National Business Systems and Cultural Conditions in India
EXECUTIVE SUMMARY
This report will look at the National Business Systems and cultural conditions in India and will provide a brief assessment of how this will affect the firms. The report then moves on to assess the patterns and trends of trades between the two countries especially in the beverage industrys. The implication of international institutions on the firm, an assessment on the entry mode (FDI or export), advices on the problem of establishing and operating a corporate social responsibility (CSR) in India and finally providing recommendation on whether or not Boost Energy should invest in India.
INTRODUCTION
This report gives us a brief idea about the investment opportunities for 'Boost Energy' which is energy drink manufacturer based in United States doing business in India. The company wishes to launch its products in India as well as export around the world. The Rs 2.5 billion branded energy drinks sector in India is growing at the rate of 60% growth rate of the Rs 70 billion soft drinks market. On the back of an increasing number of modern retail stores, the energy drinks market is expected to reach Rs 11billion by 2010. Although India's business environments is not an easy one to operate, the country's size and economic potential adds up to a profitable market for those who understands the challenges of the system and develop the skills to work within it.
NATIONAL BUSINESS SYSTEM
India has 17.3 percent of the world's population, including a modem, consumption-oriented segment in excess of 200 million. The economy of India is the 12th largest economy in the world by nominal value and the 4th largest by purchasing power parity (world bank). Out of the 200 million population, 40 percent of them are youth. Availability of cheap labour is a motivational factor for our firm since bottling and packaging requires a large work force. One of the other motivational factor is the stable government which has been in power for last 7 years and 3 more years to
This report will look at the National Business Systems and cultural conditions in India and will provide a brief assessment of how this will affect the firms. The report then moves on to assess the patterns and trends of trades between the two countries especially in the beverage industrys. The implication of international institutions on the firm, an assessment on the entry mode (FDI or export), advices on the problem of establishing and operating a corporate social responsibility (CSR) in India and finally providing recommendation on whether or not Boost Energy should invest in India.
INTRODUCTION
This report gives us a brief idea about the investment opportunities for 'Boost Energy' which is energy drink manufacturer based in United States doing business in India. The company wishes to launch its products in India as well as export around the world. The Rs 2.5 billion branded energy drinks sector in India is growing at the rate of 60% growth rate of the Rs 70 billion soft drinks market. On the back of an increasing number of modern retail stores, the energy drinks market is expected to reach Rs 11billion by 2010. Although India's business environments is not an easy one to operate, the country's size and economic potential adds up to a profitable market for those who understands the challenges of the system and develop the skills to work within it.
NATIONAL BUSINESS SYSTEM
India has 17.3 percent of the world's population, including a modem, consumption-oriented segment in excess of 200 million. The economy of India is the 12th largest economy in the world by nominal value and the 4th largest by purchasing power parity (world bank). Out of the 200 million population, 40 percent of them are youth. Availability of cheap labour is a motivational factor for our firm since bottling and packaging requires a large work force. One of the other motivational factor is the stable government which has been in power for last 7 years and 3 more years to