International Business Strategy Essay Example | Topics and Well Written Essays - 3000 words

International Business Strategy - Essay Example In order to understand the basic culture of Salim Group, it is necessary to trace its history. The understating of internal culture of the Group is important for assessing its rapid success in the domestic and international markets. Soedono Salim, the founder of Salim started his own trading company that used to deal in commodities like cloves and coffee with the prevailing leading companies of Indonesia. Besides he also partnered Indonesian army by supplying goods. In this period, he got acquainted with the future President of Indonesia, Suharto who was then an ambry office. The key success factor for the rapid growth of Salim Group was his contacts and close relationship with ruling political party. Since its inception, Soedono Salim took opportunists’ approach for achieve organizational success and it tried to capture many new business having greater opportunities in term of profitability in long run. When, Soedono Salim handed over the business to his son Anthony Salim, he has also taken the similar approach like his father. After the Asian Financial Crisis of 1990s, the Salim Group was severely hit and most of holding companies were given to the Government in order to pay off its huge debt. This period of crisis was the toughest for the Salim Group since its inception, and the fall of President Suharto made the things worse for the Salim Group. ... Capturing new business opportunities is highly challenging and it requires regaining the financial strengths for the Salim Group. Hence, the after the crisis period, Anthony Salim starts looking for the new business opportunities on the axis between Australia, ASEAN and China. The opportunities available in these areas are different from each other due to difference in macro-economic factors like political, economic, technology etc. In this respect, the primary objective for Anthony Salim is to understand the distinct feature of business opportunities in the different areas. Along with the identification of the opportunities, accurate understanding of prevailing challenges and threats are inevitable and vital for business success. A comprehensive marketing research is also helpful in understating the business opportunities by focusing on the four major macro-economic factors i.e. political, economic, socio-cultural and technology (Srinivasan, 2008, p.181). Among the Asian and other c lose economy to Indonesia, the Salim group finds the Australia, China and ASEAN economies as one of the most attractive markets in terms of new business opportunities. For entering into these new international markets, the business strategy must be unique and dedicated to the specific economy. International strategy should always be different from the domestic business. International markets contain a number industry and trade barriers that must be overcome, and simultaneously, it is necessary to cope up with the prevailing culture of the business and market (Segal-Hor and Faulkner, 1999, p.3). Salim Group also decides to take different strategic move for its target regions and countries i.e. Australia, China and ASEAN. In this regard, Salim Group has realized the