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Tata Nano & China: A Perfect Opportunity - Essay Example

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This research is governed by the following research questions, which will aid in attaining objectives and aim of the discussion: What are China’s norms and regulations? What are the environmental factors? Is China a politically stable country?…
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Tata Nano & China: A Perfect Opportunity
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Download file to see previous pages The paper tells that globalisation is the need of the hour for companies who are looking for growth prospects outside their country as there should always be a Plan B ready before Plan A’s time period is over. Globalisation has made world look so small by making a product of a company available across different continents. Companies across the globe are coming out of their closet and venturing into different environments to gain an edge over their counterparts. Tata motors are one such company which has its presence in different parts of the world and still expanding. Over the years the company has ventured into different countries and has also acquired international brands like Land Rover & Jaguar. Established in 1945 in India Tata motors have been the pioneer in the field of automobile industry and are the number one ranked company in India with its manufacturing units in various parts of India and offshore in places like UK, South Korea, Thailand etc. It is slowly creating its footprints in major offshore markets and has so far been successful in doing so by reaching to the figures of USD 27 billion as its revenue for the fiscal year of 2010-2011. Tata motors has successful launched its people’s car Tata Nano 2012 and has already received overwhelming response across the continents. After launching it in India and being on the road to success Tata motors should now plan to expand its Nano project to country like China where it can further boost its revenue as China is a huge market for car makers. (Tata Motors, 2011). China, a country with vast population and geographical area is also the country which tops the list of countries where companies want to expand their business. China has grown globally at a tremendous pace and currently stands at second position in terms of world’s largest economy overtaking Japan. China since opening its gates for the international market has been the prime destination for every renowned company worldwide. But without twist a story is never entertaining and it is true in case of companies as well because every company wanting to be a part of the Chinese economy has to know about China as a country, what are its norms and regulations? What are the environmental factors? Is China a politically stable country? Moreover a PESTEL analysis of the country is what can make things simpler for the companies who plan to setup business in China. PESTEL Analysis of China: a) Political: China on the political ground is a single party company and a communist country. On the other hand China despite being a communist state has always been preferred as the most sought after destination for companies. The reason behind it is the stability in China in political terms; China’s single party government decides on every move that the country takes in every sphere of business, politics, and growth factors. This in returns makes situation favourable for the companies as there would be no one to oppose its move if it’s a green signal from the government. b) Economic: China is taking long strides towards growth and has turned out to become a strong economic zone. With its robust growth economically it is bound to attract more players who will further contribute towards it ever growing economy. When companies plan to operate in China what are the factors that can make them vouch for China as the destination must be the first question to strike them. The huge labour force, inexpensive physical entity, and availability of land for manufacturing units, low inflation rates in China will help a company to prosper in business. c) Social: Socially China is a different country unlike western destinations where the culture is of same genre and companies find less difficulty to communicate and understand the ...Download file to see next pagesRead More
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