Major objective of the study is to provide a research paper in order to explain how a German Biotic-Energy company can enter in the Thailand market. The research will focus on the cultural differences in two countries. Finally, the study will recommend the organization how to develop and practice the business strategies in Thai market to achieve a sustainable growth. German Biotic-Energy Company Culture Analysis Germany is one of the developed European countries. Economically it is the third largest country in the world. German Biotic-Energy Company is trying to enter in the Thai market. Therefore, it is important to conduct a culture analysis of the organization in terms of value, language, decision making custom and religion. Decision making of the German organization is slow and detailed process. The organization tries to engage all the internal stakeholders in the decision making process. The organization does not draw significant conclusions based on the unstructured and spontaneous results. The management of the organization gives respect to all of its stakeholders during the decision making process. The organizational business culture is well defined. The company follows strictly observed organizational hierarchy. The organization follows typical German business culture. The employees never integrate personal aspects in their workplace. German Biotic-Energy Company follows a professional organizational structure. In work place the employees try to give value and respect to their sub-ordinates. German people are strongly individualistic. The employees within the Biotic-Energy Company follow through thought process. German is the official language. Therefore, according to their culture and value, they try to share their views and thoughts in German language. German people always respect people of every religion in business or organization. Almost 30% of total population is Christian. Rest of the population follows other religion. German people are very conservative. German Biotic-Energy Company tries to provide value people of all religions and gender. It is important for the organization to analyze the Thai Business culture before entering into the Thai market. Several Cultural aspects in International Business Language, religion, values and decision making custom are the major cultural aspects that can influence or affect an international business. It is true that, the Western countries are diversifying their business in the Asian countries in order to access resources such as labor, land and capital in low cost. These are huge motivating factors for the organizations. But, several cultural differences between two countries can affect the business performance of the German firm in the Thai market. Religion Religious view of majority of the Germans is Christianity. On the other hand, majority of the Thai people believes in Buddhism. Therefore, different religion background can create huge challenge for the business. It is known to all that, religion is a sensitive intangible matter of human beings2. Religion can integrate or separate a group of people. More than 90% of total population practices Buddhism. The Thai people believe in peace and honesty. These people are strong believer of their religion. They follow each and every aspect of their religion in both personal and professional life. According to their religion, simplicity and free of desire will bring Nirvana or
Introduction Culture can influence a business in several ways. Culture is one of the most important obstacles that can affect the co-operation between two countries. In the beginning, culture collisions and language problems are not uncommon1. There should be a negotiator who will handle and control these difficulties in order to satisfy the other part…
The phenomenon of globalization is unquestionably taking place in wide shapes throughout the globe. Those organizations, commonly in the field of international business, mostly discover themselves to be completely ill-equipped for the surroundings they plan to enter into and uninformed regarding the probable hazards that are concerned in the course of action.
Target also offers its consumers an option to purchase online, use their own credit card by the names of Target Visa and Target Card (Target Corporation). Across decades Target has grown large enough to have good grip on the US consumer market and now it plans to expand its business beyond the physical borders of US and profit from the huge margins which await Target to enter their markets.
This letter will look at critical factors that the CEO should consider before an entry to Indian market. Entry into a new market is considered almost as difficult as developing a new product and trying to penetrate an already competitive market. Other industry players might already posses a large market share and hold loyal customers.
However the general concept is that entry into an international market is for extending the existing business line which will then result in increased revenues for the products which are already available. It is important to also see the reason why market expansion is beneficial; one important reason is the unfulfilled needs and wants.
Diversification can be of two type’s related diversification or unrelated diversification. Diversification strategies are undertaken in order to minimize the risk, capitalize on the capabilities and might be the only option for the firm to expand its business in times of need (Kazmi, 2008, 160).
This is through higher sales volume made from diversified products and services in the new market. Therefore, the company will diversify their business in order to reduce risks in the new markets; thus maximizing returns through investing in diverse areas.
Due to this reason, the Coca-Cola enterprise must commence its minor enterprise along the country boundary to diversify its market in terms of location. For expansion, the enterprise will require a few shared technologies, popular expertise of workers, raw components and material origins, supply channels or wide and advance distribution chains.
While on market Expansion Strategies, I selected Political Hazards, Experience, And Sequential Entry Strategies by (Delios & Henisz, 2003).
The main ideas of the two articles starting highlights on the
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