Question

What are the implications of doing business in India? What do businesses have to consider in terms of communication, religion, values, attitudes, manners, social structures, organizations, and education?

Use academic references for your research. 6 pages

Answer 1

The price of starting a company in India is astronomical, and without local understanding, the processes involved may be daunting. In the original establishment of a company costing 49.8 percent of revenue per capita, there are 12 processes to be completed. Completing the assignments on average requires nearly a month, which is well above the 12-day OECD average.

Compared to the remainder of South Asia, the price of obtaining electricity is comparatively inexpensive, but the amount of processes engaged may be rather daunting. Moreover, each operation is quite time-constraining in itself, taking about eight days to obtain an internal site inspection and three weeks to connect internally, install a meter and perform a test setup.

Despite India opening its boundaries to international trade, when importing and exporting products, there are still several hurdles to overcome. Many layers of bureaucracy make moving products effectively very difficult, and businesses have to file a long list of papers before moving products across boundaries.

India is a cultural hotbed, and company, rather than presenting numbers and amounts, is about constructing relationships. It can be hard to adapt the polychronic culture for outsiders, and due diligence is essential before traveling to the target.

Business relationships are paramount. Indians will base their choices as much on confidence and intuition as on statistics and information, so be aware of the significance of a healthy working relationship. Take the time to engage with your potential partner in a small talk. It might be perceived as rudeness to rush straight into the business issue.

Indian companies are often organized very hierarchically. Decisions are usually produced at the greatest levels in negotiations. Therefore, unless a business manager, owner or a very senior manager is present at a conference, a choice at that point is not probable to take place. Roles are well defined and tasks such as manual labour will only be carried out by a specific person. Typically, an Indian manager is not anticipated to perform duties that might otherwise be performed by someone in the organization at a lesser level.

If you decide to set up an office based in India, you will need to take these cultural differences into consideration. If your department does not follow a vertically structured hierarchy with tightly defined duties, to encourage cooperation, it will be essential to build a vibrant feedback and communication mechanism between your UK and Indian staff. Sometimes interactions between UK and Indian employees can trigger miscommunication. For instance, junior employees in India may not be used to make choices or question senior employees with the same level of liberty as their UK counterparts.

You are likely to meet two kinds of businesses in India. The first is a traditional family-run business, while the second is a more contemporary hi-tech company that works with western company methodology.

Usually being the boss in India implies' the boss.' You are supposed to' play the role' as the boss. Senior executives are not anticipated to participate in job that someone down the organization could do.

Most choices are produced at the top of an organization and if top-level approval has not already been provided, it can be a waste of time negotiating at a company's mid-level level.

Working hours in India usually start from 10am. However, some companies in large cities such as Mumbai are known to start as early as 7.30am. This is an attempt to avoid congestion.