/aboutindonesia. tml Retrieved: 18/12/2010 IV. Appendix From: HE_Sustainability <[email protected] com> Date: November 24, 2010 9:21:39 AM GMT+01:00 To: “‘leandra. [email protected] de'” <leandra. [email protected] de> Subject: RE: Market Entry Indonesia Sehr geehrte Frau Matz, haben Sie vielen Dank fur Ihre Email und Ihr Interesse an unserem Unternehmen. Aufgrund der enorm gestiegenen Zahl an Anfragen nach Informationen aller Art ist es uns aus Kapazitatsgrunden leider nicht moglich, alle Anfragen im Detail zu beantworten, so gerne wir auch allen Interessierten helfen wurden.Wir mochten Sie daher bitten, unsere Webseite zu besuchen, auf der Sie Informationen finden konnen, die sich zwar nicht direkt auf Indonesien beziehen, aber vielleicht dennoch hilfreich sind fur Ihre Arbeit. http://www. adidas-group. com/nachhaltigkeit Wir bedanken uns fur Ihr Verstandnis und wunschen Ihnen viel Erfolg fur Ihre Arbeit. Mit freundlichen Gru? en, Uta Haas? Social & Environmental Affairs? adidas AG? www. adidas-group. com/Nachhaltigkeit From: leandra. [email protected] de mailto:leandra. [email protected] de Sent: Dienstag, 23. November 2010 15:07 To: HE_Sustainability Subject: Market Entry IndonesiaYour Name:-Leandra Matz Your Company:-HS Osnabrueck Your Country:-Germany Your Enquiry:-To whom it may concern, I am a 3rd semester student of International Business and Management at Hochschule Osnabrueck and I am currently attending a Cultural Management lecture. Part of the lecture is to write a paper about a German company that has entered a foreign country. Since ADIDAS is a renowned German company I’ve chosen to analyze their market entry in Indonesia. It would be more than helpful if you could provide me with information concerning the difficulties, the development and the adaptation to the foreign country.I really appreciate you answering the following questions which I will use for the sole purpose of reference in my academic work. 1) How long did ADIDAS plan in advance before actually entering the Indonesian market? 2) What were the difficulties before entering? 3) What kind of difficulties did occur when/ after entering the county? 4) How is managing business in Indonesia different to operating German business? 5) Why did ADIDAS chose to enter Indonesia? Why exactly Indonesia? I ensure to treat the information provided confidentially and for no other purpose than for my academic paper.I’d really appreciate a quick response. Yours sincerely, Leandra Matz adidas AG, Herzogenaurach, Germany, Amtsgericht Furth, HRB 3868? Chairman of Supervisory Board: Igor Landau, Chief Executive Officer: Herbert Hainer Further Executive Board Members: Glenn Bennett, Robin Stalker, Erich Stamminger This e-mail and any attachments contain privileged and confidential information intended only for the use of the addressee(s). If you are not an intended recipient of this e-mail, you are hereby notified that any dissemination, copying or use of information within it is strictly prohibited.If you received this e-mail in error or without authorization, please notify us immediately by reply e-mail and delete the e-mail from your system. If you need any further assistance, please send a message to [email protected] com. Thank you in advance. Declaration I hereby declare on oath that I have written this work independently and without outside help. The thoughts taken over directly or indirectly from external sources have been marked as such. No other sources or aids were used than the ones stated. Up to now the work has not been submitted to any other examining authority nor has it been published. Place, date| | Signature| ——————————————- 1 . Cf. Doak, Robin S. (2004): p. 20 f. 2 . Cf. U. S. Commercial Service (2010): Web. 3 . Cf. McCann, P. (2009): p. 15. 4 . Cf. Andaya, Leonard Y. et al. (2008): p. 1403. 5 . Cf. Indonesia Unemployment Rate (2010): Graph. 6 . Andaya, Leonard Y. et al. (2008): p. 1404. 7 . Cf. Wardhana, Ali (2007): p. 6. 8 . Cf. Lloyd, Grayson, Smith, Shannon L. (2001): p. 277. 9 . Cf. Agrawal, Nisha (1996): p. 39f. 10 . Cf. Parker, Philip M. (2008): p. 240. 11 . Cf. Frost, Nicola (2002): p. 1 ff. 12 . Cf. Van den Ham, Allert, Veenstra, Jan (2004): p. 268. 13 .Cf. U. S. Commercial Service (2010): Web. 14 . Cf. Forshee, Jill (2006): p. 5 ff. 15 . Cf. Browaeys, Marie-Joelle, Price, Roger (2008): p. 4. 16 . Cf. Johann, Ralph (2006): p. 6. 17 . Cf. Mead, Richard (2000): p. 146. 18 . Cf. Tata McGraw-Hill (2008): p. 184. 19 . Cf. Tata McGraw-Hill (2008): p. 184. 20 . Hodgetts, Richard M. , Hegar, Kathryn W. (2005): p. 524. 21 . Cf. Stiller, Sabina (2010): p. 199. 22 . Cf. Eichenberg, Tim (2007): p. 93. 23 . Cf. Tian, Qing (2004): p. 22. 24 . Cf. Luger, Elisabeth (2002): p. 17 f. 25 . Cf. Tian, Qing (2004): p. 20 f. 26 . Cf. Tian, Qing (2004): p. 3. 27 . Cf. Poudeu, Felix C. (2005): p. 6. 28 . Cf. Oman, Charles P. , Brooks, Douglas H. (1997): p. 26. 29 . Cf. Gibson, Robert (1998): p. 12. 30 . Cf. Basri, M. Chatib, Eng, Pierre van der (2004): p. 83 f. 31 . Cf. Law, Wai K. (2007): p. 35. 32 . Cf. Berger, Christian (2008): p. 35. 33 . Cf. Miyamoto, Koji (2003): p. 13. 34 . Cf. Epperlein, Anrdeas (2007): p. 22. 35 . Cf. Andop, Ken? ichi (2005): p. 14 ff. 36 . Cf. Rhodes, Ed, Warren, James P. , Carter, Ruth (2006): p. 246 f. 37 . Cf. adidas-Salomon AG (2003): p. 33. 38 . Cf. Connor, Tim, Dent, Kelly (2006): p. 2. 39 .

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