Rodamas Group: Designing Strategies for Changing Realities in Emerging Economies

Strategy & Management

Main Case Study

"Rodamas Group: Designing Strategies for Changing Realities in Emerging Economies"

Q1.) What are the core competences of Rodamas ?

Answer: It can be seen that there are many competences which helped the Rodamas company to succeed in its business. In my opinion, the competence which facilitated the company to survive the economy crisis in the year 1998 is "its prudent and conservative management". This management is similar to Japanese management style. There fore, Rodamas tried to avoid doing its business in the high risk. In addition, Tan senior's vision also could be one important competence of Rodamas because he kept its profile as the low profile and steered clear of the type of rent-seeking behaviour. This vision facilitated the business of Rodamas continued smoothly, for instance staying below the radar screen bureaucrats, or staying away from a crony relationship with Suharto. These believes were tranfered to Muki Tan, a son of Tan senior, and have being used until these days.

Q2.) What are the main characteristics of the business environment before and after the crisis ?

Answer: The period time before the crisis in the year 1998 can be divided into two eras. The first era could be called the Sukarno era. The other one is the Suharto era. In the Sukarno era, after became independent from Dutch, the indonesian society transformed from a mostly agricultural to an emerging industrial economy. However, due to the socialism and communism politic styles, these affected to the Indonesian business because the foreign companies that would like to invest in the country could not do and the activities of Chinese minority, which were the main part in the private sector, were restricted. Moreover, those Chinese were forced to leave the country. After that it came to the Suharto era, the country allowed the foreign companies could do business in Indonesia. There was happened in the coronism business style which came from Suharto. At this time, the partnerships between the local firms in Indonesia and the foreign firms were very important. In order to expand the business, trustworthy of them was essential. Before the crisis, the products from different countries and some simple manufacturings in Indonesia were the main role of business. In short, it could be said that the managements were almost took part in Indonesia by the multinational companies. In the year 1998, the economic growth in Indonesia abruptly halted with the Asian Crisis, followed by the demise of Suharto. After the crisis, the economy was opened up by the new presidents. There were the reduction protectionism, decentralisation from the capital city to the regions and so on. Nevertheless, the economic environment were still weak because of such as law enforcement and corruption in some areas.

Q3.) Does Rodamas have adequate capabilities to manage the after-crisis environment ?

Answer: It is obviously that after the economy crisis 1998, Rodamas could survive easily because of the different vision of the leader. However, the new crisis in the year 2008 was different from the previous one. From the last crisis, the economy of indonesia grew up to the limited point. Consequently, the companies which wish to continue their business growth should have the abilities and effectiveness, such as the ability of good connection with the other foreign companies or the abilty of estrablishing the new brand products which attract to the customers.

In my opinion, the Rodamas company does not have enough capabilities to manage and maintain its growth