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Gobal Management

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Submitted By alannango
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I. INTRODUCTION: A. Company description – Thai Tuan Group Corporation
Thai Tuan Group Corporation works in fabric production and fashion clothing, know as one of the leading Vietnamese textile product and fashion services supplying enterprises, and specializing in producing jacquard, plain from polyester, spandex and viscose, etc using advanced technologies transferred from Japan and the EU. B. Going International
Their goal: “To become a leading Asian group in supplying textile products and fashion services”. With an infrastructure located from Northern to Southern Vietnam, an experienced and skilled workforce, for many consecutive years our products have been recognized as “Vietnam’s Highest Quality Product” and won many records and awards from the Vietnamese government. Their company has successfully implemented and maintained the ISO 9000, ISO 14000, SA 8000, and the 5S international quality control systems.
In the international integration trend, with the help of a foreign consulting company in Vietnam – Thai Tuan Group Corporation have built for themselves a strategy to become the leading company in the fashion Asia. They have expanded its market to neighboring countries, including Thailand, a potential market in Asia.
However, when entering a new foreign market like Thailand, Thai Tuan Group Corporation will encounter many challenges and issues because of the differences in culture and values in the two countries. The following sections discuss these issues.

II. MANAGEMENT CHALLENGES: A. Environmental Factors
When entering new market such as Thailand, Thai Tuan Group Corporation has to carefully consider environmental factors including political, economical, regulatory and technological. The Thailand government is a constitutional monarchy (the government and the royal family maintain harmonious relationship). One-fifth of Thailand is covered by monsoon forest or rainforest, and the country has an incredible array of fruit trees, bamboo and tropical hardwoods. Thailand's climate is ruled by monsoons that produce three seasons in northern, northeastern and central Thailand and two in southern Thailand. Thailand has relied extensively on the country’s abundant and diverse natural resource, so Thailand’s economic growth over the last three decades has been fueled and accompanied by rapid industrialization, urbanization, and by intensified agricultural production and fishing This growth, which has degraded land and water quality, caused the loss of natural habitats, and generated increasing levels of air and water pollution. . In Thailand, the monarch holds executive power while the parliament holds legislative power. When there are important matters, the monarch exercises authority through government ministers. Judicial power lies with the Courts of Justice.
Among critical operational factors, Thai Tuan Group Corporation will have to focus on process/product design and quality management. This is because Thailand customers require and expect high quality products, especially in clothing products Thai Tuan Group Corporation’s home country manager and local manager in Thailand need to ensure the quality of every single product to be able to enter Thailand’s market successfully.

B. Cultural Profile
While Thailand and Vietnam in the South East Asia and influenced by Chinese culture, but there are certain differences in values, customs and norms. Based on Hofstede’s intercultural dimensions, we can see the differences in culture between Vietnam and Thailand.
Figure 1: Hofstede’s Cultural Dimensions of Thailand

Figure 2: Hofstede’s Cutural Dimensions of Vietnam

In the charts below, there are differences in the power distance index (PDI), individualism (IDV), and masculinity (MAS). The PDI score of Thailand is lower than Vietnam’s PDI score. It indicates that Thailand’s society does not accept the unequal distribution of power in institutions. Although not clear but the difference in IDV shows that the Vietnamese are more independent and care for individual benefits more than those of the whole group. The MAS score in Thailand is a little lower than in Vietnam. This tells us that Thailand women are treated more equally in their society. Women are highly involved in business and most of them receive equal pay and are able to hold important positions. C. General Management Issues
In management, four basic functions are planning, organizing, leading, and controlling. To be successful when entering Thailand’s market, Thai Tuan Group Corporation must prepare for these management issues. For the Thailand market, exporting is the best entry strategy for Thai Tuan Group Corporation. The reasons are Thai Tuan Group Corporation does not have to deal with high wage rates in Thailand and Thai Tuan Group Corporation also minimizes risks when entering a strange market like Thailand. It also helps the company to test Denmark’s market before going any further. Moreover, Thai Tuan Group Corporation managers need to pay attention to their choice of distributors and the different environmental factors, export-import tariffs, quotas, freight costs, and distance from the supplier country.
Because Thai Tuan Group Corporation is a big and experienced garment company in Vietnam, it can handle exporting functions by appointing a manager or creating an exporting department. Thai Tuan Group Corporation will organize into a simple domestic structure plus export department. This department will also take care of exporting activities in other countries Thai Tuan Group Corporation is doing business. This structure allows managers to coordinate resources for foreign activities under one roof and use those resources more efficiently. III. SUMMARY:
In the long term, Thai Tuan Group Corporation will continue to develop production technologies and improve garment products quality to maintain reputation in Thailand market. They will also focus on improving organizational mechanisms, renovating business management, and training a human workforce that meets world standards, and paying attention to improving marketing and negotiation skills for the company’s staffs. Beginning with exporting to test the Thailand market and learn about Thailand culture, Thai Tuan Group Corporation will gradually establish joint-ventures with Thailand partners to produce and distribute garment-related products. Cultural awareness about Thailand is the key factor in helping Thai Tuan Group Corporation succeeds in Thailand’s market in the long-run.

IV. REFERENCES tim International. (n.d.). Retrieved from Thailand Geert Hofstede Cultural Dimensions Explained: http://www.geert-hofstede.com/hofstede_thailand.shtml
Royal Thai Consulate General. (2002). Retrieved from Thai economy: http://www.thaicongenvancouver.org/Economic.htm
U.S. Department of State Diplomacy in action. (2011, 1 28). Retrieved from Thailand: http://www.state.gov/r/pa/ei/bgn/2814.htm
Wikipedia. (2011, 5 31). Retrieved from Thai Political Crisis: http://en.wikipedia.org/wiki/2008%E2%80%932010_Thai_political_crisis
Wikipedia. (2011, 6 11). Retrieved from Economy of Thailand: http://en.wikipedia.org/wiki/Economy_of_Thailand
Cho Vai. (2010). Retrieved from Cong Ty Thai Tuan: http://www.chovai.vn/?id_pproductv=64&lg=vn&start=0
Innovation platfrom. (n.d.). Retrieved 2011, from Thailand's Cultural Dimensions: http://innovationplatform.concordia.ca/thailand/hofstede.html itim International. (n.d.). Retrieved from Thailand Geert Hofstede Cultural Dimensions Explained: http://www.geert-hofstede.com/hofstede_thailand.shtml mongabay. (2006, 2 4). Retrieved from THAILAND: http://rainforests.mongabay.com/20thailand.htm
Royal Thai Consulate General. (2002). Retrieved from Thai economy: http://www.thaicongenvancouver.org/Economic.htm
Thai Tuan. (2009). Retrieved from Weaving Your Dream: http://www.thaituanfashion.com/vie/home/home.php
U.S. Department of State Diplomacy in action. (2011, 1 28). Retrieved from Thailand: http://www.state.gov/r/pa/ei/bgn/2814.htm
Wikipedia. (n.d.). Retrieved from Economy of Thailand: http://en.wikipedia.org/wiki/Economy_of_Thailand
Wikipedia. (2011, 5 31). Retrieved from Thai Political Crisis: http://en.wikipedia.org/wiki/2008%E2%80%932010_Thai_political_crisis
Wikipedia. (2011, 6 11). Retrieved from Economy of Thailand: http://en.wikipedia.org/wiki/Economy_of_Thailand
Wikipedia. (2011, 1 24). Retrieved from Template: Politics of Thailand: http://en.wikipedia.org/wiki/Template:Politics_of_Thailand

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