The case portrays the narrative of the Rodamas Group, under the ownership of the ethnic Chinese Tan family in Indonesia. The firm began as an exchanging firm in 1951 and, over the long run, turned into a joint endeavor accomplice in production companies, with a scope of principally Japanese accomplices
after Indonesia began to set out on an industrialization program in the late 1960s. In the 1980s, the firm gradually turned into the second era pioneer, and kept on growing to succeed until it turned out to be a member of the 20 business groups of the highest repute and profitability in Indonesia. The trade and commerce for the firm included glass fabricating (with Asahi), individual care goods (with Kao), packaging and bundling (with Dai Nippon) and MSG manufacture. The Rodamas, in these affiliations, was responsible for managing local rules and regulations, contracting neighborhood work force and supplying the goods and products in Indonesia. During the Asian Crisis in 1998, when President Suharto was overthrown and ousted, Indonesia experienced a number of acute changes, including the move towards democracy i.e. a vote based system. Its economy soon grew to be more open in nature, and international companies were given the permission to work in the nation without having a local accomplice. Similarly, a number of international trade and business developments, which also consisted of the multinationals’ inclinations to depend on attorneys and advisors as opposed to local partners and accomplices, undermined and challenged the Rodamas business paradigm. Keeping this in perspective, the present leader, Mucki Tan, is reexamining the fate of his firm and evaluating a couple of options and choices. The case concludes with the following plans of action:
Go global with current partners;
Develop own businesses and trade options that are little dependent on technology, such as property;
Take over present manufacturing companies
Develop expertise and concentrate on supplying products for the overseas MNCs
Focus on the conventional partnership function with the latest influx of foreign direct investment (FDI) from multinationals that operate in developing markets, particularly, China. Students will be required to assess and examine the company and its situational circumstances, choose a future plan and tactic for the company and evaluate the outcomes of the same.
What re the core competencies of Rodamas?
What are the main characteristics of the business environment before and after the crisis?
Does Rodamas have adequate capabilities to manage the after-crisis environment?
What are the different strategic alternatives and what are the pros and cons of each?
What strategy would you recommend for the company?
What would it take to implement this strategy successfully?