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,the country appears to have good economic stability and Tesco wouldn’t betaking much 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 marketinstability, as it is a much smaller market there is little to be gained fromit and Tesco will probably need to adjust not to waste money to saturate amarket that has little 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 thebeginning might be difficult, however Greeks are easier to build customerrelations and this 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 areutilising them for their use however, the economic problems which Greece iscurrently facing had a very negative impact on the growth of the use oftechnology and the country is currently struggling to keep up with the newesttechnology 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 marketingpurposes. *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.Tesco will have to adjust tothe tax changes and this can be quite expensive for Tesco, it will probablydecrease the profit margins made by Tesco and increase the prices. Tesco mighthave to look for new supliers to reduce their costs. Teso will have to ensurethat they are allwing their employees accurate breaks and this can reduceproductivity but other than that the country is reasonably simmilar in how ithandles it’s law.
Greece however has veryrigorous laws on piracy and sale of potentially dangerous items, this should beconsidered when purcahsing anything as it is always a good idea to have areceipt to avoid legal problems and potential theft charges. Some products thatwould appear to be acceptable in the UK are classed as illegal weapons inGreece and therefore Tesco will be unable to sell them there. *Environmental:The geographicallocation of the country is very fascinating as this country is mostly containedof thousands of the islands and it is located between Indian and PacificOceans. It is a hot and a humid country and the is a lot of moist round theyear. It is composed or rain forest and swamp as well as somesnow-capped mountains. There are many active volcanoes, which can create anatural disaster in the country at any time.
The earthquake of 9.0 magnitudescaused the tsunami in the country in 2004 and it claimed 155,000 lives. It alsofaces deforestation as massive forest fires are a danger. The forest firesaffected the timber industry badly and it caused heavy losses to the country. Tesco will have to be careful not to lose their investmentsto a natural disaster, it might be a good idea to spend some money onmonitoring the local environment as it can save both lives and money.However, Greece is mostly covered in mountains and has avery large seaside, it gets very rainy in the winter and very dry in thesummer.
The environment however is less dangerous and more stable, theoccasional natural disasters aren’t frequent and it can be considered a safe environment.Tesco would have to prepare for the rainy and slipperyenvironment in the winter when considering their transport routes but otherthan that Tesco should be able to feel safe about their standing with the localenvironment. *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.Tesco will have to adapt their goods and services to meetthe demands of the customers and ensure that the products sold comply with theMuslim religion. If not, the business can become exempt and banned from tradein the country.Greece on the other hand is very welcoming to strangers andtheir customs, this means that little to no changes will have to be made,however in Greece distrust in other is seen as wrong.Tesco will have little to no difference in how they shouldapproach business in Greece however Tesco will need to consider its customerstrust in them and vice versa. 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.
Tesco will have to hire translators and potentially spend alot of money in the process of translation.Greece however mainly uses their language “Greek” it isspoken across the country and it is very rate to find another language used.Tesco will also have to hire translators and this can bequite expensive.*Customs:Most of the customs in Indonesia are the customs of theMuslim religion and therefore they are simply based on the current customs thatthe religion has introduced.Tesco will have to ensure that they do not fail to upholdthese as religion is very important in Indonesia and can restrict their tradein Indonesia.Greece however has a custom of making a grand celebration ofbaptism and therefore it is the most important celebration in a Greek’s life,this is also due to their religious beliefs.
Tesco will have to ensure that they do not offend thiscustom and its value to the Greek citizens as it could become a scandal ifTesco has accidentally done so.*Values:· Religious commitment and the belief in the oneand 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.Tesco will need to uphold these values when conductingbusiness in Indonesia as it can be seen as disrespectful and vulgar if doneotherwise. This can be very difficult as Tesco might be unaware of thereligious values and might have to hire staff to be cautious of it.Greece has also got a lot of religious values which mainlyconcede in the journey to become a man worthy of their divine’s grace and affection.The people of Greece also value their “love of strangers” which means torespect the people you meet.Tesco will need to ensure that they do not restrict any manor woman from prayer or religious practises while there.
Tesco will also haveto respect every citizen and refer from potential acts of offence.*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.Indonesian law forbids weapons, illegal drugs or pornographyin the country. Consequences can besevere as they include death for weapons or drugs. This is all due to theirbeliefs as they do not wish to be exposed to the outside world’s problems.
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.Tesco will have to ensure that they do not do any of therelated to maintain a good reputation. Tesco might have to apply themselves tosome of these and limit their product portfolio, however this will help thebusiness avoid legal action or loss of reputation and angering the citizens.
As for Greece their attitudes are very similar to the onesin the UK as they are a part of Europe and they have a set of laws that governthe public attitudes, furthermore it is common knowledge that the attitude ofthe Greeks to foreign businesses and foreigners is very good and should be andinspiration to other countries.Tesco will however have to adjust to their religiousattitudes as offending their religion can be done quite easily and there islittle tolerance for that. 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.Tesco will need to ensure that they comply with thereligious customs and guidelines in order to Trade in Indonesia, Tesco mightalso want to hire a religious matters advisor.Greeks are also very dependent on their Religion, the GreekOrthodox.
This religion is highly dominant and hold a lot of power, Tesco willneed to ensure that they do not get in the way of the local religion and it cancritically harm their reputation not just in one country.*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.Tesco will need to prepare a set of guidelines for theiremployees of what correct manners are and how to behave in a manner which illnot offend the people of Indonesia.The Greek people are used to asking personal questions withoutknowing the other person for long, personal space is of little to no concern tothem and they are likely to approach and invite stranger to meet their families.
Being about 30 minutes late to attend to someone’s house is considered normaland a small gift is expected, this can be in a form of flowers, cakes or chocolates.If invited to dine out is might be a good idea to ask to pay but it is unlikelyto be approved, insisting however can be viewed as rude.Tesco will need to prepare a set of guidelines for theiremployees of what correct manners are and how to behave in a manner which illnot offend the people of Greece.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.Tesco will need to respect the government’s decision and donot intervene in the educational system. If possible include an educationsection which will hold local customs in education when displaying the products.
In Greece education is freely available both in the publicand private sector, both schools and universities do not charge the studentsany tuition fees and textbooks are available for free to all students.Tesco will need to ensure that the follow the codes ofpractice and legislation when selling school equipment and also ensure that allproducts meet the education standards.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.Tesco will need to research the current impact on how thereligion affects this and make accurate changes at all times, this can be doneover time to avoid collision with the local religion. 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.Tesco will be able to make use of the local institutions ifthere is a need as they are both trained well and due to usually low demand itshould be rather accessible.
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.Tesco will be able to use the existing infrastructure andbuild more if the wish to do so, however there should be little need for thisas the current one quite large.Greece has a good infrastructure in most places however,this is not the case in the mountain areas as in some areas of the country itcan be very difficult to transport goods and new or improved infrastructure willhave to be built.
Tesco shouldn’t have to build any new infrastructure unlessthey chose to operate in less developed and less populated areas. The current infrastructureis more than capable of dealing with the extra demand.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.Tesco might have to make so changes to how their recruitmentand selection process is carried out as well as look at different methods topromote staff.Bibliography Sources: https://www.justlanded.com/english/Indonesia/Indonesia-Guide/Culture/Diversity-religion-and-valueshttps://www.tripadvisor.com/Travel-g294225-c2418/Indonesia:Customs.htmlhttps://www.roughguides.com/destinations/europe/greece/culture-and-etiquette/