Organizations are getting bigger and stronger and they are adopting new and modernized ways to expand their businesses. Conventional methods are rejected by these organizations and smaller organizations are converting into big enterprises by incorporating effective strategic level policies (Stiglitz, 2007).
Moreover, they have to polish themselves because of the fact that every organization has to comply with the policies of global arena and for this different phenomenon are initiated and one of the most common phenomenon’s in this scenario is outsourcing. In this paper we will discuss the phenomenon that an MNC enters the Indian market and outsources its services to the India. Different alternative strategies are discussed in this paper that is based on the principles of scenario planning.
A US based organization which is named as company X operates in the Middle East and they have decided to extend their operations to growing Asian countries and they have selected India. There are certain factors that must be kept in mind when company X is expanding its operations in India. However, at every step scenario planning must be involved and each and every alternative must incorporate the steps of scenario planning. The steps of scenario planning are given below:
- Identify the people that will contribute towards a wide range of perspectives.
- Comprehensive number of interviews which would develop a mindset of the participants and how the participants should see a greater shift in policies, procedures, economic outcomes and etc.
- These views should be connected into different patterns.
- The best idea must be selected from the list of alternatives.
- The future should be predicted and a rough picture of the future must be drawn.
- Further derail in the plan should be added.
- Warning signals must be identified.
- The final step is to monitor the steps (Bandhold & Lindgren, 2009).
These factors are based on scenario planning and these factors are listed below:
- The organization should focus on the culture of India and they must develop those policies that are aligned with the culture of India. India is a nationalist’s country and that is the reason why all the policies and procedures of employees, customers and stakeholders must be related to their culture. The employees and senior management of the organization must contribute in this aspect and the policy makers must make sure that the cultural norms and traditional values are aligned with the mission and vision of the organization. The must train their workers and fellow employees about this tradition and it must be communicated properly in the organization that every individual has to comply with the traditional values of the country. Finally all these scenarios must be monitored by the policy makers and emphasis must be laid on these points.
- Different management styles can be adopted by the organization and if they are opening up a call center then an autocratic management style would be suitable for the organization but if they are opening a management consultancy or a manufacturing concern them they techniques of employee empowerment would be viable approach for this country.
- As far as the establishment of the business is concerned the organization would have two options. They can amalgamate with the local vendors and start the organization with a merger or they can acquire different small vendors and grasp the market share. Both these strategies are beneficial for the organization in both the short and the long run but it depends on the product and services of the organization.
- The organization can enhance its customer base by focusing on the value chain and strengthening up the supply chain they can grasp the market the share.
- The span of management must be limited to one individual and one subordinate should report to a single superior in this way through coordination things can be sorted out.
- The management of the international organization must engage its local employees in trainings and developments and all the employees must be directed to attend these trainings.
Therefore, it can be concluded that organizations can attain competitive advantage in both the short and the long run if they plan their projects in an appropriate manner. Multinationals are growing in different parts of the world and they are expanding their horizon. Asian countries are considered as a hub for different organizations and because of their low cost labor, raw materials and easily accessible factors of productions different multinationals are moving from the western countries to the Asian region.
Prior to expansion different factors must be identified by the multinational corporation and they must develop alternative scenarios to face problems. In the above given scenarios different alternatives like managing the employees proactively, developing different strategies, shrinking the span of control and focusing on the culture should be considered as viable approach when an organization is entering in India.
Bandhold, H., & Lindgren, M. (2009). Scenario Planning. Palgrave Macmillan.
Stiglitz, J. (2007). Making Globalization Work .
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