International Business - India Art and Culture - Essay Example

International Business: India Art and Culture Course: Date: Executive Summary 3 Introduction 4 1. Culture 5 1.1 Cultural Themes 5 1.2 Group Dynamics 6 1.3 Globalisation 6 1.4 Time Orientation……………………………………………………………………………………………………………………..7 2. Art………………………………………………………………………………………………………………………………………………..7 3. Religion…………………..…………………………………………………………………………………………………………………….9 4. Aesthetics and Values………………………………………………………………………………………………………………..10 5. Physical Environment………………………………………………………………………………………………………………….10 6. Conclusion……………………………………………………………………………………………………………………………………11 7. Recommendation…………………………………………………………………………………………………………………………11 8. References………………………………………………………………………………………………………………………………….12 Executive Summary The paper is going to elaborate how global firms are transforming their operations in order to fit into India’s culture to gain penetration into the market. It has explored a number of elements including, art, culture, physical environment and religion by providing an in-depth analysis of the actions that individual firms have taken in order to penetrate the Indian market successfully. Similarly, it attempts to illustrate how cultural ramification can impact on the operations of international companies especially for markets that are heterogeneous in terms of culture and religion. The Indian culture is characterized by heterogeneity thus differentiating various regions according to their local practices. It is a concern for internal firm that are keen to penetrate in this market to first study the cultural ramification of the country before embarking of an entry plan that will guarantee success. The paper makes an in-depth analysis of the techniques and methodologies that selected global companies have employed to successfully penetrate the market through a cultural perspective. Various approaches have been utilized depending of the cultural ramification that each organization was aiming as well as the target market that they were out to exploit. Measures undertaken were not only aimed at leveraging from the vast Indian population but also capitalize on other benefits such as cheap labour. Relatively, aspects of art and religion have also been examined on how they influence the penetration of new businesses in the Indian market as well as the factors that global firms have to pin point in order to attain a competitive advantage as far as the two aspects are concerned. International Business: India Art and Culture Introduction India is arguably one of the most pleasant investment destinations that any global firm would fancy to penetrate given the large population that will provide market for their goods as well as the cheap labour that can be exploited by the community since the country has approximately 400 million trained human resources. India is a heterogeneous society as it has a blend of different cultures all under one nation. Traditionally, the country practiced Hinduism as its fundamental religion, and all its cultural aspects were derived from that element. However, with time the situation changed and today India has a mix of cultures starting with Hinduism, Islam, some Westernization and also traces of the British Raj can be experienced in some regions (Ferraro, 2010). Culture plays a critical role in conducting business in India since for a firm to be successful in this particular market it has to master the cultural practices of the Indian people and thus fashions its business practices in a manner that best suits them or rather the business will fail miserably. Literacy levels in India stand at 60% percent with close to 400 million people trained in various disciplines ready to provide a labour force. Factors such as availability of cheap labour and the vast potential market for goods and services is the driving elements that attracts many global firms to this particular market since they have prospects of transforming the 1.03 billion population into potential customers for their products. However, it is prudent for firms first to understand and master the Indian business culture as it has a number of aspects that significantly influence how business operations are carried out in the country. Issues regarding hierarchical mindset and complex communication protocols are some of the scenarios that are likely to be encountered when negotiating business deals with Indians. Thus, a mastery of these issues will enable a global organization to gain a competitive edge in the market since it will definitely be ahead of its competitors as it would have perfectly fitted in the business culture of the Indian market (Ahlstrom and Bruton, 2010). Ideally, India is a vast nation, and the cultural ramifications of the country are not homogenous. The Indian culture has a number of subsets that are practices in various regions; for instance, the kind of cultural practices that will be evident in Eastern India will be different from the cultural practices in either Southern or Northern India. Thus, it is prudent for global organizations to study the Indian market carefully before making a decision to venture into it. Firms that have understood the underlying factors in the Indian market have been successful since they can give the consumers exactly what they want. The paper is going to elaborate the aspects of art, culture, religion and aesthetics with respect to doing business in India from a perspective of global firms. It is going to utilize a number of scholarly works to illustrate how the firms have fashioned their operations to penetrate successfully the Indian market (Ferraro, 2010). 1. Culture Culture can be defined as the way of life that people in a particular society lead together with beliefs and norms of doing things in their day to day activities. Relatively, it can be described a collection of experiences of an individual society and its impact on decision-making in their daily activities. Culture has a number of aspects that influence the manner in which business operations are conducted. For instance, India is heterogeneous in nature in that various cultural practices are observed in different regions. It implies that an in-depth study of the cultural ramifications of the nation have to conduct to outline what is practiced where and how an organization can work to leverage from those customs. For example the cultural practices in Northern India are different from those in Eastern India since the North is more of a conservative society as opposed to the Eastern side that has assimilated some aspects of Westernization into their day-to-day practices (Gesteland and Gesteland, 2010). Mr Price is a global company that mainly deals with apparels for both genders. When it launched its operations in India, it had to look at the cultural ramifications before rolling out operations. To begin with the Northern part of India is very conservative to the traditional Hindu culture thus females are expected to be covered with no aspect of nudity being acceptable in the society. For that reason, they prefer the long dresses with Hindu cultural prints as opposed to the skirts and blouses that Mr Price might be offering since according to their traditions they are not supposed to expose their bodies. For that reason Mr Price has only launched its operations in Eastern India whereby a large population include people who have been westernized and thus they have developed a sense of Western style and taste as far as dressing and fashion are concerned. In those sites, the company has been able to make considerable sales as the young people there highly perceive fashion and trendy looks thus finds Mr Price’s apparels to be the perfect fit for their needs. The company chooses that subtle of the Indian culture since it perceived it to be the only one that would relate to its products. A woman in Northern India found wearing a short skirt with a strapless blouse would be condemned as it is against their cultural beliefs for a woman to expose her flesh (Meyer, 2014). 1.1 Cultural Themes The Indian culture is dominated by the virtues of endurance and patience whenever conducting business deals. The Indian people have a tendency of persistent haggling in the case of striking a business deal to test the patience of the other party. For instance , if you are negotiating a business deal whereby two parties need to get into an agreement of the cost of the transaction they are notable of quoting very low prices not to disrespect the other party but to set stage for haggling so as they can test the endurance levels of their counterparts (Gorham, 2009). It is prudent that a number of international firms have mastered this cultural aspect of Indians; it is the reason behind the million-dollar deals with the Indians in terms of international business. Similarly, communication in the Indian culture is very complex one has to master the art of communicating with respect to the Indian culture to enable them strike business deals. For instance, Indians talk in a very subtle and indirect manner words such as ‘no’ are rarely utilized. Instead, one will say ‘we will see about that’ or ‘let me consult will get back to you later’ those are some of the phrases that imply a negative response from the Indians. Business executives of global firms have carefully studies that aspect of the Indian communication system and implemented it whenever making business deals (Ferraro, 2010). 1.2 Group Dynamics In the Indian market group dynamic influence considerably the kind of consumer decisions that are made when customers are buying goods. Issues of family, a network of peers or friends play a considerable role in determine the kind of purchase decisions that consumers make. Thus, firms have opted to direct their marketing and promotional campaigns to target the individuals responsible for influencing buying decisions rather than the subjects who do the actual buying process (Meyer, 2014). For instance, Proctor and Gamble have directed a number of its advertisements to mature audiences since they are most likely to influence purchase decisions of household goods that the company deals with. Similarly, Apple Inc. Tends to focus most of its promotional material to the youth trendy sector of the population a group that is technologically conscious and at the same time that fancies trendy stuff. In so doing it has implemented it strategy on the premise that if a single youth purchases its products and likes them then he/she will most likely recommend his/her peers into buying as the buying patterns of that market are influenced by group dynamics (Gorham, 2009). 1.3 Globalisation Global organizations typically operate in a number of societies across the world that subscribe to various cultures. The companies tend to localize their operations in a manner that best fits the specific society in which they are appealing to. Typically, this is achieved by transforming the operations of the company in a way that integrates the local practices into its activities in a fashion that make it more of a local firm that it is international. Case in point India is predominantly famous with its Bollywood genre of films that are based on some form of movements and Hindu songs. Thus when Disney wanted to launch its products in India, it had to utilize aspects that are relevant to the Indian people so that they can easily relate to it. For instance, Taj Mahal and the Golden temple were incorporated into them to them more Indian than Western so as to appeal to the Indian market (Chandra et al., 2002). 1.4 Time Orientation The Indian culture pays little attention to adherence to timelines and deadlines. Thus, business meetings and other deadlines related to business activities needs to be flexible in a way to accommodate the practices that dominate that society. However, some companies depend on time management as a lot of business operations hence the management in those firms have to implement extra efforts to push their Indian counterparts into adhering to set deadlines. Most global companies have adopted a flexible format on how they schedule business meeting. There is always an allowance of some time that involves introduction where they get to know each other before the quorum is filled to commence with the issues to be discussed (Dossani, 2008). The issue of salutation is very critical as far as the Indian culture is concerned. It is customary to call one by his family accompanied by the relevant prefix to denote his/her designation. Calling people by their first name is regarded as disrespectful and thus one might make one to lose business opportunities in the process. Most international companies train their executives on international communication issues before they are deployed to various societies whereby knowledge of the etiquette is required to enhance understanding and achievement of business objectives. Hierarchy plays an important aspect in the Indian culture. Be it on family or organizational level hierarchy is crucial since only the top members are permitted to make decisions that are binding to the entire group. Thus whenever a global company or rather a foreign firm are conducting business with Indian organizations, they should insist on meeting top members to get proper instructions and decisions (Ahlstrom and Bruton, 2010). 2 Art Art is fundamental in any society as it provides a medium through which they can express themselves. India boasts a huge artistic variety due to the numerous festivals and events that are observed that incorporate various forms of movements and dances in celebrating or appreciating different situations. Indian artistry is also demonstrated through artistic impressions such as artworks on items and other architectural structures that are imprints of India as a country. Global companies are trying to fuse into India’s art to penetrate into the market by reaching their target market in the most precise manner. For instance, the Royal Shakespeare Company made a production in 2006 dubbed ‘A Midsummer Night’s Dream’ that incorporated Indian actors who were drawn from various parts of the nation. Given the vast nature of India and the varied cultural practices that are evident in different parts the actors spoke different languages (Ferraro, 2010). The director of the production allowed them to express themselves in their words during the film to demonstrate the multi-linguist nature of India as a country. The film received massive ovation when it was first screened in India since the audience that comprised people from various parts of India were able to relate to it since the ideas were expressed in virtually all languages that are spoken in India. Ideally, everybody who watched the production has some aspect that he/she would relate with since it touched on their cultural or artistic aspect in one way or the other. Royal Shakespeare Company was able to penetrate the Indian market perfectly by capitalizing on its creative heterogeneity to provide the target market with exactly what they need in terms of their culture and art (Meyer, 2014). Multi-linguism is one of the most complex aspects of India’s art. The country is home to close to 1.03 billion people who speak various languages. Ideally, every region in India has its subtle language that is spoken apart from Hindu, which is the official language in India. The business organization targets all people and thus they have to put extra efforts to ensure they also reach the people who do not understand English. Hinglish is an emerging slang that is becoming dominant in India especially among multinational companies. The language is a mix of English and the Hindu language aimed at marketing their products to the Indian people in a more precise manner to avoid obstacles occasioned by the language barrier. Global companies such as MTV have implemented Hinglish to become more relevant in the Indian market with a bid of winning the market. It has indeed worked well for MTV since its music channel commands a considerable viewership in India because of the fuse of languages that it utilizes to reach the masses (Dossani, 2008). 3. Religion India is a multi-religious nation with the major religions in the country including; Hinduism, Islam, Sikhism and some traces of Buddhism. Given the fact that the country is conservative in nature strict adherence to religious teachings and practices is observed in India thus businesses should adjust their operation to fit the spiritual needs of the people. For instance, during worship times business should be closed to enable the workers to attend prayers. Similarly, religious festivals such as Diwali and Idd are highly sacred Thus during the entire period business remain closed to ensure ample time for the people to celebrate. In that light, global business are trying to fit into the religious circle of India by offering provisions that make it flexible for them to worship and attend their prayer sessions. For example, Wal-Mart allows its workers to attend prayers during working hours and also it provides special offers for the consumers during festivals such as Diwali and Idd’ Mubarak to imply a sense of collectiveness during the celebration time. The company comes up with customized packages that are only meant for that period or rather to depict some sense its operations subscribing to the local religious provisions. The strategy has worked out, and the company experiences massive sales during those periods since consumers flock to its outlets to leverage from the special offers (Chandra et al., 2002). 4. Aesthetics and Values Values play a crucial role in the Indian society and thus the operations of business organizations should be fashioned in a manner that enhances the society’s value and aesthetics. In India a number of values are regarded as necessary for example women are not allowed to expose their bodies in some Indian communities thus companies that will operate in those areas should subscribe to those values by customizing their products to satisfy the cultural values of the community to avoid conflict of interest. Starbucks is an international company the deals with beverages especially coffee. When it launched its operations in India, it focussed on the communal eating habits that the Indian society is accustomed to. In India eating is a collective activity that includes the entire family or rather even extends to the larger extended family. Thus, in line with the values that Indians hold on eating practices the company opened outlets with larger exterior spaces to accommodate family gatherings that would engage in collective eating. The setting was different from its stores in other countries that were based on quick serve whereby one gets whatever he/she had ordered and left. The incorporation of the meeting area in Starbucks outlets made it penetrate the Indian market actually, and it has registered massive success over the years with steady growth being recorded (Meyer, 2014). 5. Physical Environment India has a rich geographical environment that is endowed with numerous features and architectural structures that have enhanced its beauty and recognition on the international front. Structures such as the Taj Mahal, Golden Temple, Buddhist monuments and Qutb Minar just to name, but a few are some of the iconic structures that make India recognizable on the international front. To leverage from these structures organizations have customized their products to incorporate some of these features so as to relate to the Indian market. Hollywood has in the past produced movies based on the Indian physical environment with scenes being shot at iconic places i.e. Taj Mahal to ensure the Indian audience relates to their products (Chandra et al., 2002). Additionally, other companies such as National Geographic have produced numerous documentaries that seek to explore the country’s geographical landscape together with its inhabitants. All these have been able to provide a competitive advantage to the companies involved since the target market seems to relate well to these features being incorporated in the products than when they are not. Generally, through the incorporation of physical environment features in their products Hollywood and NatGeo have been able to capitalize on the Indian market and are leveraging from it given the massive viewership that they command (Dossani, 2008). 6. Conclusion It is evident that India is a heterogeneous society that incorporates numerous cultural and religious aspects. The differences in culture, religion and art demonstrated by various regions of India have made it difficult for many international companies to explore the market. However, firms that have studied those aspects and customized their products and services to fit the needs of the local consumers have been able to penetrate the market successfully. It is prudent that for global firms to work well in India they have to embrace the cultural and religious diversity that is present in the country to enable them penetrate the market. The paper has explored numerous examples of how global firms have utilized the aspects of art, culture, religion and physical environment to gain entry strategies and penetrate the Indian market. In a nutshell, global companies that seek to launch operations in foreign markets need to first understand the cultural composition of the target market and customize their services to meet the demands of those cultures before embarking to launch their operations. Failure to do that will lead to a conflict interests between the company and the society thus leading to an overall failure to penetrate that particular market. 7. Recommendation Global firms need first to understand the markets that they intend to launch their operations before rolling out their operations. They first need to conduct a market analysis to study all the cultural ramifications of the target market before embarking on transforming their operations to meet the needs and wants of that market. The products and services that ought to be provided in a certain market should be consistent with the beliefs of the society to avoid any form of conflict that will derail the company’s penetration efforts. References Ahlstrom, D., & Bruton, G. D. (2010). International Management: Strategy and culture in the emerging world. Australia: South-Western Cengage Learning. Chandra, A., Rau, P. A., & Ryans, J. K. (2002). India business: Finding opportunities in this big emerging market. Ithaca, N.Y: PMP. Dossani, R. (2008). India arriving: How this economic powerhouse is redefining the global business. New York: AMACOM. Ferraro, G. P. (2010). The cultural dimension of international business. Upper Saddle River, NJ: Pearson. Gesteland, R. R., & Gesteland, M. C. (2010). India: Cross-cultural business behavior: for business people, expatriates, and scholars. Frederiksberg: Copenhagen Business School Press. Gorham, M. (2009). Culture and business in Asia. Basingstoke: Palgrave Macmillan. Meyer, E. (2014). The Culture Map: Breaking Through the Invisible Boundaries of Global Business. New York: Public Affairs. Read More