Global Enterprise and Innovation - Example

Global Enterprise and Innovation Table of Contents Introduction 3 Main Features of the Business Environment in India 3 Data Support 4 Government Components of the NIS 6 Finance Components of the NIS 8 Scientific and Technological Institutions 9 Industry Components of the NIS 10 Conclusion 11 References 12 Introduction Global business environment is becoming highly competitive as several leading global organizations are trying to develop and implement innovative and unique strategy in the business operation processes in order to gain potential competitive advantages. Several leading organizations around the world think India has tremendous potential to become a huge market opportunity for them and therefore they are trying to enter in the emerging Indian market. This assignment will discuss about the major features of the Indian business environment. In addition to this, the report will discuss about several important components of the National Innovation System in India. Finally, the assignment will decide whether the multinational organizations should invest in India or not. Main Features of the Business Environment in India India can be considered as one of the developing countries and emerging markets in this world. Several leading multinational organizations are trying to enter in the emerging Indian market due to several reasons. Indian market can be considered as one of the largest consumer market. In addition to this, consumer buying behaviour of Indians is changing slowly and gradually. It is true that recent global economic recession and financial crisis affected the economic environment of several developed and developing countries. But, India attained positive GDP growth rate during this global economic slowdown (Kotler and Pfoerstch, 2008, p.10). Per capita income, disposable income and purchasing power of Indians are increasing significantly. Therefore, several leading multinational organizations are eying on emerging Indian market to expand their business practices. Economic growth, environmental sustainability, political stability, legal aspects, technological environment and social environment can be considered as the major features of the business environment in a country. It has been mentioned earlier that India is economically developing country. Recent economic growth, reduced unemployment rate and increase in purchasing power of people are motivating the organizations to enter in Indian market. On the other hand, India can be considered as one of the largest consumer markets around the globe. India is politically stable. India can be considered as democratic country. However, government of India motivates the multinational organizations to enter in the country and implement innovative and unique business operation strategies to ensure potential growth rate (Kotler, 2001, p.17). It actually helps the organization to generate employment. Social demand for consumption of goods and services from the multinational organization is increasing significantly among the Indians due to change in consumer buying behaviour. In terms of technology, organizations can source and implement advanced technological processes and tools in the business operation process as these are available in India. There are certain laws and policies that are developed by government to be followed by the business organizations to maintain sustainability in the business environment (Knapp, 2000, p.43). In terms of environmental sustainability, the organizations have to follow developed environmental policies to overcome several possible issues and challenges that can hamper business performance of MNCs in India. Data Support It is important for any argument to be backed by data. In this case some economic indicators for India will be discussed so as to cement the intentions of multinationals in entering India. The first indicator in the GDP and the trend of GDP has been shown on the diagram below: The FDI of the country is also on the stable position as compared to other developing countries. The diagram below will show a clearer picture. The unemployment rate of the country is on the downward falling curve which clearly signifies the opportunities of new business ventures in the country. Government Components of the NIS Government of India has developed several policies and legislations for the business organizations in order to ensure promote innovation in the country. According to the National Innovation Systems, government of a country should develop important policies for the business organizations in order to maintain high potentiality and sustainability. First of all, the government of India has developed effective supply side policies in order to help the organizations to ensure effective supply chain management operations. The government of India always encourage the public research and development team in order to help several multinational or domestic organizations to find effective and high quality business operation resources and manufacturing of high quality and differentiated goods or services in appropriate cost (Moore, 2003, p.98). It is also important to ensure firm collaboration within an industry. It is true that a manufacturing firm has to depend upon several other organizations, business unites and business clients to maintain effective business performance. Therefore, effective collaboration between these organizations and business unites can help the organization to enhance positive business performance growth rate. However, Indian government effectively eyes on effective collaboration between the firms in order to maintain sustainable economic and social growth rate. Technology targeting also can be considered as an important demand side policy that has been undertaken by the Indian government (Mueller, 2011, p.7). It is true that several leading organizations in this world are trying to capitalize on the potential business opportunities that have been developed due to globalization and technological advancement. It has mentioned earlier that India has introduced open door economic policies to improve the economic environment of the country. Therefore, several leading multinational organizations are trying to enter in the country to take advantage of leading consumer market in world. In terms of profit gain, the government of India allows 100 percent profit repatriation for the leading foreign MNCs that motivates the organization to enter in India (Pride and Ferrell, 2011, p.19). On the other hand, Government of India also focuses on effective demand side policy development. Government of India ensures effective technological transfer for the leading multinational and domestic organizations in order to support these organizations to maintain high efficiency in the business performance. Last but not the least; effective government procurement and significant SME support consideration helps the country to motivate the foreign organizations to enter in the country (Kapferer, 2008, p.21). However, there are other aspects too that motivate the MNCs to enter in a particular country. It is true that business activities and transactions are increasing at a significant rate in India. Government of India always focuses on effective macroeconomic policy development process for the business organizations in order to support them to maximize business profit from the initial point of time. Finance Components of the NIS Investment banks, commercial banks and venture capitalists can be considered as the major financial components of the National Innovation Systems. Commercial banks usually provide effective and valuable banking services rather than capital. On the other hand, investment banks provide valuable corporate financial products and services. Lastly, the venture capitalists can be considered as specialist financial institutions which used to take an equity stakes in organizations (Haig, 2011, p.48). However, the business organizations in India can get several required financial products and services to start business operation in Indian market. There are several commercial banks in India that helps the organization to start new business operation. These commercial banks generally provide banking services rather than the start up capital to the organizations. In addition to this, Reserve bank of India develops several regulatory policies for the commercial banks in India. However, the Reserve bank of India tries to develop favourable and effective policies so that the business organizations can run their business operation activities quite smoothly (Keller, 2008, p.91). The government of India motivates the investment banks to help the organizations by providing capital if the business perspective and business plan is effective. Venture capitalists can be considered as an important source of money or financial support for the organizations. Venture capitalists used to observe the business plan and determine its effectiveness before providing any kind of help to the target customers. On the other hand, the organization has to provide some equity stakes to the venture capitalists against the gained financial supports (Henry, 2008, p.27). However, the government of India always organizes awareness programs for the business organizations to support them to source required financial services to start up business operations and activities in the country. However, it is clear from the above mentioned facts that the organizations can have a greater access to credit through the help of commercial banks, investment banks and venture capitalists (Handy, 2006, p.65). Most importantly government of India supports the organization to gain advantages from the financial institutions. Scientific and Technological Institutions Public research laboratories, firms, consortia and universities can be considered as scientific and technological institutions. On the other hand, education ministry under government of India effectively focuses on the quality education for the students. The government of India always tries to ensure effective educational structure in schools, colleges, universities and the laboratories to ensure innovation, skills, knowledge and competency of the students. It is true the domestic or the multinational business organizations in India can find effective and skilled human resources who have the knowledge about the job responsibilities (Cheverton, 2006, p.42). India can be considered as one of the emerging markets in this world for several business organizations. Several important educational institutions in India offer practical training and development processes for the students in order to excel the future professional career of the students. In addition to this, ministry of education under the government of India develops and implement effective strategies and policies in order to ensure effective and bright future for the students. It has been mentioned earlier that the government of India is welcoming several leading multinational organizations in India as the growth of these multinational organizations has great contribution to the growth of the economic situation of the country (Burrow, 2011, p.26). Most importantly, the universities or college somehow are directly linked with the public research institutions (Kotler and Keller, 2006, p.14). This link can excel the skills and knowledge of the students. In addition to this, it can help the students to integrate innovation in the strategy development process during professional career. This can help him or her to get effective social recognition from a particular firm. Industry Components of the NIS Industry structure, availability of the competitors, overall market structure, supply condition and market competitiveness can be considered as the major industry components of the National Innovation System. Now-a-days, the business environment of India is becoming highly competitive as well as saturated as several leading multinational or domestic organizations are trying to capitalize on the potential business opportunities that are available in the India market. It has been discussed earlier that Indian market is becoming as emerging markets for business organizations as the consumer market of India can be considered as one of the leading consumer markets in this world. Business industry or sector can be divided into two different categories, such as service industry and manufacturing industry. Service industry is contributing effectively to the economic growth of the country comparing to the manufacturing industry. It has been discussed earlier that multinational organizations are trying to enter in the emerging Indian market to increase the market share. Supply condition is quote effective in India. In addition to this, high brand name of the organization can help the company to overcome the threat of intense market competition. Slowly and gradually, this particular industry is becoming highly competitive as several domestic and local players are strongly competing with the leading multinational organizations (Burgemeister, 2003, p.72). Therefore, it is important to integrate innovation in the business operation process to gain potential competitive advantages among the target customers in this competitive market place. Conclusion Looking into the above facts, aspects and discussions it can be stated that multinational organizations should try to invest in the country to promote innovation and introduce several unique strategies. India can be considered as one of the leading economically developing countries in this world. Several organizations in this world are trying to choose emerging markets to conduct business activities. The government of India supports the organizations to enhance effective business performances. It is true that effective growth of business environment can help the country to overcome several economic issues. First of all, it will ensure effective employment generation. Therefore, it can help the country to overcome the issue of high unemployment rate. It is true that India is becoming one of the technologically developing countries. Therefore, it can be stated that investors can avail effective technological resources for the business operation activities. It will help the organization to gain potential competitive advantages. In addition to this, the government of India is trying significantly to improve the educational structure. The institutions educate students about the real life scenario. It can help investors to avail effective and skilled human resource to maintain positive business performances in Indian market. References Burgemeister, S., 2003. Market analysis. Berlin: GRIN Verlag. Burrow, J., 2011. Marketing. Stamford: Cengage Learning. Cheverton, P., 2006. Understanding Brand. London: Kogan Page. Haig, M., 2011. Brand Failures. London: Kogan Page. Handy, C., 2006. Gods of Management. Oxford: Oxford University Press. Henry, A., 2008. Understanding Strategic Management. Oxford: Oxford University Press. Kapferer, J., 2008. The new strategic Brand Management. London: Kogan Page. Keller, K. L., 2008, Strategic Brand Management: Building, Measuring, and Managing Brand Equity. London: Prentice-Hall. Knapp, E., 2000. The Brand Mindset. New York: McGraw Hill. Kotler, P., 2001. Marketing Management. London: Prentice Hall. Kotler, P., and Keller, K. L., 2006. Marketing Management. London: Prentice Hall. Kotler, P., and Pfoertsch, W., 2006. B2B Brand Management. Berlin: Springer. Moore, E., 2003. Social Change. Prentice New Jersey: Hall Inc. Mueller, B., 2011. Dynamics of International Advertising. New York: Peter Lang. Pride, W., and Ferrell, O., 2011. Marketing. Stamford: Cengage Learning. Read More