The Impacts of Hurricanes/Disasters to the Import/Export Business
Natural disasters interfere with daily operations in the lives of people. It affects activities from school to business. After a disaster hits, for example, a hurricane, the water finds its way to lands and floods the areas where the business is conducted and where manufacturing industries are established. It means that the production of products will not be taking place for some time. Therefore, no exportation will be done considering no goods are being produced and no importation since there is no place for the business to be carried out. There are direct and indirect impacts on importation and exportation of products when there is a natural disaster (Koksal, 2012). The direct impact is seen with the losses of human life and injuries, and that affects human resources in business. When the employees die in the process of the disaster, the company has to wait for the problem to settle and life goes to normal, before employing others and that may take long.
The export sector experiences a loss of physical capital and equipment. The public infrastructure such as the telecommunication system, roads, bridges and railways which are required for the export supply chain are damaged after a natural disaster. A disaster affects importation indirectly through the reduction of aggregate economic activity (GDP). The investments in the affected regions are reduced significantly, and that reduces economic output. The risk bearers such as the insurance companies are at times unable to cover the losses in a region, especially when the natural disasters keep on recurring in the region (Koksal, 2012). The development of the affected regions is low, and that affects exportation due to the fear of not making enough returns.
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Natural disasters do not decrease importation all the time. After a hurricane, compensation is done, and it increases importation. There are major reconstructions and rebuilding of the infrastructure that was damaged which increases the transportation of the materials required, skills and technology from donor countries. The affected nations also receive financial assistance from other countries to assist affected people. That increases the inflow of goods and services in the country as more purchases done to assist the people who were affected by the natural disaster. Disasters have a long-term effect on the economy of a nation. When there are more hurricanes hitting a region, no more businesses will be happening due to the fear of investing and them losing several times.
Differences in Business Operations between Indonesia and the U.S
The business culture in America is completely different from that in Indonesia. XYZ Company has to ensure that it is familiar with the culture requirements of Indonesia so that they can gain a market in the nation. Indonesia has different ethnic groups which explain the vast cultures; however, XYZ has to familiarize itself with the Javanese culture which is the standard business culture in the present. The Indonesia people, for instance, believe in the mixture of good and evil. Therefore, XYZ Company has to avoid evilness by being socially responsible. The tennis shoes, for example, have to meet the expected standards (Understanding Indonesian Business Culture, 2017). The attitude of the Americans is however different as they mostly consider the reputation of the company. If XYZ has built its brand in America, then other factors will not matter as the Americans will be willing to buy tennis shoes. XYZ has first to conduct a wide study on Indonesia and their beliefs, attitudes, and values before starting the marketing operations.
In Indonesia, the past has a large influence on the current. The nation is traditional with rules to guide all the operations. It is different in America where the past does not affect its present operations. XYZ has to learn about the traditional rules in Indonesia so that they can guide the business. In addition, XYZ has to make sure that their past reputation in America is good as potential consumers in America will base their attitude on it. The people of Indonesia care a lot about their emotion. When marketing, XYZ Company has to make sure that they appeal to the emotions of clients in Indonesia, for example, when marketing the tennis shoes, the customers have to aware of its benefits, and that will convince them to try the product.
XYZ Company has to implement Executive Orientation Services (EOS) and the cross-cultural training program that is offered. The program will help the company in understanding the cultural patterns in Indonesia and what XYZ should do so that they can gain influence on potential customers in the nation through word and action. Understanding the cultural differences will help XYZ develop the communication and collaboration strategies required to survive in Indonesia (Understanding Indonesian Business Culture, 2017). XYZ will understand the difference in operating in America and Indonesia and adopt the business culture methods which will support success. It will also help the company understand business regulations and rules in the country.
Methods of Marketing 666 Cough Syrup in China
China is one of the nations in the world with specific business rules and culture which can hinder the success of a business. The success of 666 Cough Syrup in China will depend on learning about the legal, political, culture and language requirements and establish how to overcome the barriers faced. On marketing, 666 Cough Syrup has to understand that China has specific online sites which are allowed in the nation. Outside websites do not operate in China, and 666 Cough Syrup has to create platforms such as Alibaba and Alipay.com. It will help get to more customers who are registered in these online platforms (Philip, 2018).
When promoting 666 Cough Syrup, the company has to learn about the language they should use. It can be done by methods such as hiring employees from the country who are aware of the best language as well as are familiar with the culture of business in China. Promotion will require moving around the country such as in road shows, demonstrating how the syrup is used and the advantages it has over other cough syrups.
666 Cough Syrup Company will have to use franchising to distribute their company. Chinese people have more trust in national companies. The foreigners are faced with issues of establishing a niche market. 666 Cough Syrup Company can look for one of the recognized drug companies to franchise the product (Philip, 2018). The potential customers will be willing to purchase the product as long as they trust the distributors.
666 Cough Syrup Company will have to follow the packaging rules in China. The drug laws require the product to be labeled correctly and ensure that any warnings about the side effects of the medication are included. The manufacture and expiry data have to be labeled accordingly. The success of 666 Cough Syrup will be based on learning about the environment in China and following it so that potential customers can recognize and purchase the drug.
References
Koksal, G. (2012, November 19). Economic Cost of Natural Disasters. Retrieved May 1, 2019, from https://www.morethanshipping.com/economic-cost-of-natural-disasters/
Understanding Indonesian Business Culture. (2017, November 07). Retrieved May 1, 2019, from https://emerhub.com/indonesia/understanding-indonesian-business-culture/
Philip. (2018, February 22). Top 10 Marketing Trends in China. Retrieved May 1, 2019, from https://www.marketingtochina.com/10-marketing-trends-in-china/
