This report has written this report to make recommendations to the senior management team of the Australian fashion shoe company, Zu, on the feasibility of Indonesia as a possible location for global operations. The report investigates the legal, political, economic, socio-cultural and technological environments of Indonesia and therefore explains why Indonesia is a suitable for the company, Zu, to operate.
Political environment
As Indonesia is becoming a democratic society, people are encouraged to become more independent and provide for themselves. This means that more people are becoming involved in the work force and relying on their own income, which is beneficially for a retail outlet such as Zu.
Indonesian being a more democratic culture means its political system is also beginning far more stable than what it has been is the passed. If there is a stable political environment, then there is a lot less disputes between politicians, meaning that the people of Indonesia are more relaxed and more liked to spend money as it takes a lot of the uncertainty out of every day life.
Legal environment
When franchising a fashion retail outlet, such as Zu, in Indonesia, there are a number of strict laws to be abided by, and therefore it is important to get the correct legal and administrative advice concerning the franchise agreement, the operations manual, terms and conditions of trading, appropriate disclaimers for any prospectus produced, property issues and employment matters.
It is also necessary that the franchisor has a clear understanding of the Indonesian language, as the franchise agreement includes specific matters and has to be executed in Indonesian. The commercial arrangements tend to remain a matter for negotiation betw ...