The purpose of this dissertation is to answer the research questions "why should the Coffee Club expand a franchise business in Indonesia?", "how can the Coffee Club enter the Indonesian market?" and "what are the business risks along with a solution/s"? Data has been collected through primary and secondary research by conducting observation and interview.
Indonesia is a great potential franchise partner for the Coffee Club because of two factors, including strategic goal with location and cultural and institutional distances of the different entry country. To obtain and maintain a sustainable marketing, a franchisor must apply the triple bottom line for creating, communicating, and delivering value to customers.
Other than that, new franchisors who wish to enter the Indonesian market should follow the Minister of Trade’s regulation (“Regulation 53”), which requires that eighty per cent of the raw materials must be local products. The franchisor and the franchisee need to adjust their similarities and dissimilarities in the scope of culture value to maintain a long-term relationship.
Before entering the Indonesian market, a franchisor is fully adviced to conduct research and development to be more familiar with the other additional aspects in order to protect their business from potential risks. The limitations to the research are lack of information, poor understanding of the respondent against the explanation of the researcher (interpretation may introduce a bias), and the lack of validity (how to build the truthfulness of the respondents)
Table of Contents
1. INTRODUCTION
1.1 Indonesian Overview
1.2 Indonesian Business and Trade Environment
1.2.1 Political Environment
1.2.2 Business Culture
1.2.3 Government Regulation & Commercial Law
1.2.4 Intellectual Property Right (IPR)
1.2.5 Trade Restriction
1.2.6 Transportation
1.2.7 The Level and Rate of Economic Development
2. MAIN BODY
2.1 Minor DKL Food Group
2.2 The Coffee Club
2.2.1 Overview
2.2.2 Market Improvement
2.2.3 Vision and Mission (Core Values)
2.3 Situation Analysis
2.3.1 Service Product Environment
2.3.2 Marketing Environment
2.3.3 The Marketing Mix of Service Environment
2.4 Market Analysis
2.4.1 Perceptual Map
2.4.2 Importance / Performance Matrix
2.4.3 SWOT – Analyse (Strength, Weakness, Opportunity and Thread)
2.4.4 Value Chain
2.4.5 Sustainable Marketing
2.5 The Coffee Club Strategies
2.5.1 Brand Equity
2.5.2 Target Market, Strategy and Positioning
2.6 Entry Mode
3. CONCLUSION
Research Objectives & Key Themes
This dissertation aims to evaluate the potential for The Coffee Club to expand its franchise operations into the Indonesian market. It addresses three core research questions: identifying the strategic motivation for market entry, determining the appropriate entry mode, and analyzing the business risks and regulatory requirements within the Indonesian hospitality sector.
- Strategic assessment of the Indonesian hospitality and business environment.
- Evaluation of The Coffee Club’s service model, brand equity, and competitive positioning.
- In-depth analysis of Indonesian trade regulations, specifically the "80% local product rule."
- Application of strategic frameworks, including SWOT analysis, Value Chain, and Triple Bottom Line.
- Practical guidelines for franchise entry processes and cross-cultural business adjustments.
Excerpt from the Book
1.2.2 Business Culture
Culture is a symbol to easily identify a nation. So even in a business meeting, there is also unique culture. Indonesians highly uphold the cultural values that have been embraced for a long time, especially the value of politeness and care for others including people just known. Some culture influences that will be found when doing business in Indonesia are such as:
1. Building a relationship: The relationship with Business partners in Indonesia has become a core value. For instance, foreigners have to cooperate with a knowledgeable partner who has close ties with government officials. This approach will help them to decline the difficulties in doing Businesses.
2. Power & Hierarchy: In Indonesia, a high power distance value is existence among society, in particular in organisation. The title is a crucial thing to show a person’s status in community. People with high social status or older than us have to be called with titles Mr / Mrs (Bapak / Ibu). It is not polite to call these group directly with their name without title.
3. Have Local Partners: Each organisation in Indonesia has their approach for establishing cooperation with a business partner. A trustworthy local partner will help foreigners to overcome Business issues and to share their knowledge.
4. Dinner Invitation: A dinner invitation aims to get to know both business partners closer and more personal. It is the time to build the trust during on business process and to learn your ability to convince the assurance you offer.
Summary of Chapters
1. INTRODUCTION: Provides a geographical and socio-economic overview of Indonesia as a potential market for international franchise expansion.
2. MAIN BODY: Analyzes the Minor DKL Food Group and The Coffee Club’s operational model, market situation, and strategic frameworks, including SWOT and Value Chain, while detailing entry requirements.
3. CONCLUSION: Synthesizes the research findings regarding the strategic and cultural considerations for successful franchise entry into Indonesia.
Keywords
Indonesia, The Coffee Club, Franchise, Hospitality, Business Culture, Regulation 53, Strategic Planning, Marketing Mix, SWOT Analysis, Value Chain, Sustainable Marketing, Market Entry, Minor DKL Food Group, Service Quality, Brand Equity.
Frequently Asked Questions
What is the primary focus of this dissertation?
The dissertation evaluates the viability and strategic process for The Coffee Club to expand its franchise business into the Indonesian hospitality market.
What are the central thematic areas covered?
The study covers the Indonesian business environment, the specific internal structure of the Minor DKL Food Group, marketing strategies, and the regulatory challenges of foreign franchising in Indonesia.
What is the core research objective?
The objective is to provide a comprehensive analysis that answers why the brand should expand to Indonesia, how it can enter effectively, and what specific business risks it must mitigate.
Which scientific methods are utilized?
The research employs primary and secondary data collection, including observation, interviews, and the application of recognized business frameworks like SWOT, Porter’s Value Chain, and the Triple Bottom Line.
What does the main body of the work entail?
It details the company profile, conducts a situation and market analysis, describes the marketing mix, and outlines the twelve compulsory steps for franchise acquisition in Australia and registration in Indonesia.
Which keywords best characterize this work?
Keywords include Indonesia, The Coffee Club, Franchise, Hospitality, Regulation 53, Market Entry, and Strategic Planning.
What is the significance of the "80% Rule" mentioned in the study?
The "80% Rule" refers to an Indonesian government regulation requiring franchisors to source at least 80% of their raw materials, equipment, and merchandise from local Indonesian products.
How does cultural distance impact the business strategy?
The study highlights significant differences in institutional, regulatory, and normative culture between Australia and Indonesia, emphasizing the necessity of local partnerships and research to ensure business compatibility.
Why did some locations in Bali underperform compared to others?
The study notes that the Domestic Terminal location in Ngurah Rai Airport performed poorly due to low demand from foreign tourists and a preference for local food compared to the more successful International Terminal site.
- Citar trabajo
- Angel Berlian Fonataba (Autor), 2018, Expanding a franchise business in Indonesia, Múnich, GRIN Verlag, https://www.grin.com/document/452232
