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4 Cards in this Set
- Front
- Back
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What types of business approaches can firms use when doing business in emerging markets? |
First, emerging markets represent promising exportmarkets for products and services. (i.e., as target markets) Second, emerging markets have long served as platformsfor manufacturing by global MNEs. (i.e., as manufacturingbases) Finally, emerging markets are popular destinations forglobal sourcing—procurement of products and servicesfrom foreign locations. (i.e., as sourcing destinations) |
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Why has Astra International been so successfulwhile operating under high levels of political andeconomic uncertainty? |
Astra was able to identify opportunities that would bringlong-term benefits, such as the Japanese car manufacturers. Astra ensured it was in their best interest to be aware ofgovernment policies and changes, and, therefore, developeda mindset and flexibility to adapt to the changing politicaland policy landscape. Astra was also very strategic to develop and integrate withlocal SMEs which strengthen the company’s reputation withthe country. |
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What did Astra International do to limit theimpact of multinational firms operating inIndonesia? |
Astra made significant investment into local SMEs and thelocal community. The company set up two foundations, one with a strong focuson education, and the other on the support, development andtraining for local SMEs. It integrated many SMEs into its own supply chain andprovided many jobs for local people. This action has ashielding effect for foreign firms as the needs of the localcommunity are being considered. |
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If you were a foreign firm, would you considerdoing business in Indonesia? Include your reasonsin your response. |
Indonesia is a big market with 240 million people, a growingmiddle class, and is likely to play a central role in SoutheastAsia over the coming decades. But as this case highlights it is not without its risks, andinfrastructure such as roads, transport and communicationscan be very problematic. Indonesia is also a majority Muslimcountry so some products may not be suitable for theirmarket. |
