King

acity exhaustion to Asian countries. Asahi again in a multinational company and Rodamas can replicate its Indonesian operations in other countries.

Strategic Alternative 3: Buy Out & Build Up

Rodamas is handicapped since it does not own proprietary knowledge and is also engaged in alliances which cannot be broken. So the option of coming-out of a partnership and continuing is out of the question for an ethical businessman like Tan. He has to look at buying out smaller businesses with have such technology and knowledge and then expanding into other businesses. One of the industries to enter could be IT outsourcing, where emerging countries like India and China have succeeded. Another option could be to enter the real-estate business, even though the competition is heavy, Tan with his connections and business acumen could be relatively successful in this venture. The build and rent model may not be very lucrative right now, but he can start by investing in real estate and building later on. The impending world economy crisis could be the ideal back drop for enabling this strategy to be worked on. Real estate and also whole businesses will be available at a moderate to low price, and Rodamas is well placed in the financial strength aspect. The major challenge in this strategy will be to acquire managerial talent to diversify. Rodamas’ existing long term managers may not be fully equipped to handle such different businesses. So Tan has to look at bringing in a senior management team to work at the strategic and operational levels.

Summary of Strategic Options:

➢ Rodamas has to do the following:

➢ Exit small and low contribution businesses

➢ Go global with its stronger businesses

➢ Specialize in Food and Building Materials businesses where most of the revenue will come from in the long term

➢ Acquire technology companies and slowly start building own products and brands in IndonesiaExpand to newer businesses like KPO,...