It is essential to state that the paper "Marketing Analysis of Bliss Honey Company " is a perfect example of a marketing case study. Following its successful performance in Australia, the Bliss Honey Company intends to extend its operations into foreign markets with Indonesia being the next destination. The decision of any international company to expand its operations into foreign markets necessitates the development of effective strategies to handle the several challenges associated with the internationalization of businesses. Some of the challenges include handling the necessary administrative formalities, HR management, risk management, managing cultural differences, accessing finance among others (FEB, 2014).
Apparently, the firm believes that its success in the international market depends on its ability to handle the impediments appropriately. Indonesia is one of the emerging markets that present a fast-rising economy thereby implying a favorable international destination for multinational corporations that intend to expand their operations. The paper consists of four main sections that address the Indonesian market environment. The sections encompass the marketing analysis that covers the political and legal issues, the economic and financial issues, the cultural issues, the environmental issues and the technological issues.
In the second section, the paper covers the appropriate mode of entry. In the subsequent sections, the report covers the target market segments and the 4P’ s theory of marketing that includes the price, product, promotion and place. Marketing Analysis Political-Legal Issues The legal culture of Indonesia relies on the practices and laws of the colonial era of the Dutch that started in 1800 until 1942; a time when the country was under the control of the Japanese. The Indonesian political system comprises of the President, the people’ s Consultative Assembly, the Supreme Court, the Indonesian Cabinet, the National Departments, Ministries and Bodies, and the regional governments and autonomy.
On a business perspective, it is evident that the country has experienced an increase in the number of foreign investors in recent years. Foreign investors have decided to establish businesses in Indonesia on the grounds that the country boasts of its adequate natural resources, a growing domestic market and a young workforce to provide the required labor (Hermawan Juniarto, 2014). The Indonesian Government has also realized the potential benefits of foreign investment.
As a result, it has strived to encourage foreign investment by broadening the scope of the existing business opportunities. For instance, it has endeavored to provide the required public infrastructure and develop the country’ s natural resources. Despite the fact that the government has portrayed its dedication to direct foreign investment, it still regulates the extent of foreign investment with the intention of protecting local businesses. The government also regulates domestic goods and services, manpower, and requirements for the partial and total ownership of local businesses in the country (Hermawan Juniarto, 2014).
The existence of foreign business in the country starts with the establishment of a representative office that may be a Foreign Company Representative Office, a Foreign Trade Company Representative Office or a Construction Service Provider Representative Office. The Trade Minister approves the Foreign Company Representative Office. The Capital Investment Coordinating Board is the board that registers the proposed foreign investment in the country. Following the registration of the company by the Board, the foreign investor should endeavor to establish and incorporate the company. The foreign investor should execute the company’ s articles of association and deed of the establishment before a notary.
The investor should also submit the establishment deed and the Ministry of Law and Human Rights and the notary for processing before planning for the deed’ s publication in the State Gazette. The third step entails opening a bank account in Indonesia to deposit the share capital. Finally, the investor should obtain the domicile certificate. After the incorporation of the PMA Company, the next step entails obtaining several permits and licenses that enable the firm to hire employees, run its business operations, import capital goods, commence construction of the business premises were necessary among other activities (Hermawan Juniarto, 2014).
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