TCS opening office in Poland

IT and BPO contribution to Indian GDP only 7%

Korea supporting private investment for export led growth

COUNTRY BUSINESS ANALYSIS

Group 6 Amoolya Giridhar (PGP-09-010) Anwesha Mazumdar (PGP-09-015) Pranab Kumar Jha (PGP-09-055) Sharmistha Ghosh (PGP-09-075) Varun Kumar Lalitha (PGP-09-086)

AGENDA

KOREA TCS PERFORMANCE CONTEXT STRATEGY COUNTRY ANALYSIS MODEL CURRENT MODELS

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

CURRENT MODELS

PESTLE

CAGE

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

COUNTRY ANALYSIS FRAMEWORK

What players come into existence? How they allocate resources? How they evolve?

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

STRATEGY It is reflected in the goals and policies of decision makers. It is deduced from various government statements and actions of state and non-state actors. Goals: Diversity of potential national goals and their relative priority. Individual and National goals. Economic, Political and Social dimensions.
Examples: Higher per capita income level, growth, equality of income, stability, autonomy, defense

Policies: Government actions targeted towards national goals. Laissez faire economic policies versus State role economic policies. Encourages centrally coordinated and decentralized decision making. External orientation: Inward orientation versus Outward orientation.
Examples: Fiscal, monetary, exchange rate, trade and investment, sectoral, industrial, social, constitutional reform

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

RESOURCES

Ability to achieve goals constrained by resources Resources available at a point in time and forces that lead to their future accumulation
e.g. Number of workers driven by demographic factors : fertility, mortality rates

Identification of relative abundance/ scarcity of resources by referring to their market prices

e.g. Avg. wage rate, rate of growth of wages conveys about abundance/scarcity of labor

Hum

No. of individuals of working age Measures to account for factors like their skill, education levels Influenced by demographic factors, govt. policies

Machinery, structures Result of investments by firms and govt.

Resources like oil, timber Topographic features of the country

pit l

Physic l

pit l

Ability to innovate Ability to utilize existing processes efficiently

Nati

al R s urc w alth

Nati

s T ch l gical Devel pment

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

PLAYERS IN THE GAME

Closest direct link to resource allocation and use Variety in ownership structure, degree of product diversification, relationship between firms Differences affect the dynamics of business environment

Firms

Govt.

Central banks, ministries, state-owned firms, regulatory bodies Direct responsibility for large fraction of national wealth Producers and consumers of large part of national output Critical in influencing decision making of firms

Non-State Organizations

Labor organizations, Religious groups, Political parties Significant indirect influence by coordinating and constraining actions of state and firms.

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

RULES OF THE GAME

Must recognize written and unwritten rules of conduct in order to evaluate national systems Adoption of a particular rule system has significant impact on economic development. Rules bias the evolution of different players and influence the incentives within and between organizations Transformation of rule systems- central to national strategies

Formal Political & Economical Easiest to identify e.g. Constitution, Industry standards, Codes of conduct

Informal e.g. Practices like not cheating in business dealings. Come from socially transmitted information. A part of culture. Non-state organizations play large role in communicating and enforcing these rules

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

INTERNATIONAL DIMENSION

Achievement of goals depends on international environment as well. Need to look at differences in national economic systems and differences in nations international strategies Role of international organizations in mediating cross-country conflicts and defining rules. e.g. IMF, World Bank, WTO

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

PERFORMANCE Country Analyst: Examine the interrelationships among the components Benchmark performance against some standard

Do policies influence resource mobilization, allocation and efficiency of use? Identify the elements of reform packages that are conservative and radical and evaluate the likelihood and timing of their implementation. Interdependency between various elements of the national system.

Examples: Economic: GNP, inflation, unemployment, prices, national income accounts Social: Income distribution, fertility, mortality, literacy Political: Stability, freedom International: Balance of Payments, exchange rates, tariffs, quotas

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

Poland 2006-07

Performance Political

Context
Resources Largest graduate pools of central and eastern Europe estimated 400000 students graduating each year Multilingual workforce International barriers to foreign ownership have fallen significantly over the past few years

Strategy Goals: GDP: US$438.6bn ( 373.9bn) Annual Growth: 6.6% (2007) Inflation: 4.8% Unemployment: 9.3% (August 2008) Policies Euro 12.8 billion of Foreign Direct Investment (FDI) in 2007 Fall of Communism , growing trade with UK and US

Stable political scenario A coalition agreement was signed between the Civil Platform party and the Polish Peasants Party (PSL).

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

Poland Not just an Alternative Offshore Location

Poland is an investment-friendly country and corporations in that country can be owned and run by foreign shareholders, with full repatriation of capital and guarantees for after-tax profits and dividend earnings In 2007, TCS has presence in over 33 countries and employs over 35,000 consultants from 30 nations Largest graduate pools of central and eastern Europe estimated 400000 students graduating each year. Multilingual workforce Poland has proved to be a first-class location for high-quality, multi-lingual support value-proposition is not driven by scale and low-cost, but by highlymotivated and educated staff, and is a proven first-class hub for multilingual European language support potential to be challenging the unique expertise of a country such as Israel Krakow is keen on attracting Indian expertise to develop an IT park and is seeking the country's participation for major IT projects. Poland is undertaking big IT projects and has announced various initiatives that extend up to 2012.

Current Models

Country Analysis Model

Strategy

Context

Performance

TCS in Poland

Korea

Korea in 1970s:
National Strategy: Export led growth for sustainability in the world

Resources: Skilled labour, Technology driven, national wealth created by exports

Organizations: Favourable government policies to raise revenue, private investment, firms competing export market

International Environment: Huge market for exports in the world, Japan and Germany in the race for exports to US, prime target country was United States of America for revenue in dollars

Rules of the game: Funds raised were targeted towards the private investment

Evaluation is to country analysis what diagnosis is to medicine. Bruce Scott, HBS Professor