Comparative Issues in International Management †Free Samples

Question: Discuss About The Comparative Issues In International Management? Answer: Introduction The Indian market if diversely affected by the eating habits of the people affected by their religious beliefs. Hinduism is widespread over India, and their religion does not allow them to consume cow meat as they view a cow to be sacred. Therefore, meat is not widely sold in like all restaurants in India due to religious restriction. Islam is also a highly followed religion, and Islam religion does not allow consumption of pork meat. Another common religion is Jainism. Followers of Jainism therefore mostly consume vegetables purely. For a company to be able to sustain itself in the Indian market, then it should, therefore, have to put into considerations the Indians' eating habits and their religious culture. McDonalds and KFC, therefore, had to avoid adding any beef or pork in all their products which have been proved to be high selling in western countries which is a total contrast to India. McDonald's, therefore, shifted to adding chicken to their menu. McDonald's also introduced vegetarian menu for the Jainism and those whole love vegetables, and this as proved to be working for McDonald's restaurant operating widely in all cities in India. Multinational cooperation operating in India and other countries largely depends on the heterogeneous group of workers that play a very critical part in every stage of the working process in any company. To cater for different customer demand, the heterogamous is very important since they create opportunities and challenges to an organization (Adler, 2002), this help in the understanding management of the organization indoor to ensure maximum efficiency from the members. Diverse groups at workplace create conflicts (Pelled, 1999). This conflict is as a result of misunderstanding and grouping themselves within their cultural boundaries and social class. According to Caldwell in a diverse group, communication is more difficult (Ancona and Caldwell, 1992). The communication is not flowing since it stops at one point due to cultural barriers. Also, cohesion between the groups reduces within time. Cross- cultural usually creates predictable attitude change. Multinational mostly prefer a cosmopolitan ethic or country (Watson, 1957). Globalization has a positive influence in the workplace by causing behavior changes, team arrangement and set dynamics as the organization is working with the majority of diverse workers (Dong and Luis, 2010). Understanding the ability in networking with different cultures is the key device for the success of the organization (Thomas and Inkson, 2004). In todays workforce market managers with high cross cultural are on high demand (Dong and Liu, 2010). In this study we focus on two multinational companies in India; KFC and McDonald cooperation. KFC is the leading chicken meat seller. It operates almost worldwide both in developed and developing countries. Other than being globalized, India has encouraged investors from international companies to invest in her economy through reducing taxes. Globalization has made international trade easy through the elimination of some barriers to trade and also reducing any threat that may be involved. For a long time, international companies have been performing poorly in the Indian market since investors have not been aware of the Indian culture. The poor performance has made them run away leading to collapse of these industries. The most important and key issue is to understand the consumer behavior of the people. It plays a crucial part in the fried chicken meat production since it determines the availability of market. Background of KFC KFC, on the other hand, was established in 1930 by Harland Sanders. Sanders used to cook and serve food to travelers at the Corbin service station in the US. He mostly served fried chicken with other delicacies the chicken delicacies started gaining interest to a lot of people, and it became popular with time. With time he improved his service delivery and opened a Motel earlier named as Sander Court. He perfected the act of preparing chicken and this time adding other spices and herbs. In 1952, he started franchising the unique product. He traveled by car going to every restaurant and teaching them how to prepare the chicken. He had to sign an agreement where he gets a nickel for every plate sold. With time in 1964, he managed to franchise around 600 outlets (Gardberg Fombrun, 2009). Scope of the study Our study focus will mostly be limited to India and its environments, together with cities surrounding the Indian market and people whose culture is mostly related to Hinduism, Islam, and Jainism. We also focused on Indian towns such as Mumbai, Bangalore, Hennai, Pune, Kolkata, Hyderabad, New Delhi, Surat, Kanpur and Guru Gram among others. KFC in India Fast food companies like KFC and McDonalds were allowed into India in 1990 brought about by the Governments Liberalization policy. KFC owned by PEPSICO.KFC was the first to step on the Indian soil and opened up about 30 branched in India. The first launch was done in Bangalore which became the target due to the status of the population residing in the area as middle-class people. Problems Faced by KFC in India National problems Laws In place Just like any other given nation, India has its rules and regulations that are in place to make sure that sanity in the business world is maintained. KFC is no a local company as far as India is concerned; it is an American company that decided to spread its wings to India. Therefore, the company ought to have gone through numerous processes before being embraced. When one sets up a business in India, he or she must go through some laws as opposed to other nations where only one law is used to govern the foreign investors (Ciochetto, 2004). Regional differences India is one of the nations that have a big gap between the rich and the poor as well as differences between regions. Such is a challenge that KFC has to go through in its daily activities. It is important to know that the stability of a nation has an effect on the businesses in the nation. Putting into consideration that parts of the nation have people who are poor, it becomes difficult for KFC to establish businesses in such regions (Collings et al. 2007). On the other hand, putting into consideration that some regions are developed than the others, setting up businesses in such regions might prove to be difficult. The reason behind is because KFC needs infrastructure and a conducive working environment. If such is not guaranteed, working in such regions proves to be difficult. High real estate prices High real estate prices have affected the establishment of businesses in India for many years. Before setting up a business, one must deal with the issue of looking for a physical location. Such does not come without one having to part with some amount of money. KFC is just but one of the many organizations that have faced the problem. The high population in India makes the land a scarce resource and in business, when a product is on demand, its price increases by a big percentage (Ciochetto, 2004). It would not be true to say that there are no KFC customers in India, but KFC must spend more on ensuring that it has a physical location where it will be serving its clients from. Customers purchasing power The power of purchasing in any given nation has an effect on the performance of the organizations in the respective areas. Such a problem might have an effect on the individuals in the nation, but it is a national problem. There are different reasons why is it a national problem. Most national problems are influenced by the governments in place. If the government has the capability of creating more jobs for the citizens, it becomes easy for the citizens to be able to purchase goods and services of their choice (Collings et al. 2007). In India, there are specific regions that KFC cannot establish its business. This is because people in the area cannot afford to buy from KFC and that limits the organization to spread its business to different parts of the country. Cultural problems Beliefs In India, beliefs are part and parcel of the residents. The Indians believe in numerous gods, and the gods have an influence on what they eat. For example, most of the Indians do not take beef. The reason behind it is because they consider a cow a sacred animal and eating it is going against the will of their gods. With that in mind, any business that is established in India deals with the products of a cow must be ready to suffer losses. Putting into consideration that KFC also sells fried steak, it becomes difficult for the company to sell the product in India because it is not likely to be bought by the residents. Therefore, such is a factor that is motivated by the beliefs of the customers which affects the business of KFC in India. Eating habits Indians are preserved people, and they live in big families. An Indian at home can prepare food from home and transport it to relatives at work. The eating habits of the Westerners are not the same as those of the Indians. The Indians are very careful with what they eat. At the same time, the way they prepare their meals is very different. One might be seeing an India enjoying his or her meal, just to put the same food in the mouth to find out that is full of pepper; Indians enjoy it that way. Therefore, there is a challenge of adapting the eating habits and the types of meals that the Indians love the most. How KFC has been able to overcome the problems/challenges Research and observations Without any doubt, India is a nation that has a market that is in demand of foods and beverages. However, such cannot be realized if an organization does not work hard to know more about the customers. KFC does not just start a business; it invests enough resources to research. It is through research of what customers want that KFC has been able to overcome all the challenges that it has faced in India. Observation is also a key to the success of KFC (Patwardhan Bardhan, 2014). In its daily activities, KFC makes sure that it observes how the customers react to some of its products. It is important for any given organization to read the psychology of the customers. It is only by doing so that the organization can know what is good for the customers and what is not. By observing the behaviors and reactions of the customers, KFC can know the best strategies to implement so as to meet the needs of the customers. Embracing diversity KFC being an organization that has its roots in the United States must make sure that it identifies the best ways of embracing the people in India. As far as that is concerned, the company has been doing okay, and that has an effect on the operations of the company. By embracing the diversity in India (Lattermann et al. 2009), KFC has been able to manage its restaurants and at the same time work harmoniously with the residents. Listening to customers At KFC, the response of the customer matters. The company is aware that it is in a region where there are people who know more about the region and the residents. It is for this reason that the company takes seriously what the customers have to say about its products. Such has helped the company in different ways. One of the ways is to make the customers feel appreciated thus enhancing brand loyalty (McDonald Wilson, 2011). When the customers are listed, they feel as part and parcel of the bigger organization. Such makes they want to be helpful and supportive to the organization. As a result, KFC can overcome the challenges that it has been facing. Only selling what is embraced by the customers The Indian food market is different from the American food market. The reason behind it is because of the different eating habits as well as the beliefs of the Indian people. Selling everything that KFC sells in other regions has an effect on the business because some of the food end up being wasted because they cannot be eaten in India. To make sure that KFC does not incur losses, the management makes sure that only the food that is embraced in India is available in the restaurants and that plays a big role in overcoming the challenges in place (Sheth, 2011). Recommendation KFC has to ensure their product meets high standards valued by the Indians so as to dominate and gain respect in her market. Their names and symbols do not guarantee dominance in India market since Indians takes business with lot seriousness. This makes their mode of purchasing and culture very different from other people. For this reason, these companies have to substitute their labeling and improve their strategies on production so as to dominate in India market. Listen to Customer Customers are the key variables for a business to develop. Hence, it is very crucial to listen to them to learn their wants and meet their demands. Listening enables a company to improve on value and quantity of their product hence attracting more customers. Making a customer feel comfortable and valued in a business always ensures they come back for more goods and services. Therefore, it is importance to listen to customers' remarks and make the necessary modifications to products and services. Public Relations The most important thing is communication. Multinational companies like KFC need to communicate to its constituents; public and government. They have to hold frequent, open and honest communication to come up with ways to solve issues in a manner which is recognized and resolved. Indian society always appreciates the honest and open approach. Communication is the best way for consumers to learn and understand the company and their products and services. An effective public relation is equivalent to efficient promotion, which results in the customers to purchase products and services. According to Smith a persons behavior and cultural values usually affect a business and its managerial behavior (Smith et al., 2002). Thus, communicating with customers is imperative as related to morals and cultural position. Failing to relate and communicate with the public means that the company will not be noticed, their product will not be known, and they will not get the information on where improv e on their products. Relationship with the government The India government is no transparency in the way it schemes their operations. Therefore, KFC has to ensure that there is a close relationship with the government through participating in it charities and government financed developments such as schools, hospitals, and construction of roads. Indian government and people always appreciate effort towards the growth and development of their country. India is a country trusts in qualitative basis compared to quantifiable basis (Lothar Katz, 2008). Hence keeping a close relationship with the government is imperative as it enables a company to creates and apply a well-established commercial network in India. Presenting market promotions Use of media is the main method of communication used by companies to publicize their products and services in India. The publication makes the public aware of the products hence increasing sales since Indians purchases a commodity which they are fully aware of it information. Also, they usually like to know more about the product and service offered by the company that produces those commodities. Managing Strategy Management methods that are effective in most cases determine the quality of administration given to a company. Most international firms have different supervision methods and managerial culture. For this reason, it is always good to come up with the management system that is conversant with a state's culture and standard (Thite et al. 2017). Use of a foreign management system in India can lead to domestic violence among workers hence using a known management system promote quality and productivity among the employees. It also ensures the company's future growth. Employees will also feel their need are considered and protected by the managing directors. Suggestions Various managing systems can be used depending on the culture of a firm, people way of life, type of workforce, ability of the manager and the nature of the work being done. Management style depends on the country of choice, and it is important to understand the style used in a given Management varies from one another depending on the kind of company and its daily task. Thus it is crucial to learn the company's work and the type of task it conducts to come up with the best management style. It is the work of the managers to cooperate with their workers so as to improve the management systems which in result improves the productivity of the company (Elenkov, 2005). India is a country whereby people value a lot about their culture. Indians are too slow in adapting to new and sudden changes, and they rather stick to their traditional styles of doing things. India is a country where they respect and follow their culture to the latter. Consequently, proper consideration should be initiated for future orientation (Geert Hofstede, 2001). Companies wishing to invest in India should focus on price and quality. This is because Indians consider the value to most of the quality products and services. They usually prefer quality products at the low price rather than quantity. The companies wishing to operate in India have to consider quality products rather than quantity. In the commercial operation, it is not only the matter of protection in the present situation to encourage a stable success but also the need to put in mind emerging market designs since market nature changes with new operators. The above recommendations are to be considered for any company intending to enter Indian market or any other country that has cross culture. For a company to coordinate trade efficiently, it has to solve the above problems, particularly when operating in foreign origin. They have to consider these critical points for them to be successful. Forecast and Predictions India cooperation has achieved a good image for the past years giving them a good chance to dominate the Indian market. This will be made possible because Indians are the once that give more importance to quality and trust of all brands image enabling them to dominate the market in India. They can get good customer base as Indian's population is very high. Apart from this, India customers comprise of a high number of young people who are adopting the new social standards and supporting westernization. As a result of globalization, many international companies have come to the Indian market and Indians have cooperated with them. The likes of KFC and McDonald's which still have large potential and opportunities in the country, Fast foods, chicken, and snacks have increased which is the greatest opportunity to McDonald and KFC to make good stands in an Indian market. Conclusion KFC has established itself in India; the utmost evident aspect is these companies is not following and bearing in mind the communal, traditional trend and traits. Culture is the most significant aspect which the companies should keep in mind for more development. Apart from this the other key disadvantage which multinational cooperation are facing is either working against the environment or is abusing the environment. Therefore farmers are facing many problems with their farms as a result of pollution from these companies. Because of these externalities, much multinational cooperation such as KFC is facing difficulties in countries like India. Moreover, those living along these companies face a lot of challenging ranging from noise to air pollution. From the above-discussed ideas, recommendations, and analysis, one can conclude that the way of life among Indian communities is the firm encouraging development of industries in India, but these companies are polluting the environment raising conflicts between the state and it citizens. Therefore, these companies should come up with committed corporate communal workers to monitor the performance of those allocated with environmental duties to ensure that they perform their duties of protecting the environment. Taking part in these environmental duties has enabled KFC to dominate the Indian market. Reference Aiyer, A. (2007). 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