O sales and profit data in local currency or in home

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How do we best measure performance during inflation? o Sales and profit data in local currency? Or in home country (i.e. hard) currency? o Volume measures o Market share (which may not respond in a predictable pattern) o MBO – goal Oriented, non quantitative What is the role of a private enterprise? o Create wealth for shareholders – How? Share value (ROI) Dividend payouts (Yield) o Act responsibility to employees, customers, government, and the community But o How should you manage a company when country conditions (i.e. the fiscal crisis) and misguided policies (no hard currency repatriation) prevent these core goals from being realized? Defensively? Embedded problems in Indonesia o Favoritism (access to distribution network) o Regulations (local companies pay no import duties) o Government Owns many customers (and the Novartis Indonesia partner is anti- Surharto) o Need for political connections to get things done o Selective enforcement of patents Possible outcomes o Growth and economic recovery
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o Greater dependence on MNCs o Reforms, even deregulation o New government o Corruption continues, worsens o Patents are ignored o Hyperinflation o adadf How are business conditions? o From Exhibit 2A o Afadfdaf Eriksson disadvantages o No international experience o Background is entirely sales and marketing o No Indonesia experience or contacts o Matrix organizations with 3 bosses o
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