Compare the Challenges to Select Business Activities Within a Selected Organisation in Two Different Economic Environments.

India has a major problem with corruption. In the book The White Tiger, we see this problem throughout Balram’s life. The first time we are exposed to corruption is when Balram is just a young boy living in his village that is in the “darkness” of India. His village of Laxmangarh is in the darkness of India and is run by four landlords that use intimidation and scare tactics to collect an unfair amount of money from their tenants.(pg. 21-22) Another place you see corruption in The White Tiger is when Balram is working for Ashok and his family. Their family has to pay the government bribes to keep from being prosecuted for illegally stealing coal, and evading taxes.(pg.233) Imagine if we lived in a country where if you paid the national government

India has become a global conduit for business as they have liberalized their economic policies over the past 20 years. Companies are flocking to India because of many factors, including, less expensive labor costs, increasing growth rate, and an abundance of a highly skilled workforce. These factors in addition to other advantages have substantially increased the number of United States businesses looking to grow beyond the U. S borders into the county of India. Dunlop Software Consultant’s goal is to also expand its operations internationally and believes that India has the business environment to meet our goal of expansion globally.

The book Behind the Beautiful Forevers by Katherine Boo, addresses the corruption of a slum in India called Annawadi. Annawadi is a small, poor area in the shadows of luxurious hotels and an airport near Mumbai. The poor community struggles to make a living and hold on to a hope of one day reaching success since India is improving economically. As India is improving economically, Annawadi seems to stay the same because of the people who abuse their power and take money from the poor. People there are being held back by the unfairness that they will not be able to have a better life. Laws are not enforced in poor communities because it causes corruption in both the establishment and in the people.

M2 Compare the challenges to selected business activities within a selected organisation, in two different economic environments

* The influence of two contrasting economic environments on business activities within a selected organisation

Outsourcing to India will add to many benefits to help reducing cost. Out shoring some jobs across the world holds a lower wage unlike the United States where the minimum wage is around 8 dollars. The operating cost in India is much cheaper than it is here in America. All the resources that will be needed for Attorney on Call will be exceptionally cheaper as well as the training cost to train the new members for this business.

In Katherine Boo’s novel Behind the Beautiful Forevers: Life, Death, and Hope in a Mumbai Undercity we are thrown into a slum in Mumbai, Annawadi and are shown that corruption is an undeniable difficulty that the Annawadians face in their everyday lives. “For every two people in Annawadi inching up, there was one in a catastrophic plunge” (24) the people of Annawadi are in such a state because of all the corruption. As soon as they get ahead there’s someone there to remind them where they belong, living their lives barely scraping by in the slums. The corruption in Mumbai has become the status quo, denying citizens of even their basic rights making everyday life a difficulty.

Indians will often take longer than usual to get the U.S. company a contract, certificate, or document which can create a bottleneck (Hume, 2012). The bureaucrats holding up the progress expect a payoff for moving things along faster so having a local player or someone who knows how to weave in and out of bureaucracy in India may make business dealings easier. Hume (2012), suggests doing research beforehand to figure out who the right players are and be diligent. Other cultural nuisances when conducting business in India is their perspective on time. Indians don’t like to be ruled by a calendar or a clock so getting business done in a timely fashion is hard to accomplish. One of the frustrations with doing business in India is that the politicians have a great deal of power. If a person in office is in the process of being replaced and a company had business dealing with the previous person, business dealing will start over at square one with the new

economy experiencing inflation, and a decrease in productivity as these large increases in prices would eradicate most orders by consumers5. This is because in the world of business, staying local will destroy your company. To outsource and offshore presents an opportunity to stay competitive and have the best prices. Granted, the company’s production can stay local on American soil and the product be distributed abroad, but that limits this company and overall gains for those involved in it, including those working5. This is often taken advantage of by companies seeking to save money by paying far less for a worker’s wage than if they worked inside of the United States. The median pay for a standard Information Technology (IT) Support Specialist in the United States is $45,5486 while the median pay for the same job in China is about $7,000 a year and $8,400 in India. This is a problem that needs to be regulated, brought to a higher standard, and challenged in any three of the branches of the U.S. government. However, these job’s sole purpose for being in China and India are because of these low wage costs. The current employees outsourced in China and India would lose their jobs if a decision concerning bringing jobs back to America resulted in the banning of offshoring and outsourcing jobs to these countries. That $7,000 average pay rate in China and $8,400 in India, allocated to about 14 million people amongst the two countries and more, would be catastrophic for all of the individuals and families that depend on this large source of income7. This income, as insignificant and non-survivable as an income in the United States, is of the upmost importance to these people abroad. With the number of unemployed workers in India being an estimated 17.7 million in 2017 and 0.982 million in China, it is

With a large English-speaking population, American companies do not have to worry about any barrier language barriers with regards training and negotiation. In addition, India also has a large population of unskilled workers who can work either manufacturing, or the call centers. Perhaps the most important benefit of outsourcing to India is its lack of regulation which allows companies to compensate workers far below the value of the work they are doing. Because of these reasons, essentially any company which requires call centers and manufacturing bases see India as a viable

P5 Describe the influence of 2 contrasting economics environments on business activities within a selected organisation

Also the inferior cost of operation and labour in India makes it an eye-catching location for companies to outsource to. According to (Kathleen et.al 2014 p.6) “outsourcing is not always the answer” companies and organizations should approach outsourcing claims with significant care and attention. Some disadvantages can be problems with quality if the outsourcing provider is untested or doesn’t have accurate processes. There is also a problem of loss of management control, when you have organizations in more than one country, Human Resource must focus on treating resources as global and not country specific, with economic expansion in India this company needs to make sure it has the organizational capability to operate in India (Banfield & Kay 2012 p.201). Whilst outsourcing, top management should demonstrate leadership in the arrangement of commitment, guarantee and participation in the process. Communication also plays a vital role in the management process whilst outsourcing, it’s important to keep employees up to date of your aims and intentions in a precise and suitable fashion. This gives employees a greater sense of trust and reliability in their manager. Managers should also make an effort to involve their employees and ask for their opinions on outsourcing, with more involvement in the development employees are more likely to consent

Procedure: to describe the influence of two economic environments on business activities within a selected organisation. Also to compare the challenges to selected business activities within a selected organisation in different economic sectors.

Rare are the moments in history when a nation suddenly captures the imagination of the world. For India, those rare moments have arrived. The country is achieving a high economic growth of over 8 per cent of its GDP annually, on a consistent basis.

India has the second highest population in the world, only surpassed by China. India's billion plus citizens live in huge cities