Business In India

COMPARATIVE BUSINESS CULTURES
“DOING BUSINESS IN INDIA”

The purpose of this essay is to evaluate the suitability of companies for going global. Nowadays, as it is known, globalization is an important issue in business world, theinterconnections among countries all over the world develop the need of create new firms which embrace more than one market. Many companies choose to go internationaland go overseas for specific reasons, as growth and expansion.
There are some points that should be highlighted, as the following. The action of developing a business in other countries provides a remarkable growth based on new products introduced, what it means to build shareholder value and new brands, while wages and revenues will be increased too. Then, the search of international employees;the way firms look for lower-cost manufacturing, technology assistance and anything that gives this company a competitive advantage over the others. Another one could be that the main goal is to increase revenues sources and get growth markets. Current companies are trying to set up their projects in areas which can provide enough resources, because some of these searched resources cannot befounded at any place. These ideal places allow firms to leverage existing supply chains or corporate technology.
How companies move from one location to another is part of their own strategy based on corporation values. An international strategy will help diversify and expand businesses. These strategies can be separated in two categories, strategic in nature or reactive strategies, depending on thenature of them. For instance, a reactive strategy can be focused to acquire new knowledge, how can our firm make the difference? Customers feel the need of specific products and services which many times are in the other side of the globe; the goal of that kind of companies is to serve and satisfy customers. To make it happen, companies should study different backgrounds and cultures, those couldgive us fresh ideas.
Innovation and diversification will always be profitable. A smart step will be to focus enterprises in many countries, it can help the company when economic or political instability emerge in some of these countries.
As a result, companies tend to organize themselves in partners or groups. Nowadays, International Joint Ventures (IJVs) have gained significance. IJVsrepresent the strategic alliances emerged as a way of gaining competitive advantage through technologies, innovated ideas, capital, resources, people, etc. As we mentioned before, globalization is present in our daily life and the knowledge expansion overseas is nothing new. IJVs make this knowledge or technological transfer easier.
There are some basic elements which characterized an International JointVenture.
* IJVs are often established by express contracts, these are possible because two or more organizations share a specific purpose, so their contracts are built by the same agreements. For that reason, contracts between International Joint Ventures are often dealt for a short-term, but it does not meaning that long-term contracts cannot take part of this.

* IJV participantsshare a common expectation so every single part contributes property, cash, capital or assets for the achievement of that goal. Each part deployed the considered assets, after all financial and intangible goals will be a total.

* As the above point, IJV participants share profits and losses, whatever they are financial or intangible. Few times, depending on the issue, management and control arelead together by the alliance.

International Joint Ventures facilitate almost all approaches fixed by companies which are going global. But, global markets also lead to problems along the way. Before expanding into new regions, business must study how they can develop the action.
Which advices should be given to a business person who wants to get involved in India? Complexity and diversity...