The Indian economy has evolved into a dynamic and vibrant force with sustained g

Question

The Indian economy has evolved into a dynamic and vibrant force with sustained growth rates

of 6-8% for more than a decade.A primary reason for this growth is moving to a market- based

various corporate headquarters in Mumbai and Bangalore, India.The corporations which we visited included Seimens (a German Multinational), Glaxo Smith Kline (a subsidiary of a British pharmaceutical company)., IT companies of Indian origin, a Management Consulting firm besides the U.S. Consulate in Mumbai, India.

On my return, I presented a report in the form of a case study to my sponsor at Tarleton State University. This report highlights the successful business practices and strategies followed by Indian businesses.Based on this report (See Learning Module, Chapter 13 following the section “McDonalds in India” for a link to this report) as well as the discussion from our textbook in Chapter 13 on Multinationals “Doing Business in India” (Pages 513-517), answer the following questions:

1. Choose any one domestic or multinational corporation covered in the report and describe the business practices and problem solving approaches followed in India.

2. How should U.S. firms in general adapt to globalization? Give specific examples.

3. Using a SWOT Analysis approach, describe how American firms can take advantage of conducting business in an emerging market such as the Indian economy

Explanation / Answer

1. Over the past decades, multinationals have made considerable stability into the Indian market. For growth in multinationals can be learnt in Indian way as to do business In India is the key to reach another level to attain success in business world. India is a multi cultural society. In India, there are numerous multinationals emerging and operating.Indian culture is much more welcoming than any other country. Lets talk about the way the Indians greet to the guests. Indians greet doing namaste and bow forward. Indians make business decisions on personal judgement and friendly basis. They first build relationship and on the basis of trust do business deals. Hierarchy is the key structure in every management level. In India, hierarchy is considered as essential part of the management starting from lower to upper level. They do not make decisions on the data & statistics, business presentations, only, they most of the times use their intuition, feeling of faith and trust also. This is a big risk to be taken. Business survives on the basis of risks. Risks are taken to grow in the economy.

Indians are patient when it comes to make any important business decisions. They are not coarse towards their investors, rather show good character traits to them.

When it comes to problem solving issues, they are patient and do not show anger on their labour. Infact, they try their best to go in negotiation process with the labour union. Labour is the main resource in industry. They use diplomacy when resolving conflicts and disputes. They do not compel anyone rather try to convince in a friendly manner.

2. In the 90s, globalization emerged on a large level. It has tied people living in different countries together. People do businesses in foreign markets, make overseas clients, target potential markets in other countries. Most of the Americans assume that the big organizations are loyal to their own country. They first try to satisfy the needs of the people living in their own country. Organization culture should not be loyal to their own country only but they must serve their best in other countries too. They should not be patriotic. This way the organization culture do not grow globally which ultimately affects the corporation growth.

3. Using S.W.O.T analysis, American firms conducts business in emerging market like in Indian economy. S.W.O.T determines strengths, weaknesses, opportunities and threats. In India, the american firm must identify these 4 aspects to grow successfully.

Strenghths:

In india, organization culture is considered the crucial factori in the growth of the firm. They consider culture to be the foundation of every business. Thus, americans must be determined while adapting Indian culture.

Secondly, hierarchy is the key structure at every management level right from lower to upper level of management. Indians are very firm about making hierarchy. They very well identify the roles and responsibilities of each and every employee and worker working in their firm, from blue collar to white collar,everyone knows his/her delegation of authority.

Weaknesses:

Indians get in business deals with those who try to build realtionship with them. Most of the times, indians make business decisions based on trust and intuitions.

Opportunities:

Indians welcome all investors, they do not mkiss the opportunity. Make business meetings and dinners. Listen to the business deals. Even if not interested, they do not get course and unfriendly. They end up in diplomatic way.

Threats:

They get aware of every threat which comes in their business ways.

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