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Automobile industry in india project report
Automobile industry in india project report
Automobile industry in india project report
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HYUNDAI’S ENTRY INTO INDIA’S MARKET
The barriers of entry faced by automobile companies in India are at relatively high levels of import duties, a nascent ancillary industry, and product modifications required for relatively poor road conditions and high levels of heat and dust. (Avinandan Mukherjee, pg 36)
Hyundai’s mode of entry into India was a green field entry. Hyundai started from scratch to enter the Indian market. A green field entry would mean that Hyundai would have to invest 100% of their resources into India inclusive of their patented knowledge, capital and more. The amount of resources Hyundai would need to set up a manufacturing plant in India goes up to USD $500 million in investments. Their adaptation strategy for the Indian
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The belief was to be a successful company in the competitive automobile industry was to be self-reliant. This belief has influenced many of Hyundai’s major decisions since 1967. These decisions include producing early models (Pony, Stellar and Excel) with minimal foreign investment.
Hyundai ended a joint deal they had with Ford back in 1968 as Ford would not allow them to have a managerial leadership. Hyundai also backed out of merger negotiations with General Motors in 1979 and with Sachan in 1981. They focused their efforts into their R&D to allow themselves to better understand the different market structures and see what they can do to achieve the competitive advantage. Due to these decisions, they succeeded in their domestic market, as well as expanding into international markets, like India and USA.
Hyundai exercises many R&D activities which allowed them to have a competitive edge over their competitors. This is sensitive information as they would not want any competitors knowing what new products they are coming up with. It also reduces the chances of them creating any new competitors. Also, a green field entry is appropriate when there is sensitive information involved and when foreign venture situation is ideal. This means that the perceived risk is low and the company’s overall capability is high with a foreign location that is very
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According to the Federal Parliament in 1963 (“uOttawa”) the Official Language Act that was passed legally establishes that Hindi and English are the official languages to be used in Congress. They also allowed other states in India to decide on what they would like as their own official language. The Act was amended in 1976, to establish the Official Language Rules, which was amended again in 1987. (“uOttawa”)
According to Hall, E.T (1976), there are different contexts in different cultures. There is the high context culture which helps people understand the rules, which are characterized as “unwritten”. Cultures that are high context emphasizes on non-verbal messages and views communications as a mean to promote a smooth and harmonious relationship. Some examples of cultures in high context cultures are Asia, Middle Easters and South American.
Low context culture is usually meant that very little is taken for granted. More explanation is needed thus, there is a lesser chance of misunderstanding a particular task on hand. They rely on an elaborative verbal explanation, putting much emphasis on the spoken language. Most of the western countries are low context
The rise in globalization over the last few decades has helped facilitate and encourage corporations to expand into international markets. This paper will review the five common international expansion entry modes, and the pros and cons of each method. Finally, my employer is in the technology industry and I will breakdown and recommend which entry mode would work best for international expansion.
The distinction between US American low-context and Chinese high-context is easily demonstrated by the following description of American communication:
Societies have different cultures and people in each culture are grown and raised with a set of norms, values, and beliefs. These shared values and beliefs are learned from their childhood through their adulthood. Culture is not something which everyone is born with, but it is something which everyone learns while growing up. It does not only influence the daily lives, but it also influences the business activities which take place in that particular society. Many of us work with people who have different backgrounds and that makes it important for us to understand the differences between cultures. So, although cultures might look similar, there are differences in many aspects which distinguish them from each other. There are five cultural
As culture is being learned and transmitted from one generation to the next, there is the question as to how it is being learned? And does it change? Banking on the simplified definition of (Samovar, Porter, & McDaniel, 2012) culture is learned through communication. This entails social interactions among people with common understanding of symbols, shared values and beliefs, and rules as a product of reciprocal information processing (Lustig, 2006).
Low-context culture refers to a direct style of communication based on explicit messages. As words carry most of the information, content and verbal explanations are really important. Indeed, the interpretation relies on what is said or written, regardless of the context.
In its most basic form, communicating involves a sender who takes his or her thoughts and encodes them into verbal and non-verbal messages that are sent to a receiver. The receiver than decodes the messages and attempts to understand what the sender meant to communication. The communication is completed when the receiver transmits verbal and nonverbal feed back to indicate his or her reception and understanding of the message. This process takes place within a context; also know as rhetorical situation, which includes all that affects the communication process such as the sender-receiver’s culture, the sender-receiver‘s relationship, the circumstances surrounding the sender-receiver’s interaction, and the physical environment of the interaction.
A high-context person is slow in getting to the point and does not foresee to have to be very specific. Thus, preference for indirect message is more marked, being specific about unpleasantness is particularly embarrassing in a relationship culture .in opposition Low-context individuals are quick to get to the point. However low-context and high-context communication takes place in every society and culture; cultures differ in the degree of context considered in business communication. High context culture in which people are deeply involved with others and where indirect messages with deep meaning flow freely, while low-context cultures are highly individualised, partially alienated, fragmented cultures in which there is little involvement with
Culture differences are the different ways that people communicate with each other. In different culture
Everything we do in our life involves communication because it is a way for a sender to send message to the receiver by verbal and non-verbal communication. However, in some parts of the world messages that are delivered sometimes are not received in a way it is supposed to. A way to solve this is by using competent communicator and intercultural communication because it makes it easier for people from other cultures to communicate in general. On the other hand, there are also some problems faced because different cultures have different ways to express their way of communication. By understanding these types of communication and by defining them may solve this dilemma. In addition to that, there are also types of communication to consider that are commonly used, which is Proxemics, Gestures and body language.
The alliance between Honda and Rover from 1981 to 1994 was thought to be a successful case at that moment. However, four years after the end of the relationship, Rover still just had all those old models in its product portfolio. On the other hand, it was said that because of the end of the relationship, Honda was put back by four years (Button 2005).
Improved technology: Allowing foreign business to operate in developing countries provides an opportunity for these companies to introduce state of the art tech...
Communication is a worldwide skill used among people to talk to each other and clarifybeliefs, thoughts and opinions or build relationships with one another; however, this is not the only form of communication. Non-verbal communication entails of communication without words; it is displayed by the body and actions of a person sharing them. This type of communication is important when understanding human behavior. Does non-verbal communication difference among cultures?
According to Hofstede’s (1980), ‘culture is the collective programming of the mind which distinguishes the members of one human group from another… culture in the sense, includes systems of values: and values are among the building blocks of culture.’ It is necessary to determine how culture impacts our communication behavior as culture directly influences our perception and understanding of the message that is transmitted from one party to another. People from different cultures encode and decode messages differently; this therefore increases the chances of misunderstanding. Intercultural communication refers to interactions between people whose cultural assumptions are so different that the communication between them is altered. Verderber, Verderber, & Sellnow, (2010).
Therefore, it is essential to study nonverbal and verbal communication Nonverbal communication is all forms of communication other than words themselves, which includes “body motions; vocal qualities; and the use of time, space, and even smell” (Neuliep, 2011, p. 269). On the other hand verbal communication or language “consists of symbols in the form of spoken or written words (Wood, 2014, p. 67). Thus cultures have different representations of symbols and what one culture interprets another may define or view differently. Communication is closely related to culture because communication expresses and alters culture. In a culture you learn behaviors and acceptable ideologies. This can be seen in verbal and nonverbal communication. For example, the tone of your voice is based on culture. Without communication you are unable to establish cultural differences. Your own culture directly shapes how one communicates, such as when it is appropriate to make eye contact. We are not born knowing when and how we should speak; this is a learned behavior that is taught by interaction with others. This is not an easy task because nonverbal signals differ from culture to culture. Charles Braithwaite stated, “One of the fundamental components of cultural and linguistic competence is knowing how and when to use silence as a communication tactic” (Neuliep, 2011, p. 64). Before one can communicate effectively one must understand the context in which the culture exchanges information. One must have a working awareness of how each society conveys meaning, hence high vs. low context cultures. According to the Central Michigan University text, organizational dynamics and human behavior (2009), to become a successful international manager one must develop “cross-cultural skills”. One part of the skill set involves the comprehension of the difference between high-context and low-context
High-context and low-context cultures differ in how much contextual detail they expect the person to comprehend: