...Summary Kohl’s Corporation currently does not do business in India. Kohl has opened their first store in Brookfield, Wisconsin back in 1962. Today Kohl’s operates approximately 1,160 family-oriented department stores in the United States and is now trying to establish its business in India. According to Kohl’s .com Investor relations, the company is involved in retail trading of merchandise in different forms. The company position is between the higher-end department stores and the discounters, selling everything from candy to engine oil to sporting equipment. Kohl’s stores are stocked with everything customers need for themselves and their homes - apparel, shoes & accessories for women, children and men, plus home products like small electrics, bedding, luggage and more. Kohl’s is a retail-trading business that would be a good fit entering into the Indian Market. India as a country is improving year after year in many phases and the economy of India has improved dramatically over the last decade. Because of the improvement’s year after year, India may establish itself as one the best economies going forward. The population of India is estimated to increase by 283,272,877 (22.4%) to 1,550,674,726 in the year 2100. (Blue Marble Citizen, n.d.). as the population grows, the income levels for people have gone up and they will spend more money in such merchandise that kohl’s offer. The income levels of people in India have come up because of the good numbers of employment generation...
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...Best Buy enters India by Francisco Polo Professor Hamid Assar International Finance – FIN535 May 22, 2012 Summary Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Puerto Rico, Mexico, Canada and China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates under both the Best Buy and Future Shop label. Together these operate more than 1,150 stores domestically and internationally. In addition, the company operates over 100 Best Buy Express Automated Retail stores or "ZoomShops", operated by Zoom Systems, in airports and malls around the U.S. The company is headquartered in Richfield, Minnesota, United States. On March 9, 2009, Best Buy became the largest electronics retail store (online and bricks and mortar) in the eastern United States, after smaller rival Circuit City went out of business. Fry's Electronics remains a major competitor in the western United States, while Hhgregg remains competitive in the eastern United States. Many locations feature in-store pickup, which can be arranged through the company's website. As of December 28, 2008, the company operated 1,010 Best Buy Stores, 13 Magnolia Audio Video Stores (specializing in high-end electronics), 7 stand-alone Geek Squad stores, 3 Audio Visions Stores, 13 Best Buy Mobile Stores (standalone) and...
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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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...Professional University, Phagwara, Punjab, India Neeraj Gupta, Lecturer, School of Business, Faculty of Business & Applied Arts, Lovely Professional University, Phagwara, Punjab, India. Rajan Girdhar, Research Fellow, Faculty of Business & applied Arts, Lovely Professional University, Phagwara, Punjab, India. ABSTRACT With increasing globalization and international trade, a number of international brands are entering into India which is one of the fastest growing and highly competitive markets in the world. Though, most of the global firms failed to understand the needs of Indian consumers as well as the market characteristics but there are a few of them who have been successful in positioning their brands into the Indian market because they attempt to understand well the needs of target group before introducing a brand into the market. Even some of the most successful brands in today’s time had committed several blunders or mistake while initially entering into Indian market. For instance, Kellogg’s, McDonald’s, LG, Reebok and Coca-Cola are among such global brands who initially introduced standard products by following standardized global strategies but later realized their mistakes and thus modified their product or services according to the needs of Indian consumers and became successful. This research is an attempt to investigate why some international brands, that are successful globally, fail to attract significant market share in India. Keywords: Globalization, Global brands...
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...corporate debt restructuring (CDR) scheme, which came into effect from January 2003. The CDR bought us time to focus on operations. We shed manpower (about 1,000 employees), cut production costs, sold our ships and some land. ANU AGA P68 business. We recognised – much ahead of the competition – that rural India would become a key growth driver. A blueprint was chalked out to target this consumer class and widen our distribution footprint in the hinterland, a move that is paying dividends even today. While launching new products and upgrading packaging to remain contemporary, I felt it was also time to expand our horizons and took on the MNCS on their home turf and in overseas markets. This was a big game-changer for Dabur. Before 2000, Dabur’s overseas business was limited to exporting a limited number of products for the Indian diaspora in select markets. We felt DABUR INDIA BREACHING BORDERS THE CASE Bought companies with debt. Could not repay when cement prices crashed BY SUNIL DUGGAL THE CASE Despite high demand for consumer products, Dabur was not able to grow THE STRATEGY Outsourced non-core businesses. Entered new categories. Targeted rural India. Expanded overseas THE STRATEGY Opted for a corporate debt restructuring scheme. Cut costs. Sold some assets. Went in for a GDR issue Extraordinary situations demand extraordinary measures. So, in September 2005, we made an audacious move, coming out with a Global Depository Receipts...
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...again to another developing country looking for low costs for different activities but that do not need to be specialized. One thing that is important is that global companies do not look only for work with low cost, for them is important that the new country where they are going to invest have potential for future expansion or at least a good infrastructure and be available to implement technological advances; all of that to help to save time and money. We can conclude that what multinational corporations have imposed as tendency in the human capital is make the lowest effort and investment for the better results with fewer compromises. * What are the effects of the Indian government policies on the Indian BPO industry and on MNC decisions regarding locations for outsourcing jobs? At first, after the middle 90’s, where BPO industry started to grow, government...
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...Coca-Cola in India 1. What aspects of U.S. culture and of Indian culture may have been causes of Coke’s difficulties in India? Something that could have been a problem right from the start is communication. Countries have different ways of communication, and something could be translated completely opposite of what was meant. Communication problems could have been a cause of the problems in India. Also, the different styles of communication could have been an issue because the United States and India do not use the same styles. Another big problem is that something could be accepted in India and be completely wrong in the United States. What some people don’t understand is that every culture has their own way of doing things, and their own “rights and wrongs”. This is where businesses need to decide whether they are going to keep their rules and regulations and bring them into the foreign country (ethnocentric). Or, they need to consider the fact that every culture is different and they need their own practices (polycentric). Whichever way the business decides could bring up problems because if they do us the polycentric approach, then consumers living in the home country are going to see their practices as wrong, when indeed the company is allowing their cultural ways to occur. 2. How might Coca-Cola have responded differently when this situation first occurred, especially in terms of responding to negative perceptions among Indians of Coke and other MNCs? Coca-Cola...
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...International Business- Dr. R. Chandran 1. International Business: Meaning And Scope Interdependency is a natural phenomenon; nations, living beings and companies cannot totally depend on themselves. It is the major driving force for international business. Learning value: This chapter covers the essential aspects, 1. 2. 3. 4. 5. Definition of international business Emergence of developing nations in international business Motives of international business from companies and nations Fundamental differences between Domestic and International business Few successful organizations in Domestic & International business International business: Meaning and Scope In the post independence era, more than half-century Indian entrepreneurs concentrated on domestic operations and a surplus production was exported. The physical movement of goods, called EXPORT cannot represent International business. International business is defined as “any commercial transaction-taking place across the boundary lines of a sovereign entity”. It may take place either between countries or companies or both. Private companies involve themselves in such transactions for revenue, profit and prosperity. If governments are involved, they need to maintain their image, dependency and economic growth. Sometimes economic ties are strengthened through such transactions. These transactions include investments, physical movements of goods and services, transfer of technology and manufacturing. Today every company...
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...really the King in India? · Commercialization of Health Care: Good or Bad? · Is there any Point in having a Business Strategy when the World changes from Month to Month? · Is the Patents Bill Good for India? · Is the Business of Business only Business? · Public Sector being a Guarantor of Job Security is a Myth · Capitalism is a very Flawed System but the others are so much worse · How can a Business get rid of the Bad Name that it has earned? · Government Pumping Money into the Economy is not the Solution for our Economic Problems · Is the Budgeting Exercise of any Use? · Should Agricultural Subsidies be stopped? .Entrance Exam – An evil .Pros n cons of winning lottery .Women bill · Is MNCs Superior to Indian Companies? · Advertising is a Waste of Resources · Should India break Diplomatic Ties with Pakistan? · Should businessmen run the finance ministry? · Should important services like transport be left to market forces?. · Who says MNCs are superior to Indian companies? · What we need to reduce scams is better regulatory bodies. · Trade can help the poor? .Women Entrepreneurs in India . Importance of Investment .Essay on SME .Banks play a vital role in day to day life .Women security at the workplace a deep concern .Inclusive growth · Water resources should be nationalised · Are Co-operatives Relevant in Today’s Global Environment? · Indian villages – our strength or our weakness? · Space Missions are a Wastage of Resources for a Resource-Starved Nation like India · Satyam Scandal...
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...India is the second most populated country in the world, with nearly one billion people. It has a reasonably favorable pro-business environment that aims to attract multinational companies (MNCs). Because of this enormous market size and positive business climate, scores of American firms--including General Electric, General Motors, McDonald's, Kellogg's, and Microsoft--have recently entered the Indian market. As a result, the country has forged strong commercial interests with the United States, with trade and business relations across many industrial sectors. In fact, the U.S. is India's leading source of technology and her most valuable investor. However, any company that desires to enter the Indian market must realize the serious challenges of doing business there: segmenting the marketplace properly, understanding the country's economic and political situations, getting through the government bureaucracy, and understanding deep-seated cultural biases and attitudes. It is hoped that a discussion of the Indian marketplace in terms of market potential, culture, consumer behavior, and selling aspects can add to other articles published recently in Business Horizons* and aid MNC executives in facing those challenges successfully. Sprinkled with numerous success tales and war stories, the discussion offers insights gleaned from a survey of Indian businesspeople (shown in the Sidebar on the next page)--insights that can help provide a reality check on the Indian market potential...
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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...
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...Case Study: Coca-Cola in India- 1. First of all, Americans and Indians use different language. Because of this, sometimes Coca-cola might make some mistakes or Indians might misunderstand what Coca-Cola wants to convey to them. In addition, unlike Americans, most of Indians are poor; water might the only beverage which they can drink. Therefore, they don’t care Coca-Cola improve the quality of the coke bottle or not. They only care their water. Finally, there are different ways and styles of communication in each country. Americans’ communication styles are more direct. However, Indians are conservative and indirect. 2. First, Coca-Cola should apologize for the destroying of underground water in India, and then do some compensate for the villagers, such as spring water or other marketing strategies in that area like PepsiCo did. Secondly, find ways to solve the problem because Coca-Cola still needs the market in India. Promise not to destroy environment anymore. It is very important to MNCs to built good reputation. 3. Firstly, Coca-Cola should change its style of advertisement to fit the Indian culture. Furthermore, the package can add some Indian cultural factors to show Coca-Cola pays more attention on Indian market. 4. First, Coca-cola and PepsiCo can offer a low price to the market of developing countries and conduct some activities during these countries’ traditional festivals. These strategies can show how willing they are to attend the...
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...Industry Analysis Report FMCG March 11 2014 Submitted By: Ankur Nag – P301412CMG388 Ansuman Singh – P301412CMG340 Ashish Khandelwal – P301412CMG349 Habib Khan – P301412CMG365 Lalatendu Pattnaik – P301412CMG377 Industry Analysis Report FMCG 2014 Contents 1. INDUSTRY PROFILE ........................................................................................................................................... 4 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2. Sector Overview ............................................................................................................................................... 4 Sector Size ........................................................................................................................................................ 4 Major Segments in FMCG Sector ...................................................................................................................... 6 Competitive landscape ...................................................................................................................................... 7 Supply & Demand and-side Drive .................................................................................................................... 9 Porters‘ Five Force Model .............................................................................................................................. 11 Critical Success Factors .....................................................................
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...Abstract India is a complex nation with a rich history and years of diversity. With the rise of the global economy over the last century, it is safe to say that the country has become a major multi-national player. Although outsourcing to India has been a trend since the early 90’s, the country also has a growing local economy that is primed for investment should the right opportunity arise. However, not just any company can invest in or partner with India. Because India is rich in tradition and very slow to change its views, it will take a savvy, experienced investor with a team of managers willing to take on the task of creating a successful partnership with a country whose past has been riveted with corruption and a caste system that tends to hold its citizens back from improvement. A Multi National Corporation (MNC), with the right resources, will be able to benefit from the positive attributes of the developing country while at the same time contributing to the reduction of poverty and improved lifestyle of local citizens. Q#1. What are the major elements and dimensions of culture in this region? Communication The dimensions of culture can be summed up in a few points: communication, religion, ethics, values and attitudes, manners, customs, social structures and organizations, and education. Beginning with communication is perhaps the most important aspect of culture for a business manager to address. In Cross Border Commerce, author Brian Satterlee quotes John...
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...sector into sub-sector in india show that High percentage of cultivable land Diversified nature of the economy Huge English speaking population, availability of skilled manpower Stable economy, does not get affected by external changes Extensive higher education system, third largest reservoir of engineers High growth rate of economy Rapid growth of IT and BPO sector bringing valuable foreign exchange Abundance of natural resources Weakness Very high percentage of workforce involved in agriculture which contributes only 23% of GDP Arround a quarter of a population below the poverty line High unemployment rate Stark inequality in prevailing socio economic conditions Poor infrastructural facilities Low productivity Huge population leading to scarcity of resources Low level of mechanization Red tapism, bureaucracy Low literacy rates Unequal distribution of wealth Rural-urban divide, leading to inequality in living standards Opportunities Scope for entry of private firms in various sectors for business Inflow of Foreign Direct Investment is likely to increase in many sectors Huge foreign exchange earning prospect in IT and ITES sector Investment in R&D, engineering design area of biotechnology Huge population of Indian Diaspora in foreign countries (NRIs) Area of Infrastructure Huge domestic market: Opportunity for MNCs for sales Huge matural gas deposits found in India, natural gas as a fuel has...
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