International-Business-Dr-R-Chandran-E-book

33
International Business- Dr. R. Chandran
a. Why ENRON could not succeed in India?
b. What is the major hindrance for success of Kellogg in
India?
c. Why KFC has not made any break through in India as it
did in other countries?
d. What made Whirlpool & Caterpillar stop business in India?
An international marketer is required to understand, evaluate and work out
various parameters before venturing into any country. These Parameters are
called environmental factors and they determine the direction and purpose of
the international business operation. Many decisions depend upon
environmental factors right from selection of the country, location of the
plant, liaison with the government, and entry of investment from local
bodies, product launch, channel management, promotion and opening of
outlets. The first challenge for an organization is to navigate from its home
country to the host country. Thereafter it has to develop a proper system so
that the venture is successful in the host country; learn all about the
regulatory bodies both in the host country and home country; understand the
customer’s changing tastes and attitude towards foreign goods and finally
obtain revenue and make the business effective with right people.
A majority of the multinational corporations and large business houses
appoint a team of experts who are specialists in economies, political science,
sociology, industrial psychology and policy matters, to advice the
management on its strategic decisions. These experts are called risk analysts.
Prior to entry or investing millions of dollars, the experts gather all the
relevant information about the country and interpret those facts to facilitate
the company. By such risk analysis, companies can safeguard themselves
from future dangers. The major risks are:
1. Political
2. Economic
3. Exchange
4. Socio culture
5. Financial
6. Legal
7. Technological
8. Competitive
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