Objective The Case will focus on issues related to the cultural aspect of international business. Sustainable business practices include CSR issues, foreign investment, and the benefits of regional integration for the countries within, and companies doing business in, that region.  The case study analysis will be completed on an individual basis. Instructions Read the case study and answer the questions that follow. Each answer must be based on facts from the case and all of the course materials. Each answer should be 1-2 pages long for a total submission length of 10 pages maximum (double spaced, 12 pt font), and must be prepared in APA style format. THE CASE: Kaizer Consulting Kaizer Consulting is an international management consulting firm that specializes in business strategy and serves as a key advisor to the world’s leading companies.  It provides its clients with the unique insight to drive critical decision-making and solve their most pressing problems. Every year, the majority of Kaizer’s business comes from clients with whom they have worked in the previous year – an indicator of Kaizer’s ability to achieve lasting results for its clients. Kaizer’s client relationships are enduring as many clients have remained customers for more than a decade and have become project partners. The Client has a Problem The manager of a product category at a Fortune 50 technology company (The Client) approached Kaizer to analyze the complete range of supply chain challenges his company would face when they entered Indonesia -- a new market in South-East Asia that was presently dominated by a large single competitor.  Initially, it was agreed that The Client would benefit most from a set of detailed analyses of the market which would focus on a providing a deep understanding of the market’s culture and business practices and manufacturing, distribution, and retail operations required to execute their market development plans.  The Client was aware of some cultural differences in the new market, but was under the impression that it would be able to proceed as it normally did when entering a new market. Further, The Client believed that the competitor’s primary advantage was based on optimized management of the distribution network and aggressive retailing.  The Client thought it could proceed on that basis with its usual market entry strategy, but wanted to obtain Kaizer’s opinions on this before proceeding. Kaizer’s Approach Based on extensive research about the market generally, but specifically with individuals, focus groups, cultural experts, CSR and legal experts, suppliers, industry experts, vendors, and employees of companies in similar situations, Kaizer realized that: The Client’s competitor had committed a number of culturally-based mistakes, primarily with respect to age and gender issues and local social taboos.  Although these were not disastrous, the mistakes were covered in the media and had created the general impression ...

1. Objective
The Case will focus on issues related to the cultural aspect of
international business. Sustainable business practices include
CSR issues, foreign investment, and the benefits of regional
integration for the countries within, and companies doing
business in, that region. The case study analysis will be
completed on an individual basis.
Instructions
Read the case study and answer the questions that follow. Each
answer must be based on facts from the case and all of the
course materials. Each answer should be 1-2 pages long for a
total submission length of 10 pages maximum (double spaced,
12 pt font), and must be prepared in APA style format.
THE CASE: Kaizer Consulting
Kaizer Consulting is an international management consulting
firm that specializes in business strategy and serves as a key
advisor to the world’s leading companies. It provides its clients
with the unique insight to drive critical decision-making and
solve their most pressing problems.
Every year, the majority of Kaizer’s business comes from
clients with whom they have worked in the previous year – an
indicator of Kaizer’s ability to achieve lasting results for its
clients. Kaizer’s client relationships are enduring as many
clients have remained customers for more than a decade and
have become project partners.
The Client has a Problem

2. The manager of a product category at a Fortune 50 technology
company (The Client) approached Kaizer to analyze the
complete range of supply chain challenges his company would
face when they entered Indonesia -- a new market in South-East
Asia that was presently dominated by a large single competitor.
Initially, it was agreed that The Client would benefit most from
a set of detailed analyses of the market which would focus on a
providing a deep understanding of the
market’s culture and business practices and
manufacturing, distribution, and retail operations required to
execute their market development plans.
The Client was aware of some cultural differences in the new
market, but was under the impression that it would be able to
proceed as it normally did when entering a new market. Further,
The Client believed that the competitor’s primary advantage
was based on optimized management of the distribution network
and aggressive retailing. The Client thought it could proceed on
that basis with its usual market entry strategy, but wanted to
obtain Kaizer’s opinions on this before proceeding.
Kaizer’s Approach
Based on extensive research about the market generally, but
specifically with individuals, focus groups, cultural experts,
CSR and legal experts, suppliers, industry experts, vendors, and
employees of companies in similar situations, Kaizer realized
that:
The Client’s competitor had committed a number of culturally-

3. based mistakes, primarily with respect to age and gender issues
and local social taboos. Although these were not disastrous, the
mistakes were covered in the media and had created the general
impression that the competitor didn’t really care about the
target market’s traditional cultural values, beliefs, customs, and
norms.
The Client’s competitor had selected the target market in part
because of lax enforcement of environmental protection laws
and government corruption. Social media and the mass media
soon discovered how the competitor was conducting business in
the target market. Subsequently, the competitor had to perform
substantial damage control to protect its international reputation
of being socially-responsible. The competitor is currently facing
legal action in Canada and the US for its alleged corrupt
business practices.
The Client’s competitor’s key business advantage was actually
based on long-term production contracts; in effect, the
competitor had become partners with its suppliers. By doing so,
the competitor had leveraged its foreign investment in a number
of ways: it had created a supply chain that achieved a number of
cost savings on commodities, equipment, machines, and
technologies; helped improve the local economy by providing
relatively high-paying jobs to local people; and contributed to
social and political stability in the country.
Kaizer’s Findings
With the new knowledge provided by Kaizer, The Client:
Refocused its market entry and distribution strategies from

4. enhancing warehousing and retail systems to more innovative
production plans that incorporated local benefits and added a
plan to use Indonesia as a base for expansion into other
countries in the region particularly India, Vietnam, the
Philippines, and China.
Challenged its managers and employees to develop highly
ethical Codes of Conduct and CSR strategies that supported its
long-term operations in the target market.
Most importantly, was able to develop an overall approach that
was culturally sensitive and appropriate, even humor ous. This
approach was reflected in all the client’s negotiation and
partnership development activities and clearly demonstrated its
respect for the target market’s culture.
Next Steps
Kaizer has recognized that this work could become a model for
future work with this client and others in similar situations.
They’ve asked you to provide comments and a framework to
analyze these situations more efficiently.
Questions
Cultural understanding is a key element of this situation.
Comment on the importance of this aspect of market entry and
development, being sure to discuss the key elements of
understanding and working effectively in Indonesia.
Using the Hofstede Framework, analyze the Indonesian culture
with reference to concepts covered in the course materials.

5. CSR and business practices are another set of critical issues in
this case. Describe four CSR issues and explain how these
issues can impact a company's international business activities.
The Client, in order to develop its Market Entry Strategy fully,
will be required to make an investment in Indonesia. Explain
each of the four means of incorporating risk into market entry
strategies if The Client wanted to use an
Adaptation Strategy
.
The Client will benefit from trading with other countries in the
region. Briefly describe the Association of Southeast Asian
Nations (ASEAN) and discuss the benefits and drawbacks of
regional integration.
Evaluation
The Case Study will be marked in its entirety out of 100. The
following rubric indicates the criteria students are to adhere to,
and their relative weights to the assignment overall.
ACTIVITY/COMPETENCIES DEMONSTRATED
% of Final Grade
1.
Content (60%)
a. Describes the importance of cultural understanding in market
entry and development.
/15

6. b. Analyzes Indonesian culture using the Hofstede framework.
/10
c. Describes four CSR issues and explains how these issues can
impact a company's international business activities.
/10
d. Explain each of the four means of incorporating risk i nto
market entry strategies.
/10
e. Discuss the benefits and drawbacks of regional integration.
/15
2.
Communication (25%)
a. Uses language clearly and effectively.
/10
b. Information organized intelligently and holistically (i.e., not
simply answers to questions).
/10
c. Proper introduction and conclusion to paper.
/5

7. 3
Attention to Detail (15%)
a. APA Formatting (title, headings, and references).
/10
b. Spelling and grammar.
/5
Total
/100