1.0 IntroductionNowadays, with the expansion of globalization and the vast decrease of trade barriers across nations, companies all over the world have been gradually given an easier access to breaking into the international market.
Having to take the risk of bringing one’s products or services to a domain with different “demands, needs, and expectations” (Biggs 2013, p. 5), this research paper was conducted to decide on reasons why local companies are conducting business activities outside their home country. A local Indonesian business has been further chosen to cull information regarding the preceding objective and to propose ways in which a company can further improve their strategies when conducting businesses in foreign countries. PT Mayora Indah Tbk is an Indonesian consumer products company specializing on the production of biscuits, beverages, candies, coffee, cereal, and instant food through the establishment of more than 50 brands (Mayora n.
d.). Having been established for 40 years, PT Mayora Indah Tbk was able to generate an income of 18.349 trillion IDR in 2016 alone (Chan 2016). Selling assortments of consumption that are popular throughout a wide demographic in Indonesia, this company can easily extend its profit by entering new yet lenient markets.
Canada is one of the countries that piqued the company’s interest due to its people’s recent liking towards the consumption of snacks alongside instant food at home (The Canadian Press 2010). To be able to choose the foreign market entry mode with the least risks, the country’s macro-environmental factors and culture would be assessed through the PEST analysis and Geert Hofstede’s Five Dimensions of National Culture respectively. Despite Canada’s accepting market, the difference in preferences would still demand PT Mayora Indah Tbk to kick-start their business by exporting products that have undergone specific adjustments. 2.
0 MethodsInternet sources, print sources, and interview were later utilized to obtain data for the analysis of the current socioeconomic condition of the designated country alongside the compatibility and possible improvements of the company. Internet and print sources were first used to provide both qualitative and quantitative data; while pamphlets and newspapers were obtained as print sources, the Internet has contributed through the provision of the company’s official website, research papers on PT Mayora Indah Tbk’s strategic management, the company’s fact sheets, and the designated country’s PEST analysis conducted by official government agencies. By further analyzing the company’s expansion methods, the designated country’s conditions, and results of the current foreign operations, it’d be easy to decide on suitable improvements to be made.
The interviews, on the other hand, were conducted with two individuals who have penetrated a foreign market with the goods and services they offer; Aa Nugraha was interviewed as the hospitality manager of Ibis Hotel in Indonesia, while Ani Mariani as a local online bracelet seller who ships worldwide. Through the provision of qualitative data, said interviewees were capable of explaining the motives of businesses going international and insights on how to successfully penetrate foreign markets based on their past experiences.