Indorama ventures is a public limited company with a leading profile in the worlds largest petrochemical producers and one of the words leading manufacturer of wool yarns. It is the largest polyester fibre producer in Thailand. It’s products serves major players in the consumer markets including food, beverages, personal and home care, health care, automotive, textile and industrial. (Revenue)
Since they are best at producing petrochemical and manufacture wool yarns world-wide, they have three major competitors. First, The Dow Chemical Company, produces plastics, chemical, hydrocarbons and agrochemicals. It is one the largest chemical company in the US and the largest manufacturing base in Asia Pacific. Second, BASF SE Company is also another…show more content… It has been growing rapidly and there are signs of newly advanced developments. These signs are shown through the improvement in the economic growth, low government debts and prudent fiscal management these are also attracting financial inflows in foreign direct investment (FDI). During the Asian Financial Crisis the FDI inflows in Indonesia were relatively weak. It has increased after the global financial crisis. The reason for the increase in foreign investment is because of the ample and diverse natural resources, growing population, relatively political stability and low labour costs. Since Labour is cheap in Indonesia, Indorama thus wants to expand it’s plant there as it is expensive in Thailand. Adding to the fact that energy is cheap in Indonesia and they have an abundant coal, Indorama has built their own coal-fired power station to serve the plant therefore it will be less…show more content… Indonesia has a high power distance, low uncertainty avoidance and macsulinity. Similar to Indonesia, Thailand has a high power distance, high uncertainty avoidance and masculinity.
The high power distance in indonesia scores 78 which means that they are more dependent on hierachy. Managers are paid with great respect for their high position and employees expect to be told what to do. Whereas in Thailand they scored 64 slightly lower than Indonesia’s power distance. It is a scoiety in which different size, degree, circumstances are accepted. It has a strict chain of command and protocol. Employees show loyalty to their managers in return for guidance. This may lead to a paternalistic management where workers are given what they need but no responsibilities or freedom of choice.
The low uncertainty avoidance in Indonesia scores 46. This means that indonesians have a strong preference towards their culture. For instance if a person is sad or annoyed, they do not express or show their aggresive self. They will keep up the positive smile and be polite. So, this shows how important it is to maintain harmony at their work place and how the relationship is with their co-workers. However, Thailand has a high uncertainty avoidance. It scored 64. This means that in order to have unexpectations they tend to control everything, it is hard for the Thais to accept change and so making them risk