Contents

• Executive Summary 2
• 1. Introduction 5
• 1.1 About the target country - Indonesia 6
• 1.2 About Wal-Mart 6
• 1.3 Target market 7
• 1.4 Need for cultural analysis & data collection procedure 7
• 1.5 Impact of Culture on Business 7
• 2. Market Background 8
• 2.1. Social Aspects 8
• 2.1.1. Social classes, race, ethnicity 8
• 2.1.2. Population 9
• 2.1.3. Religion 9
• 2.1.4. Social institution 9
• 2.1.5. Education 9
• 2.2. Cultural aspects 10
• 2.2.1. Language 10
• 2.2.2. Family structure 10
• 2.2.3. Housing 10
• 2.2.4. Subculture 10
• 2.3. Attitude 11
• 2.3.1. Attitude to time 11
• 2.3.2. Ascription of status 11
• 2.3.3. Recreation 11
• 2.3.4. Concept of Nature 12
• 2.4. Business Cultural Aspects 12
• 2.4.1. Communication 12
• 2.4.2. Negotiation 12
• 2.4.3. Strategic Perspectives 12
• 2.4.4. Organizational Structure 13
• 2.4.5. Business Relationships 13
• 2.4.6. Roles of women and minorities 13
• 2.4.7. Leadership and followership 14
• 2.4.8. Labor legislations 14
• 2.4.9. Group dynamics 14
• 3. Culture Analysis 14
• 3.1. Hofstede’s model 15
• 3.2. Trompenaar’s Model 17
• 4. Specific differences in the culture of US and Indonesia 19
• 5. Major findings 20
• 6. Recommendations 21
• 7. Conclusion 21
• 8. Bibliography 23

Description

In the present context of globalization, it is the core aim of the business to expand their target markets and their customer base. Hence, it is an imperative for such organizations to have a thorough understanding of the target country and market. Walmart, a leading US retailer, intends to enter the target market of Indonesia. For the purpose of this paper, a thorough culture analysis is conducted on the basis of Hofstede’s Model and Trompenaar’s Model. Further, detailed market analysis of the cultural, social and business aspects is conducted with accuracy. Lastly, a specific table is prepared which lists the differences of the culture of United States and Indonesia. Based on the secondary data collected from various academic journals, newspaper articles, books, reports, websites, a set of major findings are listed at the end of the report, and a list of recommendations are also charted which would successfully help the organization Walmart is doing profitable and optimal business in the target market of Indonesia.
This paper is of crucial importance to students of business management and for management of organizations too, who intend to enter the country of Indonesia for doing business.