1. 1
INTERNATIONAL
MANAGEMENT
CHALLENGES IN
THAILAND
CLOTHING
INDUSTRY

2. 2
Table
of
Contents
1.
Introduction
.....................................................................................................................................
4
1.1
|
Company
Profile
..............................................................................................................................
4
2.
Cultural
Environment
.......................................................................................................................
5
2.1
|
Cultural
and
Social
Factors
..............................................................................................................
5
2.2
|
Halls
High-­‐And-­‐Low
Context
Cultures
.............................................................................................
5
2.3
|
Language
.........................................................................................................................................
5
2.4
|
Hodstede’s
Typology
of
Culture
......................................................................................................
6
Power
Distance
Index
(PDI)
..................................................................................................................
6
Uncertainty
Avoidance
Index
(UAI)
......................................................................................................
6
2.5
|
Education
System
............................................................................................................................
6
2.6
|
Superior-­‐Subordinate
Relationships
...............................................................................................
6
3.
International
Management
Issues
....................................................................................................
8
3.1
|
Advantages
and
Disadvantages
of
Joint
Venture
............................................................................
8
3.2
|
Restrictions
of
Labour
Law
..............................................................................................................
9
3.3
|
Decision-­‐making
Style
.....................................................................................................................
9
3.4
|
Impact
of
Globalisation
(Technology)
.............................................................................................
9
3.5
|
Problem
of
Ethnocentrism
..............................................................................................................
9
3.6
|
Cross
Cultural
Miscommunication
................................................................................................
10
3.7
|
Short
Term
problems
....................................................................................................................
11
Human
Resource
................................................................................................................................
11
Organization
Dynamics
......................................................................................................................
11
Negotiation
........................................................................................................................................
11
3.8
|
Long
Term
Problems
.....................................................................................................................
11
Building
a
Team
of
Talents
.................................................................................................................
11

3. 3
4.
Strategic
Recommendations
...........................................................................................................
12
4.1
|
Sponsorships
at
Universities
.........................................................................................................
12
4.2
|
Appointing
Leaders
with
Intercultural
Competence
.....................................................................
12
4.3
|
Cross-­‐Cultural
Training
for
Managers
...........................................................................................
13
4.4
|
Appropriate
Management
Structure
............................................................................................
13
4.5
|
Formal
and
Informal
Employee
Orientation
Programs
.................................................................
13
4.6
|
Effective
Performance
Appraisal
Systems
.....................................................................................
13
4.7
|
Structured
Career
Development
Plans
..........................................................................................
14
5.
Action
Plans
for
Recommendations
................................................................................................
15
5.1
|
Cross-­‐Cultural
Training
Program
...................................................................................................
15
5.2
|
Operational
Training
of
Thai
Staff
.................................................................................................
15
5.3
|
Performance
Appraisal
System
.....................................................................................................
16
6.
Appendix
........................................................................................................................................
17
Appendix
6.1
|
Competitive
Rivalry
within
Thailand
Clothing
Industry
.................................................
17
Appendix
6.2
|
Comparison
of
Hofstede’s
Cultural
Dimensions
...........................................................
18
Appendix
6.3
|
Organisation’s
Bureaucracy
and
Cultural
Dimensions
..................................................
18
7.
References
.....................................................................................................................................
19

4. 4
1.
Introduction
1.1
|
Company
Profile
Cerrotore
is
a
Singapore
luxury
fashion
brand
and
intends
to
internationalise
to
Thailand.
This
report
aims
to
critically
evaluate
the
current
clothing
industry,
addressing
the
international
management
challenges
faced
by
the
company
in
terms
of
managing
its
operations
overseas;
taking
into
consideration
various
cultural
contexts
and
theories.
In
addition,
strategic
recommendations
with
brief
action
plans
would
be
incorporated.
Thailand’s
competitive
clothing
industry
is
further
illustrated
in
Appendix
1.

5. 5
2.
Cultural
Environment
2.1
|
Cultural
and
Social
Factors
Differences
in
cultural
and
social
context
between
Singapore
and
Thailand
determines
the
approach
in
which
Cerrotore
undertakes
in
its
international
management
strategies.
Acknowledging
and
understanding
the
cultural
differences
in
Thailand
is
a
critical
step
towards
a
successful
venture
since
cultural
manifestation
affects
the
decision
making
and
negotiation
processes.
Similarly,
the
social
factors
affect
the
availability
and
quality
of
the
labour
market,
impacting
the
operations
of
Cerrotore.
2.2
|
Halls
High-­‐And-­‐Low
Context
Cultures
Both
Singapore
and
Thailand
have
a
high-­‐context
culture
due
to
Asian
roots.
High-­‐context
culture
tends
to
have
a
more
indirect
style
of
communication
(Wurtz,
2005),
where
most
of
the
meaning
lies
in
the
physical
context
like
facial
expressions
or
tone
of
voice
(Gamsriegler,
2005).
Hence,
information
and
culture
rules
remain
implicit
and
non-­‐verbal
communication
should
be
emphasised.
2.3
|
Language
In
the
luxury
fashion
business,
service
is
a
critical
success
factor
for
Cerrotore.
Proficiency
in
a
language
used
in
the
country
of
operation
is
essential
for
communication
between
the
staff
and
customers
as
differences
in
language
may
cause
miscommunication.
The
official
language
of
Thailand
is
Thai.
Being
a
Singapore
company;
Cerrotore’s
administrative
language
is
in
English.
Hence,
it
is
essential
to
bridge
the
gap
of
language
barriers.

6. 6
2.4
|
Hodstede’s
Typology
of
Culture
Using
Hofstede’s
typology
of
culture,
Cerrotore
is
able
to
compare
the
culture
of
Thailand
vis-­‐à-­‐
vis
Singapore
(Refer
to
Appendix
2).
Power
Distance
Index
and
Uncertainty
Avoidance
Index
are
picked
for
a
detailed
comparison
as
they
have
a
more
significant
impact.
Power
Distance
Index
(PDI)
PDI
measures
the
distribution
of
power
in
the
society.
Both
Thailand
and
Singapore
have
a
relatively
high
PDI,
implying
that
most
organisation
structure
is
centralised;
control
is
expected
and
attitude
towards
authority
is
formal.
Both
countries’
are
somewhat
similar
with
their
decision
making
authority
being
centralised
and
negotiation
styles
being
formal.
Therefore,
it
will
be
easier
for
Cerrotore’s
management
style
to
fit
into
Thailand’s
culture.
Uncertainty
Avoidance
Index
(UAI)
UAI
measures
the
society’s
tolerance
for
uncertainty
and
reflects
its
comfort
level
in
ambiguous
situations.
Even
though
Singapore’s
score
of
8
reflects
very
low
uncertainty
avoidance,
Singaporeans
still
abide
to
many
regulations
due
to
its
high
PDI.
In
contrast,
Thailand’s
score
of
64
reflects
a
preference
for
avoiding
uncertainty;
rules
and
policies
are
needed
to
eliminate
the
unexpected.
Despite
the
prominent
gap
between
Singapore’s
and
Thailand’s
UAI,
both
countries
are
similar
in
terms
of
having
strict
regulations.
Management
style
has
to
be
adapted
to
account
for
the
differences.
2.5
|
Education
System
The
education
system
in
Thailand
reflects
the
quality
of
workforce
that
Cerrotore
could
hire.
Although
Thailand’s
education
system
is
able
to
prepare
Thais
for
the
workforce,
most
of
the
lessons
are
conducted
in
Thai.
The
education
system
reflects
a
lack
of
proficiency
in
English
and
up
till
now
English
language
teaching
in
Thailand
has
not
prepared
Thais
for
a
changing
world
(Wiriyachitra,
2001).
Therefore,
this
presents
a
challenge
for
Cerrotore
which
targets
international
customers.
2.6
|
Superior-­‐Subordinate
Relationships
It
is
crucial
for
Cerrotore
to
understand
the
superior-­‐subordinate
relationship
and
the
work
ethics
of
the
Thais
to
know
whether
an
authoritarian
or
autocratic
management
style
best
suits
Thailand.
There
is
deference
to
authority
in
the
Thai’s
society;
however
this
may
not
be
an
autocratic
or
power-­‐driven
relationship.
Thais
are
passive
employees
who
seldom
voice
out

7. 7
their
opinions
and
make
decisions
because
they
are
afraid
of
making
mistakes.
There
is
also
a
lack
of
initiative
in
the
Thai
workforce
as
they
only
work
under
clear
instructions.

8. 8
3.
International
Management
Issues
3.1
|
Advantages
and
Disadvantages
of
Joint
Venture
The
Thai
Foreign
Business
Act
prohibits
foreigners
from
registering
a
100%
owned
alien
company,
foreign
shareholders
could
only
have
a
maximum
ownership
of
49%,
with
51%
held
by
Thai
shareholders.
The
entry
mode
for
the
business
is
thus
restricted
to
partnership
or
joint
ventures
with
a
Thai
corporation.
Having
access
to
international
knowledge
through
network
relationships
is
an
imperative
for
internationalising
companies
(Stephanie
&
Dan,
2013).
Therefore,
an
international
joint
venture
(IJV)
into
Thailand
with
a
local
partner
would
greatly
assist
the
company
in
entering
and
operating
in
the
country.
The
IJV
allows
the
company
to
target
Thailand’s
large
domestic
market
and
emphasise
on
the
benefits
of
shared
investments
and
risks,
leveraging
on
access
to
key
information
and
strategic
resources
i.e.
business
relationships.
However,
the
drawbacks
for
IJV
includes
profit
sharing
with
the
partner
and
most
significantly
the
level
of
control
that
the
company
have.
This
could
be
managed
by
effectively
choosing
the
right
partner
that
best
serve
the
company’s
needs.
The
partner
should
allow
a
considerable
amount
of
management
and
operational
control
over
activities
in
Thailand
to
ensure
the
continuation
of
the
international
venture.
Managers
should
also
support
management’s
objective
by
enforcing
control
over
the
daily
operations
and
be
trained
in
cross-­‐cultural
engagement
i.e.
understanding
of
employees
with
unique
Thai
background.

9. 9
3.2
|
Restrictions
of
Labour
Law
With
reference
to
Deloitte’s
paper
on
Thailand
Employment
practices,
the
company
is
required
to
have
fully
paid-­‐up
capital
of
THB
2
million
for
every
foreign
employees
hired;
limited
to
the
first
ten
employees
(2013).
This
signifies
a
tough
stance
by
the
Thai
government
to
protect
domestic
jobs
by
regulating
the
foreign
employment.
The
complexities
of
labour
laws
requires
that
businesses
employ
a
minimum
number
of
Thai
staff
per
foreign
employee.
Currently,
the
ratio
that
companies
have
to
main
is
4
Thai
employees
per
Non-­‐Thai
employee.
The
company
will
have
difficulty
increasing
control
through
input
of
more
locals
into
supervisory
levels
as
these
guidelines
limit
the
company’s
authority
in
Thailand
since
it
would
have
to
place
greater
emphasis
in
their
hiring
and
management
structure.
3.3
|
Variations
in
Decision-­‐making
Style
With
a
percentage
of
the
company’s
positions
being
filled
by
Thai
nationals,
it
is
inevitable
that
certain
decision-­‐making
authority
will
be
distributed
to
the
locals.
Thais
are
less
confident,
requiring
several
consultations
with
other
parties
to
reach
an
assured
decision
(Communicaid,
2013).
This
is
also
reflected
in
Hodstede’s
Typology
of
Culture
where
Thai
employees
have
high
PDI.
However,
decision
making
speed
positively
influences
the
company’s
performance
and
growth
(Baum
&
Wally,
2003
cited
in
Kownatzki,
Walter
&
Floyd,
2012).
Therefore
the
company
has
to
effectively
manage
the
process
of
decision
making
to
ensure
efficiency
in
their
operations.
3.4
|
Impact
of
Globalisation
(Technology)
The
pervasiveness
of
technology
impacts
multiple
stakeholders
and
poses
a
challenge
to
Cerrotore.
Employees
may
struggle
to
adapt
to
changing
technologies
and
this
makes
them
work
under
greater
mental
pressure
and
anxiety
(Qi,
2008).
Consumers
are
also
affected
as
technological
advances
leads
to
issues
of
invasion
of
privacy;
such
as
confidential
information
which
the
businesses
could
exploit.
3.5
|
Problem
of
Ethnocentrism
Stemming
from
a
country
with
relatively
stronger
economic,
political
and
business
climate,
it
is
inevitable
that
Singaporean
managers
may
believe
their
way
of
doing
things
is
superior.
The
challenge
is
recognizing
cultural
differences
and
being
cross-­‐culturally
sensitive.

10. 10
Systems
and
procedures
that
used
to
work
in
Singapore
may
not
be
effective
in
Thailand,
there
is
a
need
to
adapt
the
corporate
culture
to
be
all-­‐inclusive
and
consider
the
disparities
in
beliefs
and
work
practices.
A
standardised
system
would
then
be
unproductive,
as
Thais
may
not
view
Singaporean
practices
as
relevant.
The
unavoidability
of
ethnocentrism,
results
in
Thai
locals
not
being
handled
decision
making
authority,
disparities
in
expectations;
leading
to
conflicts.
3.6
|
Cross
Cultural
Miscommunication
Effective
communication,
which
occurs
only
when
the
interpretation
of
message
is
similar,
is
particularly
important
with
respect
to
joint
ventures
(Gyenes,
1991).
Language
difficulties
caused
by
semantics
or
connotations,
represent
one
of
the
biggest
barriers
to
cross-­‐cultural
communication
(Munter,
1993).
The
business
could
face
communication
issues
within
and
outside
the
organization.
(Thai
employees
may
not
be
willing
to
communicate
in
English
as
they
feel
they
don’t
speak
English
well,
especially
those
with
creative
suggestions
but
could
not
illustrate
properly.
Another
example
would
be
publicly
reprimanding
a
Thai
employee
and
causing
him
to
“lose
face”,
affecting
the
employee’s
willingness
to
work.)
Cross
cultural
communication
problems
is
a
huge
challenge
to
the
business
as
it
could
arise
due
factors
like
language
deficiency
and
misinterpretation
of
message.

11. 11
3.7
|
Short
Term
problems
Human
Resource
Cerrotore
has
its
own
set
of
unique
organization
values
and
culture.
It
faces
the
challenge
of
transferring
organization
values
and
culture
to
Thailand
operations
whilst
ensuring
that
skills
needed
for
the
transfer
are
accessible
and
feasible
in
Thailand.
Organization
Dynamics
Cerrotore’s
diverse
business
operations
in
different
national
boundaries
is
tricky
for
effective
communication,
coordination
and
control.
An
effective
organization
design
involves
the
degree
of
centralization,
differentiation
and
integration.
These
are
problems
to
consider
when
designing
the
organization
structure.
Negotiation
Negotiation
process
for
an
international
business
can
be
complicated
due
to
different
ideologies.
Cerrotore
needs
to
find
a
solution
for
negotiation
to
take
place
especially
in
cross-­‐
culture
context.
Negotiation
may
be
regarded
as
manifestations
of
culture
because
it
embodies
an
individual
code
of
conduct
oriented
towards
dispute
resolution.
(Aman
Garcha,
2007)
3.8
|
Long
Term
Problems
Building
a
Team
of
Talents
Cerrotore
is
expecting
growth
in
its
business
operations,
offering
a
wider
range
of
products.
For
such
growth
to
sustain,
Cerrotore
needs
a
team
of
talents.
Challenges
are
faced
in
recruitment
where
there
are
strict
hiring
policies
and
the
quality
of
the
recruits
correlates
with
Thailand’s
education
system.
In
terms
of
training,
cultural
differences
and
lack
of
language
proficiency
are
major
obstacles.

12. 12
4.
Strategic
Recommendations
4.1
|
Sponsorships
at
Universities
Recruiting
fresh
graduates
from
the
university
would
be
an
effective
solution
for
Cerrotore’s
short
and
long
term
human
resource
issues.
Cerrotore
could
better
instil
its
organisational
values
into
them
as
they
have
not
adopted
previous
corporate
cultures.
To
maintain
a
team
of
talents,
Cerrotore
could
offer
scholarships
and
vocational
training
to
undergraduates,
these
corporate
scholarships
are
granted
to
the
direct
beneficiaries
of
employees
so
as
to
maintain
their
loyalty
to
the
company
(Wisconsin
2013).
Working
with
universities
to
implement
a
program
for
Cerrotore’s
industry
helps
save
cost
and
time
needed
for
training.
4.2
|
Appointing
Leaders
with
Intercultural
Competence
In
the
multicultural
context
of
operations
in
Thailand,
where
positions
are
filled
by
Singaporeans
and
locals,
communication
problems
and
conflicts
arise
due
to
perceptual
differences
among
employees
(Ochieng
&
Price,
2010).
Therefore,
appointing
a
leader
with
intercultural
competence
and
respected
by
both
locals
and
Singaporean
employees
could
help
improve
the
intercommunication
in
the
company.
These
leaders
could
use
their
influence
over
the
employees
to
disseminate
information
effectively
due
to
their
knowledge
of
the
dynamics
and
linkages
present
in
the
company.
However,
it
may
take
time
for
such
leaders
to
develop
its
relationships
with
the
different
groups
of
the
companies
and
not
necessarily
available
at
the
time
of
entry.

13. 13
4.3
|
Cross-­‐Cultural
Training
for
Managers
Singapore
managers
should
be
sent
for
cross-­‐cultural
training,
where
a
holistic
approach
of
providing
both
cognitive
and
experiential
engagement
could
better
train
the
managers
with
intercultural
competence
(Irving,
2010).
It
would
allow
these
managers
to
empathise
the
cultural
differences,
aware
of
communication
symbols
and
thus
able
to
make
cultural-­‐sensitive
decisions.
4.4
|
Managing
the
Mix
of
Parent-­‐Country
and
Local
Employees
As
the
business
is
required
to
employ
local
workers,
it
is
essential
that
they
have
a
fair
distribution
of
Singaporean
and
Thai
managers.
A
proportion
of
locals
in
leadership
position
helps
ensure
non-­‐discrimination
and
assists
in
spreading
the
responsibility
and
decision-­‐making
authority
between
Singaporeans
and
Thais;
ultimately
decreasing
the
perception
of
ethnocentrism
as
the
business
is
perceived
to
allocate
equal
opportunities.
Local
managers
hold
country
specific
competences
and
the
business
could
leverage
on
the
locals
having
exceptionally
good
relationships
with
other
business
counterparts.
Therefore,
it
needs
to
strive
toward
an
optimal
mix
of
local
and
foreign
management
(OECD,
2002).
By
matching
an
organisation’s
bureaucracy
to
Hofstede’s
Dimensions
(Refer
to
Appendix
3),
a
Full
Bureaucracy
would
prove
to
be
effective
while
operating
in
Thailand
as
the
locals
are
less
comfortable
with
risks
and
thus
require
formalised
systems
with
written
rules.
A
highly
centralised
organisational
structure
is
needed
as
it
results
in
greater
control,
reducing
uncertainty
within
employees.
4.5
|
Formal
and
Informal
Employee
Orientation
Programs
While
doing
business
in
Thailand
requires
getting
to
know
the
business
partners,
a
company
has
to
first
support
its
employees
in
understanding
one
another.
Singaporean
employees
are
uncertain
about
working
in
a
foreign
environment
whilst
Thai
employees
are
uncertain
about
working
for
a
foreign
company.
The
typical
formal
orientation
programs
include
seminars,
presentations,
training,
mentorship
etc
which
all
employees
have
to
participate
in
so
as
to
know
what
is
expected
and
how
they
can
fit
into
the
overall
business
goals.
Informal
orientations
also
play
a
major
role.
4.6
|
Effective
Performance
Appraisal
Systems
Since
training
is
expensive,
it
is
essential
to
evaluate
the
success
of
training
programs.
Performance
appraisal
is
also
used
intentionally
to
improve
employee
performance
(Tuytens
&
Devos,
2012).
A
performance
appraisal
system
allows
Cerrotore
to
consistently
access
the

14. 14
effectiveness
of
its
training
and
the
efficiency
of
its
employees.
Performance
appraisal
will
allow
Cerrotore
and
its
employees
to
realise
the
areas
of
improvement;
ultimately
bridging
the
performance-­‐expectations
gap.
4.7
|
Structured
Career
Development
Plans
It
is
a
common
belief
that
the
overall
level
of
developmental
support
provided
by
an
organisation
is
critical
to
attract,
motivate,
and
retain
employees
(Kraimer,
et
al.,
2011).
Career
development
motivates
employees
to
work
harder,
and
is
a
way
to
retain
talents.
Cerrotore
can
prevent
talents
from
leaving
the
organisation
to
join
a
competitor’s
brand
by
recognising
their
efforts
and
providing
promotion
opportunities.
Potential
leaders
could
be
promoted
to
take
on
more
responsibilities
and
serve
as
role
models
for
the
others.

15. 15
5.
Action
Plans
for
Recommendations
5.1
|
Cross-­‐Cultural
Training
Program
By
providing
individuals
with
an
explanation
for
norm
violations
in
Thailand
may
be
adequate
to
prevent
cross-­‐cultural
bias
(Castillo
&
Mallard,
2012).
Employees
who
are
assigned
to
Thailand’s
office
should
go
through
a
cross-­‐cultural
training.
Before
the
assignment,
cultural
handbooks
which
include
an
introduction
of
Thailand’s
historical,
political,
economic
and
cultural
dimensions
will
be
given
out
to
all
assignees.
This
gives
them
an
overview
of
what
to
expect
and
be
mentally
prepared.
After
which,
an
orientation
will
be
organised
for
the
expatriate
and
Thais
to
mingle
and
know
one
another
better
through
activities
that
foster
teamwork.
This
allows
mutual
understanding
through
interaction.
In
a
country
like
Thailand
where
connections
with
people
are
emphasized,
the
business
could
mould
its
orientation
programs
using
an
informal
approach
to
allow
employees
to
socialize.
Social
activities
like
a
company
outing
to
Thailand’s
attractions,
or
even
a
home-­‐cooked
dinner
at
a
Thai
manager’s
house
help
create
an
invaluable
friendship;
reducing
cultural
miscommunication
and
enhancing
work
productivity.
5.2
|
Operational
Training
of
Thai
Staff
Cerrotore
emphasises
on
the
quality
of
services
provided
to
its
customers,
hence
the
training
of
ground-­‐work
operational
employees
is
critical.
All
employees
have
to
go
through
a
series
of
training
programs
before
they
can
serve
customers
in
the
store.
This
includes
an
English
language
proficiency
course
which
trains
employees
to
converse
in
English
and
a
customer
service
course
which
teaches
the
employees
how
to
provide
quality
service.
Simulations
and
role-­‐playing
will
be
adopted
in
the
trainings
to
provide
employees
with
a
realistic
context
to
learn
how
to
handle
real
life
situations.
After
completion
of
these
courses,
they
will
be
attached
to
a
senior
staff
to
go
through
two
weeks
of
on-­‐the-­‐job
training
before
they
are
allowed
to
serve
any
customer.
Cerrotore
could
utilise
the
university
sponsorship
program
to
look
out
for
potential
employees
to
be
emplaced
into
leadership
positions
in
Cerrotore.

16. 16
5.3
|
Performance
Appraisal
System
Since
Thais
are
face-­‐saving
people,
performance
appraisal
has
to
be
done
properly
without
hurting
their
feelings.
The
management
could
devise
a
system
to
assess
individual’s
performance;
ascertain
if
any
problems
arise
due
to
inadequate
or
ineffective
trainings;
provide
additional
training
and
resources;
and
terminate
employees
who
consistently
fail
to
achieve
goals
when
necessary.
The
appraisal
process
could
start
with
managers
sitting
down
with
individual
employee
to
identify
areas
for
improvement
and
if
additional
training
is
required.
Then,
managers
could
discuss
their
expectations
and
set
goals
with
the
individual.
Checklists
could
be
listed
for
employees
to
fulfil
since
Thais
are
less
proactive
and
requires
instruction.
Since
the
performance
appraisal
should
be
design
in
a
way
that
it
best
fits
the
culture
and
employees,
it
requires
a
systematic
approach
to
avoid
embarrassing
or
hurting
Thai
employees.

17. 17
6.
Appendix
Appendix
6.1
|
Competitive
Rivalry
within
Thailand
Clothing
Industry
Thailand
clothing
industry
is
now
flourishing
and
experiencing
a
constant
growth
for
the
past
fifty
years.
Consistently
with
the
relaxation
of
international
trade
barriers,
Thailand
clothing
industry
generates
the
most
revenue
for
the
country.
The
country
comparative
advantages
of
cheap
labour
and
property
have
attracted
many
local
and
foreign
investors
to
want
a
piece
of
the
market
share.
Especially
in
Bangkok
city,
many
competitor
international
luxury
fashion
brands
have
already
made
their
presence.
Government
of
Thailand
tries
to
promote
its
capital
city
Bangkok
as
a
regional
fashion
hub
and
shopping
paradise
for
luxury
goods.
(Tovikkai
&
Jirawattananukool,
2010)
Some
of
our
competitors
offering
the
same
tier
products
in
Thailand
are
COACH,
D&G
and
Club
21.
Buyer
power
is
strong
as
consumers
are
spoilt
with
a
wide
range
of
similar
choices.
Thailand
is
renowned
for
its
counterfeit
products,
these
products
can
be
cheaper
substitute
for
AKB4
apparels
although
quality
might
be
compromise.
Adopting
a
geocentric
strategy,
AKB4’s
supplier
power
is
low
as
AKB4
can
source
for
the
best
bargain
in
the
countries
it
has
its
operations
in.
Barrier
to
entry
to
our
trade
is
high
as
AKB4
is
already
an
established
international
brand
in
the
fashion
industry.

18. 18
Appendix
6.2
|
Comparison
of
Hofstede’s
Cultural
Dimensions
Appendix
6.3
|
Organisation’s
Bureaucracy
and
Cultural
Dimensions

19. 19
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