International Business, Sithum CB002534

International Business CB002534
INDIVIDUAL ASSIGNMENT
STUDENT NAME
SITHUM DINETH WICKRAMASINGHE (CB002534)
MODULE TITLE
International Businesses
MODULE CODE
BLB00005-2-INTB
INTAKE CODE
HF0931BA
LECTURER
MR. SAJITHA DISHANKA
SUBMISSION DATE
8TH
OF JUNE 2009
(Word Count – 2076)
1
Acknowledgment
I would like to take this opportunity to thank each and every person that helped me by any
means, to complete this assignment according to the required standards, on time.
Special thanks go to my Lecturer, Mr. Sajitha Dishanka for guiding me through the required
parameters, To Mr. Chamila Illukkumbura, Mr. Shehan Perera, Mr. Milinda Lokuge, Mr.
Duminda Jayaranga and Miss Poorni Fernando for showing me the errors and for helping me to
do the research.
Thank You.
2
Executive Summary
In this report, we are trying to identify the potential of the company to venture in to the
international market, what the market situations are, and what are the best economies into which
the company can venture in to. This report includes a company SWOT analysis, a regional PEST
analysis and an appropriate mode of entry that the company can implement in its venture to this
new economy.
3
Table of Content
Executive Summary ........................................................................................................................3
Introduction ....................................................................................................................................6
Size and Location of Operations......................................................................................................7
Size...............................................................................................................................................7
Location.......................................................................................................................................7
SWOT Analysis for the Company...............................................................................................8
Industry Analysis ............................................................................................................................9
Competitors and the Market Shares of Sri Lanka........................................................................9
Standards to be followed .............................................................................................................9
The FSC Label (Forest Stewardship Council) ........................................................................9
The ISO Standards...................................................................................................................9
Region Analysis.............................................................................................................................10
Why choose this region..............................................................................................................10
Trade Agreements between these Countries..........................................................................11
Target Country Analysis................................................................................................................12
PEST Analysis of India..............................................................................................................12
Political Environment............................................................................................................12
Economical Environment.......................................................................................................12
Socio Cultural Environment..................................................................................................13
Technological Environment...................................................................................................13
Local competitor analysis..............................................................................................................14
Market Entry Mode Selection........................................................................................................15
Exporting....................................................................................................................................16
Type of Exporting to be used.....................................................................................................17

4
Benefits – Costs – Risk – Analysis of Exporting to India.............................................................18
Benefits......................................................................................................................................18
Costs...........................................................................................................................................18
Risk............................................................................................................................................19
International Management Practices..............................................................................................20
International marketing mix.......................................................................................................20
Place...........................................................................................................................................21
Price...........................................................................................................................................21
Conclusion.....................................................................................................................................21
References .....................................................................................................................................22
APPENDIX....................................................................................................................................24
Appendix 1.................................................................................................................................24
Appendix 2.................................................................................................................................24
Appendix 3.................................................................................................................................25
Appendix 4.................................................................................................................................25
5
Introduction
Started in 1989, SD’s is a furniture producer that currently employs around 6000 employees.
Having a customer base ranging from normal households to offices and large firms, this
company satisfies the needs of all forms of furniture consumers. Being one of the largest
companies in the country, we produce quality, world class, products with unique designs and
features to compete with the ever changing requirements of our customers.
Vision
To become the furniture provider for all
Mission
To produce Classy State of the Art Furniture with Quality, Innovation and Style
Competitive Advantage
• 20 Years of experience as a Furniture manufacturer.
• Quality of Products
• Uniqueness
• Innovation
• Dedicated Labor force
• Ability to customize the products as required
• Brand Loyalty.
These are the unique features that we have achieved during the past 20 years of service,
which makes us stand higher than the competition that we face in the market.
6
Size and Location of Operations

Size
• 3 Large Scale manufacturing Firms.
• 6000 employees.
• $150million worth turnover per year.
Location
• Located in 3 of the Industrial zones within Sri Lanka.
7
SWOT Analysis for the Company

Strengths Weaknesses
• High Brand Recognition and Awareness. • No patient for some product Designs.
• Unique, Innovative Products designed and • Less resources to Train Employees

produced on our own. • All technologies used within the company are
• 20 Years of experiences. bought from foreign countries, so no innovation
there.
• 6000 dedicated employees.
• Less Research and Development in terms of
• 3 Large Scale fully equipped production Plants. technology.
• $150million, Annual Turnover
• All manufacturing plants located in Trade
Zones close to Colombo.
• Capable of producing products at very Low
costs compared to competitors while
maintaining standards.
• All manufacturing Plants are ISO 9001/2000
certified.
• High end technology used in manufacturing.
• Employees with positive attitudes and a culture
that tends to work loyal to the company.
• A very capable, efficient and effective
management.
Opportunities Threats
• Potential to venture in to International markets. • Competitors that are developing their

technological side.
• Less Brand awareness of the competitive
brands. • Currently No trade activities are taking place
overseas.
• We have special teams to Design innovative
new designs of furniture. • International Competitors entering the Local
Market.
• Due to the changing Lifestyles, there is a new
demand for the high end fashionable furniture
that we produce.
• Seasonal factor can create demands for
different types of products.
• Trade Agreements that are being made with
foreign countries by our Government.
• The War ended opening up more opportunities
for foreign investors to invest in Sri Lanka.
• Political Stability within the country.
• Decreasing Interest rates in the Country.
8
When analyzing the above data and the Strengths and opportunities of the company it is clear
to us that we have the potential to move on to the international community.
Industry Analysis
Here, we are talking about the furniture industry in Sri Lanka. There are many competitors in this
industry. Other than that there are Standards and Regulations that should be followed too.
Competitors and the Market Shares of Sri Lanka
Hypothetical Data
Standards to be followed
The FSC Label (Forest Stewardship Council)

This is a label that creates a credible link between the furniture producers and the customers to
promote responsible consumption of trees. In the modern world the people are more concerned
about this label when purchasing furniture as they are more concerned about forest conservation
as well. (www.fscus.org)
The ISO Standards

The ISO is a standard that ensures the quality and maintains a standard up to which the
operations in the organization are maintained. There are many other factors that the ISO standard
looks at. (Refer appendix 1)
9
Region Analysis
Since our company is based in the South Asian region, it is more appropriate to enter in to the
South Asian International market before approaching any region beyond Asia. Out of the
Countries in the South Asia, Sri Lanka, India, Pakistan, Nepal, Bangladesh, Bhutan and
Maldives seems have a potential market for the furniture industry because of many favorable
conditions that are available.
Why choose this region

Out of the many factors to be considered when choosing a Region, Some of the most important
factors are
• Considerably large population in this region.
• The Culture is highly identical to that of Sri Lanka.

• The Living Standards of the countries of this region are fairly similar to that of Sri Lanka
and it is moving towards a westernized style.
• There is a developing economy within the region.
• The Trade Agreements that exist between these countries.
• The Lower Transportation Costs.
• Close proximity to Sri Lanka.
Population (Millions) GDP Per capita (US $)
Sri Lanka 21.1 Sri Lanka 1,506
India 1,1386 India 977.7
Pakistan 164.6 Pakistan 908.9
Bhutan 0.69 Bhutan 5600
Nepal 28.2 Nepal 400.2
Bangladesh 147.1 Bangladesh 455.5
Maldives 0.36 Maldives 5,000
Total 11748.05 Average $ 2121.186
( Global competitiveness Report, Doing Business Report)
10
Trade Agreements between these Countries
SAFTA1
This is an agreement that ensures free trade of any product other than the goods that
are specified in the agreement, between the member countries. (Refer Appendix 2)
ISFTA2
This is a free trade agreement that was signed between India and Sri Lanka to reduce
tariff rates of a listed set of products that are being traded between the two countries.
(Refer Appendix 3)
After analyzing the above details, out of the countries that are in this region, it seems more
appropriate to move in to the Indian market. To further prove this, a Country analysis will
follow.
1
(SAFTA) South Asian Free Trade Agreement
2
(ISFTA) India Sri Lanka Free Trade Agreement
11
Target Country Analysis

PEST Analysis of India
Political Environment
Country Name – Republic Of India
• India is the biggest Republic in the world
• Strict environmental conservation Laws
• No Restrictions on imports as a result of Free Trade Agreements in the region
• Relaxed regulations on new businesses
• Foreign Investment Promotion Board (FIPB)
• Foreign Investment Implementation Authority (FIIA)
• Favorable Tax Policies
• The war between India and Pakistan
• Safer Legal facilities for businesses and Consumers
(Refer Appendix 4 for more Details on these points and References)
Economical Environment
• 12th Largest economy in the World
• Gross Domestic Production is 1,098.9 million US$
• Factor Driven Economy
• Lowered economic Growth rates
• Very Low Taxes due to SAFTA and other Trade agreements
12
• Downward Sloping Trade Cycle
• Accessible Market for new businesses
• Macro Economic Stability Ranked at 109 in the GCR report
(Refer Appendix 4 for more information and references)
Socio Cultural Environment

Total population is 1,135.6 Million
• Average Literacy Rate
• Bound to Religion and Family
• Traditional Thinking and Lifestyle in transition to a Westernized lifestyle
• Reducing population Growth Rate
• Highly Cast and Class conscious people
• Prefers a Mix of Traditional and Modern styles
• Increasing Labor force
Refer Appendix 4 for more details on the points and References
Technological Environment
• Advanced Global communication and means of communicating with consumers.
• Developed transportation Technologies.
After analyzing the above facts carefully, we can come to the conclusion that the Indian market
is fairly favorable for a new business.
Even though there is an ongoing war in India, the political stability and the current government
policies, agreements between neighboring countries, the legal situation and all the other factors
are very much favorable.
13
Having a factor driven economy that is still developing, it can be expected to have a
comparatively good demand for the furniture industry. Given the fact that India is the 12 th largest
economy in the world with a large population as well. Because of the Geographic location of the
country it is also more advantageous as there is a minimum transportation cost.
The Socio cultural factors are fairly similar to that of Sri Lanka, which means that the product
need not be changed or customized that much, decreasing the production cost and research and
development cost.
There is no significant impact from the Indian technological environment to this type of a
product, because the furniture industry uses a set of basic technologies to produce the products.
Local competitor analysis

The Indian furniture market is an already well established market with more than 500 main
suppliers competing in the whole of India. This factor alone makes it a hard task to enter in to
this market. But because of the Trade agreements and Tax reliefs that have been agreed between
India and Sri Lanka, there is a cost benefit which is highly advantageous over these competitors.
And that narrows down the competition to 5 Large scale suppliers as the main competitors.
Local Competitors International Competitors

Nilkamal Damro
The Hard Wood Company SD’s
Classic Silvocrafts
14
(Hypothetical Data)
The Above chart shows the market Shares of the top 4 competitors and the sector occupied by
the other competitors. Out of these, Nilkamal is the largest competitor with 25% market share
due to its large scale local production plants and its own distribution channels. Then there is
Damro, who is a Sri Lankan based competitor who exports products and maintains their own
distribution channel. The others do not pose a significant threat.
After analyzing the company SWOT analysis of SD’s we can safely assume that SD’s is capable
of competing with these top rankers of the Indian market with little difficulty.
Market Entry Mode Selection

When entering into a market, the entry mode is a critical factor. Selecting the correct mode will
decide the further continuity of the organization. When it comes to the international market
entrance, this is even more important. There are many entry modes to select from, and many
factors to be considered.
15
Types of entry strategies
1. Exporting
2. Turnkey Projects
3. Licensing
4. Franchising
5. Joint Ventures
6. Wholly Owned
subsidiaries
Exporting
Out of the above entry strategies, Exporting is more suitable as an entry strategy for entering into
a market of this type. There are many reasons to support this decision when related to the PEST
analysis that was carried out above.
• This is the most common strategy used by most newly internationalizing organizations.
• The goods are continued to be produced in Sri Lanka and exports a proportion of it to
India.
o This totally cuts down the cost of building a production facility in the foreign
country. That way the initial cost is reduced by almost 80%
o This will gain us more time to explore the new market before implementing other
modes of doing business in India.
• This involves movement of products from Sri Lanka to India.
o This is much easier and cost effective as there are trade policies active within the
two countries that will last for more than 5 years ahead. (Refer Appendix 2)
16
o Sri Lankan Government has initiated export promotion campaigns.

http://www.customs.gov.lk/exp_promo.htm
o The Current government follows a policy to reduce imports to Sri Lanka and
increase Exports from Sri Lanka.
http://www.mahindarajapaksa.com/PENews/nov1805_01.php
• Exporting reduces the cost of the Product
o Because the other costs are reduced due to the trade agreements, the total cost of
the product can be marked at a very low rate, compared to the competitors.
Type of Exporting to be used

There are two main means of Exporting.
1. Indirect Exporting – The Sales and distribution are done by a 3rd party.
2. Direct Exporting – The Company itself do the sales and Distribution in the foreign
country on their own.
Out of these two, it is most appropriate for us to go ahead with Indirect Exporting because
• The 3rd party is already established in India.
• They already have the necessary resources, and assets to commence operations as soon as
possible.
• This way, we get a chance to explore and gather experience on the Indian market so that
we can place ourselves in a better position in the market in a future time.
17
Benefits – Costs – Risk – Analysis of Exporting to India

Benefits
•
• High Return on Investment
• Enhances the Competitiveness and gives a

competitive advantage over to the competitors.
o In terms of cost
o In terms of experience
• The production cost per unit decreases.
• Allows the company to Grow within Sri Lanka.
• Additional source of income to the company
• Increases the company’s stability within the local

market.
• Improves the product, and brand name.
• Brings foreign exchange to Sri Lanka.
Costs
• Initial cost
o Cost of registering as an exporter under the

Indian government.
o Cost of entering in to an agreement with an

Indian agent.
• Transportation Cost
18
o Insurance for Transportation
• Production Cost
o Raw material cost
o Labor cost
o Machine costs
o Electricity and other costs
• Taxation
Risk
• Government policy changes
o If the government change any of its
international trade policies in an
unfavorable way.
• Risk if Inflation
o As the GDP growth rate shows a downward
slope due to the world economic crisis
• Government and labor regulations.
• Risk from War.
• Risk of currency Depreciation.
After carefully analyzing the benefit – cost – risk factors when compared to the risks of entering
in to the market, the risks are worth taking because of the rate of returns on the investment.
Because there are more benefits of exporting to the Indian market, than the risks and costs both
put together.
There are Investor protection laws, government Policies, trade agreements and many other
facilities provided by the government to aid and invite investors to invest in India. And there are
advantages that act as positive motivators to move in to the international market.
Therefore even though there are certain costs that should be bared, and Risks that should be
taken in entering into the international market, they are all worth it.
19
International Management Practices
When it comes to the international market, the brand is still new to the market. Since the
products already exist in the market, to penetrate the market the only activity that should be
carries out is to position the brand.
Our Brand values
SD’s is a brand that positions itself as a Quality furniture provider. We promote
• Quality
• Uniqueness &
• Innovativeness.
Therefore SD’s is a Quality based product.
International marketing mix

Even though we are moving in to the international market, according to the Pest analysis carried
out on the target country, we concluded that India is country with a lot of similarities with Sri
Lanka in terms of socio cultural factors. Therefore there is no necessity for us to make any
special changes to the products that are exported.
And as we are following an indirect exporting strategy, we also don’t have to do any product
promotional activities in India, as that is done by the agent.
As a result of these two factors, we just have to decide and take care of 2 factors out of the 4
factors of the marketing Mix.
They are
1. Place
2. Price
20
Place
When selecting a place to start the business activities, Bangalore has a high economic activity
rate. That is because, Bangalore is an area that is highly westernized and has a high development
rate compared to other regions. It is also the best performing economy in the whole of India.
Price
Price is something that should be decided, based on the production costs, taxations, and all the
other costs and finally by adding the profit margin to that. In our case, since the taxation and
production costs are low, due to above mentioned circumstances, the price will always be
comparatively lower than that of the competitors. But since we have a diversified range of
products, there is no exact price for an individual product as such.
Conclusion
In conclusion when carefully analyzing the above report and the data from the appendices, it is
perfectly clear that SD’s has the potential to venture in to the international market. The best
region to initially enter is the South Asian Region, and in it the state of Karanataka of India and
the most suitable region of that is also the City of Bangalore.
There are many certain risks involved in international trade, but, when considering all the
factors, it is clear that the return on investment is comparatively higher.
21
References
22
23
APPENDIX
Appendix 1
ISO Standard
A normative document, developed according to consensus procedures, which has been approved
by the ISO membership and P-members of the responsible committee in accordance with Part 1
of the ISO/IEC Directives as a draft International Standard and/or as a final draft International
Standard and which has been published by the ISO Central Secretariat.
The way it is done
A text corresponding to an approved work item is developed as necessary through the

preparatory and/or committee stages until consensus is reached in the committee. (In case of
doubt, approval by 2/3 of the P-members voting may be considered to constitute consensus.) The
text is submitted to all ISO member bodies for a five-month vote as a draft International Standard
(DIS) and is approved if two-thirds of the P-members vote affirmatively and not more than a
quarter of all votes cast are negative. A final text is prepared taking into account member body
comments on the DIS and this text is issued for formal vote as a final draft International Standard
(FDIS). If the text is again approved by two-thirds of the P-members voting and if not more than
a quarter of all votes cast are negative, then the text is approved and the Central Secretariat
publishes the International Standard.
Appendix 2
TERMS OF THE AGREEMENT of SAFTA
Realization of the South Asian Free Trade Agreement (SAFTA) on January 1, 2006
(pending ratification) will be the culmination of roughly 20 years of cooperation among
Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. In the first phase
(to be completed by January 2008), the terms of SAFTA require India, Pakistan, and Sri
Lanka to reduce tariff rates to 20 percent and Bangladesh, Bhutan, Nepal, and Maldives
(the least developed countries or LDCs) to 30 percent. In the second phase, tariffs
would be further reduced to 0–5 percent by January 2013 for Pakistan and India, by
January 2014 for Sri Lanka, and by January 2015 for the LDCs. Each member state will
prepare and maintain a list of sensitive products for which tariffs will not be reduced.
(See Table 1 for a summary of reductions proposed under the two phases of SAFTA.)
24
Appendix 3
TERMS OF THE AGREEMENT OF ISFTA
• Establishment of a Free Trade Area through complete or phased elimination of tariffs

• The FTA does not remove all tariffs on all goods at once.
• Negative Lists to protect national interests of both countries.
• The Rules of Origin (ROO) criteria to ensure a minimum local content.
• Adequate safety clauses to protect domestic and national interests of both countries.
• Review and consultation mechanisms to ensure the smooth operation of the Agreement
http://exim.indiamart.com/free-trade-agreement/indo-srilanka.html
Appendix 4
Political
• Strict environmental conservation Laws
India has strict environmental conservation Laws that forbid cutting down trees. Even
if there is a necessity, direct approval from the government should be taken before any
proceedings are to be made.
THE FOREST (CONSERVATION) ACT, 1980

This Act provides for the conservation of forests and regulating diversion of forestlands
for non-forestry purposes. When projects fall within forestlands, prior clearance is
required from relevant authorities under the Forest (Conservation) Act, 1980. State
governments cannot de-reserve any forestland or authorize its use for any non-forest
purposes without approval from the Central government.
http://sjvn.nic.in/projects/environmental-regulations.pdf
25
• No Restrictions on imports as a result of Free Trade

Agreements in the region
As a result of the Free trade Agreements between The South Asian countries and as a
result of the Free trade agreements between India and Sri Lanka, there are no trade
restrictions on exporting to India.
 India-Sri Lanka Free Trade Agreement,

 Trade agreements with Bangladesh, Bhutan, Sri Lanka, Maldives, China, and South
Korea.
 India-Nepal Trade Treaty,
 Comprehensive Economic Cooperation Agreement (CECA) with Singapore.
 Framework Agreements with the Association of Southeast Asian Nations (ASEAN),
Thailand and Chile.
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/E
XTSARREGTOPINTECOTRA/0,,contentMDK:20592520~menuPK:579454~pagePK
:34004173~piPK:34003707~theSitePK:579448,00.html
• Relaxed regulations on new businesses

The restrictions and laws of starting a new business in the country have been relaxed
and therefore a new business can be set up in the country in a short period as 30days
tops.
Doing Business Report-India
• Foreign Investment Promotion Board (FIPB)

Foreign Investment Promotion Board (FIPB) of the Government of India is
constituted mainly to promote inflows of Foreign Direct Investment into the country,
as also to provide appropriate institutional arrangements, transparent
procedures and guidelines for investment promotion and to consider and
approve/recommend proposals for foreign investment.
26
• Foreign Investment Implementation Authority (FIIA)
The government has set up a Foreign Investment Implementation Authority (FIIA) in

the Ministry of Commerce and Industry, which facilitates quick transaction of
Foreign Direct Investment approvals into implementations, provides a proactive
one-stop aftercare service to foreign investors by helping them obtain the necessary
approvals and sort out operational problems and meet with various Government
Agencies to find solutions to problems and maximising opportunities through a
partnership approach.
• Taxation in India
Indian tax laws distinguish between domestic and foreign companies in
administering tax rates. Indian Companies are taxed on their worldwide income,
while foreign companies are taxed only on the income that arises from Indian
operations.
Foreign companies (companies registered and located outside India) not having a
permanent establishment in India are taxed under the withholding provisions of
bilateral Double Taxation Avoidance Treaties, in respect of royalties and fees for
technical services, interest on foreign currency loans, dividend and income from
specified on mutual funds, remitted from India.
India has signed bilateral treaties with several countries, providing tax credit for the
foreign tax paid on overseas income. Credit is generally given for those foreign taxes
withheld or paid that correspond to Indian income tax. The tax credit is limited to the
lower of the tax paid abroad and the Indian tax on the foreign company.
Remuneration for work done in India is taxable irrespective of the place of

receipt. Remuneration includes salaries and wages, pensions, fees, commissions,
profits in lieu of or in addition to salary, advance salary and perquisites. Taxable
payments include all allowances and tax equalisation payments unless specifically
excluded. The stock options granted by the employer are taxable as capital gains at
the time of sale of shares acquired due to exercise of options.
http://www.iptu.co.uk/content/india_investment.asp#guide
27
Economical
• 12th Largest economy in the world
In April 2007 the gross domestic product (GDP) of India reached $1 trillion,
measured at the official exchange rate with the U.S. dollar, making it the twelfth-
largest economy in the world
Indian Trade Policy choices book
• Lower Economic Growth Rates
28
http://www.indexmundi.com/g/g.aspx?v=69&c=in&l=en
• GDP
Socio Cultural Environment
• Average Literacy rate
29
• Bound to Religion and Family
India is a fascinating country where people of many different communities and religions
live together in unity.
In a country as diverse and complex as India , it is not surprising to find that people here
reflect the rich glories of the past, the culture, traditions and values relative to geographic
locations and the numerous distinctive manners, habits and food that will always remain
truly Indian. According to five thousand years of recorded history, India has been
invaded by armies, traders and immigrants who brought with them their own habits,
faiths, practices and observances which have all contributed to the rich texture of Indian
life and living.
From the eternal snows of the Himalayas to the cultivated peninsula of far South, from
the deserts of the West to the humid deltas of the East, from the dry heat and cold of the
Central Plateau to the cool forest foothills, Indian lifestyles clearly glorify the geography.
The food, clothing and habits of an Indian differ in accordance to the place of origin.
The average Indian is naturally a very curious person. Don't be too surprised if a stranger
walks up to you, introduces himself and then subjects you to a barrage of questions about
your origins, America, the purpose of your visit here, etc.Women prefer to be greeted
from a distance with a simple "Namaste". But, in urban cities, handshakes between both
sexes are quite common. Any other demonstration of public affection is usually frowned
upon.
Deep-rooted family values continue to exist in Indian families. The surname of an Indian
is based on his caste or place of origin or his family occupation. Men are still considered
the head of a family and are consulted for all decisions though they no longer continue to
be the single breadwinner. A wife will always serve her husband before she eats. Parents
are looked upon with respect and regard. Childrenare financially supported by their
parents throughout their education.
30
Indians believe in sharing happiness and sorrow. A festival or a celebration is never

constrained to a family or a home. The whole community or neighborhood is involved in
bringing liveliness to an occasion. A lot of festivals like Diwali, Holi, Id, Christmas,
Mahaveer Jayanthi are all celebrated by sharing sweets and pleasantries with family,
neighbours and friends. An Indian wedding is an occasion that calls for participation of
the family and friends.Similarly, neighbours and friends always help out a family in times
of need.
Indian dressing is greatly influenced by their background and culture of it's people. India
is well known for its garments and classic fashion styles all around the world. Indian
women wear traditional Indian dresses, the men in India can be found in more
conventional western clothing like shirts and trousers.The traditional Indian dress is the
Sari which can be worn in many ways. Underneath the sari one wears a Petticoat: - a
waist-to-floor length skirt, tied tightly at the waist by a drawstring and a Choli : a blouse
that ends just below the bust. The Salwar Kameej is the second most popular dress and is
gaining in popularity fast with the younger generation. The Salwar Kameej too has had
many design changes. The new designers have come up with great variations of the
Salwar Kameej. Women also wear Lehangas. Though the majority of Indian women wear
traditional costumes, the men in India can be found in more conventional western
clothing. Shirts and trousers are worn by men from all regions in India. However, men in
villages are still more comfortable in traditional attire like kurtas, lungis, dhotis and
pyjamas.
India is rich in languages, boasting not only many indigenous language groups, such as
the Dravidian languages, but also the Indo-European Indo-Aryan languages, and the
absorption of Middle-Eastern and European influences as well. Distinct, often ancient,
and rich literary traditions are to be found in several languages.Hindi is the official and
main link language of India. Its homeland is mainly in the north of India, but it is spoken
and widely understood in all urban centers of India.Individual states, whose borders are
mostly drawn on socio-linguistic lines, are free to decide their own language for internal
administration and education, so there are 22 official languages spoken throughout the
country, namely Assamese, Bengali, Gujarati, Kannada, Kashmiri, Malayalam,
31
Marathi, Oriya, Punjabi, Sindhi, Tamil, Telugu and Urdu.
India, the land of spirituality and philosophy considers religion as an integral part of its
entire tradition. The worship of various religions and its rituals play a significant role in
every aspect of human life in the country.India is the birthplace of two great religions of
the world, namely, Hinduism and Buddhism. It is also the birthplace of one of the oldest
religions of the world, Zoroastrianism, and home to an ancient religion, Jainism. Sikhism
is another very recognizable religion which began here bringing together the best aspects
of Hinduism and Islam. Followers of religions originated in other countries such as Islam,
Christianity, Bahaism and Judaism also form a part of the population of secular nation,
India.
One of the best ways to sample authentic Indian food is at an Indian home, rather than at
a restaurant. Indian food is not just unique to a particular state, but also to different
communities within the same state. Dining at an affluent and educated Indian's home is
not very different from the western way. However, in a traditional middle-class home,
one may be expected to sit in a cross-legged, yogic position on the floor and eat with the
right hand from a banana leaf. It is customary to leave one's footwear outside the door to
the house.. India offers you a large number of vegetarian & non-vegetarian meals.
Vegetarian Food is quite common in India & usually comprises Rice, Bread, Dhal
(Pulses), Vegetables, Curd, Pickle & other add-ons. So many times it also includes some
sweets.
Though ethnically Indians speak different languages, follow different religions, eat the
most diverse varieties of food, there is still a richness in Indian arts and culture which is
unparalleled anywhere else in the world. The beauty of the Indian people lies in the spirit
of tolerance, give-and-take and a composition of cultures that can be compared to a
garden of flowers of various colors and shades of which, while maintaining their own
entity, lend harmony and beauty to India!
• Population Growth Rate
32
• Increasing Labor Force
33

International Business, Sithum CB002534

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

International Business, Sithum CB002534

Uploaded by

Copyright:

Available Formats

International Business CB002534

SITHUM DINETH WICKRAMASINGHE (CB002534)

MR. SAJITHA DISHANKA

(Word Count – 2076)

Executive Summary ........................................................................................................................3

Size and Location of Operations......................................................................................................7

SWOT Analysis for the Company...............................................................................................8

Industry Analysis ............................................................................................................................9

Competitors and the Market Shares of Sri Lanka........................................................................9

Standards to be followed .............................................................................................................9

The FSC Label (Forest Stewardship Council) ........................................................................9

The ISO Standards...................................................................................................................9

Why choose this region..............................................................................................................10

Trade Agreements between these Countries..........................................................................11

Target Country Analysis................................................................................................................12

PEST Analysis of India..............................................................................................................12

Socio Cultural Environment..................................................................................................13

Local competitor analysis..............................................................................................................14

Market Entry Mode Selection........................................................................................................15

Type of Exporting to be used.....................................................................................................17

Benefits – Costs – Risk – Analysis of Exporting to India.............................................................18

International Management Practices..............................................................................................20

International marketing mix.......................................................................................................20

To become the furniture provider for all

• 20 Years of experience as a Furniture manufacturer.

• Dedicated Labor force

• Ability to customize the products as required

Size and Location of Operations

• $150million worth turnover per year.

SWOT Analysis for the Company

• Unique, Innovative Products designed and • Less resources to Train Employees

• Potential to venture in to International markets. • Competitors that are developing their

Competitors and the Market Shares of Sri Lanka

The FSC Label (Forest Stewardship Council)

The ISO Standards

Why choose this region

• Considerably large population in this region.

• The Culture is highly identical to that of Sri Lanka.

India 1,1386 India 977.7

Pakistan 164.6 Pakistan 908.9

Bhutan 0.69 Bhutan 5600

Nepal 28.2 Nepal 400.2

Bangladesh 147.1 Bangladesh 455.5

Maldives 0.36 Maldives 5,000

Total 11748.05 Average $ 2121.186

( Global competitiveness Report, Doing Business Report)

Trade Agreements between these Countries

Target Country Analysis

• India is the biggest Republic in the world

• Strict environmental conservation Laws

• No Restrictions on imports as a result of Free Trade Agreements in the region

• Relaxed regulations on new businesses

• Foreign Investment Promotion Board (FIPB)

• Foreign Investment Implementation Authority (FIIA)

• Favorable Tax Policies

• The war between India and Pakistan

• Safer Legal facilities for businesses and Consumers

(Refer Appendix 4 for more Details on these points and References)

• Gross Domestic Production is 1,098.9 million US$

• Factor Driven Economy

• Lowered economic Growth rates

• Very Low Taxes due to SAFTA and other Trade agreements

• Downward Sloping Trade Cycle

• Accessible Market for new businesses