Case study of international marketing: Cardno MBK in Indonesia (2006)

Résumé du document

Question 1
The first part of the essay deals with the pros of the negotiation enumerating what was good and why. The second part will deal with the negative points or the cons listing out what were the reasons for failure and recommendations to alleviate the effects of these failures.

Question 2
This text deals with the Hutchisons' strategies and mistakes done by Cardno with respect to Hutchison. There are two main reasons why Cardno won the projects. Each part deals with one of these reasons and also explains Cardno's flaws. The first positive point of Cardno's behavior is that they have negotiated with the Indonesians for 20 years and now know how to deal with them. Cardno had studied their way of life, their culture and the differences between the two cultures. Indonesians give high regard and respect their fellow countrymen. The age and the social position of the foreign partner is considered very important too. It has been proved that social positions can have a real impact on the business relationship; it improves it.

Extraits

[...] Chinese establish their business relationship on trust, like Indonesians. In his way of doing, Richard Kell destroyed the trustful relationship between Cardno and Hutchison. He didn't try to create a close relationship with him. He closed in on Hutchison, even though he had to accept and tolerate his culture. (Fletcher & Brown 2005: 92) Chinese needs are different from west countries needs: the first's two needs are similar: physiological and safety. But the three others differ: for west countries is Belonging, then Prestige, two social needs, and to finish Self-actualisation, personal need. [...]

[...] Case study of international marketing: Cardno MBK in Indonesia (2006) Question 1 The first part will deal with the positive points in the negotiation, what was good and why? The second part will deal with the negative points: what were the reasons of this failure? And at the same time, what would have been recommended to do instead of these failures? The first positive point of Cardno behaviour is that they have negotiated with Indonesians for 20 years and have known how to deal with them: Cardno knew their way of living, their culture and what the differences between the two cultures are. [...]

[...] The second reason was that Cardno was known in the country thanks to the others projects done in Indonesia. In the Asian and Chinese culture, the status, the knowledge and well-knowledge of someone in the society is very important. That's why an Asian will prefer to deal with a firm which is already well-established in the country. Effectively, the hierarchy of needs in the Asian culture is different as from the western countries one. There are five levels of needs. [...]

[...] Each one has to be treated in the same way and with the same sensitivity. Cardno thought with his wallet and not with his humanity. Bibliography American Indonesian Chamber of Commerce (1949) [online]. Available: http://www.aiccusa.org/cultas.htm#rela [Accessed 19 November 2006] Asia Pacific Journal of Management. (2004) Netherlands: Kluwer Academic Publisher Business Networks in China: Guanxi and Guanxiwang (2004). Posted Friday [online] March. Available: http://www.china- window.com/china_business/china_business_tips/business-networks-in- chin.shtml Center for International Policy, Planning and Development [online]. Available: http://cippad.usc.edu/ai/business/business_culture.cfm [Accessed 19 November 2006] Fletcher & Brown (2005) International Marketing, As an Asian-Pacific Perspective, 3rd Edition. [...]

[...] Because of it, Hutchison felt like unwell-known and excluded. Chinese and Indonesians need to make adequate time available to meet their business partner outside business hours for golf or other social events. A lot of business is done outside the office. (Tradindonesia.com n.d). Richard Kell thought it wasn't important, but it was and it would have permitted to avoid some problems and tensions. Cardno. The third mistake done by Richard Kell and Cardno was that they didn't give anything to the Indonesian partner even though it was in his culture. [...]