Professional Documents
Culture Documents
Types of Environments
Legal Environment
Technological Environment
Accounting Environment
Political Environment
Legal Environment
Major Types of Legal Systems:
Common Law
Civil Law
Religious Law
Bureaucratic Law
International Business
Disputes
4 questions to resolve international
disputes:
1. Which countrys law applies?
2. In which country should the issue be
resolved?
3. Which technique should be used to
resolve the conflicts?
4. How will the settlement be
enforced?
Technological Environment
To increase technology:
1. Investment
2. Technology transfer
Issues: Intellectual Property rights
ACCOUNTING DIFFERENCE
The Accounting
Environtment
PSAK
IFRS
Influences on a Countrys
Accounting System
Legal System
Cultural Values and
Attitutes
International Political Ties
Economic System
Differences in Accounting
Practices
1
Valuation of Inventories
Other Differences
Capitalization of Financial Lease
Capitalization of R&D Expenses
Treatment of Goodwilll
POLITICAL
ENVIRONTMENT
Ownership
Politic Risk
Operating
al
Risk
Risk
Transfer Risk
Micropolitical Risk
Affects only a specific firm or firms within a specific
industry. Saudi Arabias nationalization of its oil
industry in the 1970s, as is the Venezuelan
governments recently announced requirements
that foreign oil companies renegotiate their
contracts with the government.
World Bank
Multilateral Investment Guarantee
Agency (MIGA)
CULTURE
Peran Kebudayaan
Kebudayaan
Kebudayaan merupakan kumpulan
nilai, kepercayaan, kebiasaan, adat
istiadat, dan perilaku yang dapat
membedakan suatu masyarakat
dengan masyarakat lainnya.
Karakteristik Budaya
Elemen budaya
Tatanan Sosial
Bahasa
Komunikasi
Agama
The interests of
the individual take
precedence
Social Orientation
Collectivi
sm
The interests of
the group take
precedence
Example :
Salary
Switching a job
Power
Respect
Authority Inherent
in ones position
within a hierarchy
Power
Orientation
Power
Tolerance
Individuals assess
authority in view of its
perceived rightness of
their own personal
interests
Uncertainty
Acceptance
Positive
response to
change and new
opportunities
Uncertainty
Orientation
Uncertainty
Avoidance
Prefer Structure
and consistent
routine
Example :
Plane Crash Tragedy(Swissair
111)
The way to Raise the capital
Value Material
Possesion, money
and Assertiveness
Goal
Orientation
Passive Goal
Behaviour
Value Social
Relevance,
quality of life and
the welfare of
others
Long Term
Outlook
Value Dedication,
hard work and thrift
Time
Orientation
Short-Term
Outlook
Value Traditions,
social Obligations
Investing in Souteast
Asia
GDP Growth
GDP Growth
Big Market
Franchises
YUM! Brands, with KFC and Pizza Hut
have more than 700 location in
Indonesia and more than 500 in each
Malaysia and Thailand.
Restaurant Franchise have had the
most success in entering SE. Asia
market
Most of the franchises enter the
region through agreement with local
companies. (ex: PT. Fastfood
Constraint
Indonesia
New Law that place limit on the number of location that
outside franchises can open
Malaysia
Hard to register a new franchise, government is very involved
Myanmar
Stabilization period after military regime
Vietnam
Lack of companies with the development and operation
experience to handle big franchises
Singapore
Lack of premium spaces (location)
Halal aspect
Focused on Combo
Variety of Burgers
Side dish : buns, mash
potato, fries, wedges
and nugget
Indonesia
Product
Halal aspect
Focused on a la carte and
variety
Only two types of burger and
fillets
Side: rice, fries, perkedel &
soups
Indonesia
Indonesia
Types of outlets
include mobile, in-line,
free standing, mall
and food court
The outlets are very
evenly Spread
There is a government
regulation to protect
small businesses,
issue of supply chain
and lack of proper
infrastructure
Indonesia
Methods - With
traditional media with
small presence on
Social Networks
Target and Aims - New
and younger
generation as well as
budget conscious
customers
Methods - Traditional
as well as creating
active social network
and social events
Target and Aims
Active and happening
population, teens,
children, kids and
budget conscious
customers
Conclution
Global companies use of local
company to enter new market.
KFC successfully making proper
changes to suit local customer need
and requirements
Environment can prevent companies
to enter new market if not handled
appropriately, especially law and
political environment