Discussion:
RESPONSE TO EACH STATEMENT IN A 50 WORDS EACH. GIVING YOUR OWN THOUGHTS...
1. The Self-Reference Criterion may cause American Executives to factor in the cultural differences and other aspects when dealing with the Indian Market, as these will be different than the market in the United States (Dudovskiy, 2012). One difference might be the way business is delayed and back up occurs, this is due to the Indians requiring bribes or pay offs as a way to earn more. Getting to know someone local can help Americans get through this hurdle, as they are familiar with the dynamics (Hume, 2012).
The American Corporation looking to expand into the Indian Market may have a strategy planned, in order to preserve a competitive edge. The management of the American Corporation may consider using the PEST analysis as a means of understanding the planned expansion into the Indian Market. The Political, Economic, Social, and technological factors could affect American Corporations risk, and are important to examine when looking to expand into the Indian Market (Dudovskiy, 2012).
For American Executives to avoid the mistake of self-reference criterion it will be important that they understand culture of India as well as different customs, and rules (Hume, 2012). By educating themselves on the way of India, they will encounter much more success entering the foreign market.
2. In order to provide a precise analysis of the case, it would be essential to appeal to the self-reference criterion and its impact on the PEST analysis of India of the American executives. First of all, it is vital to mention that in case of mistakes, self-reference criterion may cause American executives to dismiss the value of the caste system in the psyche of people from India. The aim is to establishment the methods to avoid the mistake of self-reference criterion.
Self-Reference Criterion can be defined as an unconscious reference to the personal experience, cultural values, and knowledge as a basis for making decisions. In other words, it is when the culture or the company knows the best way to accomplish things. The PEST analysis discovers various changing factors external to the business that challenges the overall risks in business (Parnell, 2008).
For instance, people can make the wrong decision in business abroad because they consider the same methods to be effective there as in their own countries (Dudovskiy, 2012). In order to avoid such a situation particular training has to be provided for those who are traveling abroad to hold the meeting or to manage some organization. The manager of every level has to be acknowledged particularly with the cultural background of the country and the methods of impact, particularly in this place. Thus, before going to India, the people have to be acknowledged with the cultural differences, learn the methods of impact and be well-acknowledged with the business system of the country.