Problem:
I want assistance with the given screening: socio-cultural forces in India. conduct a business risk analysis as it relates to the paper below. Analyze risks according to the specific method explained In 1050-words please read the paper below and answer 1-6 as well as the following questions as it relates to the paper.
1) Demographics
2) Cultural
3) Religion
4) Education
5) Health, effects on workforce, how it might impact the business
6) Labor
Have you identified risk factors? Are these risks manageable, or are they show stoppers?
Please list Citations and references,
With one of the World's largest Gross Domestic Product (in the Trillions of dollars), a population of over 1 Billion people and a labor force larger than the entire United States' population, India is one of the largest and fastest growing world economies (Central Intelligence Agency, 2009).
In recent years, the United States began to invest heavily in rebuilding its own infrastructure. The Obama administration is allocating large parts of the annual budget to healthcare, education, building roads and creating green and sustainable technology centers. These activities are intended to help stimulate employment and lay the foundation for a healthy economy in future generations. Many global economies have already undergone this type of stimulus and are seeing the positive results. India is just such a country and Global Building Supply, or GBS, is counting on its continued success as a country, as an economy and as a people.
Global Building Supply is an international firm that provides construction related materials to build city roadways, residential housing and commercial buildings. With mining and logistical centers on multiple continents, GBS leverages natural resources regionally available to eliminate the need for costly and centralized distribution. The result is competitive pricing and a product made from materials sourced locally and that are already familiar to those local contractors using them. Some examples of GBS products are asphalt, concrete and metal components, such as re-bar and fasteners. These products are mined and sold in only large quantities to ensure competitive pricing. Global Building Supply is opening new mining and distribution in India, targeting two locations: Orissa and Jharkhand.
To help create a centralized company culture that propagates throughout all international locations, Global Building Supply is guided by the following mission statement:
"Global Building Supply (GBS) provides emerging and repairing economies with the building supplies they need. Serving the nations' governments and their chosen contractors, GBS, offers a single resource for all core structural products related to the construction of roads and buildings. GBS products are of high value and offer a competitive price, allowing our customers to focus all their energies on the projects we serve. Always aspiring to be a good corporate citizen, Global Business Supply gives back to the local community and offers our employees a long-term home given their drive to innovate and grow"
In order for it to be successful in India, Global Building Supply needs to have a clear understanding of India's political and economic conditions. GBS will also need to observe and pay special attention to the country's cultural orientation, including the threat of terrorism and how it may affect business. Without respecting these different forces, the company will find failure before even getting started.
Many different socio-economic layers and territories characterize India, or the Federal Republic of India. The republic, wining its independence over Britain in 1947, is comprised of 28 states with a shared but strained governmental system (Central Intelligence Agency, 2009).
Their legal system, based on English common law, is comprised of an executive branch, legislative branch and a judicial branch. While similarities to the US legal system exist at a high level, many differences become apparent under further investigation. Most notable is the fact that differing religious groups, such as of Muslims (the majority group), Christians and Hindus, observe and are protected by separate personal codes of law.
India's economy is on the rise. With an immense GDP and a labor force of over 500 million people, India is one of the world's fastest growing world economies. While over half of India's economy comes from agriculture, the past two decades have seen a rapid increase in technology and skilled outsourcing to the United States, the EU and other world powers. One of India's primary investments over the previous 30 years had been in the areas of education and technology infrastructure - two components critical to any country wishing to outsource to the web-enabled world. With such a large population and a high level of average education and specialization, more of India's citizens have begun to enjoy disposable income. With an average age of about 25 years, Indians are poised to see a continued economic prosperity for years to come (Economy Watch, 2009).
Cultural factors, such as language, religion and rural colloquialisms, will play a large role in the execution of the GBS business plan. While much of India possesses a large population of English speaking people, the more rural areas where natural resource mining will take place will not offer as much of this luxury. Much of urbanized India has become more Western in its behavior, but again, the more rural areas will be less exposed to such trends and will demonstrate more conservative thinking culturally.
In order for GBS to become culturally integrated, the company will need to hire Indians that are from two distinct groups: classically educated, English-speaking urbanites and locals that understand the more nuanced and less temperate culture and religion of mining centers.
A final and important consideration for operating in India will be of threats from terrorism. Many Indian states, including the resource rich states of Orissa and Jharkhand, are exposed to terrorist activity. While recent attacks from Islamic extremists (the Mumbai attack of 2008) will be of concern, the primary targets of such terrorist threats come in urban areas of emerging affluence. More likely, feuding religious and separatist groups, will play a more frontal role in GBS' planning for such interruptions. The successful integration of mining facilities with local communities and culture will play a large role in keeping the Global Building Supply rural mining divisions safe from terror.
With such a strong economy, rapid rate of growth, prevalence of highly educated and highly motivated people and vast natural resources, India serves as the perfect destination for Global Building Supplies' latest mining and distribution centers. Furthermore, governmental investment into infrastructure and accommodations made for new businesses will make startup a little easier. GBS will want to gain a full understanding of the country's political and legal systems, cultural influences and religion. Taking care to respect those traditions that have preceded them, GBS will have success in integrating their mining centers into local communities. With stakeholders surrounding the company in their local community, threats of terror will be far less and growth far more realistic.