MANAGEMENT ASSIGNMENT 1
NAME: Lusyana Ismail
STUDENT ID: ISLUD 91
UNIT TITLE: Management 100
TUTOR NAME: Fazian Hashim
DUE DATE: 26th March 2009
Table of Contents
India Environment Analysis3
Political Environment 3
Myer is one of the biggest Australia’s retailed companies and has become a market leader in retailing products. Myer provided women and men fashion, cosmetics, and home wares/electrical. First Myer store was existed in 1900 by Sydney Myer and his brother. They keep expanding Myers until now there are 65 stores nationally in Australia. Myers has a commitment to always having the biggest choice of products for their customers have led to new and innovative ways of displaying products within their stores (Myer, 2008)
This report is conducted by Senior Management team on behalf of Myer as an analysis on expanding Myer international operation into India. On the report below, it will cover in-depth analysis of India environments and SWOT analysis on the feasibility of India as a benefit location for global operation.
2. India Environment Analysis
1. Political Environment
India is the sovereign democratic republic and has parliamentary system. The constitution of India was flexible to adjust the demand of social and economic order between international countries under the governance of Prime Minister Dr. Manmohan Singh. India has an important role in the world, active as a founder member in several international organizations such as UN and The Commonwealth Australia is committed to taking its relationship with India to a higher level and engaging with India on a long-term, strategic basis.
Cooperation between India and Australia spans a range of areas. Notable agreements include Memoranda of Understanding (MoUs) on Defence Cooperation, Customs, Information and Communications Technology and the Australia-India Strategic Research Fund. A MoU on intellectual property was signed in May 2008, and a MoU on science and technology cooperation was signed between CSIRO and its Indian counterpart in July 2008. In 2009, India and Australia have completed the study of
joint feasibility Free-Trade Agreement. This FTA may change some agreements or regulations between India and Australia (Australian Government, 2009).
Therefore, it affects Myer in dealing with the government, agencies and industries, which may result ease for Myer.
2. Legal Environment
India as well as Australia is follow common law. India successfully gives freedom for citizens having their rights. It is a country where the rule of law prevails and people have the assurance they would be ruled by law and not by whims. The legal system has all that is needed for the rule of law to thrive, namely clear and consistent rules, fair and reasonable laws that are acceptable to most, and an independent judiciary (Deva, 2008).
FDI (Foreign Direct Investment) in India is governed by government. For most of FDIs there is an automatic approval route for investors, which do not need government approval for investment in India, unless any prohibited investment, such as real estate or agriculture.
3. Economic Environment
(a) All recent data subject to revision, (b) IMF/EIU forecast Tab. 1: Source: Department of Foreign Affairs and Trade (India) Economic Fact sheet From tab 1, India’s GDP has been reducing sharply to 7.3% in year 2008. This backward may because of impact of global recession. As we can see the rate of inflation has been increasing from 5.5% to 9.2%. In January 2009, India cut down the industrial...