Business system Essay Example
Thailand Business System
Thailand Business System
Business systems adopted in different countries vary from region to region. For this case, Thailand is selected as one of the regions to review its business system. Being Asian country, the commonly adopted model of business in the Asian model. This is specifically Indochina business system. However, there are different challenges in doing business in Thailand.
During some early stages, the Asian economies were shell-shocked, Thailand included. The economic crisis created financial panic, and it is because of capitalism in Asia where the common business system used is Indochina. There had been considerable enthusiasm of the Asian model before the economic crisis, that is communism, came into place. There is a need for transformation of Asian capitalism to be like the American capitalism (Noi 1998). The banks in Thailand play the main role of mobilizing resources and channeling to industry then persuade the government to provide subsidies. The monarchs have the power to take first decisions though not in Thailand as Indochina system of business is practiced. In Thailand, reliance on bank debt provides a better solution. Stock markets take a long time to evolve and work in sophisticated societies thus functioning like casinos doing a crummy job of channeling resources to the right sectors.
Entrepreneurship in Thailand is hampered by ineffective enterprise education and a lack of adequate or qualified management. The past economic crisis in 1977 brought negative impacts on Thailand’s economy (International Entrepreneurship 2010). The commercial classes in Thailand’s private entrepreneurs are made of Thai and Chinese origins and entrepreneurship is dividing to categories. This relation has been vital in Thailand’s business enterprises. Entrepreneurship development program has helped investors make sound decisions before investing in Thailand thus creating the values of Confucianism. The Chinese and Thai classes have strong entrepreneurial drive thus it is coupled with Buddhist belief hence stick to success. Thai Board of Investment has been set to boost new business ventures, but small enterprises have problems in accessing capitals from banks.
Adoption of Fujitsu type of system has improved communication. Absence of 3G communication creates a setback chasing away foreign investors. In terms of technology, Thailand is not utilizing communication channels like its neighbors in Lao and Vietnam. Citizens and business community do not enjoy the 3G mobile communication technology (Benjawan 2010). There have been arguments that Thailand is determined to keep its citizens to older technologies while Cambodia and Laos are encouraging investors because of its 3G communication technology. This hampers exploitation channels for business in Thailand.
There is a focus on the decentralized-free enterprise economies if Thailand with rules similar to of free economies of the West though it follows the Asian models like Korean Chaebol. There are quasi-monopolies systems in sectors of infrastructures and energy. The economy enjoys the greatest ratios of massive infrastructure to GNP per capita (Evan 2010). The economy was growing faster in 1980 to 1999 extreme poverty is low with few hungry street beggars. Infrastructure is best in Thailand.
Thailand has no particular business system but uses a general Asian model. The infrastructure in the country has enabled the investment in industry and other business sectors more effective. There are also some stringent laws that may make it difficult for foreign investors to gain quick access to Thailand’s business community. Thailand however depends on Chinese and Thai’s for most business investments.
Benjawan, H. 2010. Thailand Lagging behind Laos and Cambodia in Communication
technology. Thailand Business Investment. http://thailandbusinessinvestment.com/articles/article-20.html. (Accessed May 12, 2011)
Evan, P. M. 2010. Economy, Government, Business in Thailand. Thailand Guru.
http://www.thailandguru.com/economy-government-business.html. (Accessed May 12, 2011)
International Entrepreneurship. 2010. Entrepreneurship in Thailand. International
(Accessed May 12, 2011)
Noi, C. 1998. The Asian Model strikes back. Robinlea.com.
http://www.robinlea.com/changnoi2/asiamodel. (Accessed May 12, 2011)
More Important Things