The paper "Collaborating for New Product Development" is a wonderful example of a Marketing Case Study. Understanding the business culture has been tipped as a significant milestone in a successful business venture in Indonesia. Pundits have put it that establishing a relationship with a person or an agency is an investment worth taking in this part of the world. The aspect of negotiated contracts is still significant in doing business. People in this country are not prone to breach of contracts that are drawn with distinguished peers even if such could have few or no legal implications (Dean 2008).
It is worth noting that recent reforms by the government have greatly changed the approach to business and the playing ground is much smoother than it was a few years ago. This report recounts some of the attributes of the business environment in this country The most vital complement in Indonesia’ s business context is the amendment of legislation that allowed fully owned companies from foreign countries to operate in most of the sectors (Dean 2010). Foreign investors can now operate without the prior requirement of forming joint ventures or partnerships. New entrants in the business get the assistance of notaries who make the process a bit easier.
These experts enable the investor to navigate the legal and regulatory system and other bureaucracies at reasonable fees. Besides this assistance, the notaries hold a high social status and are significant enough in establishing networks with consumer groups. Singapore has made significant steps towards adopting policies of free trade and market liberalization. Over the last five years, the country has entered into six Free Trade agreements with countries within the ASEAN framework, with two of these being bilateral agreements.
Negotiations are underway to sign twelve more pacts with neighboring countries in the coming years. Within the Asia-Pacific region, Singapore has entered 18 agreements that involve 24 of its major trading partners. Singapore is a key member of nations that are working on the formation of the Trans-Pacific Partnership deal. Singapore’ s legal system with regard to bankruptcy, company laws and capital market is still not based on international best practices. The government tries to enhance its implementation by appointing ad hoc judges to commercial courts to promote their application as part of the country’ s legal framework (Dean 2010). Competition laws and regulations have been strengthened over the last five years though not major changes have taken place.
There are still inherent shields against competition still existent in some areas. Political Environment There are still many hindrances to business in Singapore that are politically instigated. There many policies and procedures that do not allow the market system to operate freely. Some of these bureaucracies are discussed herein. One of the political interferences in the market system is price control on some commodities.
Unfortunately, automobiles are among those. The company may find it challenging to operate in such an environment. Other related products with these regulations include electricity and liquefied petroleum gas (Dean 2010). The government has also put regulations on mergers and acquisitions. Usually consent of 75% of shareholders is required to form a merger. There are legal provisions that protect the minority shareholders which makes hostile acquisition almost impossible.
Crawford, M & Benedetto, AD 2006, ‘New Products Management, Boston, MA: McGraw Hill.
Emden, Z, Calantone, RJ & Droge, C 2006, ‘Collaborating for New Product Development: Selecting the Partner with Maximum Potential to Create Value,’ Journal of Product Innovation Management, Vol. 23, pp.330-341.
Dean, G 2010, ‘Joint Venture or 100 per cent Foreign-Owned?,’ OzIndo, Vol. 6, No. 4.
Goldenberg, J, Lehmann, DR & Mazursky, D 2001 ‘The Idea Itself and the Circumstances of Its Emergence as Predictors of New Product Success,’ Management Science 47, 69-84.
Ozer, M 2005, ‘Factors Which Influence Decision Marking in New Product Evaluation,’ European Journal of Operational Research 163, 784-801.
Pride & Ferrel, 2003, Marketing Principles, sixth edition.