Dr. Anees Janee Ali

Name : Nia Rizqi Fauziah

Matric : BB5451

Code Course : AOW356E

Table of ContentsI. Introduction 2

I.1 Batik Keris 2

I.2 Gallery of Batik Keris 3

I.3 Why choose Singapore ? 4

II. International Market 6

II.1 Foreign Market Entry Mode 6

II.2 Doing Business in Singapore 7

II.3 Regulation Process 8

II.4 Customs Regulation 8

II.5 Business in Singapore 9

II.6 Etiquette in Singapore 10

III. Strategy Analysis 12

III.1 Definition of SWOT 12

III.2 SWOT of Batik Keris 13

III.3 SWOT of Singapore 14

III.4 Marketing Mix 14

IV. Conclusion 17

References 18

1

I. Introduction

I.1 Batik Keris

Batik Keris is an Indonesian batik and handicraft producer and retailer. Based in Solo,

Central Java, we are the nation's capital of Indonesian arts. Batik Keris is a company that has

long with experience that has been decades. Starting from the home industry to thrive to this

day. Batik Keris is one of the largest Indonesian batik which includes traditional batik factory,

garment, and the stores are spread throughout Indonesia. From the beginning of its

establishment, Batik Keris highly stressed quality, including the first export and promotion

abroad. The company's philosophy is to preserve Indonesian culture through clothing (batik,

ikat, lurit, etc.) and craft with targets upper middle market and they sell at a reasonable price.In

accordance with its vision as " Nusantara Craft Center ", Batik Keris provides a variety of

cultural archipelago to craft products that follow the trend, in which a collection of silk women,

slim fit collection, teenager, professionals, and families. Batik Keris was first established in

1947, when the late Kasom Tjokrosaputro and his wife, Mrs. Gaitini, after marriage began

trading batik. Previously, they get to know and learn batik from parents Mr. Kasom

Tjokrosaputro. And then they opened a batik shop named " Keris " in Jl . Kom. Yos Sudarso

( No. Nonongan Jl. . 62 ) in Solo. After that, development occurs with the establishment of

factories in the area Kemlayan bati, Solo. Indonesian society, traditional batik is associated with

two methods of batik production using traditional manual system of Indonesia, namely the stamp

and write. Both methods use traditional tools such as canthing and stamp of the various specific

areas to make special motifs from various regions in Indonesia. Obviously, traditional batik

production takes longer than the batik print, where the motive is designed using a computer and

almost always produced in large quantities by machine.

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I.2 Gallery of Batik Keris

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The development of batik exports have wide impact for Indonesia , not only can generate

foreign exchange but can also create new jobs. Batik as an economic commodity, can not be

separated from economic law, like other commodities, is regarding price, cost, efficiency , and

soon. It means the government can not force people to dress batik cultural reasons. Batik

products must have a competitive edge against other textile products. Until now, the typical

Indonesian batik motifs is difficult to be plowed, even today demand to continue to grow both

the consumers in the country and abroad . But a lot of batik is batik asked the market with

commercial value, nice style , competitive prices and satisfying products. During this Indonesian

batik exports to many countries such as Europe , United States, Singapore, Thailand , Africa ,

and other countries .

Batik Indonesia already has a name in the international world. However, the economic

outlook for the future batik remains heavily dependent on the expertise of the role of batik

entrepreneurs and traders in the production process, because of that I want to export Batik Keris

to Singapore

I.3 Why Choose Singapore ?

Indonesia and Singapore relations are foreign bilateral relations between Republic of

Indonesia and Republic of Singapore. Over the years, Indonesia and Singapore have maintained

regular exchanges of high-level visits. The relations are underpinned by strong economic

cooperation. In the past few years, Singapore has consistently been Indonesia's top foreign

investor. Singapore and Indonesia also cooperate across a wide range of sectors, including

health, defence and the environment. The relations between Indonesia and Singapore are

stemmed from proximity. Singapore is one of the nearest neighboring country of Indonesia. The

city-state nation is engulfed by Indonesian territory in west, south, and east, sandwiched between

Malaysia and Indonesia. Both nations are the founders of ASEAN, the members of Non-Aligned

Movement and APEC.

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Singapore is known for its pro-business environment, capable of attracting sizable foreign

investments and business entrepreneurs. In Singapore, we can turn our ideas into businesses

with ease, and achieve significant profits. In stark contrast to many Western nations, it only

takes about 1-2 days to incorporate a company in Singapore, with the government providing

assistance along the way. Simply stated, Singapore is the easiest place in the world to set up and

manage a business.

Singapore poses as a lucrative business destination due to many advantages, including

geographical location of the country, well developed infrastructure, availability of both

international and domestic transportation, a natural seaport that has stood as world’s one of the

largest for several decades and many others which have contributed towards the commercial

importance of Singapore. The world Bank in its report "Doing Business 2007" rates Singapore as

the best country where it is easy to conduct various businesses and trade. Singapore also features

on the 1st place according to KPMG Competitive Alternatives Study, 2006 for being “World’s

most cost-competitive place for doing business.

Products and variety of Indonesian batik has become an important industry in the textile,

garment, fashion, decorative arts and crafts. Batik exports to several countries such as the U.S.,

Australia, Canada, Ireland, UK, Japan, UAE, Singapore, Spain, Denmark, France, Belgium,

Taiwan, Mexico and Italy.

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II. International Market

II.1 Foreign Market Entry Mode

When an organisation has made a decision to enter an overseas market, there are a variety

of options open to it. These options vary with cost, risk and the degree of control which can be

exercised over them. The simplest form of entry strategy is exporting using either a direct or

indirect method such as an agent, in the case of the former, or countertrade, in the case of the

latter. Exporting is the process of selling of goods and services produced in one country to other

countries, here are two types of exporting, direct and indirect.

To enter Batik Keris in Sinagpore, I choose direct exports, because it is the most basic mode

of exporting made by a company, capitalizing on economies of scale in production concentrated

in the home country and affording better control over distribution. Direct export works the best if

the volumes are small. Large volumes of export may trigger protectionism. The main

characteristic of direct exports entry model is that there are no intermediaries.

Advantages of direct exporting :

In control of pricing.

In full control of your brand.

Get a direct understanding of buyers' or end users' needs and an ability to customise

accordingly.

Maintain the customer relationship.

Able to identify possible new opportunities.

Customers may prefer dealing directly with the producer.

We have total control over the negotiations and transactions. The patents, copyrights

and trademarks are protected in a more effective way. Since the dealings are done

personally, we also get a better sense of the market

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Disadvantages of direct exporting :

It requires a lot of time, energy, staff resources and money.

Competitors with a local presence will be perceived as lower risk to buy from.

After-sales commissioning and service may require local language capability.

Daily follow up of genuine leads in-market can come second to business based in New

Zealand.

Remote troubleshooting may not be possible, requiring additional visits.

II.2 Doing Business in Singapore

Singapore is a world-class city to conduct business, work, live and play. The globally

connected, multi-cultural and cosmopolitan city-state offers a conducive environment to creative

and knowledge-driven industries. Singapore’s particular competitive factors which set it apart

from other locations are:

o Trust : Integrity, quality, reliability, productivity, a strong legal system

o Knowledge : Knowledge-based manufacturing and services

o Connected : Physical connectivity as well as people and business networks, and

o Life : An excellent place to live, work, learn and play

Global businesses will find it advantageous to site their headquarters in Singapore. Strong

trade and investment makes Singapore the most competitive Asian country . The World Bank

also ranks the Republic as the world’s easiest place to do business. By situating their

international HQs here, companies benefit from Singapore’s network of over 50 comprehensive

Double Taxation Avoidance Agreements. They also gain from Singapore’s many free trade

agreements and the 35 Investment Guarantee Agreements. These FTAs have enable Singapore to

establish a network to countries that contribute at least 60% of global GDP. Companies can

always rely on protection of their ideas and innovations through Singapore’s rigorous

enforcement of its strong intellectual property laws.

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II.3 Registration Process

All businesses must be registered with the Accounting & Corporate Regulatory Authority

(ACRA). This includes any individual, firm or corporation that carries out business for a foreign

company. Most exporters usually begin by exporting directly. In this common where Singapore

receives an order from an overseas buyer and subsequently sells directly overseas to that buyer.

A direct export situation occurs when Batik Keris have custody of the goods to be exported

and control over the export arrangement.

Examples of direct export scenarios include:

We export the goods via our freight forwarder/handling agent/postal or courier company

and invoice overseas customer.

We export the goods via our freight forwarder/handling agent upon instruction of local

customer and invoice local customer.

Our goods are consolidated by freight forwarder/handling agent before the goods are

exported and invoice overseas customer.

Once you have successfully registered your business, there are some important rules and

regulations that you will have to observe in the course of running your business.

II.4 Customs Regulations

In Singapore valuation for customs purposes is based on the Customs Valuation Code

(CVC). The primary basis for Customs value is the transaction value of the imported goods when

sold for export to Singapore. Where goods are dutiable ad valorem or specific rates may be

applied. An ad valorem rate, which is most commonly applied, is a percentage of the Customs

value of the imported goods. A specific rate is a specified amount per unit of weight of other

quantity.

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II.5 Business In Singapore

Doing business in Singapore can be tricky for newly-arrived expats. There are a lot of social

rules and protocols you should abide by if you don’t want to offend your business partners. This

paper tells about all you need to know about doing business in Singapore, including dos and

don’ts.

Singapore is probably the most heavily Western-influenced of all the major Asian

economies and, as such, presents a sometimes confusing mix of solidly traditional Asian values

and ultra modern business techniques. Singapore is an eclectic mix of ethnic Chinese, Malays,

Indians and global expatriates and is therefore difficult to categorise. What is true of the ethnic

Chinese approach may be very different in an Indian-oriented company or the regional

headquarters of a major MNC.

Business structures tend towards the hierarchical with decisions made at the top by senior

management before being cascaded down the chain. It is unusual for people to display open

disagreement with a decision made. Any debate would be held in private. Ensure that people of a

similar status deal with senior people. Do not show disrespect by expecting them to deal with

younger, more junior colleagues. Age is respected and managers tend to be older. As with all

Asian countries, age brings automatic respect and it is more difficult for younger people to

interface as equals at senior management level.

Managers expect and receive respect. In return for that respect they take a holistic interest in

the all-round well being of subordinates. Performance determines promotion within an

organisation - except within family firms where family bonds are strongly felt. Harmony is

sought in meeting situations and everything should be done to promote and maintain that

harmony. Remember the importance of safeguarding 'face'. Relationships are the key in

Singapore and relationships become difficult if people have lost face.

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II.6 Etiquette In Singapore

Business etiquette is an integral part of different countries' and regions' business culture.

Etiquette encompasses the prescriptive elements of culture the things people are expected to do

and say, or to avoid doing and saying. As the globalization of industries and marketplaces bring

managers ever closer to unique cultures around the world, it is more important than ever for

managers and small business owners to understand why business etiquette is important.

Good business etiquette allows your business to put its best foot forward and can protect

business owners and employees from internal and external conflicts by setting a high standard

for behavior by all. Business etiquette is a set of standards for behavior in which individuals treat

everyone respectfully and display good manners in all interactions. Proper etiquette sets a tone

for clients and customers that the business has a productive and successful environment, and the

impression created when everyone displays professional manners helps the company's

profitability.

Body Gestures :

DON'T touch someone's head. The head is considered sacred.

DON'T show the bottoms of your feet or use your feet to point. Feet are considered dirty.

DON'T tap your foot..

DON'T point at someone with your index finger.

DON'T pound your fist into the palm of your hand.

DON'T show affection in public.

DO cross your legs only by putting one knee over the other

Greetings :

DO greet with a hearty handshake. Shake hands with all who are present

DO give a slight bow for older Chinese people.

DO be aware that some Malays will not always shake hands. Muslims will not shake

hands with the opposite sex. When two women meet they might just bow their heads.

DO wait for a woman to initiate a handshake, if you're a man.

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Business :

DO expect business to be conducted formally.

DO take time to build personal relationships.

DO make appointments at least two weeks in advance. You may do this by telephone,

fax, email, or in a letter.

DON'T schedule appointments during Chinese New Year.

DON'T be late.

DON'T disagree with someone who has a higher rank than you.

DON'T sit until told where to sit.

DO be patient throughout negotiations.

DO exchange business cards using both hands.

DO treat business cards respectfully. When given one, examine it thoroughly before

putting it away. Make sure business cards you hand out are in good condition

Taboos :

DO be aware of some serious Singaporean taboos that are punishable by jail. Never

litter, chew gum, sell gum, jaywalk, or smoke in public.

DON'T discuss religion or politics.

DON'T make jokes.

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III. Strategy Analysis

III.1 Definition of SWOT

A tool that identifies the strengths, weaknesses, opportunities and threats of an organization.

Specifically, SWOT is a basic, straightforward model that assesses what an organization can and

cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to

take the information from an environmental analysis and separate it into internal (strengths and

weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT

analysis determines what may assist the firm in accomplishing its objectives, and what obstacles

must be overcome or minimized to achieve desired results.

In many competitor analysis, marketers build detailed profiles of each competitor in the

market, focusing especially on their relative competitive strengths and weaknesses using SWOT

analysis. Marketing managers will examine each competitor's cost structure, sources of profits,

resources and competencies, competitive positioning and product differentiation, degree of

vertical integration, historical responses to industry developments, and other factors.

Marketing management often finds it necessary to invest in research to collect the data

required to perform accurate marketing analysis. Accordingly, management often conducts

market research (alternately marketing research) to obtain this information. The usefulness of

SWOT analysis is not limited to profit-seeking organizations.

SWOT analysis may be used in any decision-making situation when a desired end-state

(objective) has been defined. Examples include: non-profit organizations, governmental units,

and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis

management. SWOT analysis may also be used in creating a recommendation during a viability

study/survey.

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III.2 SWOT of Batik Keris

Internal

Strengths Weaknesses

Quality of Products Difficulty to introduce products Batik Keris

as the only brand of batik

Have a professionals who work directly in the

manufacture of the product design

Very few of people are aware of the fashion

update

Use of a simple business model and close to

the consumer

It's not every day that a society needs to buy

batik.

Knowledge of implementing adequate business

Have a good Management Skill

Have a good brand in Indonesia

Have a variety of designs and motifs

External

Oppotunities Threats

Participation in a growing industry The presence of new players in the world of

batik

Decrease in product prices through economies

of scale

The economic downturn affecting the decline

of revenue expenditure are free for batik

fashion products

The ability to boost the marketing efforts of

other industries in growing common market

Decreased interest in batik on society

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III.2 SWOT of Singapore

Internal

Strengths Weaknesses

Low terrorism and Political violence Global orientation

Stronger consumption and ability Close to 2 of BRIC countries

Easy for starting business Government involvement

Having a good business environment Island size

External

Opportunities Threats

Tourism Country Rising sea level

Emerging Market and expansion aboard Multi-lingual nation

Business cost cheaper Supply chain not completely

Land may increased Substitute Products

III.3 Marketing Mix 4P’s of Batik Keris

Marketing or more commonly referred to as Marketing is an integrated communications is

the process of preparation that aims to provide information about the goods or services in

relation to satisfying the needs and desires of humans. Marketing begins with the fulfillment of

human needs which later grew into the human desire. But humans do not just want to meet their

needs but also wants to fulfill his wish is for example a glass of water-quality branded and also

can be taken anywhere with efficiently.

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Process in the fulfillment of human needs and desires that is the concept of marketing.

Ranging from product, price, Promotion, Place. The marketing mix is generally accepted as the

use and specification of the 4P's explaining the strategy at the point of purchase.

Category Explanation

Product

In business, products or services are goods that can be traded. In marketing, a

product is anything that can be offered to a market and can satisfy a want or

need. The important thing to remember when offering items to customers is

that they have a choice. They have a large number of ways to spend their money

and where to spend it. Therefore, places enough on developing that customers

want. Market research establish exactly what this is. However, customer needs

change over time. What is appropriate and attractive today or tomorrow is no

longer interesting. Marketing continually monitor customer preferences.

Price

Customer perception of value is an important determinant of the price charged.

Drawing customers themselves about what the product is worth it. A product

has more value than physical items, also has psychological connotations for the

customer. Dangers of using low price as a marketing tool is that customers may

feel that quality is being compromised. It is important when deciding on the

price is fully aware of the brand and integrity. Further consequences of the

decline in prices is that the competitor in accordance with the price so there is

no additional demand. This means that the average benefit has been reduced

without increasing sales.

Promotion

Promotional aspects of marketing integration covers all types of marketing

communications . Methods include advertising , sometimes known as 'above the

line ' activity. In TV ads , radio, online , posters and news sites ( newspapers ,

magazines). What distinguishes advertising from other marketing

communications is that media owners paid before advertising can take up space

in the medium . Other promotional methods include sales promotion , point of

sale display , merchandising.

Skills in marketing communications is to develop a campaign that uses some of

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these methods in a way that provides the most effective results . For example ,

TV advertising makes people aware of food items and press advertising

provides more detail . This can be supported by in-store promotions to get

people to try the product and collectable promotional device to encourage them

to continue buying the item . It's important that the message is communicated

mutually supportive and not confuse customers . A thorough understanding of

what the brand represents is the key to a consistent message .

The goal of most marketing communications is to move the target group for

some kind of action . It is possible to : buy products, recommend a friend or a

choice to increase the purchase of items of Batik.

Place

Place in mixing in marketing, not just about the physical location or distribution

points for products. This includes the management of the various processes

involved in bringing products to the end consumer. and in the end consumers

will settle for products that are presented by Batik Keris.

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IV. Conclusion

The management of business operations for an organization that conducts business in more

than one country. International management requires knowledge and skills above and beyond

normal business expertise, such as familiarity with the business regulations of the nations in

which the organization operates, understanding of local customs and laws, and the capability to

conduct transactions that may involve multiple currencies. In doing entry mode to foreign

countries such as Singapore, Batik Keris certainly need to take some steps his role in running a

business to export their product. Such as the steps of doing business in the country, how to

register and do's and don's of doing in that country. On the other hand batik keris should be able

to analyze its business strategy, such as swot analysis and marketing mix.

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References

Reynolds, F. (2003), Managing Exports: navigating the complex rules, controls, barriers, and

laws. Age, John Wiley & Sons, Inc.

Salomon, Robert (2006), Learning from Exporting: New Insights, New Perspectives, Edward

Elgar Publishing Limited

http://www.batikkeris-indonesia.com/

http://en.wikipedia.org/wiki/Foreign_market_entry_modes

http://www.mindomo.com/mindmap/singapores-swot/

http://www.transcendconsulting.com.sg/company-incorporation-for-foreigners/

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