Indonesia ascompared to Greece:Political:Indonesia isdemocratic and therefore there should be little difference in leadership methods,however Indonesia has also has a vice president and they are both elected every5 years. Also, the president has a cabinet which is the members of areappointed by the votes of the public.Indonesia is an independent country however it was a vassalof japan until 17th of August 1945. Since then it celebrates itsIndependence Day on that day.The country has been politically stable for quite some timeand should remain so due to their economic agreements which heavily rely on it.Tesco will have to ensure that they do not offend thepolitical leaders by using the incorrect terms.
Tesco will have to be aware ofwho the president is and who the vice president is, then ensure that they donot offend the political standing of the country as well as determine howstable the political standing is, since the president changes every 5 years itcan cause quite a lot of problems and risk to the country’s standing during theelections. As compared to Greece which has a Prime Minister which isthe head of the country and a multi-party system. The president hold no realpower as the Prime Minister hold executive position. The public has created alot of instability due to their disapproval of the government’s actions and itis difficult for them to settle this matter. Tesco would have to consider these when attempting to enterthe market as very little stability can be promised by the government in thecurrent state of matters.Both Indonesia and Greece are not so different as they bothhave elected leaders and are democratic, however there is a lot moreinstability in Greece as compared to Indonesia.Economical:Indonesia is a developing country and it is currentlyworking on increasing their GDP, this has been done through government spendingequal to 23.
5%. This in turn has brought an 6.1% improvement in GPD growth.Indonesia has $92.62 billion in revenue and $98.
88 billion in expenses.Indonesia possessesreserves of crude oil and natural gas and is 8th in the world inexporting it.GDP makeup:· 48.1% from industry· 14.4% from agriculture· 37.5% from service sector In 2016, Indonesia exported $140B and imported $132B,resulting in a positive trade balance of $8.07B. In 2016 the GDP of Indonesiawas $932B and its GDP per capita was $11.
6k.Imports:Products mainly imported: chemicals, fuels, equipment,machinery and foodstuff.These goods are usually imported from: China, Japan, SouthKorea, Singapore, Malaysia, Thailand and US.Exports:The major exports are oil and gas, electrical appliances,rubber, textiles, and plywood to countries like India, Malaysia, China, Japan,Singapore, US and South Korea.
However, the top profitable exports of Indonesiaare Palm Oil ($14.4B), Coal Briquettes ($11.9B), Petroleum Gas ($6.22B), CrudePetroleum ($4.93B) and Jewellery ($3.97B).The top most profitable export destinations of Indonesia areChina ($16.
8B), the United States ($16.2B), Japan ($16.1B), Singapore ($11.
2B)and India ($10.1B). The top import origins are China ($32.
1B), Singapore($25.8B), Japan ($11.3B), Malaysia ($6.67B) and South Korea ($6.61B).Indonesia bordersMalaysia, Timor-Leste and Papua New Guinea by land and Christmas Island, India,the Philippines, Singapore, Thailand, Vietnam, Australia and Palau by sea.Currency:Symbol: RpInflation: 3.
83 %, February 2017Central bank: Bank IndonesiaRarely used: Rp. 1000ISO 4217 code: IDR1 US Dollar equals 13520.00 Indonesian RupiahUnemployment rate: 5.5% Tesco will have to work in the Indonesian Rupiah currencywhich can be very difficult and therefore it should be prepared to do so as thecurrency exchange will be a major factor in calculating profits. Furthermore, thecountry appears to have good economic stability and Tesco wouldn’t be takingmuch risks in doing so. As compared toGreece which has had the GDP of $194.559 billion per annum it is a much lowervalue, however the country has a lower inflation rate of only 1.
0%. And with a $26,800GPD per capita it would appear as if the individuals are richer than inIndonesia. Greece however has 0% GPD growth rate and an unemployment rate of 23.6%which is much higher than the one Indonesia.
In which case Tesco will have to consider the market instability,as it is a much smaller market there is little to be gained from it and Tescowill probably need to adjust not to waste money to saturate a market that haslittle potential. *Social:Indonesia has a verylarge population which is steadily increasing with the ratio of 1.13%. Thecountry has a good average life expectancy which is over 70 years of age andmost of its residents live in urban areas. Mostly the residents are involved inagriculture and industry. The government has recently prioritised its educationdue to its outstanding literacy rate of 90.4%.
3.4% of the GDP is spent oneducation. The Government possesses its own public schools and colleges as wellas universities.Majority of the population is Muslim, then Protestants,Roman Catholic and Hindus.
Tesco would have toadjust their stores to be able to fit more people as people in Indonesia liketo take their time shopping and there is a lot of them. This means that morespace for people should be allocated. As compared to Greece which do not put as much pressure ompersonal space as most countries do, it would be a difficult point of entry asmost business dealings in Greece are based on personal relations, this meansthat Tesco might struggle to find suppliers to begin with and that the beginningmight be difficult, however Greeks are easier to build customer relations andthis should be prioritised.*Technological:Indonesia hasdeveloped their own transport system with roads, ports and airports, railwaysand water ways are the main way to go to other parts and islands of the country.As it is located in the ocean.
This country has developed its communication system and numerousnew brands of smart phones are available there. People prefer to use landline andcell phones but they also use the internet. There is a very small crime rate.
Theyhave their 54 TV channels in which 11 are national TV networks and some are inthe private sector.Tesco will have verylittle to no barriers to entry from the technological standpoint as Indonesiahas many if not all of the currently modern technology, this allows Tesco toeven purchase it there as many are made locally.Greeks also have access to modern technology and are utilisingthem for their use however, the economic problems which Greece is currentlyfacing had a very negative impact on the growth of the use of technology andthe country is currently struggling to keep up with the newest technology available.
Tesco will have to import some of the newest technology ifit is necessary which could increase the costs but besides that there is a lotof potential to utilise technology and especially use it for marketing purposes. *Legal:Indonesia has introduced new rules and regulations in thecountry. New labour laws are introduced. These laws show the 7 hours workdaysand 40 hours workweeks. When labour works for 4 consecutive hours, then 30minutes break is permitted to them.
The government also introduced the companylaw and every business has a legal entity and they have directors andcommissioners. The government announced the environmental law and the MunicipalNoise Reduction plan is underway to change the noise limits in the residentialareas, hospitals, schools and religious places. In the business sector, the taxsystem is introduced with various changes the tax, on first 25 million is 10%and on next 25 million, its rate is 15% and next 50 million, the rate of tax is30%. The income tax is applied to the businesses and on the individuals.
*Environmental:The geographical location of the country is very interestingas this country is mostly comprised of thousands of the islands and it islocated between Indian and Pacific Oceans. It is hot and humid country and theweather condition is about mild and moist round the year. More than six hundredlanguages are spoken in this country and it has over 1100 dialects.It is composed or rain forest and mangrove swamp and hassome snow-capped mountains. It is 7 hours ahead of GMT and 16 hours ahead fromUS. There are many active volcanoes and they burst from time to time, which cancreate natural disaster in the country. The earthquake of 9.0 magnitudes causedthe tsunami in the country in 2004 and it claimed 155,000 lives.
It also facesthe deforestation, massive forest fire and soil erosion and the volcanoesspread devastation in the areas, which it is broken out. The forest fireaffected the timber industry badly and it caused heavy loss to the country. *Ethical:Religious beliefs of the Muslim religion are the ethicalaspects of the country as it is their dominant religion, however others aredictated by the Roman-Dutch law structure that the country has inherited. Section two: Language:Indonesia is a country with over 300 native languages andmore than 600 are spoken there however the top three languages spoken in thecountry are Indonesian, Javanese and Sundanese.*Customs:Indonesian law forbids visitors from bringing weapons,illegal drugs or pornography into the country.
Penalties can be severe and include death for weapons or drugs. Alcoholin excess of 1 litre per person 18 years or over is also forbidden to beimported.Electronic goods and photographic equipment must be declaredto Customs upon entry and must be re-exported.
This is all due to their beliefs as they do not wish to beexposed to the outside world’s problems.*Values:· Belief in the one and only God.· Just and civilised humanity.· The unity of Indonesia.· Democracy guided by the wisdom of deliberationsamong representatives.· Social justice for all the people of Indonesia.
*Attitudes:The individual’s standing is purely based on birth and thefamily to which one belongs to, the hierarchy in the country is based on yourfamily’s status and the links that the family creates with other families thatdefine your title and place. The whole of the Indonesian society is a web ofsuch family obligations to one another.Their attitude to woman is rather poor due to the religiousbeliefs women are seen as less equal to men. However, they are allowed to work.Religion:In Indonesia, the Muslim religion holds absolute power andmust be followed at all times, it has more power than the government andtherefore if the religious figures demand it laws and pretty much anything elsecan be abolished by it.*Manners:In public showing Bluntness is rude, loudness is vulgar, andaggressiveness is bad manners. As well as saying “No” is seen as an aggressiveresponse so avoiding that direct negative approach is very important as Indonesiansare sensitive to nuances of speech and expression.Time is of little meaning as the country takes everythingslowly and nothing is to be hasted as it is seen as vulgar to do so.
Foreigners are welcome but might attract a lot of curiosityand attention when outside of common tourist locations. In most of Indonesia,what to wear is largely determined by the Muslim code of dress. In generalterms, this means that most of the body should be covered. Clothing should notbe tight fitting or revealing. In practical terms, shorts may be worn bychildren, bather, and for sport, but not in the street. In private you can wearwhat you like and in tourist areas and beach resorts scanty clothing isaccepted.In Indonesia taking pictures of rituals or individuals canbe viewed as mockery and should be avoided.
Education:The government has introduced a variety of religious schoolsand colleges as well as some universities, they are all allowing both men andwomen to attend however the education provided is purely religion based andincludes languages, however attending certain courses by women and men can beviewed as outrageous and can cause conflict if done so. Women are stilldisadvantaged as they are mainly only allowed to study religion and anythingelse is very gender biased as well as their education level is lowered ascompared to what the men are learning.Material Culture:The culture is based on the Muslim religion and the word ofreligious figures means more than any law.
This means that any cultural aspectsof the country are of the religious type.Institutions:Indonesia has many religious institutions however they havevery little of any other types, as there is very little crime in the country itis not common to see any law enforcement, they also have fully modern firedepartments all over the country and a few hospitals however they are modernand very spacious.Infrastructure:The country has a very large amount of ports, however it ismainly islands and roads can be difficult to find outside of the populatedareas. Airports are also quite common as due to the structure of the countryand the many islands that it is made out of, it is impossible to use trains orland transport alone to transport any goods outside the country.Work Attitudes:Both women and men are allowed to work, however women arenot allowed to hold any important roles and time is of no essence in theworkplace as everything is delayed for religious and cultural purposes whichare one and the same.