SHAMEEL.

A
III EPGDM JUN /AUG 2021
REGISTRATION NUMBER: 210101618048
GLOBAL DIMENSIONS OF MANAGEMENT & INTERNATIONAL BUSINESS ASSIGNMENT

1. India is moving from a command economy towards a more mixed/hybrid economy.

China’s experiments with a mixed economy have resulted in a greater rich -poor
divide, and dilution of state financial control, resulting in China reversing its open
economy policy. As a student of Global business, what would your advice be to the
Indian Government as it embarks on opening the economy to the private sector?
Use terminologies and learnings from your management classes to give a
professional answer. Limit yourself to 300 words.

Since India has decided to embark its journey in opening the economy to Private sector which is called as
MIXED/HYBRID Economy version. While it has its own merit, but India should take in consideration
China’s experiments with a Mixed Economy Model.

Below actions are advisable to be taken by authorities

➢ The Political Environment

➢ Individualism
➢ Collectivism
➢ Political Ideology
➢ Democracy
➢ Totalitarianism

2. What are the three key learnings from the study of the Airtel Africa case. Limit to
200 words

As we have come across the Airtel Model, we have understood that AIRTEL AFRICA failed on these 3
major Ground

➢ Competitor Analysis and Choice of Partner

➢ Use of Model of Implementation
➢ Challenge in Market Entrance
➢ Competitor Analysis and Choice of Partner

AIRTEL Choose a Partner ZAIN TELECOM at a deal of $.9.5 Bn after 2 Unsuccessful attempt to acquire
“MTN”, ZAIN didn’t invest enough in Infrastructure which resulted in pumping additional $.5 Bn over all
above deal of $.9.5 Bn which increased their Cost of Production.
SHAMEEL. A
III EPGDM JUN /AUG 2021
REGISTRATION NUMBER: 210101618048
GLOBAL DIMENSIONS OF MANAGEMENT & INTERNATIONAL BUSINESS ASSIGNMENT

➢ Use of Model of Implementation – MINUTE FACTORY MODEL

AIRTEL choose to Enter market with its famous MINUTE FACTORY model where they would be able
to implement LOW PRICE Model, which was majorly depended on the expertise and capability of its
partner who were deemed to be experts in their Area and the Process and Integration will be easy and fast,
the scale of economies would give benefit to all included. Choice of ZAIN TELECOMS failed AIRTEL
plans to implement this model as ZAIN’s Infrastructure and Brand was not ready for this model and the
company was already Bleeding Cash due to same.
The AVERAGE MINUTES per USER were expected to be 350 – 400 minutes which was achieved only
100 minutes, clearly the Organization failed to gain the right data before implementing the Model which
worked well in INDIA but due to geographical requirements didn’t work well in AFRICA

➢ Challenge in Market Entrance

Challenges in Market entrance or Timing of Market Entry is depended on above 4 factors
• Demand – Decrease in Demand instead of Increase was majorly due to inefficiency in handling the
current Users
• Cost of Business - $.5Bn were invested in INFRASTRUCTURE which added the cost of
production/ Service
• Equipment and Access – The Equipment used by ZAIN Technology were Obsolete Infrastructure

3. Name two countries each of High and Low Context Societies. What are the three
typical characteristics of these societies? Limit to 200 words

Context, in a cultural sense, refers to the more subtle aspects of conversation and interaction. The
concept of High and Low Context Society was introduced by anthropologist Edward T. Hell in his 1959
book The Silent Language. Where Cultures and Communications in context of the message is of Great
importance to structuring actions are referred as High Context and where Low Context refers to Society
where people tend to have many connections but for a shorter duration or for some specific reason.

To Elaborate further on High and Low Context below is a characteristic comparison of both

Examples each of High and Low Context Society are as below.

High Context Low Context
Japan US
China UK
SHAMEEL. A
III EPGDM JUN /AUG 2021
REGISTRATION NUMBER: 210101618048
GLOBAL DIMENSIONS OF MANAGEMENT & INTERNATIONAL BUSINESS ASSIGNMENT

Characteristics of High and Low Context Society

High Context Low Context

- Emphasis on Logic and Facts

- Relational - Focus on Facts for Decision Making
- Collectivist - Words are important than Body Language
- Intuitive - Explicit, Direct and Concise Verbal message
- Contemplative - Focus on Tasks or Goals over Relationship

4. Globalization is dying as countries look more inward to boost their economy. State three
points in favor and three against briefly explain. Limit to 300 words

Globalization as a concept refers to the spread of the flow of financial products, goods, technology,
information, and jobs across national borders and cultures, which led Organization to cross the Domestic
Barriers

3 Advantages of Globalization

➢ Transfer of Technology
Transfer of technology throughout the globe is an advantage. Countries can borrow the technology
through the agreement and can implement it in their country for their overall development.
Communication across globe by using advance technology at minimal cost, time, and efforts.

➢ Better Services
Through the technological advancement our services like water supply, mobile networking, internet,
electricity supply and any other services have been easier and better than before. Today the easy access to
the internet throughout the globe is a result of the globalization.

➢ Standardization of Living
The integration of economies as the key process of globalization enables countries to fight against poverty
and improve the standard of living of the people. Many researchers have been stated that when a country
open their trade to the globe, their rate of economic growth is faster and living standards tend to increase.
SHAMEEL. A
III EPGDM JUN /AUG 2021
REGISTRATION NUMBER: 210101618048
GLOBAL DIMENSIONS OF MANAGEMENT & INTERNATIONAL BUSINESS ASSIGNMENT

3 Disadvantages of Globalization

➢ Growing Inequality

Globalization can increase inequality throughout the world by increasing specialization and trade. Although
specialization and trade boost the per-capita income it may cause relative poverty.

➢ Increasing of the Unemployment rate

Globalization can increase unemployment rate. Where people are getting jobs, how is it possible?
Here is the explanation. Globalization demands for higher-skilled work with cheaper price. But countries
where Institutions are relatively weak are not capable of producing highly skilled workers. As a result, the
unemployment rate is increasing in those countries.

➢ Trade Imbalance

The balance of trade refers to the balance of values between a country’s export and import’s goods and
services. As the result of globalization, any country can trade to any part of the globe.
That is why, in some cases developing countries are so much dependent on the developed countries in terms
of import goods but their export capabilities are lower than import. The trade imbalance has been occurring.
So, trade imbalance refers to the imbalance of values between a country’s import and export’s goods and
services. It is also called trade deficits. Trade imbalance may be increase in developed countries by their
competitors.

5. Should India open its borders and businesses for international trade? How does it
help the nation? What should India be mindful of as it opens to the World for trade?
Limit to 300 words

As we move in 21st Century, World at Large has become 1 Family, Globalization is the New Order of the
World which has its own unavoidable benefits, be it Technology, Benefit of Scale of Economies, Services,
and employments the reason for any country to Open up it’s International Borders for Trade are enormous.

Cost to Home Country Examples

➢ Home country’s industry and employment position are at stake when the firms enter foreign market
due to low-cost labor. The US textiles moved to central America. This resulted in retrenchment in
the USA.
➢ Current account position of the home country suffers as FDI is a substitute for direct exports.
SHAMEEL. A
III EPGDM JUN /AUG 2021
REGISTRATION NUMBER: 210101618048
GLOBAL DIMENSIONS OF MANAGEMENT & INTERNATIONAL BUSINESS ASSIGNMENT

Below Steps India should take to ensure while it opens it’s Borders to International community it also takes
care of Domestic Companies and their existence through its Protectionism Policy.

1. Tariffs – Revenue Tariff and Protective Tariff

2. Subsidies – Subsidies to Domestic companies
3. Customs- Valuation methods – Quota method
4. Special Fees – Charging special fees to FDI company to balance the trade benefits
5. Protecting Infant Industries – Industries like Khadi which is based on agriculture output to be saved
with policies of Import Duties
6. Developing Industrial Base - Creating Industrial Zones within States to ensure benefit of
development is envisaged
7. Economic Relationship with Other Countries – India can leverage it’s economic Policy of Free
Trade between countries of immediate benefits i.e., Like European Union, SAARC etc
8. Maintaining essential Industries – 17 KEY Industries are identified as Essential Industries; the
government should maintain those in Direct Control in order to ensure Safety and Self Reliance of
the Nation

6. Why do International joint ventures normally fail. Limit to 200 words.

While Globalization has allowed Domestic and International Companies to collaborate which have some
common grounds to work together, once these common goals are achieved, unless there is another joint
goal the collaboration moves towards a separation. The Example of TVS and SUZUKI, HERO and
HONDA etc. are few to name. Out of many reasons the below are common reasons for Failure of Joint
Ventures

➢ Completion of Common Goals – MARUTI SUZUKI

➢ Completion of Join Collaboration Period – MARUTI SUZUKI
➢ Dispute over control of the Venture - TVS and SUZUKI case study
➢ Legal and Domestics environmental changes of the countries of which companies are involved –
Example Countries entered in a political condition where at the Time of entering in the venture it
was conducive but now it isn’t.
➢ Lack of Finance – World Tel – Dhabol Plant
➢ Compatibility issues between companies – Hero Honda Venture
➢ Unrealistic Expectations – BHARTI AIRTEL AFRICA Case Study

There were four typical problems that the joint ventures encountered and had to address in one way or
another. These are: compatibility issues, funding, problems with the Joint Venture Agreement, and differing
profit/outcome expectations.
SHAMEEL. A
III EPGDM JUN /AUG 2021
REGISTRATION NUMBER: 210101618048
GLOBAL DIMENSIONS OF MANAGEMENT & INTERNATIONAL BUSINESS ASSIGNMENT

➢ Compatibility

One of the first things to consider when establishing a joint venture is the compatibility of the partners.
All parties involved should have aligned motives and be well suited to working together. While the goal
of the COMPANIES founders was likely to make money, the companies involved sometime approaches
the situation from very different standpoints.

➢ Funding

When obtaining funding for a joint venture, it is vital that all factors are considered to determine loan
serviceability. Chief among these is changing revenue streams, expenses, and cash flows; careful
modelling should be used to anticipate their impact.

➢ Join Venture Agreement

It is crucial that a clear and thorough Joint Venture Agreement is put in place at the start of any
arrangement. This should clearly set out the roles and responsibilities of each party and define key areas
such as profit share, control, liability and exit provisions. It appears that the COMPANIES agreement
may not have been as binding as first thought.

➢ Profit/Outcome expectations

Finally, all parties entering a joint venture should do so with a clear and aligned expectation of the
outcome and expected profits. This is where the COMPANIES made its greatest mistake. By just
focusing on the potential profitability of the venture, it failed to properly consider other factors.
satisfaction, customer reception and public goodwill