MNC in India
When most people hear the word Google, they will often associate it with the large search engine or cell phone maker / provider. While this is a part of the firm, one of the factors that are helping them to compete is the way they treat their employees. This enables them to tap into the needs of customers and dominate the marketplace. Their basic philosophy is, “Don’t be evil.” This encompasses every single aspect of the organization. As he firm is working to promote openness and transparency. During this process, they have fought to gain access to copyrighted materials. At the same time, they have left locations where freedom of speech is threatened. In the case of India, Google is seeking to take advantage of the growing population of consumers. However, during the process, they face a number of risks that could impact their operations. To fully understand what is occurring requires examining and determining how Google can mitigate them. Together, these insights will illustrate the biggest threats and the best avenues for dealing with the different risks. (Fisk, 2010)
India is one of the most rapidly developing countries in the world. This is because of a series of reforms that were enacted after 1991. At the heart of these changes, was a focus on making it easier for companies to do business by easing investments through tax breaks and privatization. The combination of these factors helped the nation to become one of the most sought after destinations for foreign direct investment capital (FDI). (Bussell, 2012)
The result is that India is experiencing economic growth averaging 7% a year. This is transforming the nation by helping to create a new middle class of consumers. However, there are vast disparities that exist between the wealthy and vast number of poor. This is creating a situation where other groups are reaching out to the impoverished to highlight the inequality that exists. (Bussell, 2012)
The Communist insurgency has gained momentum because of the corruption, tremendous amounts of poverty and lack of prosperity for millions of Indians. This is making it difficult for investors to have confidence in the government. In many cases, they feel that these issues are leading directly to violent ambushes targeted at anyone who is a threat. This is problematic, as the insurgency is spreading and gaining the popular support of the people. (Bussell, 2012)
According to the World Bank, India’s overpopulation is negating the effects of positive economic growth in the last 24 years. Inside rural areas, this is especially troubling, as it has not been sufficient to reduce the number of poor people. This leaves the country with the largest population of those who live below the poverty line. In many villages with less than 5 thousand people, is where 60% of all Indians live. These challenges are problematic, as they have the capacity to undermine any kind of foreign direct investments. These challenges are showing how India has a number of uncertainties which could negatively impact economic development. This is because the lack of regulation and an economically viable social support systems / regulations are fueling instability. Until these issues are addressed, there is a realistic possibility these disparities will become worse. (Bussell, 2012)
To prevent these challenges, Google must work with the new Prime Minister (i.e. Modi). He has vowed to destroy corruption and deal with all of these problems. At the same time, the firm must pay its workers more and create backup facilities to reduce the risks (i.e. independent security, electricity, water and IT infrastructure). Once this occurs, is the point the firm can mitigate the risks through making long-term investments in the people and the region. This means working with local officials and privately to protect its operations. (Mukhopadhyay, 2013)
Bussell, J. (2012). Corruption and Reform. New York, NY: Cambridge University Press.
Fisk, P. (2010). People Planet Profit. Philadelphia, PA: Kogan Page.
Mukhopadhyay, N. (2013). Narendra Modi. Delhi: Random House.
Scott, V. (2008). Google. Westport, CT: Greenwood Publishing.
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