Expert answer:Case Studies
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GLOBAL BUSINESS STRATEGY(BUS 7070) Case Studies
For this assignment, following APA style, answer as comprehensively as possible the questions
after each case summary.
Based on your reading of the case identify the main issues of the case and answer the questions
in your own words. To better understand the case, you may also research the Internet, journals,
and library reference materials and provide an up to date analysis.
Case Study Analysis #1: Australia and New Zealand: Doing Business with Indonesia
(Due date: 2015 Dec 12, Minimum 2pages required for all questions in Case Study # 1 as per
APA format with not more than 10% Plagiarism)
Please refer to Australia and New Zealand: Doing Business with Indonesia Case Study on page
106 and answer the following questions:
1) Using this case and the cultural dimensions explored in this chapter, discuss some of the
ways in which citizens of Australia and New Zealand are members of cultures very
different from any other in Asia.
2) In what respects is the Indonesian archipelago unique in Asia?
3) What characteristics of Indonesian workplaces are referred to in this profile?
4) How does the population appear to be socially stratified?
5) What are some business opportunities in Indonesia for foreign direct investment?
Case Study Analysis #2: MTV Networks: The Arabian Challenge
(Due date: 2015 Dec 12, Minimum 2pages required for all questions in Case Study # 2 as per
APA format with not more than 10% Plagiarism)
Please refer to MTV Networks: The Arabian Challenge Case Study on page PC2-9 and answer
the following questions:
1) Experts felt that one of the biggest challenges faced by MTV while launching MTV
Arabia was the prevalent culture in the Arab world. Discuss the Arab culture. How is it
expected to pose a challenge to MTV?
2) Critically analyze MTV’s strategy in the Middle East. Comment on its entry strategy and
also its strategy of providing mixed content to the market. Do you think MTV will be
able to succeed in this market?
Case Study Analysis #3: Alibaba in 2011: Competing in China and Beyond
(Due date: 2015 Dec 14, Minimum 2pages required for all questions in Case Study # 3 as per
APA format with not more than 10% Plagiarism)
Please refer to Alibaba in 2011: Competing in China and Beyond Case Study on page PC3-1 and
answer the following questions:
1) Critically analyze the factors that led to Alibaba sustaining its leadership position in the
Chinese e-commerce market.
2) Discuss the rationale behind Ma establishing Taobao.com. What are the factors that led to
Taobao’s success as compared to eBay in the Chinese online auctions market? With
Baidu’s entry into the e-commerce market, discuss the challenges that Alibaba faces with
regard to sustaining its position in the growing e-commerce market in China.
3) Critically examine Alibaba’s business model. Do you think it is sustainable? After having
captured the Chinese e-commerce market, what steps should Alibaba take to expand
globally?
Case Study Analysis #4: Kelly’s Assignment in Japan.
(Due date: 2015 Dec 14, Minimum 2pages required for all questions in Case Study # 4 as per
APA format with not more than 10% Plagiarism)
Please refer to Kelly’s Assignment in Japan Case Study on page 295 and answer the following
questions:
1) Explain the clashes in culture, customs, and expectations that occurred in this situation.
2) What stage of culture shock is Kelly’s family experiencing?
3) Turn back the clock to when Kelly was offered the position in Tokyo. What, if anything,
should have been done differently, and by whom?
4) You are Kelly. What should you do now?
106
PART 2 • THE CULTURAL CONTEXT OF GLOBAL MANAGEMENT
Internet Resources
Visit the Deresky Companion Website at
www.pearsonhighered.com/deresky for this chapter’s Internet
resources.
CASE STUDY
Australia and New Zealand: Doing Business with Indonesia
There are thousands of Australians, both individually and as members of organizations, who
share trade and education with Indonesia as do New Zealanders. Yet, though geographically part
of Asia, citizens of Australia and New Zealand are members of cultures very different from any
other in Asia.
As increasingly they seek to trade in Asia, so also do they need to learn to manage such
differences; and doing business in Indonesia is a good example. Travelling time by air from
Perth, Western Australia, to Indonesia is slightly less than four hours, yet the cultural distance is
·immeasurable.
In January 2007, the Jakarta Post reported GDP growth had risen to over 5%. Consumer
consumption drives the economy but exports are thriving, and therein lay opportunities for Australia and New Zealand.
Indonesia is a country of more than 17,000 islands and the world’s largest Muslim nation. In
her lecture, Dr. Joan HardjonoofMonash University discussed the historical and geographic contexts of modern Indonesia. She spoke of the many clusters of islands worldwide that have come
together as nation states-for example, the Philippines and some island groups in the Pacificbut described the Indonesian archipelago as in a class of its own.
It is unique in terms of extent and diversity. For example, Java and Bali have fertile volcanic
soils, while elsewhere the land is rich in mineral resources such as oil, natural gas, and coal.
Climatic conditions vary from island to island. Some regions experience annual heavy rains and
floods, while others suffer regularly from droughts that often lead to famines.
With a population of more than 230 million people, Indonesia is the fourth most populous
country in the world, but there is a great imbalance in population distribution within the archipelago. Settlement has always been greatest on the island of Java, and today about 60% of the
Indonesian population lives there.
National ties are strong, as revealed by the great response from within Indonesia to the recent
natural disasters in Aceh and Nias. Unfortunately, there are still very obvious socio-economic
disparities in all regions of the country. At the top of the social structure are wealthy elites, below
them an increasingly demanding middle class, and at the bottom an impoverished majority.
As Indonesia has become more integrated with ASEAN, North Asian trading partners have
become more important: but well-to-do Indonesians now travel the world. Globalization has
been the buzzword of international business for many years. International markets have split up
into unified trade zones; individual marketplaces, particularly in the developing countries, are
exposed to transnational pressures.
Some Asian countries are pulling back from perceived threats of international contagion, but
Indonesia continues to open up its markets to world enterprise. However, Australians and New
Zealanders cannot expect to do business with Indonesians just because they are neighbors. They
have to learn the moves.
Business opportunities in Indonesia include agribusiness; the automotive industry; business
and financial services; construction and infrastructure; information and communication technology; e-commerce; education and training; environmental products and services; food and
beverages; fresh produce; health and medical provisions; mining and mineral services; oil and
petroleum drilling, transport and storage; and science and technology.
Taking advantage of these opportunities requires skillful negotiation. One of the biggest
challenges of working in a foreign country is learning how to operate in a different cultural setting. International managers tell endless stories of cross-cultural breakdowns, missed appointments, problems over differences in management style, lost orders or down time on production
CHAPTER 3 • UNDERSTANDING THE ROLE OF CULTURE
Australia and New Zealand
Although manufacturing is an
important contributor to Australia’s
• GOP, its shore has b.n steadily
declining. One of the country’s
biggest challenges is to supple· ment its small domestic market
with new trade Gnks. Japan, China,
and the United Slates have
replaced the United Kingdom as
the principal trading partners.
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lines, labor problems between foreign management and local staff, and many other examples of
miscommunication. Many could have been avoided or at least mitigated had the expatriate managers and their local counterparts been better prepared for differences in work patterns.
Some cross-cultural behavior, such as patience and courtesy, is no more than good manners. It applies to all interpersonal communication; but in Indonesia, as in the rest of Asia, there
is more need to develop a long-term relationship to produce a profit than there is in Australia or
New Zealand. Relationships rely on shared expectations-for example, about how first contacts
should be made, how appointments should be set and kept, how deals should be closed, how
time should be managed (including the Indonesian concept of “jam karet,” or “rubber time,” that
infuriates punctuality-conscious Westerners).
Sensible but inexperienced international managers seek information that more seasoned veterans can provide. They might be colleagues, business associates, friends, or paid consultants,
but in any case most people are eager to give advice. On the other hand, even managers with a
highly developed global outlook may have too generalist a viewpoint on international business.
They may overlook the need for a local perspective in each host country.
Indonesia is one of those countries in which a foreign manager’s home office priorities of
task over relationship, of corporate rather than human priorities, may not be the most effective
ways to achieve productivity and effectiveness. Indonesian managers usually place more value
on harmony, understanding, and mutual respect. It may be sometimes that this emphasis outweighs the importance of job performance and productivity.
On the one hand, there are a number of concerns for Indonesian managers working with
their Western counterparts. For example, they believe Westerners should make an effort to adjust
to the culture, taboos, and language of their Indonesian colleagues. Foreign managers should
avoid bad language that might set a bad example for the workers. They should give instructions
slowly and clearly in Standard English and should ask for a paraphrase to ensure understanding.
108
PART 2 • THE CULTURAL CONTEXT OF GLOBAL MANAGEMENT
They should be wiiiing to consider individual cases and cultural needs (e.g., prayer times or other
religious obligations, time off for cemetery visits before Ramadan, weddings, funerals, etc.).
On the other hand, Indonesian managers should be willing to make many adjustments to
working in an international company. Important areas where Western management techniques
are most successful include strategic planning and timetable deadlines, efficiency and punctuality, handling conflict, and taking responsibility.
Sensitivity to the needs of employees is a management area that is seldom stressed in most
Western business cultures where efficiency, productivity, and effectiveness take priority. For example, when somebody loses their self-control through anger, distress, or confusion, Javanese
will usually advise the need to “eling” (in translation, not to allow oneself to be overwhelmed by
feelings and mixed-up thoughts but to regain self-control). Self-control is of high value to Javanese, maybe of the highest. This value is not unique to Indonesia. It is shared by the indigenous
peoples of South Asia, the Himalayan Range and Central Asia, East Asia, Southeast Asia, and
Africa; Oceania, the Caribbean, and South America; and Northern America and the Arctic: hence
a common cultural emphasis on the art of making and wearing masks to represent hidden emotions. Regardless of the cultures they come from, masks convey the essential emotions. 1
Thus situations can arise in business contexts where hiding true feelings and keeping up appearances may take precedence over solving a problem.
Maintaining the harmony of the office by giving the outward appearance that there is nothing wrong is a fairly common situation in traditional Indonesian offices. Bad news may not be
communicated to the boss and situations that seem insurmountable to an employee may simply
be ignored. 2 Since this behavior is not generally accepted to be part of Western culture-though
certainly it exists there-Western managers need to spend more time observing and listening to
their Indonesian employees than they would back home.
Another reason why such attentiveness is important is that Indonesian business relationships
are paternal or maternal. Workers expect their supervisors to look after their interests rather as
parents do fol their children; and their supervisors understand and accept this responsibility. Furthermore, the tension involved in being the bearer of bad news to one’s boss is felt very keenly
by Indonesian employees, and this needs to be taken into account by supervisors and managers.
The English language injunction is “Don’t shoot the messenger,” but some Indonesian workers
seem to expect a firing squad when they have to report failure. Therefore, Western managers
should make clear that they want and expect subordinates to come to them with questions or
problems and that the response will be non-judgmental and self-controlled. Faces should be
without masks; they should not portray negative emotions of anger, confrontation, or aggression.
Managers in Indonesia are expected to always be polite and to keep smiling, no matter how angry they may be inside.
Nevertheless, cross-cultural sensitivity works-or should work-both ways. Foreign managers should understand Indonesian culture and business customs, and Indonesian managers
should be given clearly to understand what foreign managers will expect from them.
Case Questions
1. Using this case and the cultural dimensions explored in this chapter, discuss some of the
ways in which citizens of Australia and New Zealand are members of cultures very different
from any other in Asia.
2. In what respects is the Indonesian archipelago unique in Asia?
3. What characteristics of Indonesian workplaces are referred to in this profile?
4. How does the population appear to be socially stratified?
5. What are some business opportunities in Indonesia for foreign direct investment?
1. Rupa-Pratirupa, Man & Mask, February 20–April 12,1998,
Matighar, Indira Gandhi National Centre for the Arts, http://ignca
.nic.in/
2. George B. Whitfield, 2006, Executive Orientation Services of
Jakarta (EOS).
CHAPTER 3 • UNDERSTANDING THE ROLE OF CULTURE
Sources:
Joan Hardjono, 05/08/2005, Herb Feith Lecture, “Can Indonesia Hold?” Centre of Southeast Asian Studies
and Faculty of Arts, Monash University, in association with ABC Radio Australia and the Melbourne
Institute of Asian Languages & Societies, University of Melbourne: http://www.abc.net.au/ra/news/
infocus/s 1429967 .htm
Javanese mystical movements, January 2007, http://www.xs4all.nl!-wichrnfjavmysl.html
Phil King, December 2006, “Facing disaster: The 27 May earthquake shook a kingdom, not just a city,”
Inside Indonesia, http://www.insideindonesia.org/
Rupa-Pratirupa, Man & Mask, February 20-April 12, 1998, Matighar, Indira Gandhi National Centre for
the Arts, http://ignca.nic.inlex_0032.htm.
Stephen Schwartz, January 2007, “Maintain momentum to overcome challenges,” Jakarta Post, Patrick Underwood, 23/11/2006, “Asia Update,” Meat & Livestock Australia Limited (MLA) http://www.mla
.com. au/; Inside Indonesia, http://www.insideindonesia.org/edit80/p ll-12mahony.html
Western Australia Department of Industry and Resources: Export and Trade, http://www.doir.wa.gov.au/
exportandtrade/F3130D5 AECA54ACF8ABBB BA8317 66203. asp
George B. Whitfield, 2006, Executive Orientation Services of Jakarta (EOS).
World Bank, http://O-siteresources. worldbank. org.library. vu.edu.au/INTINDONESIA!Resources/htm
:Adapted from Helen Deresky and Elizabeth Christopher, “Australia and New Zealand as Part of
Asia: Doing Business with Indonesia,” International Management: Managing across Borders and
Cultures, Pearson Education Australia, 2008. Used with permission.
••–:rllli_m_ _ _ _ _ _ _ _
Case 4 MTV Networks: The Arabian Challenge
“[. .. ] MTV has a penchant for airing controversial material and making a mockery of convention. And of course, it’s an
American brand. … The challenge, therefore, is transforming a notoriously risque channel into a Middle Eastern-friendly
platform for music and creativity without stripping MTV of its edge. It isn’t without some irony that a channel known for
angering religious, political, and conservative communities is operating in and catering to a region renowned for reacting
(and sometimes overreacting) negatively to controversial content.” 1
-DANA EL BALTAJI,
Special Projects Manager, Trends magazine in Dubai, in 2008.
“In many ways (MTV Arabia) is the epitome of our localization strategy. It’s a different audience (in the Middle East)
but this is what we
reflect culture and we respect culture. The programming mix on this one is going
to be a little more local than normal. “2
-WILLIAM H. ROEDY,
Vice Chairman for MTV Networks and President MTVI Network International, in 2007.
ALITMUS TEST FOR MTV’S LOCALIZATION
STRATEGY
MTV Networks (MTVN) launched MTV Arabia on November 17, 2007, in partnership with Arabian Television Network3
(ATN) as part of its global expansion strategy. According to
analysts, MTV’s presence in the Middle East would provide
the region with an international music brand. Until then the
Middle East did not have an international music brand though
it had clusters of local music channels. On its part, the region
promised to offer tremendous growth opportunities to MTVN.
Analysts felt that MTV Arabia was MTVN’s most ambitious and challenging venture. The Middle East offered huge
growth potential to MTVN given its huge youth populace.
However, according to analysts, MTV’s success in the Middle
East was contingent upon a
balancing between delivery
of international quality music and the culturally sensitive environment prevalent in the region. Some analysts felt that the
channel was well equipped to achieve this considering MTVN’s
extensive experience in the global market and its ability to provide localized content without diluting what MTV stood for.
C 2008, ICMR Center for Management Research. All rights reserved. No part of
1his publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means, electronic or mechanical,
without permission.
To order copies, call +91-40-2343-0462/63 or write to ICMR Centerfor Management Research, Plot# 49, Nagarjuna Hills, Hyderabad 500 082, India or
email info@icmrindia.org. Website: www.icmrindia.org
Author Information:
This case was written by Debapratim Purkayastha, ICMR. It was compiled
from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.
1
Dana El Baltaji, “I Want My MTV,” www.arabmediasociety.com, May 11, 2008.
Roberts, “MTV Set for Middle East Launch,” www.arabianbusiness
.com, October 17, 2007.
3Arabian Television Network (ATN) is a Dubai, United Arab Emirates-based
broadcast media company, part of the Arab Media Group’s Arabian Broadcasting
Netwmx(ABN). ABN is apart of the Arab Media Group (AMG). As of2007,
AMG was the largest media group in the UAE, with approximately 1,500 employees. It was an unit ofTECOM Investments that was controlled by Dubai’s ruler.
1 Lynne
To ensure that its programs …
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