Strategic Globalisation: Ayam Brand's Entry into the Indian Market

This report examines Ayam Brand's globalisation strategy, focusing on its potential expansion into the Indian market. It begins by introducing Ayam Brand and India, highlighting the cultural components of India and their impact on Ayam Brand's business operations. The report then uses Hofstede's cultural dimensions to analyze the factors Ayam Brand needs to consider for effective operation in India, followed by an explanation of India's political ideologies and economic systems and their effects on Ayam Brand's globalisation efforts. The report concludes with recommendations for Ayam Brand's entry into the Indian market, specifically focusing on foreign direct investment and other entry modes, emphasizing the importance of cultural analyses for successful establishment in a new country. Desklib offers a wealth of resources, including similar reports and past papers, for students seeking comprehensive study materials.

GLOBALISATION and
the WORLD ECONOMY

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Cultural components of India and their impact on business of Ayam brand...............................1
Hofstede’s cultural dimension.....................................................................................................2
Explain the political ideologies and economic systems of the
chosen host country and its effects to the chosen company when
globalising to the host country....................................................................................................3
Recommendation for entry in host country ................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Expansion is related to the introduction of business in new country where it does not conduct
their business in their past experience. Ayam brand is the organisation which is chosen here to
expand their business in new country (Amah, 2019). It is a Singapore company which deal in a
business of packages foods related to vegetables and many more. The host country which is
taken here is India which is great nation of Asia and most desirable place for companies in
relation to business.
MAIN BODY
Cultural components of India and their impact on business of Ayam brand
The country of India is a democratic country under which different types of peoples lives
in comparison to their caste, language tradition and culture. India is country of diverse culture
because of diversity in their living beings. There are number of components are present in culture
of India and the brief discussion related to some are given below:
Values
The importance of values are very high India as it is country of diverse populations.
There are different types of peoples are present in country which follows different customs and
traditions according to their belief and religion (Berdiev and Saunoris, 2018). It is not possible
for any type of organisation to conduct their business in these market without the following of
these customs and religion. There are some groups of society are present which prefer non
vegetarian foods but the large number of groups prefers only vegetarian food. It is important for
Ayam brand that they select particular group of customers to target because the small mistake of
company can ruin the whole plan of expansion.
Economy and trade
The economy of India is one of fastest growing economy of world which reflects huge
growth in the market. It is one of the most important reason for the attraction of different
international organisations towards the country. There are different types of negative factors and
policies of the government hit the economy very hard and makes them to reflects negative
growth. It is important for the company to develop separate framework to deal with this
situation.
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Customs
There are different types of customs are followed by the people of India under which
number of holidays are managed on different occasions and festivals. Most of the group of
society prefers to wear simple clothes like pant- shirt for men and saree for women. Western
outfits are generally avoid in workplace (Fang, Gozgor and Yan, 2021). It is essential for the
management of Ayam brand to focus on this issue while formulating the policies for their
workforce.
Language
It is analysed from many examples that India is the country where the number of
languages are highest. The languages spoken by the peoples are vary according to their traditions
and beliefs. There are different types of languages are spoken by the people living in different
parts of the country. These languages can creates number of mess and disputes in the business of
the organisation. The organisation which wants to operate their business in market of India need
to focus on concept of language diversity. This enables the management to use number of
languages in the organisation.
Religion
India is the best example for religion diversity where the people of different religion lives
peace and justice. There are different types of religion are present in the country and all the
citizens have right to follow their religion due to secular constitution of the country. Due to the
presence of some negative elements, there are some cases are happened which increases religious
intolerance (Hutchinson, 2018). It is important for Ayam brand to conduct their business in such
a way to promote the concept of Equality in diversity if they want to succeed in their working.
Hofstede’s cultural dimension
The shape of a agency majorly defines lifestyle in a chief feel and it's miles essential for a agency
to use hofstede dimensions of lifestyle on the way to supply exceptional practices. This version
enables in handing over exceptional commercial enterprise practices in a agency for commercial
enterprise expansion. It is essential for the agency to take help of strategic control for
implementation of this version. Power distance index: The energy index is decided because the
standards wherein inequality in addition to energy elements are tolerated. Organisations on the
market need to frequently observe the simple plan that's powerful in growing a want for energy
distance index.
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Individualism vs. collectivism: It is one of the important duty of the organisation to focus on
the benefits and development of employees in the organisation. It becomes the moral function of
the employees to actively working for the betterment of company. The score of India is 48 as per
the collectivism of the society which makes many differences in individualists. The collectivist
aspect approach that there's a excessive desire for happiness to a bigger cultural model wherein
people are predicted to behave according to the extra true of one’s represented in-group
Uncertainty avoidance index: It is decided as enlarge in doubt in increase to unclearness is
tolerated. It describes that how unknown state of affairs or surprising occasions are deal in
organization successfully a good way to reap objectives. Ayam emblem company organization
has alteration uncertainness rejection index that shows because the low endurance for
organisational uncertainty and risk-taking and uncertainty is minimised through making use of
strict legal guidelines and regulations. India rankings forty in this size and as a consequence has
a medium low desire for heading off uncertainty. In India, there's reputation of imperfection; not
anything must be ideal nor has to move imprecisely as planned. India is continuum a affected
person wherein endurance for the surprising is high ; even welcomed as a harm from monotony.
Masculinity vs. femininity: The respective measurement is described because the choice of
social group for accomplishment, behaviour equality and attitude, . As masculinity is
measured because the potentiality like fierceness and deficiency. On the opposite hand,
femininity is associated with changeable physiological roles, nurturing in addition to it's miles
worried with the first-class of life. India rankings fifty six in this measurement and is for that
reason taken into consideration a Neuter society. India is really very Masculine in phrases of
visible show of achievement and power. The fashion dressmaker logo label, the flash and
ostentation that is going with marketing and marketing one’s achievement, is broadly practised.
Long term vs. short term orientation: It is connected with time horizon that's utilised by the
enterprise to put in power the devising strategy and plans . Ayam emblem enterprise awareness
on the speedy in improver to long-time period goals to acquire all organisational desires and
goals properly. Short time period orientations offer short effects and long-time fundamental
quantity orientation cognizance on determination in addition to long time increase and
development.
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Explain the political ideologies and economic systems of the chosen host country and its effects
to the chosen company when globalising to the host country.
Political ideology refers to the principles ethical ideals and the doctrines followed by the
government which are having serious impacted on the business of the organisation. It is very
important for the organisation to analyse the ideology of government because it helps them to
develop counter strategies to deal with the situation (Masrani, Morelli and Bagchi, 2022). The
constitution of India followed democratic style of government under which the elections are held
at every five hours and the government of the state and centre becomes re-elected by the people.
If the government of counter y are having positive approach toward the business it attracts
number of international organisations and investors which leads to the promotion of development
activities in the country.
The government of India promotes the aspects of business in country for the development of the
nation which reflects from their positive approach towards business which are given below:
Ease in rules and regulations :- In the past period of time, there are large number of rules and
regulations need to follow by the organisations to conduct their business. Different types of
paper work need done for the registration of company and also after the registration. This
disables many entrepreneurs to established their own organisation (Perraton, 2019). The
government of respected country changed the system and makes all the process online which
reduces the efforts and minimises the barriers.
Liberalisation, privatisation and globalisation(LPG) policy :- The economy of India was a
closed economy before the year 1992 under which no foreign company are allowed to conduct
their business in the country. The result of this policy were negatively impacts the growth of the
country. In the year of 1992, the government of respected country changes their policy and
allowed the number of foreign country to conduct their business. It impacts positive for the
business of Ayam brand because of ease of doing business.
Increase foreign investment :- foreign direct investment is one of the most attractive method
for international organisation to established their business in new country. It allows the company
to make investment in host country and becomes possible to make their existence. The
government of India continuously increases the limit of foreign investment which allows
international company to increase their share in international markets. It not only benefits to the
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organisation but also helps the country to increase the level of investment. It positively impact
the business of Ayam brand to operate their business because effective route to entry in market
of host country can be gain.
Recommendation for entry in host country
The entry of international company in the market of host country is one of the most important
and critical activity of international expansion. It is very important for the management of the
organisation to analyse the different political factors of the country such as policies rules,
regulations and many more. The management of Ayam brand wants to established their business
in country of India and needs effective entry mode. There are number of entry modes are present
which allows international companies to established their business in India such as Licensing,
foreign direct investment, partnerships strategic alliance and many (Shpynova, Delieva and
Sokolova, 2021). The brief discussion of how Ayam brand can enter in Indian market are as
under:
Foreign direct investment :- It is related to those system of entry under which the management
of international company can make considerable investment in any existing company of host
country. It is one of the attractive method of entry under which the international company
purchases the stake of local company and earns dividend. It is recommended to the management
of Ayam to make considerable investment in any country of India and makes possible their entry
in international markets. The government of India increases the level of FDI to 10% which
becomes effective for the management of Ayam brand. This mode of entry does not make able
the company to sell their own product in host country so there are some other methods are
present which can adopt by the company to sell their own products in Indian markets.
Licensing :- It is related to those mode of the entry under which the organisation can take the
license of doing business in host country (Takayama and Nomura, S., 2019). It is recommended
to the management of Ayam brand to fulfil the conditions of the government and apply for the
license of doing business.
CONCLUSION
It is concluded from this report that it is not impossible for any company to established their
business in new country because of globalisation which provided many entry modes to the
organisation. This report concluded the requirement of cultural analyses of host country which
helps to protect the strategies of organisation from failure. It concluded various cultural
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dimensions of India and their impact on business. This report concludes the positive ideology of
government of India towards the establishment of international companies in their local markets.
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REFERENCES
Books and Journals:
Amah, O.E., 2019. Current World Events That Are Threatening the Globalisation Process.
In Globalisation and Leadership in Africa (pp. 25-40). Palgrave Pivot, Cham.
Berdiev, A.N. and Saunoris, J.W., 2018. Does globalisation affect the shadow economy?. The
World Economy, 41(1), pp.222-241.
Fang, J., Gozgor, G. and Yan, C., 2021. Does globalisation alleviate polarisation?. The World
Economy, 44(4), pp.1031-1052.
Hutchinson, M., 2018. The coming age of de-globalisation and why we should welcome
it. Quadrant, 62(5), pp.18-21.
Masrani, S.K., Morelli, C.J. and Bagchi, A.K. eds., 2022. Indian Business in the Twentieth
Century: Development within an Era of Globalisation. Taylor & Francis.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Shpynova, V.V., Delieva, A.P. and Sokolova, O.V., 2021. THE GLOBALISATION OF THE
WORLD ECONOMY. In Young scientists' researches and achievements in science (pp.
215-220).
Takayama, M. and Nomura, S., 2019. Japanese Adaptation to the Globalisation of the World
Economy. In Vanishing Borders: The New International Order of the 21st Century (pp.
39-56). Routledge.
Tolkach, D. and Pratt, S., 2019. Globalisation and cultural change in Pacific island countries: the
role of tourism. Tourism Geographies.
Zajda, J. and Vissing, Y., 2022. Globalisation, ideology, and human rights. In Discourses of
Globalisation, Ideology, and Human Rights (pp. 1-9). Springer, Cham.
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