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PESTLE analysis India (FOM)

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by

Isabell C.

on 26 July 2013

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Transcript of PESTLE analysis India (FOM)

BRICS
ROLE OF POLITICAL PARTIES

The Indian government is a Federal Republic

Prime Minister is head of the government, current Prime Minister is the leader of the INC

President has no legislative power in India, he is a figurehead


Two parties dominate Indian politics: INC and BJP

The college system in India means there is more emphasis placed on winning those states by the parties than on winning others

Smaller states are key to economic growth and development

Many of those in smaller states have become disillusioned with the bigger parties in India, this has led to the emergence of many splinter parties
INDIA in focus
Indian President: Pranab Mukherjee
ECONOMICAL
CORRUPTION
Indian Prime Minister: Manmohan Singh
Indian President: Pranab Mukherjee
Indian Prime Minister: Manmohan Singh
INDIA: Import and Export
high rate of inflation (10,25 % in 2012)
decrease of economic growth
high budget deficit caused by the exceeding imports
reserved international investors
the weakest currency in the emerging states
INTRODUCTION
CULTURE
CONCLUSION
What is BRICS?

Association of leading emerging economies
Brazil, Russia, India, China, South Africa
Acronmy stated by Jim O‘Neill (Goldman Sachs) in 2001
Developing or newly industrialised countries
No permanent secretariat or formal international organization
Annual summits since 2009
Facts and Figures
World‘s population
40 %
Global GDP
25%
World‘s land mass
25%
Trade with each other
3%
Expected growth of world GDP (2015)
From 14% to 21.6%
Expected growth of global exports (2015)
From 12.4% to 20.1%
BRICS Development Bank
Purpose
Mistrust against IMF and World Bank
Rival the western-dominated IMF
Gain influence on the world stage
Symbol for the BRICS association
Freedom from Western financial influence


Issues
Where would it be headquartered?
How much would each state put in?
Who would be the leader?
Different interests of countries

BRICS - Superpower of the future?
Indian society is influenced by
the 2000 year old caste system

82% of the population is Hindu

Family Structure is still very important to Indians
INDIA'S BUSINESS CULTURE
Indian business culture is influenced by their religious heritage

Business is operated in a far different way compared to western businesses

child labour and huge gap > wealth & poverty
ADVANTAGES
Corruption problem

Child labor problem

Falling economic growth

Decay of the currency
Official: Republic of India is an country in South Asia

Seventh-largest country with the second-most population

17 major languages

GDP 2012 $1.824 trillion

Economic growth 2012 of 4,5 %

Export 2012 $304 trillion, Import 2012 $463 trillion
POLITICAL
List of references:
http://www.globalsherpa.org/bric-countries-brics
http://rt.com/op-edge/brics-world-countries-delhi/
http://www.timeslive.co.za/ilive/2013/04/03/pros-and-cons-of-being-in-the-ring-with-brics-ilive
http://mapsofindia.com/maps/india/states-political-parties.html
Kiss, Bow, Or Shake Hands:
The Bestselling Guide to Doing Business in More Than 60 Countries
Terri Morrison, Wayne A. Conaway
http://de.statista.com/themen/1196/bric-staaten/#chapter4
https://en.wikipedia.org/wiki/Economy_of_India
http://www.guardian.co.uk/news/datablog/2013/feb/22/cameron-india-trade-exports-imports-partners
http://www.merian.de/magazin/indien.html
http://de.statista.com/statistik/daten/studie/170838/umfrage/anteile-der-wirtschaftssektoren-am-bruttoinlandsprodukt-indiens/
http://www.economist.com/news/finance-and-economics/21580167-despite-tumbling-currency-indias-economy-has-got-more-stable-past-year?zid=309&ah=80dcf288b8561b012f603b9fd9577f0e
http://de.statista.com/statistik/daten/studie/170812/umfrage/inflationsrate-in-indien/

West should not dominate world affairs

Combined economic strength of BRICS

More balance in global economy

Economic growth by 2050
Middle class growth by 2020
labour costs
resources
U.S. portion of world economy
expected to decrease from 25% to 22% (2015)

Big cultural and political differences
Different economic interests
Tensions between China and India, South Africa and India

INDIA: Gross Domestic Product (GDP)
steadily growth up to the year 2007
drop down during world economic crisis in 2008 and 2009
recovery in 2010
markedly decrease in 2011 and 2012
INDIA: Main Economic Factors
The service
sector
represents more than half of the GDP
The industrial
sector
is not as strong as in other BRICS States
The agricultural
sector
has the lowest percentage
India exhibits an enormous wealth in minerals

Iron Ore
Coal
Mineral Oil
Manganese
Diamonds
INDIA: Mineral Resources
crude petroleum
gold and silver
electronic goods
fertiliser
Main import goods
Main export goods
petroleum products
gems and jewellery
pharmaceutical products
garments
3-years-chart: USD vs. INR
Purpose
With corruption in government how this will be stamped out in Industry?
put much
emphasis on
Religion
influence of the caste system
Family Structure and gender
roles are still very important
the word "no" has harsh implications
Indians appreciate punctuality
NEVER CRITICIZE THEIR TRADITIONS!
subject to newest technologies
BUSINESS BEHAVIOR
DISADVANTAGES

Large land area and resource wealth
Democratic system
Barriers to market entry
Corporate rights
Cost competitiveness
Basic information
Social Corporate Responsibility
traditional greeting = 'namaste'

personal feelings = basis for truth

refused to "time is money"-attitude

great amount of hospitality

do not critizice traditions you dont believe in
Improve medical facilities

Building schools

Rebuild lives of tsunami affected victims (e.g. SAP India)

SAP Labs Center of HOPE (Bangalore)  food, clothing, shelter and medical care of street children.
Primary aim  embrace responsibility for company's actions
2000 b.c. Beginning of the religions of Hindu

500 b.c. Beginning of the religions of Buddhism

1757 Start of British domination in India

1947 India declared independence from Great Britain. Division of the country into India and Pakistan

1949 India is a parliamentary democratic republic in the form of a federal state.
HISTORY
INDIA: Currency “rupee”
automotive engineering
Indian market offers huge potential
compact and energy-saving cars

biotechnology
the number 4 in pharmaceutical industry wordwide
investment in biotechnology increased by 150%
20 % green fuel till 2017
green revolution in agriculture
INDIA: Technology
Nuclear technology
around 50 % of the energy by fossil fuel

support nuclear technology to stop dependency

more then 20 nuclear power plant at the moment
TECHNOLOGY
Basic objective maximize company's impact on society and stakeholders

1. Focus on the 'BRICS'-countries
2. Brief overview on India
3. Politics and economic development
4. Technical and cultural facts
5. SCR
6. Conclusion
AGENDA
Full transcript