15.Political-legal, Economic and Sociocultural Environment
MGT 2206 : GLOBAL PERSPECTIVE BUSINESS
GROUP ASSIGNMENT PRESENTATION
APRIL SESSION
13.Bread Consumption in Indonesia
-Indonesia is a constitutional democracy.
-After Suharto's authoritarian New Order regime to extend the 1998 constitutional amendment fell, to reduce the effective power of the executive branch, so that a new dictatorship is almost impossible.
-Currently Indonesia is characterized in parliamentary and presidential elections every five years reflects the people's sovereignty. From the New Order Suharto, marking the beginning of the Reformation began in the autumn in Indonesia every election is considered to be free and fair
GROUP MEMBERS' NAME : MATRICULATION NO.:
PANG MEI PING K14068948
EMILY THAM HOI ZHI K13068709
ESTHER KU JIA CHIEH K13068903
YONG SHI YEA K15069170
-“the consumption of bread has surged nearly 60 percent in the past four years.”(Indonesia Bakery Association,n.d.))
-bakeries will be the biggest competitor
-If the consumer prefers to have bread fresh out form the oven, by that our Massimo bread could not able to achieved consumer wants.
-most of the Indonesian consumer preferred sliced white bread, and bread rolls filled with different flavour(pekerti,2010)
-Massimo produce Favorito and Duetto cream roll which has more choices of the flavour except meat to choose.
9.SWOT ANALYSIS
Strength
-TIB currently has 4 production lines
-They are state-of-the-art fully automated lines using the latest American and European technology
-Massimo sandwich loaf with Wheat Germ is loaded with the heart-healthy goodness and aroma of wheat germ.
-came with a host of health benefits
19.Entry Mode Strategy - Exporting
14.Why choosing Jakarta, Indonesia?
8.Mission Statement
To strengthen our leadership position in our core businesses in Malaysia, expand regionally for further growth, invest in related activities for greater synergy and increase shareholder value, in a socially and environmentally responsible manner through management excellence.
Vision Statement
To be a market leader in our core businesses reputed for our sustainable quality products and services.
Weaknesses
-Massimo bread only sells in west Malaysia, do not sells in east Malaysia.
-Massimo lack of brand awareness
- one of the internationalization strategies
- common method of reaching foreign markets by the origin country
10.Opportunity
-“Massimo” bread loaves and buns in 2011, the brand has been well accepted.
-The good promotion and distribution network
-To extend the reach to the whole of Peninsular Malaysia besides the Klang Valley, additional depots were set up in Malacca, Seremban, Alor Setar, Johor and Kuantan.
- price is affordable
-Able to consume a low price but medium high quality and healthy bread.
-Overall Indonesia population is 260517585 people; Jakarta
-population is over 10 million people
-Jakarta is one of the tourist destinations in Indonesia
Why Massimo choose exporting?
Threats
- There have been rumors circulating on the Internet, mostly via emails, we should not support Gardenia Bread because it belongs to the Malays and is considered "racist"..
- does not require the products to produce (Quick MBA,2010)
- does not require any investments towards the production facilities (Vistage, 2014).
- reduce the risks of company (Export Help,nd)
- gain lots of information about foreign competition in advance before future expansion
- gain global market shares
24.NATURAL DISASTER
7.Massimo products which include:
-“Wholesome Goodness, Maximum Satisfaction”
not just a tagline for advertising used but could double up as the company’s motto
-contributed to the availability of the good and wholesome products.
COMPETITOR
-Gardenia, which is a famous bread in Malaysia.
-Massimo bread with 100% wheat cost RM3.50, while Gardenia bread cost RM3.20.
6.-Wholly owned subsidiary of Federal Flour Mill Berhad, under Robert Kwok’s PPB Group.
-A new brand bread, established at 21 March 2011
-RM120 million new baking plant is strategically located near FFM Pulau Indah.(Mpc.gov.my, 2011)
-“Massimo” is an Italian word
-the Italian Baker started to develop “Malaysian-Italian” products to fulfill the 21st-century customers’ demand for quality bread that corresponds to their dynamic lifestyle”. (Mpc.gov.my, 2011)
- volcano eruption, earthquake, tsunami, and floods
- flood in Jakarta; 93 areas inundated in Jakarta
- Yearly, two or three earthquakes with a magnitude of seven or higher occur in Indonesia
- affect our business which we may
lose profit
(Indonesia Investment, 2016)
12.Core competencies
13.Trading Economics, Available at: http://www.tradingeconomics.com/(Accessed: 22nd June 2016).
14.World GDP Ranking 2015 | Data and Charts, Available at:http://knoema.com/nwnfkne/world-gdp-ranking-2015-data-and-charts (Accessed: 23rd June 2016 ).
15. FOCUSECONOMICS, Available at: http://www.focus-economics.com/country-indicator/indonesia/inflation (Accessed: 22 June 2016).
16.Indonesia Investment, Available at: http://www.indonesia-investments.com/culture/politics/general-political-outline/item385 (Accessed: 23 June 2016).
- 100% Flour-free or Its Trans Fat Free
-does not consist any Additives, Shortening, Bromate and Preservatives
-owns its supply flour factory namely Federal Flour Mill (FFM) Berhad which FFM just only provide flours to Massimo Company.
REFERENCES :
25.CONCLUSION
23.Communication across culture.
-The company should venture its business through exporting
-Massimo bread can get into international market and become well-known brand compare to others
1.Export Help, (n.d.). The various benefits of exporting. [Online] Exporthelp.co.za. Available at: http://www.exporthelp.co.za/modules/1_considering_exporting/benefits.html[Accessed 8 Jul. 2016].
2.Happy Zebra Travel Tools, (2016). Travel Distance from Indonesia to Malaysia - Flight Duration Time. [Online] Available at: http://www.happyzebra.com/distance-calculator/Indonesia-and-Malaysia.php [Accessed 8 Jul. 2016].
3.Malaysia Aviation Group, (n.d.). Corporate Info - Malaysia Aviation Group | Malaysia Airlines. [Online] Malaysiaairlines.com. Available at: http://www.malaysiaairlines.com/my/en/corporate-info/malaysia_aviation_group.html [Accessed 8 Jul. 2016].
4.Tekle S., T. (n.d.). Advantages and Challenges of Exporting - an article by Training Expert Tekle S. from Brentwood, United States - The Knowledge Brokers. [Online] Expertbase.org. Available at: https://www.expertbase.org/a238-advantages-and-challenges-of-exporting [Accessed 9 Jul. 2016].
5.Quick MBA, (2010). Foreign Market Entry Modes. [Online] Quickmba.com. Available at: http://www.quickmba.com/strategy/global/marketentry/ [Accessed 7 Jul. 2016].
6.Vistage, (2014). Going Global with Your Business: Modes of Entry - Vistage. [Online] Available at: http://www.vistage.com/resource/going-global-business-modes-entry/ [Accessed 8 Jul. 2016].
SOCIAL-CULTURE ENVIRONMENT
- over 500 languages, the official language is Bahasa Indonesia, but dialects of Betawi, Javanese and Sundanese(Jakarta Traveler Article, 2016).
- Indonesian speak indirect manner (Maclachlan, 2010)
-Indonesians speak in a subtle tone
- Indonesians are polite and diplomatic in their speech
- “Mian Zhi” is very important
7.InternationalBusinessCenter (1998) Indonesia - Indonesian business etiquette, vital manners, cross cultural communication, and Geert Hofstede analysis. [Online] Available at: http://www.cyborlink.com/besite/indonesia.htm [Accessed: 12 July 2016].
8.Limited, C.G. (2016) Indonesia cross-cultural and language training. [Online] Available at: https://www.communicaid.com/country/indonesia/ [Accessed: 12 July 2016].
9.Limited, C.G. (2016) Challenges of doing business in Indonesia. [Online] Available at: https://www.communicaid.com/cross-cultural-training/blog/challenges-of-doing-business-in-indonesia/ [Accessed: 12 July 2016].
10.Landed, J. (2015) Language in Indonesia. [Online] Available at: https://www.justlanded.com/english/Indonesia/Indonesia-Guide/Language/Language-in-Indonesia [Accessed: 12 July 2016].
11.IndonesiaInvestments and Webdesign, I. (2016) Natural disasters in Indonesia - tsunami, earthquakes & volcanoes. [Online] Available at: http://www.indonesia-investments.com/business/risks/natural-disasters/item243 [Accessed: 12 July 2016].
12.The Jakarta Post (2016) Indonesian disaster report for first quarter of 2015. [Online] Available at: http://www.thejakartapost.com/adv/2015/09/30/indonesian-disaster-report-first-quarter-2015.html [Accessed: 12 July 2016].
Distance between Malaysia to Jakarta, Indonesia
- 721.8 Miles
Time To Reach Jakarta, Indonesia
-Approximately 1 hour 44 minutes (Happy Zebra Travel Tools, 2016).
Method of Exporting
- AeroDarat Services ( MAB Ground Handling Services) which provides cargo services and ground handling services (Malaysia Aviation Group, n.d.).
- using indirect exporting strategy
EMILY THAM HOI ZHI FROM SLIDES 4-10
YONG SHI YEA FROM SLIDES 12-16
PANG MEI PING FROM SLIDES 18-21
ESTHER KU JIA CHIEH FROM SLIDES 23-25
GDP INDONESIA
MASSIMO