...“The effects of FDI on the Indian Insurance Industry” Abstract Chapter-1 1.1 Introduction In the world of increased competition and rapid technological changes, globalization has played a complimentary role over the past years. Globalization has encouraged more and more multinationals to adopt FDI. According to Charles W.L. Hill (1998) “FDI occurs when a firm invests directly in facilities to produce and market a product in a foreign country”. The growth of FDI is more than the growth of world trade and world output so role played by FDI in world economics is very vital. Patterson, N. and Montanjees, M. (2004) say that FDI is the most favoured form of external finance for the reason that it is non-debt creating, non- volatile and the outcome depends upon the projects performance initiated by investors. FDI is advantageous because it facilitates international trade and transfer of technology, knowledge and skills. The purpose of this study is to investigate factors that attract FDI. De Mello (1999) asserts that scope for business in a country, opportunities for expansion, market size etc are some of the factors that attract FDI. Growth rate of a company or an industry leads to magnetism of more and more investment as investors know that their investment is safe enough. According to Dunning, J. (1981) Availability of valuable and unique resources in an industry such as cheap production capacity, cheap skilled labour and advanced technology which are necessary for running...
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...& SUPPORTING INDUSTRIES 7 2.5 FIRM STRATEGY, STRUCTURE & RIVALRY 7 3.0CONTEMPORARY MANAGEMENT ISSUES 8 3.1 CORPORATE SOCIAL RESPONSIBILITY 8 3.2 CORPORATE GOVERNANCE 10 4.0 MARKET ENTRY STRATEGIES 11 4.1 JOINT-VENTURE 11 4.2 DISTRIBUTION SYSTEM 12 5.0 CONCLUSIONS 13 6.0 REFERENCES 14 1.0 INTRODUCTION The purpose of this paper is to discuss and evaluate the attractiveness of the food retail industry in India. Research on the Indian food retail industry will be executed to construct an analysis of the overall competitiveness and investment attractiveness. In Part 1, the researcher will apply the extended version of Porter’s National Diamond (PND) model to the Indian food retail industry. In Part 2, two key management issues will be taken into account and analysed before developing any further operations into the Indian food retail industry. In Part 3, two market entry strategies will be selected, compared, and discuss the advantages and limitations of each to determine the optimal strategy to be implemented in regards to the Indian food retail industry. 2.0 Part 1: PORTER’S NATIONAL DIAMOND ANALYSIS India has experienced significant social and economic change as of late, enabling a solid consumer market for foreign retailers. According to UNICEF, the Indian economy has been booming, with an average GDP growth rate of 4.5% from 1997 to 2007 (Mann & Byun, 2011), and is anticipated to be the world's third greatest economy after the USA and China by 2050. When...
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...Ateneo De Zamboanga University School of Management and Accountancy CASE ANALYSIS “Starbucks Coffee Company: The Indian Dilemma” Prepared by: Barbaso, Jan Paulo E. Bejerano, Hyacinth Vienne A. Deogracias, Scepter Jr. O. March 14, 2014 Background of the Case With a rich history, in 1994, Starbucks Coffee Company was formed and Howard Schultz became its President. Since then the company was the number one coffee retailer and continuously expands its business globally. It pursued international expansion with three objectives in mind: to prevent competitors from getting a head start, to build upon the growing desire for Western brands, and to take advantage of higher coffee consumption rates in different countries. And so seeing that the Asian market is in its developmental stage, it took this opportunity to be a leader in a new industry and so it concentrated its expansion efforts mainly in Asia starting with Japan and China. In 2002, Starbucks announced for the first time that it was planning to enter India. Later it postponed its entry as it had entered China recently and was facing problems in Japan. In 2003, there was news again that Starbucks was reviving its plans to enter India. In 2004, Starbucks officials visited India but according to sources they returned unconvinced as they could not agree on an appropriate partner for its entry. A statement coming from Starbucks said that “Without sounding arrogant, we are looking at our own strategy. There is nothing...
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...strategy to enter into new markets to gain competitive advantage through shared knowledge, resources and experience. Many companies have found it very comfortable to adopt IJV ahead of other entry strategies to enter into international market. There has been a wide range of researcher conducted in the area of international joint venture that highlights various factors and motives identified across the world. With larger companies adopting joint venture into international market it has become very critical to conduct research to identify the parent company motives to adopt this strategy and the benefits and challenges faced by the these companies. This dissertation is an effort to bring out the theoretical background of the concepts of international joint venture and its application in the industrial practices across the globe. The research will present the information and proceedings in systematic chapters that will explain the design, methods and analysis apart from its conclusion report. 1.1 Background of the Joint Venture: Summarizing the background of the research topic is very critical in understanding the research background. To start with we need to learn the meaning of joint venture. Beamish (1998) has defined the international joint venture as the venture between a foreign company and a domestic company from the place of operations to promote business. Geringer & Hebert, (1989) believed the venture to be international if their business arrangement owns a higher...
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...and Acquisition Performance: An Investigation of Select Financial Sector Organizations in India Dr. Neena Sinha Associate Professor, University School of Management Studies Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi, India Tel: 91-98-1805-6810 E-mail: dr_neenasinha@yahoo.com Dr. K.P.Kaushik Professor, National Institute of Financial Management Sector-48, Pali Road, Faridabad-121001, India Tel: 91-93-1236-0874 E-mail: kp_kaushik@hotmail.com Ms. Timcy Chaudhary (Corresponding Author) Research Associate, University School of Management Studies Guru Gobind Singh Indraprastha University, Kashmere Gate, Delhi, India Tel: 91-98-1856-8903 Abstract E-mail: timcy9@gmail.com The present paper examines the impact of mergers and acquisitions on the financial efficiency of the selected financial institutions in India. The analysis consists of two stages. Firstly, by using the ratio analysis approach, we calculate the change in the position of the companies during the period 2000-2008. Secondly, we examine changes in the efficiency of the companies during the pre and post merger periods by using nonparametric Wilcoxon signed rank test. While we found a significant change in the earnings of the shareholders, there is no significant change in liquidity position of the firms. The result of the study indicate that M&A cases in India show a significant correlation between financial performance and the M&A deal, in the long run, and the acquiring firms were able to generate...
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...in international marketing strategy and how might this influence the market entry strategy adopted by a firm seeking to enter overseas markets? Use relevant and recent examples to illustrate your report. Your response should be in the form of a written report of between 1500 - 2000 words. Name: Jamie Allen Module: International Marketing Strategy Tutor: Paul Matthews Submission Date: 29th April 2013 Confidentiality: I have read, understand and adhere to the KOL Confidentiality Policy. Click here to access the KOL Confidentiality Policy. Academic Integrity Statement: I have read and understood the Academic Integrity guidelines for Kaplan Open Learning and the University Of Essex, and declare that this assignment conforms to all of the rules and regulations contained therein. Please note: the guidelines can be found in the Student Handbook (see section 6.4). Assignment Checklist Please make sure you have completed the below points before submitting your assignment: • Spelling and grammar check • Referencing completed • Word count fulfilled • Proof read completed • All parts of the question answered Introduction The purpose of this report is to discuss the relevance of customisation and standardisation within international marketing, and how that will have a bearing upon a market entry strategy by a firm who wishes to enter a foreign market. Firstly the definition of the customisation-standardisation debate...
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...Topic: Apply the Porter's five forces model on Automobile Industry and analyse the attractiveness of the Industry for Investment purpose Evolution of Porter's Five Forces Model Five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. Michael Porter is a professor at Harvard Business School andis a leading authority on competitive strategy and international competitiveness.Michael Porter was born in Ann Arbor, Michigan. Five forces uses concepts developing, Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition". Introduction Five Forces Model by Michael Porter Five Forces model of Michael Porter is a very elaborate concept for evaluating company's competitive position. Michael Porter provided a framework that models an industry and therefore implicitly alsobusinesses asbeing influenced by five forces.Michael Porter's Five Forces model is often used in strategic planning. Porter's competitive fiveforces model is probably one of the mostcommonly used business strategy tools and has proven its usefulness in numerous situations when exploring...
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...Introduction: Stock brokerage firms have been an established feature in the financial industry for nearly one thousand years. Dealing in debt securities, brokers employs a variety of systems to aid investors with the purchase and sales of stocks and bonds in a variety of markets. The firms have changed over the years, growing to massive organizations that can affect the entire financial sector positively or negatively with their performance. Changing with the times, the early twenty-first century saw a rise of online trading that enabled the average investor to take part in the stock market for the first time. History of stock brokering industry: The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of the BSE in 1875. Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. The stock broking duties are now mostly taken up by major organizations and companies with greater skills and expertise along with customized services. Though the services of stock broking firms are customized they can by the nature of their existence be differentiated as brokers and corporations who mainly provide services such as: equity broking, debt markets broking, money markets broking, foreign exchange broking, portfolio management broking, research & advisory services, registrar & transfer services, depository participant services, mutual fund...
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...represented by a number of factors, including proactive and reactive factors, provides a better understanding of the reasons for the company’s decision to expand to foreign markets. Proactive motives are related to the firm’s motivation to take advantage of new market opportunities. While reactive motives represent that the firm responds to environmental changes and pressures in its domestic market or in foreign markets and adjusts the activities over time. (Hollensen 2011; Czinkota et al. 2009) Seeking growth and exploring new market opportunities are major proactive motives of Starbucks’ internationalization. Moreover, decision-makers are likely to explore first those overseas market opportunities perceived as having some similarity with the opportunities in their home market. At a later stage of internationalization Starbucks strived to make use of economies of scale which enabled the company to rise more rapidly on the learning curve and reduce production costs. (ibid) Major reactive motive for initial stage of Starbucks’ internationalization is represented by physical and psychological closeness to Canada that was the first foreign market for the company. Another reactive motive of Starbucks’ international expansion is saturation of the domestic market. The case study mentions that Starbucks expanded to foreign markets when the company perceived the domestic market to be saturated. Therefore, we can see that the combination of proactive and reactive factors account...
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...Business and Global Barriers to Entry Caitlin Long Follow this and additional works at: http://commons.emich.edu/honors Recommended Citation Long, Caitlin, "U.S. Business and Global Barriers to Entry" (2009). Senior Honors Theses. Paper 167. This Open Access Senior Honors Thesis is brought to you for free and open access by the Honors College at DigitalCommons@EMU. It has been accepted for inclusion in Senior Honors Theses by an authorized administrator of DigitalCommons@EMU. For more information, please contact libir@emich.edu. U.S. Business and Global Barriers to Entry Abstract An exploratory view of barriers to entry in countries of significance to U.S. companies, this thesis provides a comprehensive overview of prevalent business strategies of U.S. trading partners as well as a forecast of their international business policies. Diverse macro-environmental variables, such as economy, culture, and regulations result in varying barriers to entry for U.S. based firms to conduct business in U.S trading partners’ countries. This thesis will determine how these macro-environmental factors foster or stunt growth and strategies governments employ to attract businesses. Degree Type Open Access Senior Honors Thesis Department Marketing First Advisor Harash Sachdev Keywords International trade, Foreign trade regulation, Investments, Foreign China, Investments, Foreign India, Investments, Foreign Hungary, United States Foreign economic relations Subject Categories ...
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...CONFIDENTIAL EXPERT REPORT Research Study of the Civil Aviation Sector in India SUBMITTED TO: The Ministry of Corporate Affairs, Govt. of India, India SUBMITTED BY: Nathan Economic Consulting India Pvt. Ltd., India www.nathaninc.com January 24, 2012 CONFIDENTIAL Table of contents 1. 2. 3. 4. 5. Executive Summary ................................................................................................................................. 1 Introduction .............................................................................................................................................. 7 Market Structure and Competition Issues ......................................................................................... 11 Identification of Anti-Competitive Provisions and Practices ......................................................... 15 Analysis of the Identified Issues .......................................................................................................... 24 5.1 Fleet and Equity Requirements ................................................................................................................... 24 5.2 Route Dispersal Guidelines......................................................................................................................... 29 5.3 Slot Allocation ..............................................................................................................................................
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...Chapter 1 The Indian Context and Enabling Environment Mark A. Dutz and Carl Dahlman This book focuses on how to foster increased innovative activities in India to meet the twin challenges of sustained growth and pro-poor development. India is an extreme “dual” economy.1 At one extreme, it is the world’s fourth-largest economy in purchasing power parity (PPP) terms, it is a nuclear and space power, and it is increasingly becoming a top global innovation player in certain key economic sectors––such as biotechnology, pharmaceuticals, automotive components, information technology (IT), software, and IT-enabled services (ITES). At the opposite extreme, India largely remains a subsistence economy. With an average per capita income of $720 in 2005, India is still a low-income and mainly rural, agrarian economy. About a quarter of its population lives below the national poverty line, with significant spatial variance across and within states.2 Roughly 70 percent of its population is rural, and 60 percent of the workforce is engaged in agriculture. Illiteracy rates are 46 percent for women and 25 percent for men.3 Given this dual economy, it is natural to ask what can be done both to strengthen the likelihood of sustained high growth rates and to address the unmet needs of the informal sector and the poor. To sustain growth and reduce poverty, India must leverage and improve its innovation potential. Innovation can be a critical driver of increased productivity and competitiveness...
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...perspective and the technology of information age is telescoping the time it takes to communicate and make decision. Strategic management takes a panoramic view of this changing corporate terrain and attempts to show how large and small firms can be more effective and efficient not only in today's world but tomorrow as well. Strategic management is the set of managerial decisions and action that determines the way for the long-range performance of the company. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control. It emphasizes the monitoring and evaluation of external opportunities and threats in light of corporation’s strength and weakness. Business policy has a general management orientation and tends primarily to look inward with its concern for properly integrating the corporations many functional activities. But strategic management as a field of study integrates the business policy with the environmental opportunities and threats. Therefore strategic management has tended to replace business policy as the preferred name of the field. Indian Institute of Technology Madras Management Science I Prof. M.Thenmozhi Why Strategic Management? Strategic management provides the route map for the firm. It lends a framework, which can ensure that decisions concerning the future are taken in a systematic and purposeful way. Strategic management also serves as a hedge...
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...more global perspective and the technology of information age is telescoping the time it takes to communicate and make decision. Strategic management takes a panoramic view of this changing corporate terrain and attempts to show how large and small firms can be more effective and efficient not only in today's world but tomorrow as well. Strategic management is the set of managerial decisions and action that determines the way for the long-range performance of the company. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control. It emphasizes the monitoring and evaluation of external opportunities and threats in light of corporation’s strength and weakness. Business policy has a general management orientation and tends primarily to look inward with its concern for properly integrating the corporations many functional activities. But strategic management as a field of study integrates the business policy with the environmental opportunities and threats. Therefore strategic management has tended to replace business policy as the preferred name of the field. Management Science I Prof. M.Thenmozhi Why Strategic Management? Strategic management provides the route map for the firm. It lends a framework, which can ensure that decisions concerning the future are taken in a systematic and purposeful way. Strategic management also serves as a hedge against uncertainty, a hedge against totally unexpected...
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...not included in the portfolio. In case of non-discretionary services, the RBI allows banks to work through a separately identifiable department or division (SIDD) or a subsidiary. Such a subsidiary or SIDD would require to be registered with market regulator Securities and Exchange Board of India (SEBI) and comply with SEBI guidelines on providing these services, including the code of conduct, if any. There should be an arm’s length relationship between the bank and the subsidiary if the latter is offering wealth management services, the central bank said. RBI has also stated that bank employees involved in marketing or sales of third-party products should not be given any direct incentives in cash or non-cash form linked to their performance to avoid mis-selling of products. While the new regulations, along with a complaint redressal mechanism, will...
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