Cost Delay
1. Discuss internal, domestic and global environments of business revealed by this case.
Answer: Internal/domestic environments
a) The business decision making process in Indian govt. sector is pretty slow which leads to unnecessary loss of time and money. In this case, the slow process lead the to loss of opportunity to buy a firm (premier
Oil)
b) There are much more than required levels of clearances that needs to be taken to acquire a company abroad. Application is reviewed by members of special committee of RBI, Finance and commerce ministries. Since three organizations are involved in the clearance process, it increases the time to take a concrete decision. It would have been better if there was a single window from where all required clearances could be taken.
c) Indian opened its market in 1991 and by 1998 it should have such a policy already in place to avoid unnecessary delay. This is an example of inability to predict the future business opportunities.
Global Environment
a) The global environment is very much competitive. There are companies which will take away the chance in just a blink of an eye.
b) The policies are company friendly and it allows companies to acquire other companies abroad seamlessly.
c) They had better government regulation and faster process which resulted in their getting govt. clearance quickly and take away the deal from IOC.
2. Discuss whether it is the domestic or global environment that hinders the globalization of Indian business.
Answer: It’s the domestic environment which hinders the globalization of Indian business. The policies were not in place at the time the markets were opened to foreign players. It’s a misconception that in India policies cannot work. India should learn from countries like Korea which initially strengthened its internal industries before opening its economy to the world but India failed to strengthen the
companies,
Answer: Internal/domestic environments
a) The business decision making process in Indian govt. sector is pretty slow which leads to unnecessary loss of time and money. In this case, the slow process lead the to loss of opportunity to buy a firm (premier
Oil)
b) There are much more than required levels of clearances that needs to be taken to acquire a company abroad. Application is reviewed by members of special committee of RBI, Finance and commerce ministries. Since three organizations are involved in the clearance process, it increases the time to take a concrete decision. It would have been better if there was a single window from where all required clearances could be taken.
c) Indian opened its market in 1991 and by 1998 it should have such a policy already in place to avoid unnecessary delay. This is an example of inability to predict the future business opportunities.
Global Environment
a) The global environment is very much competitive. There are companies which will take away the chance in just a blink of an eye.
b) The policies are company friendly and it allows companies to acquire other companies abroad seamlessly.
c) They had better government regulation and faster process which resulted in their getting govt. clearance quickly and take away the deal from IOC.
2. Discuss whether it is the domestic or global environment that hinders the globalization of Indian business.
Answer: It’s the domestic environment which hinders the globalization of Indian business. The policies were not in place at the time the markets were opened to foreign players. It’s a misconception that in India policies cannot work. India should learn from countries like Korea which initially strengthened its internal industries before opening its economy to the world but India failed to strengthen the
companies,