...Accounting International Project Doing business in a particular nation requires a focus on a multi-dimensional understanding of its culture and business practices. Understanding those differences and adapting to them is the key. In such a richly diverse and complex country as India it is difficult to impart generic conclusions that can be used by those doing business there. Regionalism, religion, language and caste are all factors that need to be taken into account when doing business in India. Behaviour, etiquette and approach are all modified depending on whom you are addressing and the context in which they are being addressed. The business culture of India is a reflection of the various norms and standards followed by its people. Indians have various cultural yardsticks, which extend to their business culture too. Thus, it is important that a person visiting the country has an idea of the business culture of India. Thus, it is important that a person visiting the country has some basic idea regarding the business ethics and customs followed here. Having a good grasp on Indian business culture will ensure that you succeed in maintaining a well-earned affinity with your business counterparts. The following tips will give them an idea of the working and business norms in practice here. These form the basis of doing business in India as well as closely connected to risks of doing business in India. • The 'namaste' forms an important part of Indian...
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...Business and Negotiation Practices India 08 Fall Prepared by: Andrew B India: Business and Negotiation Tactics Facts and Statistics Location: Southern Asia Capital: New Delhi Population: Estimated 1.2 billion Government: Federal Republic Main 3 Religions: Hinduism, Muslim, and Sikhism Business Etiquette When entering business with people in India, the first important thing to understand is the hierarchy. Of all the cultural influences that affect the Indian business culture, hierarchy plays a key role. Indian society operates within a framework of strict hierarchy that defines roles, status and social order of its people. Dress Etiquette When dressing for a meeting it is important to know that business attire must be conservative. This means dark coloured conservative suits for men and conservative suits or dresses for women. Women are also expected to have proper hemlines and skin appropriately covered. Meeting and Greeting When doing business in India, meeting etiquette requires a handshake. However, Indians themselves use namaste, which is a Hindu greeting. This is the act where palms are brought together at chest level with a slight bow of the head. Westerners are welcomed to partake in this tradition as it shows a sign of their understanding of Indian etiquette. It is also important to know that genders play a role in greeting. Men are ok to greet other men with a handshake but are not to shake the hand of a woman. They are simply to acknowledge...
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...New Zealand Journal of Asian Studies 8, 1 (June, 2006): 17-40. DOING BUSINESS IN INDIA RODNEY SEBASTIAN ASHVIN PARAMESWARAN Australian National University FAIZAL YAHYA1 National University of Singapore In 1991, India’s closed economy opened up and attracted investments from several multinational companies (MNCs) around the world. As a result, people began to seek information about doing business in India, giving rise to a plethora of literature aimed at assisting them. Generally there are two prominent views of India. One is that India is a poor, under-developed country, lacking infrastructure and rife with religious superstitions, corruption and violence. The other is that India has an under-rated affluent and intellectual class, an advanced Information Technology (IT) sector and a rich culture. Neither view is entirely accurate. For those planning to do business in India, it is important that they are well informed of the real, complex situation in order to make calculated investments. Knowledge about doing business in India has to be constantly revised, updated and eradicated of biased or stereotypical views. A symptom of the maturity of this knowledge is recognition that the Indian business environment is amorphous. Conditions vary from state to state, industry to industry and region to region. This paper seeks to examine some aspects of this complexity and suggests how prospective investors could use the knowledge generated. Apart from Ramachandran’s (2000) acknowledgement...
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...Overview China and India provide vast opportunities for trade and investments in all major sectors. In the next few decades, China and India will join the U.S to become the three largest economies in the world. China and India will provide enormous upside potential for U.S. firms, as well as risks. Cultural System Doing business in a particular nation needs a multi-dimensional understanding of its culture and business practices. Understanding those differences and adapting to them is the key factor. India The Indian economy has been booming for the past few years. The country holds great promise for the future. The business culture of India is a reflection of the various norms and standards followed by its’ people. Indians have various cultural yardsticks, which extend to their business culture too. I found the following culture norms to be important: 1. “The ‘Namaste’ forms an important part of Indian etiquette and is generally used while greeting and saying good-bye. This gesture is performed by pressing the palms of both hands together (fingers up).” However, educated Indian men and women, who are acquainted with western customs, prefer shaking hands. Moreover, while greeting any individual use his or her title. To mark respect, you may also add a suffix ‘ji’ to the name of a person. 2. In India, companies follow a hierarchical system and the decision making is usually from the top to bottom. Business decisions could be at times time consuming, and International...
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...India, considered one of the biggest emerging markets in the world, is a country located in southern Asia with a population of over a billion people and its capital city being New Delhi (http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html.) The current leadership in India is implementing extensive changes to encourage international business in India, from privatization to the liberalization of trade (http://www.cyborlink.com/besite/india.html). India has more than fourteen major and three hundred minor languages, but the official language is English and Hindi. The Indo-Aryan ethnic group makes up seventy-two percent of India’s population, with 25 percent Dravidian and 3 percent Mongoloid and/or other (“Country Profile: India”). The market opportunity’s this country brings is enormous; the majority of this country is surrounded by water, thus making trade an appealing aspect. Furthermore, the country itself has a very abundant supply of raw materials with an improving rail system and India holds a very stable parliamentary government (“Country Profile: India”). In the following summary, I will provide you with greater understanding on how India’s business environment works and the benefits this country can bring to a company wanting to expand their foreign operations. The country of India has common laws with a written constitution ensuring the rights of individuals and property. Invasion of privacy by people is not spoken of in the...
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...Nova Southeastern University H. Wayne Huizenga School of Business and Entrepreneurship MGT 5012– Twenty First Century Management Practices Date of Submission: March 17, 2013 Title of Assignment: Managing Cultural Diversity Syllabus: MGT 5012- 21st Mgmt Practices 26 Over the years, the workforce has grown to have diverse groups of people working together. Diversity is defined as the differences or dissimilarities among people. These differences can be age, gender, race, ethnicity, religion, sexual orientation, education, experience, and any characteristic used to distinguish between people. (Jones, 2011) To understand the present, a look at the history of diversity in the workplace will be discussed. I will research and discuss the cultural diversity and how managers today have evolved over the years to learn how to handle it. I will discuss certain steps that managers can take to effectively manage the diversity in their workplace. I will look into the business etiquette and protocol of countries like the United States, Mexico, and Japan. I will also look into where these countries fall on Hofstede’s model of national culture. I will also discuss why it’s important for mangers to learn about a culture they are not familiar with when doing business to make sure they don’t offend the other person or company. History of Diversity in the Workplace The workforce slowly changed after World War II as a growing number of minority groups began to speak up and demand...
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...The Influence of Culture on Business in India and the Middle East Columbia Southern University Abstract The paper presents an overview and analysis of impact of culture on doing business in India and the Middle East. The topics addressed include (a) background, (b) cultural characteristics of India and the Middle East and a (c) conclusion. The Influence of Culture on Business in India and the Middle East The paper presents an overview and analysis of impact of culture on doing business in India and the Middle East. The topics addressed include (a) background, (b) cultural characteristics of India and the Middle East and a (c) conclusion. Background In the Classification of Cultures Model, India and the Middle East share many cultural similarities. They live under a clan or tribe concept, where family is the highest priority and establishing relationships is put ahead of task accomplishment. Time must be spent developing a relationship with the decision makers or those who can provide access to the decision maker and they use a nonlinear approach to relationships and problem solving (Schuster & Copeland, 2006). Understanding these cultural aspects will promote successful business activities. Analysis of Indian Culture India is a patient country with a high tolerance for the unexpected and punctuality is not a high priority (Hofstede Centre, n.d.). Companies typically follow the hierarchical system and decisions are made at the top, which is often time consuming...
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...labor cost is low in Bangladesh. The whole manufacturing process will take place in Bangladesh. On the other hand, India and China will mainly provide technology, idea, R&D and special equipment (if required). We have decided to go for joint venture, rather than exporting because, joint venture provides companies with the opportunity to gain new capacity and expertise. It will allow us to enter new geographic markets, that is, India or China and gain new technological knowledge access to greater resources, including technology and sharing of risks with them. China and India is not an easy market to enter, as from geographic point of view, they are vast and also they possess a total different culture. Again, it will be difficult for us to monitor and sustain. So, by joint venture, we will be able to penetrate their market and also to their culture easily and quickly through them as they already have enough knowledge about their market. EXTERNAL ANALYSIS – PESTLE ANALYSIS THE PESTEL ANALYSIS OF INDIA Political: (Stable) After researching the taxation and government policies, it can be said that India is politically stable and it will not upset doing business or growth of the company. India has an open system for the foreign entry. But sometimes the country faces ups & downs in the political sector. Tax rate in India is 30% for Indian companies and 40% for foreign companies. The foreign investments are highly encouraged as 100%...
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...International Business and Cross-Cultural Management CASE STUDIES 1. Lecture 2 Doing Business in Saudi Arabia Read the case Doing business in Saudi Arabia and answer the following questions . (a) Has religion been the main factor shaping Saudi culture, or are other factors at work here? What are those factors, and how important do you think they are? (b) Do you think that business practices in Saudi Arabia are likely to differ from business practices in Germany, and if so how? 2. Lecture 2 Matsushita’s and Japan’s Changing Culture Read the case “ Matsushita’s and Japan’s Changing Culture” and answer the following questions (a) What were the triggers of cultural change in Japan during the 1990s? How is cultural change starting to impact on traditional values in Japan? (b) How might Japan’s changing culture affect the way Japanese businesses operate in the future? What are the potential implications of such changes for the Japanese economy? (c) How did traditional Japanese culture benefit Matsushita during the 1950s-1980s? Did traditional values become more of a liability during the 1990s and early 2000s? How so? (d) What is Matsushita trying to achieve with human resource changes it has announced? What are the impediments to successfully implementing these changes? What are the implications for Matsushita if (a) the changes are made quickly or (b) it takes years or even decades to fully implement the changes? 3. Lecture 2 McDonald’s and Hindu Culture . Read the case...
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...introduction Officially identified as the republic of India, India is the seventh largest country in tern of area and the currently the second most populous country with over a billion people residing in the region, as a democratic country after the British rule, the Indian culture plays a major role in the development and operational structure with regards to its economic development. Language, food, religion, architectural structure and the overall way of living is primarily influenced by their culture orientation which is made up of several culture from the Indian subcontinent over a long period of time implying their strong view of culture in every practice including business and commercial activities. The economic environment in India is fast paced in terms of development however its full potential is not met and the reform by the government has been limited, the institutional shortcomings continue to undermine the current level of development, therefore consideration of investment in India should not be limited to the overall outcome but critically valued. In recent decades India has been largely viewed as an outsourcing destination where companies from other countries mainly ones that has high cost of labour, move their businesses with the aim of cost reduction through the transfer of work, given the high population in the country the average level of graduates will be high, so the ability to transfer educated graduates who speak fluent English is in high supply and...
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...Political and Legal Environment Independence: 15th August 1947 (British colonial rule) System: Federal Parliamentary Democratic Republic Legislature: Bicameral legislature (upper house- states of India; lower house- people of India) May 2014 Election: Bharatiya Janata Party claimed majority, brought back single party rule. Trade Agreements: India-Sri Lanka Free Trade Agreement, India-Nepal Trade Treaty, CECA, ASEAN Political and Legal Environment Independence: 15th August 1947 (British colonial rule) System: Federal Parliamentary Democratic Republic Legislature: Bicameral legislature (upper house- states of India; lower house- people of India) May 2014 Election: Bharatiya Janata Party claimed majority, brought back single party rule. Trade Agreements: India-Sri Lanka Free Trade Agreement, India-Nepal Trade Treaty, CECA, ASEAN Future Political and Economic Agenda * Improving foreign investment climate * Developing a comprehensive WTO strategy * Reforming agriculture, food processing, and small-scale industry * Eliminating red tape (excessive regulation or rigid conformity to formal rules) * Instituting better corporate governance * Accommodating an additional 10 million urban dwellers each year is a strategic policy issue. Future Political and Economic Agenda * Improving foreign investment climate * Developing a comprehensive WTO strategy * Reforming agriculture, food processing, and small-scale industry * Eliminating...
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...October 12, 2009 Doing Business in India The seventh largest country in the world and the second most populated country in the world is located in South Asia. This country is known as India. India consists of different states which speak different languages. Hindi is considered to be the official language by the government. India has different cultural beliefs, values, religions, and politics that allow it to stand out from its neighboring and surrounding countries. India also sets itself on different standards in regards to handling business. When handling business in India, English is the language used. More Americans are seeking to do business in India. This paper will explore the different values that India stands upon in the business world to include, proper greetings, gestures, and professionalism. Avoid scheduling meetings on or near a national holiday in India. Punctuality for meetings is not a priority of Indians. If you are fifteen minutes late, it will be hardly noticed. When entering a meeting, a handshake is appropriate for greeting a male business associate. Shaking hands with a woman is not recommended unless it is initiated by the woman. If you feel as if a handshake is improper, it is safe to use Namaste. This is a traditional Indian greeting where the palms are brought together at the chest with a slight bow of the head. The meetings should first start off with some type of conversation. Do not expect to get straight into business. Indians like to take...
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...1 BUSINESSES LOCATED IN INDIA Course Project Business Security and Globalization of Multinational Businesses Located in India John Doe Professor Juan Vigil GM594 – Global and Domestic Security Management Keller Graduate School of Management June 10, 2012 2 BUSINESSES LOCATED IN INDIA Abstract This paper will outline the background of the country of India to its present day. This will include a brief discussion on how the country has become an attractive location for businesses to establish a global footprint. In doing so, there are many aspects that must be considered when setting up a business of operations within India. Business security and what can be experienced when a business finally decides to take the step. This includes aspects of local governments, local culture, and employee pool, just to name a few. Then, there is the risk associated with doing business in India once the operation is established. This can include terrorism, government conflicts, and employee concerns. While there is a large list of security concerns for a business to consider before making this type of commitment, many can be avoided or at least minimized through proper planning. I will discuss solutions that can be implemented to reduce the amount of risk associated with the security adversity when establishing a global business within India. 3 BUSINESSES LOCATED IN INDIA Business Security and Globalization of Multinational Businesses Located in India Introduction Businesses...
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...India’s Culture India’s culture has been evolving for more than five thousand years. It began with the start of human civilization. It’s a reflection of human history that carries with it a story of great people and amazing history. Indian culture uses rich and beautiful colors in all aspects of life, whether you see it through rugs and paintings, or through textiles and architecture. “The Indian culture is rooted in colorful traditions that date back to ancient history.”( Kohler, 2000-2011) A civilization known as Harappa, created a religion that is considered the oldest living religion. We know this religion as Hinduism. “India has traditionally been one of the most religiously tolerant in the world.”( Robinson, 2012) “However in 1998, a Hindu nationalistic political party the Bharatiya Janata Party (BJP) controlled the government of India. The linkage of religion, the national government, and nationalism led to a degeneration of the separation of church and state in India and a decrease in the level of religious tolerance in that country.”(Robinson, 2012) An increase of anti-Christian violence was one result of this linkage. With the later change in government, the level of violence has gone down, and India is a country of relative religious tolerance and peace. Culture and food go hand and hand in India. Indian food represents the family and community connecting and sharing socially. “Indian dishes are commonly cooked with distinct spices and herbs that awaken your senses...
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...(1)Indian government traditionally undervalue the business activities. Politics and leisure are gained more value than work. While in U.S., American dream emphasis on working hard for personal value, business and politics gain the same social respect. (2)India has many political and legal issues with foreign investors. Indian law to some extent is ambiguous when handling the lawsuits with foreign investors,which may have been the reason causing problems for Coke’s operations in India。 (3) Both countries may have different ways of doing businesses. Foreign investors should consider the fact that every culture is different and they need their own practices (polycentric), if Coke still thinks its American style of business operation is better and practices it in India(ethnocentric), the consumers in India will regard those practices as wrong and inappropriate. This could also have been the reason why India blame on the water contamination and shortage caused by Coke. As the Indian people interpret silence as guilt, thus the representatives of Coke should response quickly: firstly, to apologize for the destroying of water resources in India, and then do some compensation for the local people. secondly,find ways independently or Corporate with authoritative NGOS to solve the problem.It is very important for Coke to built good reputation and consumer loyalty in international market. thirdly, learn from what Pepsi does: doing CSR such as digging village wells, trying best...
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