Essay India

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Table of Contents

1.0 Introduction………………………………..……………………………………3

2.0 Political Environment…………………………………………………………...3 3.1 Government Stability……………………………………………………3 3.2 Government and Contribution…………………………………………..3 3.3 Analysis…………………………………………………………………3

3.0 Legal Environment……………………………………………………………...4 4.4 Regulatory Framework………………………………………………….4 4.5 Business Laws…………………………………………………………..4 4.6 Labor Laws……………………………………………………………...4 4.7 Taxation Laws…………………………………………………………..4 4.8 Analysis…………………………………………………………………4

4.0 Economic Environment…………………………………………………………4 5.9 Interest Rates……………………………………………………………4 5.10 Inflation Rates…………………………………………………………..5 5.11 Currency Exchange Rates………………………………………………5 5.12 Free-Market/ Command/ Mixed Economies……………………………5 5.13 Economic Trends/ Forecasts……………………………………………5 5.14 Tax Policies…………………………………………………………….5 5.15 Analysis………………………………………………………………...5

5.0 Socio-cultural Environment…………………………………………………….6 6.16 Hofstede’s Cultural Dimensions………………………………………..6 6.17.1 Collectivism Vs Individualism………………………………6 6.17.2 Power Distance………………………………………………6 6.17.3 Uncertainty Avoidance………………………………………7 6.17.4 Time Orientation……………………………………………7 6.17.5 Quality Vs Quantity of Life…………………………………7 6.17 Analysis…………………………………………………………………7

6.0 Technological Environment……………………………………………………7 7.18 Technological Infrastructure……………………………………………7 7.19 Communication Networks……………………………………………...7 7.20 Logistics Networks……………………………………………………..8 7.21 Analysis…………………………………………………………………8

7.0 SWOT Analysis………………………………………………………………..8 8.22 Strengths………………………………………………………………..8 8.23 Weaknesses……………………………………………………………..8 8.24 Opportunities……………………………………………………………8 8.25 Threats………………………………………………………………….8

8.0 Recommendations………………………………………………………………9

9.0 References………………………………………………………………………10

1.0 Introduction

PicNet Pty Ltd is an Information Technology (IT) service provider in Australia. They prepare the teams with knowledge and experience in technology usage (PicNet 2002-2012). The aim of this report is to identify business opportunities in India.

Information Technology (IT) is an essential part in Indian economic growth. High purchase power causes rapid growth in the marketing of electronic gadgets (Information Technology 2011). Therefore, PicNet will use India as a distribution centre of its business.

India has low technical education system and shortage power supply; thus, PicNet needs to manage information technology, a skilled workforce as well as sophisticated infrastructure effectively to increase the efficiency of IT in India (Indian Free Market Economy 2010).

2.0 Political Environment
3.1 Government Stability
India is a democratic republic and conducts a parliamentary democracy. The president of India is Mrs. Pratibha Patil and the elections are held at 5 years interval regularly. However, the government is unstable due to the high corruption rate (Parliamentary Democracy in India 2011).

3.2 Government and Contribution
India government has collaborated with foreign countries like China, United Arab Emirates, Saudi Arabia and Australia (India 2011). Furthermore, India has opened up its market to foreign retailers to enter the Indian retail market (Johnson 2012).

3.3 Analysis
It will give a satisfactory chance for PicNet to run business in India as India has democratic governance, which is open to foreign retailers. However, unstable political governance and high corruption rate highlight the difficulties for PicNet to do the operation.

3.0 Legal Environment
4.4 Regulatory Framework
To enter the business in India, foreign investors have to register themselves with Registrar of...
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