The World Is Flat By Thomas Friedman - 1220 Words

This special reports dives into the changing business world of India. It starts off by describing a big day for India, one where county leaders discussed the fact that business people in their country feel disheartened and the dynastic culture of the entrepreneurs in India. â€Å"The world is Flat† by Thomas Friedman is mentioned as he describes India as a â€Å"silicon Valet with worse roads and spicier food†. And an idea of a new form of capitalism in India is discussed; stating that Indian capitalism is concentrated and that in the stock market debt levels are low and growth rates are strong. The idea of India’s sense of ownership is mentioned with the evidence that many Indian firms are under family or founder control. India is growing to be†¦show more content†¦There are two ways a firm forms a conglomerate, vertically- which indicates doing business in the same industry, and horizontally which pushes the firm into business outside it’s orig inal industry. Another aspect of these huge family owned firms is the fear that children of the patriarchs will not want to run the firm or will not be as prepared to do so as their elders. While existing firms aren’t particularly worried about that (almost all children join their family’s firm), this next generation has big shoes to fill in India. 4b.The next article, â€Å"Their oyster, with grit included†, discuses cross border deals that India is involved in. Most Indian firms are aspiring to be multinationals, and succeeding. Some of the way these firms are achieving this is through vertical integration, acquisition and using a Greenfield approach. This is successful because Indian workers are already used to a very diverse workforce. Another approach that is gaining success is firms being pocket multinationals meaning that acquire small businesses abroad and use those small businesses to maintain a presence. A benefit of being a pocket multinational is hav ing access to new technology, products and markets but merging to different very cultures of two different firms is always a challenge. Foreign firms in investing in India are not having the easiest time either. Most Indian