Business Environment Analysis Report for India

Table of contents

Introduction

Business operating environment forms the most critical tool necessary for establishment of a new business.  It entails the evaluation of the new location systems and applications for making the correct decision.  India lies at the heart of South East Asia which is a highly dynamic region with easy accessibility for local and international market.  M-Box video game is a new type of game that is easy to understand and play.  Besides, have different levels of playing which make it easy for one to progress with time.  To add to that, it is easy to customize the characters to reflect ones name and/ or initials.  To add to that the game has high compatibility with most of the computers and can also be played easily with television sets and mobile phones.

Demographics for India

  1.  Total Population: Rank=  5; Justification= The country has a high population of about 1.15 billion. It is the second most populated country with 17% of the total world population therefore posing one of the best markets for our product.
  2. Population Growth Rate: Rank=4; Justification= The country has a relatively fast growing population growth rate of 1.58 as per the year 2008. This indicates the possible strong future of the business.
  3. Age Structure: Rank=5; Justification= The country has a large population between 15-64 years where most of the customers are expected to be.. 0-4 years: 30%; 15-64 years 64.3%; 65+ years 4.9%.
  4. Middle Class Size: Rank=5; Justification= It has the highest number of people (30% ODF the total population) who are expected to have influential decisions and buying power for the products.
  5. Urban/Rural Composition: Rank=4; Justification= As equal population lives in town as in rural areas. Taking into consideration the high population, the towns will still be having high population as our potential customers (Dwivedi, 2008).

Government (India)

  1. Government Stability Rank=4; Justification= Current coalition government is highly stable and has made it possible to achieve the high economic growth and therefore form a direct plat form for business to grow.
  2. Economic Freedom Rank=5; Justification=  The country is ranked as123rd freest economic market in the world making it easy to introduce and trade in the new products.
  3. Openness to FDI Rank=3; Justification= Ranking 105th in the world, the country is relatively open to transact business with local people and international community.
  4.  Legal System Rank=4; Justification= Effective as it integrates the different traditional and modern constitution based legal system at all levels.
  5. Currency Convertibility Rank=5; Justification= Highly convertible and thus easy to transact business.

Physical Infrastructure (India)

  1.  Roads and Highways Rank=5; Justification= Has a highly interlinked system of roads and highways for faster and better transport.
  2. Railways Rank=4; Justification= Effective for bulk transport, however it serves only the major cities.
  3. Airports Rank=5; Justification= The internationally ranked airports are easy to link the country with others for supplies and market expansion.
  4.  Navigable Waterways Rank=5; Justification= Being located along the Indian Ocean, it has a long coastline which greatly enhances its ability to receive large cargo.  Therefore, cargo with our containers will have easy access.
  5.  Ports Rank=5; Justification= World class with effective capacity to handle goods with speed.  As a result there will be reduced delays for our goods supply.

Economics (India)

  1. GDP Growth Rate: Rank= 5; Justification= Being the twelfth largest economy in the world with a fast growing economy at a rate of 8.9% during the year 2008, it poses strong potential for our product.
  2. Per Capita GDP Rate: Rank=5; Justification= With a GDP- Per Capita (PPP) of US $ 2600, most of the people will be able to afford the new products which will be relatively cheap.
  3. Consumer Inflation Rate: Rank=4; Justification= The economy is relatively stable with an inflation of 2.6 % and the people can easily be able to sustain the market with minimal fluctuations.
  4.  Trade as Share of GDP Rate: Rank=3; Justification= Though not very strong, the 24% share of GDP is satisfactory for the new product amidst the high population (Pathak & Ashish, 2008).
  5. Potential Market Rate: Rank=5; Justification= With the high population, the current shift to town lifestyle, and improving economy, the country has high potential for the new games.

Communications Infrastructure (India)

  1. Fixed Telephone Market Rank=3; Justification= They are effective but their use is fast declining due to use of mobile phones.
  2. Wireless Telephone Market Rank=5; Justification= It has been rising with speed over the last decade making it possible to achieve more sales as the games are compatible with mobile phones.
  3. PC Ownership Rank=4; Justification= Mostly owned by the private companies giving us a better chance to invest in the country.
  4. Internet Users Rank=5; Justification= Over the last five years, the use of internet has experienced wild growth making it one of the most viable market for the games in the world.
  5. TV Ownership Rank=5; Justification= TV ownership has been liberalized in the country making it possible to advertise and reach more people with ease.

Global Attractiveness Rating for the Country

Listed below are four questions regarding your team’s overall assessment of your chosen country. Answer each question thoroughly providing a short answer that should not go beyond 2-3 paragraphs. Be specific and clear in your response but back them up with logic and reasoning. A simple “yes” is not a sufficient response. Do not make me guess your view or opinion, state it clearly.

Holistic Assessment: Are you satisfied with the overall “global attractiveness” for your country? Given the chance, would you change any portion of its analysis? Explain your answers. I am satisfied as the country has high potential population and strong economy that is fast growing.  Given a chance I would not change any section as most of them are satisfactory and posses’ strong capacity for growth.

Population structure as it tells the number of potential clients. Economic growth and per-capita growth as they indicate the power by the people to purchase the new product in the market. The media as it forms the main tool for advertisement and reaching the potential customers.

Do you believe that India’s business environment will improve, worsen, or remain the same over the coming 12 months?  The economy of India will grow in the next 12 months as the population is still growing therefore giving a ready market for the different products in the country.  Besides, the key sectors of agriculture and industry are well established alongside the already established infrastructure (Radhakrishna, 2008). However, it may grow at a much reduced rate due to the current economic recession.

Long-Term Assessment: Do you believe that India’s business environment will improve, worsen, or remain the same over the coming decade? The economy of India is most likely to remain strong due top the major factor of having high and fast growing population. All economies are dependent on population numbers for sale of their products.

Reference

  1. Dwivedi, M. (2008). India 2008 Shanghai: McGraw-Hill Education (India) Pvt Ltd
  2. Pathak, J. & Ashish, S. (2008). Doing Business in India 2008: Critical Legal Issues for U.S. Companies. New York: Sage.
  3. Radhakrishna, R. (2008). India Development Report 2008, Oxford: Oxford University Press.

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