Prime Minister:

Narendra
Damodardas
Modi
BASIC
INFORMATION
OF INDIA

President:
Ram Nath Kovind
 Capital:
New Delhi
BASIC
INFORMATION
OF INDIA

Biggest city:
Mumbai
Continent: South Asia

BASIC
INFORMATION
OF INDIA

Nội dung 4 Population:

1.39 Billion (2021)
 Currency:
Indian Rupee
(₹) ( INR )
BASIC
INFORMATION
OF INDIA

Official languages:
Hindi, English
GROUP 3
BUSINESS CULTURE IN INDIA
 MEMBERS GROUP

Nguyễn Thị Thanh Tuyền Nguyễn Thị Thuỷ Nguyễn Thị Tú Anh

D19AV07 D19AV05 D19AV07

 A BRIEF
BUSINESS OF
INDIAN

India (Republic of India)

is a sovereign republic in
South Asia.
English is widely used in
business and
administration and has
status as a "second
official language".
In 2010, India ranked
51st in business
development.
India is a great opportunity for
companies looking to expand
internationally. With a population
of nearly 1.3 billion – including
millions of middle-class and high-
income earners – India will become
the world's second or third largest
economy within the next 20 years
(currently India) already the
world's 3rd largest economy by
GDP).
India's strong domestic market in
all three sectors of agriculture,
industry and services, coupled with
high savings rates and very
favorable demographic trends,
make India more potential for
business than merely has the
strength of "low cost".
Table 2.2. Summarizes these findings on Indian business culture
1 Personalism

Status acknowledged PRESENTATION

2
by deference CONTENT

3 Hierarchy

4 Corruption
5 Business norms

Work communication PRESENTATION

6
issues CONTENT

7 Change

8 Governance
9
Business relations
with government

PRESENTATION
Different types of
10 CONTENT
businesses
have different cultures

11
Negotiation style
and approach
12 Entrepreneurialism

PRESENTATION
13 Attitudes to risk CONTENT

14
Innovation and
creativity
1. PERSONALISM

Definition of Individualism: is a term used to describe a

social, political or ethical perspective that emphasizes the
interests of individuality, human independence and the
importance of individual freedom and self-reliance.
1. PERSONALISM
Personalism in business
control and decision-making

Personalism in employment
and work relations

Personalism in B2B
 Personalism in business control
1.PERSONALISM
and decision-making
High- widespread familism and some casteism

Business goals often include raising personal funds for

the founding family

The basis for decision-making top-down

Restricted within-company information flows

 High- widespread familism and some
* casteism:

90 percent of Indian businesses are family businesses

There are almost no corporate conglomerates -

corporations owned by institutional investors.

70% of Indian businesses are family owned

 High- widespread familism
* and some casteism:

For example, in Australia and other European

countries, assets that are shares in at least
25% must be in the hands of the public, in
many cases in India the figure is only 8 to
10%.
 High- widespread familism
* and some casteism:

There is no clear distinction between business money and

family money.

In the early days the family will not lose wages or expenses;
then, personal spending is the most extravagant
Ex: For the wedding, they will be paid from the business fund.

There is no clear distinction between business money and

family money.
 High- widespread familism
* and some casteism:

For instance, a family can take on debt to set

up a business; then, the business funds will be
used to make an acquisition in their own name -
this allows them to pay off their debt.
 The basis for decision- Restricted within-
making top-down company
information flows

The
reasons
Accept the
circumstances: Letting employees
'There is a recognition collude is the duty of
that the family has a executives
very large personal
stake'
 Personalism in employment and
1. PERSONALISM
work relations

High- widespread familism and some casteism

'Soft culture'

High expectations on both sides

For example, a family-
owned company may be
a benign dictatorship,
may be hereditary,
supporting the
employee's family with
weddings, health,
housing; in return, there
can be "no questions
asked" if suspicious
activities are carried out.
1. PERSONALISM Personalism in B2B

Personal relationships
are important
but NOT
a Guanxi system

allajedhbdhFor example,
2. STATUS ACKNOWLEDGED
BY DEFERENCE
Extremely high deference to owners;
high to superiors
3. HIERACHY
High;
boss-subordinate
relations 'master-servant'

https://www.hofstede-insights.com/country/india/
4. CORRUPTION

Widespread except
in high-technology businesses
 India ranked 87th out of
178 countries in
Transparency
International's Corruption
Perceptions Index (CPI) in
2010, down from 84th
place in 2009.

With this rating, corruption in

India is considered worse than in
This index refers to
China and Brazil, but still less
perceptions of corruption
severe than in Russia and
levels among businessmen
Indonesia.
and national analysts.

https://www.euromonitor.com/article/corruption-impacts-indias-business-and-political-environment
5. BUSINESS NORMS

Impact of Hinduism: time not linear

Delays routine
6. WORK COMMUNICATION
ISSUES

Aversion to giving bad news

7. CHANGE

Globalization reducing
the impact of traditional culture
8. GOVERNANCE

Weak but being seriously addressed by

government
9. BUSINESS RELATIONS
WITH GOVERNMENT
State governments more relevant
than central government
10. DIFFERENCE TYPES OF
BUSINESS HAVE DIFFERENT
CULTURES Public sector businesses
'not primarily commercial'

Older private businesses

have family business characteristics

High-tech businesses 'modern'

11. NEGOTIATION STYLE
AND APPROACH

Hard bargaining;
the aim is to beat the other side
12.
ENTREPRENEURIALISMM
Medium - occurs in certain communities;
also now sometimes in young
not from business backgrounds
13. ATTITUDES TO RISK

An individual, not a cultural, matter

14. INNOVATION AND
CREATIVITY

Low (but good problem-solvers)

 CONCLUSION
Understanding their culture and
code of conduct helps entrepreneurs
avoid unnecessary
misunderstandings because each
country has its own culture and
understanding their culture also
helps entrepreneurs come up with a
plan. and strategies for effective
communication.
Therefore, equip yourself with a
source of knowledge about
behavioral culture as well as
corporate culture enough to make
you confident when engaging in
diplomacy.
https://youtu.be/N_4HJOvsrHs?t=391

Group 3
Thanks For Watching!