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Reorganize: Challenges for India Inc “India’s economic destiny is safe only when India knows how to stand on its own feet. Decision making is based on market realities and real time global information forces India Inc to monitor its earnings closely. These impressive results from India Inc will only happen if it can collaborate. Demand for services in New York and Dubai can lead to growth and high employee turnover in India while slow down in New York can cause layoff and marginal profits and explore new territories.Wikipedia. 365 days a year and never complaining. to adapt. Indian Corporate sector has moved from family owned business to public listed companies. It compete for resources internally and globally. merchandize and commodities to a scale that is unprecedented. India Inc collaborates and competes. International treaties and investigation forces India Inc. Restructure. Taking a fast food order from Kentucky or fixing a PC in London from Mumbai in the middle of the night.novapdf.com) . The realities in present corporate are impressive. merges and acquires delegates and retains providing services. Making Airline reservation from Washington DC to Chicago or answering a GE employee about its reimbursement. Providing the global consumers services 24/7. it innovates. As it desire for profit increases.Innovate. restructures and is ready to take risks. 2 Create PDF files without this message by purchasing novaPDF printer (http://www. adapt and innovate. to compete against everyone in the world on equal footing”. Manmohan Singh 2 India Inc is referred by media to the Indian corporate sector" . Selling mortgages to a consumer in San Francisco requires learning their accent and knowing how is the weather.Dr.
Innovate. one of the major business houses in India has innovated itself from Steel and locomotive maker to software Development and Defense. Reliance. energy and media Another Indian Giant that has exploited opportunities and innovated in a new market is Wipro. Restructure. Reorganize: Challenges for India Inc 3 Innovation Tata Group. One Such Concept was 3 Create PDF files without this message by purchasing novaPDF printer (http://www. Power. Tata Steel.novapdf. formerly known as Tata Iron and Steel Company Limited (TISCO) was established in 1907. with an annual crude steel capacity of 28 million tones. During the post liberalization period. laundry soap. tin containers and Wipro Fluid Power to manufacture hydraulic later set up into IT services. telecommunication. many new companies were shaping up to globalization.com) . Teleservices and Communications. With the changing times. India’s largest and world’s second largest Private Sector Company operates in chemical. Similarly Reliance Industries was founded by the Entrepreneur Dhirubhai Ambani in 1966. financial services. Wipro (Western India Vegetable Products Ltd) started from Consumer Goods Company in 1947 produced hydrogenated cooking oils/fat company. Information Technology. wax. The Tata Group stretched itself into various sectors like Automobile. New Innovative ideas gave rise to new concepts. is the world's sixth largest steel company. Ambani has been a pioneer in introducing financial instruments like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets.
travel packages and holidays in India Indian tobacco Company (ITC) previously known Imperial Tobacco Company of India Limited moved from Cigarettes to Hotel industry. Reorganize: Challenges for India Inc 4 Online Travel holidays. Branded Apparel and Greeting Cards. Processes like ERP. One of the first players in this field is MakemyTrip. an American multinational technology giant is outsourcing to India.com which is an online travel agency offering airline tickets. Therefore. car rentals. Adapting to Indian business environment General Electricals. many Multinational and transnational Companies are adapting to Indian Business Environment while setting their shops in India. ITC's wholly owned Information Technology subsidiary. Restructure.novapdf. it is gaining market share in its nascent businesses of Packaged Foods & Confectionery. Hotels.com) . General Electric is stepping up its outsourcing of software development to India. hotel reservations. GE India now has call centers that supports other clients as banks. ITC InfoTech India Limited. 4 Create PDF files without this message by purchasing novaPDF printer (http://www. Packaging and Agro-Exports. data warehousing and web based application development is being outsourced to Indian IT companies. is pursuing emerging opportunities in providing end-to-end IT Solution. Reshape and Restructure The rules of the business changes with the change in the business environment of the land.Innovate. While ITC continues in its traditional businesses of Cigarettes. Paperboards. including eenabled services and business processing Outsourcing.
an animal rights protection organization. regulatory and ecological issues while establishing business in a country like India . While Metro was not selling to retailers. Reorganize: Challenges for India Inc 5 German trade and retail Giant Metro’s Cash and Carry set shop at Bangalore in 2003 for its business to business (B2B) distribution center. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC's poultry farms. 1954.Innovate.com) .novapdf. Since the late 1990s. the company had to shut all but one outlet in the country. Restructure.KFC has not appreciated the need for protecting animal rights in developed and developing countries like India. Another case that highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India. KFC entered India in 1995 and has been in midst of controversies since then. The traders association also filed a case against Metro Cash & Carry. economic. Ultimately. KFC faced severe protests by People for Ethical Treatment of Animals (PETA). KFC did not do the necessary groundwork to understand the significance of cultural. Metro’s Inefficiency to understand the Indian mindset led to controversy on its operations in the country. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act. it approached various companies to sell its products to their employees at cheaper prices in violation of foreign direct investment norms Traders had alleged that Metro is violating the APMC Act by selling agricultural products and was acting as a wholesaler to lure retail buyers. Metro cash and carry was a seen as a threat to the local traders and “mom and pop stores”. 5 Create PDF files without this message by purchasing novaPDF printer (http://www.
There had been birth of many domestic channels in wide spectrum of entertainment.Innovate. Media in India has always been a high growth sector especially after liberalization.novapdf. BBC. Starting in1981. Many other foreign Channels followed this. Then came up with strategies and menu that is desirable by the Indian consumers. MTV India was entirely different from MTV in the United States. The cars humble beginning dates back to the year 1982 when Suzuki Motor 6 Create PDF files without this message by purchasing novaPDF printer (http://www. And since 2003 it is expanding successfully its business in India. This restructure helped MTV India to become the most popular Music Channel in India. This integration between multinational companies with the domestic market enforces their commitment. IBM has opened centre of excellence in India. This helps in to harness local technical skills with international expectations.com) . Maruti Suzuki was one of the very few companies in India to mass produce and sell cars in those days. and CHANNELV catered the need of the Indian audiences. NBC. One of the best examples of restructure and reshape is Maruti-Suzuki. Reorganize: Challenges for India Inc 6 Only recently in 2003 it made a quiet re-entry into the Indian market. The centre is designed with the objective of spurring innovation initiatives in partnership with clients and business partners. It is largely credited for having brought in an automobile revolution in India. Restructure. The shows. Channels Such as STAR. CNN. It understood the demand of Indian audience and thus became the most popular music channel in India. Seeking that opportunity to cater the needs of Indian audiences Music Television (MTV) launched the music channel with the name MTV India. music and theme were based on India. Its target audience was largely Indian urban youth.
As foreign automakers make a beeline for the still virgin Indian automobile market. A new study by the McKinsey Global Institute (MGI) suggests that if India continues its recent growth.com) . India’s rapid economic growth has set the stage for fundamental change among the country’s consumers. Maruti is still the most trusted brand by Indian Consumer. The same energy that has lifted hundreds of millions of Indians out of desperate poverty is creating a massive middle class centered in the cities. rebuilding it from scratch over 20 years. Global Position One of the biggest success stories in India is the Rise of Middle class.Innovate. Additionally the car ushered in a work culture and Japanese philosophy for super-efficient manufacturing. and the first car rolled off the lot in December 1983 at a very affordable price of US$ 960. It was a formula that brought about the renaissance of the Indian components industry. up from 12th now. Reorganize: Challenges for India Inc 7 Corporation entered into a joint venture with the Government of India to manufacture fuel-efficient passenger cars under the brand name. The very fact that Maruti still adorns the porch of millions of Indian houses is itself a tribute to the inherent strength of the car.novapdf. average household incomes will triple over the next two decades and it will become the world’s 5th-largest consumer economy by 2025. Maruti Suzuki continues to gratify the basic commuter needs for the common Indian. today the Indian car market is in a transition phase with many foreign players steadily picking up market share in the automobile industry. Despite all this. Restructure. India’s 7 Create PDF files without this message by purchasing novaPDF printer (http://www. However. The company was christened Maruti Udyog Limited (MUL).
novapdf.Innovate. it has been stated that the car market in India can be ranked the third largest car market in the world after China and USA. Restructure.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated 5. the apex body for software services in India. System Integration. Thanks to the success of the IT industry. is taking rapid strides towards becoming the world's manufacturing hub for compact cars. the revenue of the information technology sector has risen from 1.com) . The liberation policy of the Indian government has encouraged several foreign investors to come in and invest generously in the automobile market. increasingly seen as a global technology outsourcing centre. By noticing the trend of car buyers. According to the National Association of Software and Service Companies (NASSCOM). Reorganize: Challenges for India Inc 8 potential should make it a high priority for most consumer goods businesses. sellers and manufacturers. but to succeed in this complex market they must overcome major challenges.8 per cent in FY 2008-09. IT 8 Create PDF files without this message by purchasing novaPDF printer (http://www. Decrease in the rate of duties for small cars has also encouraged a significant boom in the automobile industry. India is now a power to reckon with. India. India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM). The Indian information technology companies have played a key role in putting India on the global map. Small car industry poised to become market leaders in terms of small cars. Indian automobile market has seen a brighter prospect to grow in India today than what it used to be in the past with some unfavorable government issues.
up to USD 150 billion of this opportunity is at risk. while India remains the preferred choice for Global outsourcers and the most competitive among 25 to 30 low cost locations even today. The US and European markets. the key playgrounds for Indian IT-BPO companies. it will have to work harder to sustain this edge. Infrastructure Management Services. As the major Western economies experience a major slowdown in growth and witness significant restructuring. unless a radical 9 Create PDF files without this message by purchasing novaPDF printer (http://www. To begin with. the global economy is going through severe volatility and facing the worst economic crisis since the Great Depression. According to the 2008 edition of the McKinsey Location Readiness Index. Restructure.com) . gaining a poster-boy image and placing the country on the global map. new services and new customer needs will define the course of all industry. Reorganize: Challenges for India Inc 9 Consulting. Despite IT-BPO sector is facing significant challenges for the first time in its history that could impact its future growth if corrective actions are not taken. have experienced economic upheaval caused by the sub-prime mortgage crisis and subsequent collapse of the financial and banking markets. India’s revenues in 2020 are likely to be USD 225 billion (including global sourcing and domestic outsourcing). Application Management. While the industry can generate revenues as high as USD 375 billion in 2020. Service-oriented architecture and Web services.novapdf. a completely different global economic landscape is emerging where new markets. from the earlier few million dollars worth exports in early 1990s. Software testing. The government expects the exports turnover to touch US$ 80 billion by 2011.Innovate. The Indian IT-BPO industry has had an incredible run over the last two decades. growing at an annual rate of 30 per cent per annum.
innovativeness. has to learn how and what to do when there is a slowdown. India is globally positioning itself as the centre market place 10 Challenges The challenges to India Inc are unique. We are net importer of energy and Indian corporate is hungry for energy resources. Cost of producing can fluctuate for many reasons from rising energy prices to competitors importing at low prices to transportation strike in parts of the nation. Consumer can become a threat this can be seen more in financial sector.com) . Consumer loyalty to a brand is not wide spread. India is an energy deficit nation. India Inc. Every downturn has its own challenge but this one originated in the west and is causing consumer to make spending decision. cut expenses and continue to service its clients. environment. India Inc. India lives in a consumer driven society. Restructure. The impact of this both short and long term is difficult to assess.novapdf. Energy is undeniable one of the pillars of robust growth. Intense competition can confuse a consumer and India Inc. does not want that. It ranges from our consumer. India Inc has to innovate to follow the consumer. The current global crisis began with high energy prices.Innovate. global warming to terrorism. Consumer drives India Inc. Consumer cannot be tamed but can only be followed. and talent development. Providing services and commodities what the consumer can afford is the key to success of India Inc. got affected as it could not forecast the future oil prices. Reorganize: Challenges for India Inc transformation is achieved in its business environment. The global slowdown and how to manage it has been a challenge to India Inc. Indian 10 Create PDF files without this message by purchasing novaPDF printer (http://www. High energy prices as seen in the past can lead to consumer slowdown.
Reorganize: Challenges for India Inc companies have to import energy from as far Venezuela and Brazil. 11 India Inc.novapdf. Such situation as current times requires diligence. Terrorism is the biggest threat to India Inc. subsidies may expire thus making lower profits.Innovate. Restructure. 2008. They with cash surplus have started to acquire companies. There is not much it can do to deal with terrorism domestic and global but these challenges are will handled by corporate India. new hiring are stopped and government may increases the taxes. knows how to face the challenges. still has to adopt the go green strategies. cost up making it hard decision. The exclusion of hiring of H1 workers and contracts in US caused slow down in IT sector. to recycle water. Water resources are precious and dwindling fast will require India Inc. As seen in Mumbai December 8th. The challenges are endless but India Inc. India Inc. has to lead the way. Adopting go green strategies are expensive and only have returns in the long run.com) . 11 Create PDF files without this message by purchasing novaPDF printer (http://www. Europe and Latin America. Manufacturing and services have lot of potential to protect the environment. As slowdown begins it gets difficult on India Inc. Such protectionism measure forced India Inc to look into new markets. special tax holidays. Taxes collection dwindle. Spillage and contamination lead to a movement against the company. India Inc stood together to denounce the attack but the consumer was already in shock and disturbed. Such challenges calls for show of patriotism and India Inc.
read X ray or a call to book a vacation package. Reorganize: Challenges for India Inc 12 Conclusion The evolution of India Inc. fix laptops . 12 Create PDF files without this message by purchasing novaPDF printer (http://www. is still poised for even higher growth with its entry into fortune 100 companies. started well before Indian Independence. Birla. Post Independence Indian manufacturing was moving at well above the world average(“Industrialisation and Foreign Trade. This produced corporate leaders as Ambanis. Unique challenges and threats have to overcome. Learning from the past will help India Inc.novapdf. Walchand Hirachand. Challenges will have to be overcome and opportunities will be exploited. 365 days with a smile. Jamshedji Tata. More Indian corporate companies are in fortune 500 than before. Restructure. India Inc. In spite of high trade barriers set by the British the spirits of pioneers of India Inc could not be contained. Lala Sriram and many others led the foundation of India core private sector. insight to the future.D.com) .Innovate. USA. as G. created new markets where no one could compete with them. Mittals and Hindujas. Next time there is and opportunity to provide aircraft design. learnt how to compete. 1945) The hard hit and bruised pioneers reared the new generation with same spirits of work culture and innovation. make better decisions and excel in all it endeavor. India Inc. The innovated. Pioneers of India Inc. But the endeavor to compete globally and outshine other will never end. is there 24/7 .
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