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Implement the International Business Strategy model

model Tata Consultancy Services (TCS) is one of the international
business firms that have over the decades dominated the global
finance market, with several group branches and sub-groups across
the globe. For such reasons as powerful international connections and
supplies of multinational services, this paper attempts to reassess the
evolution of TCS in the Global financial Market, which is the largest IT
Company in India headquartered at Mumbai, and a key player in the
global finance market.

INTRODUCTION

INTRODUCTION The growth of the Indian middle class into a powerful

purchaser and the availability of low cost manpower make the
Consultancy Services industry an attractive destination for foreign
manufacturers. -This paper will identify the data that would be required
and the resources where the data is available to enter the Indian
market. Also, the paper would advise on the quality of the data
available and the minimum data requirements considering the cost
constraints. The data analysis will be carried out using an International
Business Strategy Model

The Indian Geographical Landmark

India is a State situated to the South of the Asian continent. The

country has a land area of approximately 1.2 million Kilometers,
bordered by the Arabian Sea to the South-West and the Bay of Bengal
to the South-East. The Northern frontier is broadly covered by the
Himalayan Mountain from where the Indian political boundary between
China and India is defined.

Preview of the Indian Socio-Economic and Political factors

Based on the PESTLE`S Analysis, that is, the analysis of the Political,
Economical, Social and Technological trends in the market, the Indian
IT Market can be analyzed as follows;

The Political Scenario of the Market

Between the years 1947 and 1991, India was governed by social-
democratic policies, the economy was extensively regulated,
characterized by massive corruption scandals and dragging growth
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pace. Things began to take a new turn with the introduction of liberal
economy which geared the country`s economy towards the market
system. These were accelerated with the 2000 economic reforms
which were accompanied with more redefined economic policies aimed
at developing the country’s state of affairs. Its major Industries in the
market were the textile industry, chemicals and food processing
industry, and at the top of the list, was the telecommunication Industry
which was/is a sub-branch of the TCS-IT firm. Enough to conclude that
alongside other resourceful companies in the country, the TCS IT
Industry has contributed significantly towards the economic growth of
India. According to the 2007 World Trade Statistics (WTS) the country
currently contribute about 1.5 percent of the Global trade. The country
also recorded a 24 per cent of GDP in the year 2006 from 6 percent in
the 1985 market analysis.

Economic Scenario of the Market

The Indian Economy is ranked the 20th in the Global Financial Markets
and the 4th in the PPP records (Purchasing Power Parity).The country`s
economy began to experience its aggressive growth after its
independence as the Global Market continued to encounter an
intensifying competition. The economists were quick to comprehend
that the Indian economy would be among the best internationally the
year 2020.

Like China, Brazil, Russia, Mexico, and other Economic giant States,
India has witnessed an emerging economic expansion over the recent
years as shown by the market reports. With the support of its intensive
labor force, the country have gone miles in terms of its economic
status, with much of its business associate being from the developed
states most of which have well established industrial frameworks. In
the last two years, the country`s global trade has gone a notch high
with a healthy flow of commodities and prices which have immensely
contributed to its rapid economic pick up (Bharadwaj & Krishna, 1991).

Social Scenario of the Market

The prime objective of the TCS was to be the top IT Company

internationally. Mutual understanding and benefit between the
customers and the Industry were the primary concern of the TCS,
ensuring satisfaction and success of the clients through collaborative,
productive and consultative relationships. In line with the TCS aims and
objectives therefore, the aim of this paper is to reassess the growth
and development of Tata Consultancy Services (TCS) which is a leading
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Indian IT company and a major player in the global financial markets.

Objectives of this study would therefore include; To find out the extent
to which the TATA consultancy Services IT Industry have contributed in
the Global Financial Markets; To find out the correlation between the IT
industry and other TATA Consultancy Industries in the Global Financial
Markets (Arora, 1999)

Technological Scenario of the Market

In line of innovationists, Tata Consultancy Services Industry (TCS)

launched the Co-Innovation Network Lab at its University Research
departments in the year 2007. It also had other three Innovation
Network Labs in other countries in addition to the TRDDC. Some the
TCS properties that were the courtesy of TCS innovative networks were
inclusive of the DBProdem, Wanem, and Scrutinet, just to mention a
few. The partners in the TCS Innovation networks included academic
institutions, IT venture capitals, MetricSteam, Collabnet, and several
IITs. Came the year 2008, the TCS Innovation developed products
received the Wall Street Journal Technology Innovation Award.

INTERNATIONAL BUSINESS STRATEGY MODEL

INTERNAL ENVIRONMENT

The value chain analysis is a very important tool that can be used to address the
internal environment. Through the value chain, individual actions can be scrutinized
to identify whether there are any organization specific advantages. Data will be
necessary to balance the company’s capabilities with its competitors. A potential
competitor in this case would be HP. To get an apparent picture the following
statistics would be required to recognize whether there is a gap in the produce
requirements from the consumer and the products available. There is also a need of
the recognition of the possibility of achieving the economies of scale. This is
followed by the identification of the right production amount which can give a good
indication for unit cost. Whether to have everything in-bound or outsource some of
the activities. In case outsourcing, then where to outsource keeping in mind the
logistics costs involved. The basis of conducting this analysis is to identify whether
the firm can develop a competitive advantage and also whether the advantage can
be sustained. Internally, two factors that might cause a hindrance are –
infrastructure in addition to culture. Although the statistics mentioned above is
relatively easy to obtain, this only gives a rough indication and includes a certain
amount of indecision. For example, product advance ability is predisposed by the
company traditions, that is, whether it is modern or bureaucratic. The location of
suppliers (raw materials) is another example of uncertainty, which also directly
affects the delivery costs. Indeed, there are numbers of variable factors that need
to be taken into account. (Kogut, B. 1989).

Economic Situation
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The economic stability of a country determines the purchasing power and the
potential ability of the customers. This is partly the reason why Dell invested
majorly in most European nations as opposed to HP which took advantage of this
and invested outside Europe in the recent years. Yet another factor that hindered
Dell’s activities and major operations is the drastic changes in the inflation rates as
seen in many European countries including the United States of America. The
merging of HP and Compaq was seen as a way of providing stiff competition to Dell
and other companies dealing with the manufacture and installation of the various
computer accessories. According to the report released by a US based magazine
known as Fortune, Dell ranked 25th in their list of 500 largest world companies
(Apte, 2004).

Product development ability is influenced by the company culture, that is, whether
it is innovative or bureaucratic. The location of suppliers is another example of
uncertainty, which also directly affects the delivery costs. Indeed, there are
numbers of variable factors that need to be taken into account.

Social Status

The general demand for personal computers and its accessories id mainly
dependent on the level of education among the citizens in a particular country.
There is a strong direct relationship between the level of education and the
embracement of the computer technology The need for personal computers in the
banking sector, educational, health and other related factors contributed to the
rapid expansion of Dell and Hp as the leading companies entrusted with the
information technology in the Unites States as well as other countries that were
embracing both communication and information technologies.

Technological Situation

The information technology industry is considered one of the fastest and most
evolving sectors in the world. This has been due to the level of research and the
urgent need for the technology in the evolving world. The merger between HP and
COMPAQ elicited many controversies with many clients arguing that it weakens the
companies. Dell as a company offers various aspects of technical support in various
perspectives for example the Dell’s consumer division that is known to offer the
customers the services that go beyond business hours where the customers are
given the opportunity to call at any time of the day and night seven days a week to
give an answer to the need of the customers. Through this package, several options
are made available to customers based on the sizes of their businesses as well as
for institutions for example Dell offers support programs to health institutions,
schools, businesses as well as special packages for Information Technology
professionals and staff. Another form of support also offered by Dell is the
collaborative support with the vendors in the software technology (D’Costa, 2008).

EXTERNAL ENVIRONMENT
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In the context of the external environment, there are three elements that should be
addressed. The three most important elements include the Political Risk, Economic
Risk as well as Industry in addition to Competitive conditions. Political risks grip the
policies of the ruling party and the opposition party towards the computer industry
needs to be identified. Moreover, the attitudes of both parties toward inward foreign
direct investment and trade barriers, such as import taxes, are also important for
foreign entrants. Though the government is quite stable, the regular terrorist
attacks have been a cause for concern (Alamgir, 2008).

CONCLUSION

The global business strategy model is a useful tool in addressing the statistics
requirements for entering the computer industry in the US. While the data required
is quite wide-ranging, there is certain information indispensable for the entry of the
organization to the industry.

Bibliography

Arora, et al, 1999, Quality Certification and the Economics of

ContractSoftware Development: A Study of the Indian Software Service
Companies Carnegie Mellon University, Pittsburgh.

Alamgir, J., 2008, India's Open-Economy Policy. Routledge.

Apte el al, 1995, Global Disaggregation of Information-intensive

Services, Management Science, Vol. 41, No. 7, July, 1250-1263

Bharadwaj, K., 1991, Regional differentiation in India, Oxford University

Press. pp. 189–199.

Dave, R., 1997, Patterns of Success in the Indian Software Industry,

Senior Honors Thesis, Stanford University.

Kogut, B. 1989. A note on global strategies. Strategic Management Journal, 10: 383-389.

Lawrence, R., & Lorsch, J., 1967, Organization and environment. Boston, MA.

Alamgir, J., 2008, India's Open-Economy Policy, NY, Routledge.

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Apte, 2004, “Global Disaggregation of Information-intensive Services”,

Management Science, Vol. 41, No. 7, 1250-1263.

Bharadwaj, K., (1991, "Regional differentiation - India", Industry &

agriculture in India ever since independence. O U P, 189–199.

Dave, R., 2001, Patterns of Success in Indian Software Industry,

Stanford University.

D’Costa., 2008, Technology Leapfrogging: Software Industry - India,

Calouste Gulbenkian

Porter, M., 2009, Competitive Strategy, N Y, Free Press.