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Deciphering the Indian Business Space

Managing a Business activity in India is their offerings. The consuming patterns
not the easiest of tasks. In fact it is of this class of people is definitely
one endeavor where even some of the undergoing a transformation, with a
world's biggest organizations have significant quantum of earnings being
failed. The single reason for this is the spent on 'discretionary' items such as
flawed perceptions most business concerns entertainment, consumer durables, books
have about the Indian Business space. The and so on. Yet this class is not
media in a certain way has contributed to necessarily 'brand' driven and therefore
these perceptions. There are certain evaluates every product and service
cities in India that seem to have hogged purchased, in terms of 'value for money'.
the limelight with the Western press and It does not have any qualms in shifting
they include Bangalore and Hyderabad. But to a non branded offering if the offer
remember the realities are not were perceived as better value. The
necessarily what you read about, in these 'value' perception in many cases is
media stories.Some of the 'must know' 'price' sensitive. India's individual
realities about India, which can help any purchasing power may climb from $2149 in
Business concern wanting to make an 1999 to $16500 in 2040. The brand driven
entry, are -Land of DiversityDo not ever culture in India can be limited to a few
assume India to be one big homogenous metropolitan cities, such as New Delhi,
mass. That is, the consumers cannot be Mumbai, Bangalore, Chennai and a few
slotted as one single huge entity. Unlike other smaller cities that have attracted
most western countries where elements a migrant crowd because of the growth in
such as language and religion could services sector in them. They include
contribute to a certain homogeneity that Pune, Hyderabad and Gurgaon.The states
could exist in society, in India there that promise a burgeoning middle lie to
are myriad factors that contribute to the south and west of the country. These
unbelievable diversity. Take language for states show a promise of a huge middle
example, the constitution of India has class community with the necessary
stipulated the language for official purchasing power at least by the year
communication as English and Hindi. In 2020. Contrasted against these states
addition, it classifies a set of 22 would be the states to the east of the
scheduled languages which are languages country that include Bihar, Uttar Pradesh
that can be officially adopted by and Orissa which will take even more time
different states ( there are 22 States to develop this 'middle class'. Add to
and 7 Union territories ) for this the North eastern states,and the
administrative purposes, and also as a picture is not too rosy.BureaucracyThe
medium of communication between the bureaucratic system that is found in
national and the state governments. India is stifling slow, problematic and
Though Hindusim is the religion that is corrupt. In the words of Mr. T N Seshan,
practiced by majority ( 81% ), Islam, former election commissioner and Cabinet
Christianity, Sikhism, Jainism, Buddhism Secretary, ( quote ), "We have the
and Zoroastrianism, are practiced too. largest number of laws covering and
Food Habits too change from region to uncovering almost every aspect of human
region. Religion, Caste restrictions, life. But the inside out of Indian
geography, weather, and influences from democracy today is that law is obeyed
other countries ( invasions and more in circumvention and defiance than
occupations ) have all contributed to the in effect...All that we built to enshrine
diversity in Food Habits.All of this freedom has been eroded by a plethora of
points to a diverse population that decrees, laws, rules, ordinances which
cannot be painted with the same brush in serve a few; it serves the State, but not
terms of characterisations. Doing the citizens. Today it has become
business in India almost stipulates an desperately difficult for the citizens to
understanding of this diversity. Some defend themselves against the onslaught
Business Concerns have understood this of laws, rules and ordinances, and
very well and have therefore ended up against the overpowering destruction of
being successful in their ventures in individual freedom and dignity...there is
India.The best example of this is palsy at the centre and paralysis at the
McDonalds. The primary reason for their periphery...We have practiced socialistic
success apart from their 'competitive' principles for 46 years or more. At the
pricing which made the burger extremely end of it, today, 20% of India's
affordable, is their menu. The menu at population takes 25% of its gross
McDonalds hase been customised for the national income and 40% of the population
Indian palate. 'Beef' does not feature on takes 2% of the national income."Just
the Menu, due to religious recently, the visiting Singapore Prime
considerations. The customised Menu, Minister, Lee Hsien Loong commented on
features items such as 'McAloo Tikki the Indian Bureaucracy and called it a
Burger, Maharaja Mac and McCurry among stumbling block to investment by
other Indianised dishes. Contrast Singapore companies in India. He remarked
McDonalds with Kelloggs which failed to that Singapore companies wanted to invest
understand the Indian palate and so found in hotels in India but the Indian
the going tough in India with its bureaucracy was "too complicated" and
offerings.What also needs to be borne in outsiders took a long time to understand
mind is that at times, customisations it.An example of the difficulties posed
should not just be restricted to the by the Indian Bureaucracy is the case of
country, but must also be extended to American Agro Business Company, Cargill
specific regions. In the business of Food Corporation. In spite of a go-ahead from
and Beverage the Menu items must differ the central government for a $15 million
from region to region. For example, to Salt processing Venture, problems from
the south of India, where vegetarianism the State of Gujarat, where the plant was
prevails, this aspect must be reflected to be located, forced Cargill to shelve
in the Menu Items. Similarly Coffee as a the project.Prof. Ray Titus is a faculty
beverage finds greater favour in the Member at the Alliance Business Academy,
south of the country.The Great Indian Bangalore, India. He specialises in the
Middle ClassThe Indian 'Middle class' area of Strategic Management. He also
seems to be the favorite target for actively trains and consults for the
almost all Multinational businesses and Industry.




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