Impact of Globalization on Business and Management Education
The business sector in India is highly promising in the present scenario. The impact of globalization has changed the business procedure in India in terms of psychology, methodology, technology, mindset work culture etc. Newer challenges, newer opportunities are day-by-day in front of Indian industries, which are profitable and prospective.
The fundamental scope of doing business in India is lying with its people. The huge population of India has created a large unsaturated market of consumers. This is one of the reasons why global companies are very much interested in doing business in India. In the post globalization era this scope has increased immensely for global
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Competitive forces are expected to take Indian industry out of inertia and place it on a dynamic growth path. In this context, it is important to know how far economic liberalization and globalization has succeeded in changing the market structure so as to allow more competitive free play. Market competition is in turn expected to influence the performance of industry positively. It is proposed to study changes in the market structure for different industries in terms of the number of units, size structure and ownership patterns in the 1990s as compared with the 1980s, using unit level data for the organized industry. This is to be followed up by a study of the performance of these units / industries in terms of efficiency and productivity. A related question to be examined is how the new economic environment has influenced the entry and exit of firms, their competitive strategies, and their pricing behavior.
Reforms and the Corporate Sector
The corporate sector constitutes a dominant part of industry. Financial sector reforms along with the development of the capital market are changing the structure of corporate financing. This has led to a separation of ownership and the management and has given rise to the issue of corporate governance, among others. Corporate governance essentially deals with the ways of governing the corporations so as to improve their financial performance. The need for governance arises mainly due
Corporate governance is the rules in which companies are controlled. This governance essentially balances the
Corporate governance defined as the system of rules, practices and processes by which a company is directed and controlled. Balancing the interests of the stakeholders is essential involves in a company, which include its shareholders, management, customers, suppliers, financiers, government and community. There are five major elements of corporate governance, which are, board commitment, good board practices, functional and effective control environment, transparent disclosure, and well defined shareholder rights. To prevent corporate scandals, fraud and the criminal liability of the organization, good executed corporate governance is important and must apply and respect in the organization. There have a relationship between corporate governance and internal control, for example, the more in corporate governance, the more of internal control in the organization and the less of fraud occur. One of the tasks and goals of the corporate governance is to ensure there have adequate internal control within organization to protect the organization from any conflicts for the benefits of
Corporate governance in itself has no single definition but common principles which it should follow. For example in 1994 the most agreed term for corporate governance was “the process of supervision and control intended to ensure that the company’s management acts in accordance with the interest of shareholders” (Parkinson, 1994)1. Corporate governance code is not a direct set of rules but a self-regulated framework which businesses choose to follow. This code has continued to change in the past 20 years in accordance with what is happening in the business world. For example the Enron scandal caused reform in corporate governance with the Higgs Report which corrected the issues which were necessary. Although it does not quickly fix problems, it gives a better framework to
Corporate governance is a commonly used phrase to describe a company’s control mechanisms to ensure management is operating according to
India is one country which is developing rapidly at the moment along with China (Lal and Clement, 2005). The political, economic, social, cultural, technological and legal climate in India is extremely suitable for international entrepreneurs since business prospects in a country are heavily dependent on the above mentioned parameters. Since India is the second most heavily populated country in the world, British telecommunication company, Vodafone has enormous business opportunities in India. Mobile phone usage in India is increasing rapidly in recent times (Press Information Bureau: Government of India, 2010). A substantial portion of Indian
The article is written to help readers gain a solid understanding the roles of corporate governance, both inside and outside the company. Its goal is simply to impart information, not make claims or arguments on its own. I will be judging it mainly on the sources gathered, numerous examples and explanations given and the overall effectiveness it possesses in effectively communicating its ideas.
In contrast to Australians, Indians need to know very well these business people, before making a decision. Their negotiation process will be longer and for them it is crucial to have business dinner and many
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
This special reports dives into the changing business world of India. It starts off by describing a big day for India, one where county leaders discussed the fact that business people in their country feel disheartened and the dynastic culture of the entrepreneurs in India. “The world is Flat” by Thomas Friedman is mentioned as he describes India as a “silicon Valet with worse roads and spicier food”. And an idea of a new form of capitalism in India is discussed; stating that Indian capitalism is concentrated and that in the stock market debt levels are low and growth rates are strong. The idea of India’s sense of ownership is mentioned with the evidence that many Indian firms are under family or founder control. India is growing to be
Corporate governance refers to ‘the ways suppliers of finance to corporations assure themselves of getting return on their investment’ (Shleifer and Vishny, 1997: 736). Corporate governance discusses the set of systems, principles and processes by which a
Brinda Patel’s manager Michael Lang had increased unit sales growth by 25% in Thailand by investing around 3% of sales to advertisement. Langs’s suggestion of opting the same strategy as that in Thailand will not suffice the purpose in India because of the huge demographic difference between the two countries.
Corporate governance can be defined as the process, customs, laws by which the affairs of a company are managed and controlled it also
Indian companies are using all the tricks of trade to go global. The scale and business share may not be significant today, but Indian businesses are slowly but surely establishing themselves abroad. Following are the strategies used by Indian companies to go global:
Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals. Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the
Favourable government policy: the Indian government has passed the policies aimed to attaining international competitiveness by lifting the quantitative restrictions, reducing excise duties, export units can be set up by a government approval and use of foreign brand names.