Analyzing India for Foreign Business - Essay Sample

Introduction

It is crucial for a company or organization planning on introducing its operations to a foreign country to analyze, and learn as much as they can about the country as a first step. Information about the country in question should include all factors, from economic to social and political features of the country. This will help in pre-determining the kind of environment their business is going to be in, to come up with the most effective methods of running their operations. India is the sixth largest economy globally by its nominal GDP. It is also one of the fastest rising economies in globally. Despite facing several cases of poverty and corruption among other vices, India has managed to remain vigilant in its growth and development trend, mainly as a result of international business and tourism which is an essential industry in the country (Dreze & Sen, 2009).

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India has a work force labor of approximately 513.8-million (Facts and Details India, 2018). With this work force, India is deemed to the second most largest globally. With labor distributed in all major industries in the country, one of these being agriculture, India can boast of significant economic stability. In addition to that, India is at position 10 in the World's top importers and the nineteenth largest exporter, with substantial imports being crude oil and machinery, and the significant exports including petroleum and textile products (Facts and Details India, 2018). India is therefore a country with suitable features for any business to flourish, thanks to its business friendly environment. To further determine the factors that make India a great destination choice for an international business, we will analyze the general features of the country to prepare the company for operating in the country.

Cultural and Economic Analysis

Geography:

Location:

India is situated in Southeast of Asia. It is hemmed to the Southwest by the Arabian and to the Southeast by the Bay of Bengal. The Indian Ocean borders India in it's Southern tip. The neighbors of India include China, Pakistan to its Northwest and Nepal to its Northeast.

Climate:

India, being a vast geographical area experiences diverse climates, thus making it hard to generalize a single climatic condition for all areas of the country.

However, the major climatic subtypes in India range from the arid regions in the west, humid tropical regions in the southwest and the glaciers in the Northern parts of the country.

Topography:

India lies above the Indian tectonic plate. The country is marked by a range of mountains, and a vast area bordering the sea. It is bounded by the great Himalayas to the north, stretching towards the South, to the Arabian Sea and the Indian Ocean to the West (Maps of India)

Population:

India is position seven of the largest countries in the world list. It is also the second most populated country. It has a probable residents of 1,210,193,422 people according to the 2011 census report. The population growth of India between 2001 to 2011 alone was 17.64%, which was a decrease from the previous decade. The same census points out tha the human sex ratio in the country at the time was 940 females per 1,000 males (Facts and Details India, 2018).

Language:

India is a country without a national language. Hindi, which has the most significant sum of speakers, and is used as the formal language of communication by the government. Other dialects used in India include English, Bengali, Telugu, Marathi, among others. There are 22 scheduled languages recognized by the constitution, with each state in the country having one or more official languages (FACTS AND DETAIL).

Religion:

The religion with most followers in India is Hinduism, with 79.80% of the population according to the 2011 census report. The second in the list is Islam (14.23%) followed by Christianity (2.30%), Sikhism, with 1.72% and Buddhism with just 0.70% of followers in the country. (Facts and Details India, 2018).

Social Institutions

Family:

In India, family is considered a vital part of society. They take the family to be more than the essential nuclear family, in such a way that even cousins are considered siblings, biological aunts and uncles are like parents while people outside the family are referred to as auntie and uncle. Indians treasure family values and traditions, and as a result, multi-generational patriarchal joint families are more common than the typical nuclear families. Most Indians give their consent to have marriage partners picked by their parents or other family elders (Facts and Details India, 2018).

Gender Roles:

Traditional gender roles are still practiced in India, with chauvinistic acts witnessed in most parts of the country. Indian men's sense of masculinity has been found to bring about cases of violence against their female partners. Many men in the country find it hard to treat women equally, with a survey showing that many men do not permit their wives to wear the clothes of their choice (Facts and Details India, 2018). However, several programs by the government as well as other non-governmental organizations have been established in the country to empower women and teach men the importance of respecting their female partners to bring gender equality.

Education:

Education in India is provided by public and private schools on a ratio of 7:5. Education is provided for free according to the Indian constitution and is a basic right for all children between the ages of 6 and 14. In 2011, 75% of Indians were literate (Facts and Details India, 2018). This progress in higher education enrollment has produced many professionals that have helped propel the country's economic growth.

Political System:

India is the most populated democracy in the world, an issue that many consider being problematic, but India has managed to maintain a stable government over all its citizens. India is a multi-party parliamentary republic. The country's constitution was adopted in November 1949 and was effected in November the following year. The system defines the president as the head of the executive constitutionally, but the Council of Ministers and Prime Minister and hold the real executive power (Dreze & Sen, 2009).

Legal System:

The judiciary in India is an independent entity, not federal in structure. The highest court in India is the Supreme Court of India, which decides the legislative powers as written in the Constitution (Dreze & Sen, 2009). There are High Courts in every state in the country.

Social Organizations:

India has seen a rise of several communities and other non-charitable organizations aimed at improving people's lives as well as empowering them. Many international NGOs such as the Red Cross are also present in the country (Dreze & Sen, 2009).

Ethnic Groups:

Being a vast and highly populated country, India is a country of diverse multiethnic people, with thousands of small tribal groups. This ethnic complexity is thought to be a result of a lengthy process of migration by the native tribes that also involved intermarriages. India is a country that is home to thousands of small ethnic and tribal groups. The most common ethnic groups in the country are Persians, Mongols, Scythians, Arabs, Afghans, and Turks (Facts and Details India, 2018).

Business Customs and Practices:

Indians are people who are strongly guided by their religions and cultures. Understanding some of these cultural practices and applying them in business dealings will go a long way in establishing reliable and durable business ties with them. Some simple methods like the mode of dressing, punctuality and how greetings are conveyed are essential when dealing with Indians. Indians also consider family and community as great parts of their society (Dreze & Sen, 2009). Therefore, showing respect and support for their community will earn a company favor in the eyes of the Indian business community. Participating in community programs and family gatherings is important both socially and business wise for Indians, and it is therefore for any company representatives to understand that (Dreze & Sen, 2009).

Economic Statistics and Activity:

Economic Situation:

To understand the atmosphere of a country in question, it is crucial to analyze its current financial state. India is expected to be among the top economic giants of the world in a span of a few years, given its fast economic growth over the past few years. India's GDP is projected to have improved by 7% in 2018-19. India has more than 4,500 technology, which are startups. Based on the rate of population growth, the country's labor force is also expected to grow significantly within a few years (Facts and Details India, 2018). Investment in the economic sectors in India is another factor that has led to economic its economic growth to the place it is now (Coca-Cola India, 2019).

India has also been on the limelight for being one of the nations that are planning on shifting to renewable energy sources. This will see an additional source of power supply for its industries. In addition to all this, it is essential to note that India is among the most significant consumer economy in the world and it is predicted that its consumption rate may even triple by 2025.

Report by PricewaterhouseCoopers

Working Environment:

The work culture in India is different from most parts of the world. India is a nation that respects hierarchies, a culture that is visible even in its business environment. People of different management levels in India are given different treatments (Dreze & Sen, 2009). Superiors may behave in ways that may seem degrading towards their employees and may be uncomfortable for foreigners; however, understanding it as a part of their culture may help ease things up.

Business Relationships:

Building strong business links based on trust and mutual understanding is an important step for a business to take when considering growing its operations in India. Identifying suitable business partners is also as crucial as establishing good relationships with other business personalities. A right partner will help a business adapt to the new environment and also help make a connection between the company and other stakeholders in the irrespective industry (Dreze & Sen, 2009).

Foreign Companies in India

As one of the world's fastest developing country, India has attracted investment from several large international companies. The country's large population means that there is a high demand for products as well as readily available human labor to work in these branches (Dreze & Sen, 2009). The following are examples of some of the foreign companies in India.

Apple INC

Apple INC is an American Multinational Company that was started in the year 1976. They are known for creating some of the greatest electronic devices in the market today from iPads, iPhones and MacBook computers. Apple has a vast market in India, with many Indians preferring their products over other rival companies. Apple's products are the most traded in India. The human resource in the country is another reason the company has established a branch in India, with a massive number of employees coming from the state. Apple has empowered the people of India through offering them job opportunities, and in return, it has increased its customer base in the region and made it easier to sell its products in the country by opening a branch in India.

Coca Cola

Coca-Cola is an American beverage company established in 1886 in Columbus. The company offers over 500 brands of their products in more than 200 countries around the globe (Coca-Cola Company, 2019). In addition to these brands, the company also offers other beverages such as waters, juices, nectars, tea and energy drinks. Coca-C...