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The international Business


Write an essay on The international business,


The international business is aligned with the diversified commercial transactions, such as sales, logistics, investments, and transportation. The international business is specifically considered as the business dealings between two or more countries, countries and nations, and different regions (Berger & Herstein, 2014). Similarly, this business process is associated with the macro environmental analysis, which evaluates the structured planning procedure for extending business globally. The study will be highlighting the business expansion of Revolution IT, which is a renowned IT company based in Australia. The company has been trying to expand their IT business in the emerging markets of India. Hence, it is required to analyse the key segments of business expansion process. 

The study will be associated with the analysis of the macro environment of the country where the expansion will take place. The report will be including the important aspect of the international business process by analysing the key segmentation of the macro environmental analysis. The discussion based on the entry mode and competitive strategy will be focused in this segment. The research and development will be considered accordingly in this section by following the issues and consideration with the human resource department. 

Background of the Company and Selected International Country

The study is based on the business expansion of Revolution IT, which is a renowned IT company found in London in the year of 2004. The founder of the company Hamish Leighton, Jamie Duffield, and Michael Quill observed the appropriate location in Australia for developing the market testing process. Hence, the company was shifted to Australia. The Revolution IT makes the skilful software works by using the justified methodologies that are helpful enough in cut down the costs related to the IT practices ( 2016). In addition to it, the company is even focusing on meeting the aggressive timelines and delivering the higher quality of applications that are necessary for business development. The expertise area of this company is software, mobile, and web and cloud based testing. After serving the Australian customers successfully, the company has become much concerned about expanding the business in a country where the IT infrastructure can bring much profitability to Revolution IT. 

The vision of the company is to capture a place as the best consultancy firm for Application Lifecycle Management in the Asia Pacific Region ( 2016). The values of the company indicate the facilitation of high performance, collaborations of the employees’ works, and managing the integrated business performance. The company has not availed much opportunities in the global market. The development of the business requires the accessibility to the potential business market. Moreover, the company even tries to deal with new clients to sell the services. Therefore, Revolution IT has been concentrating on expanding the business in the international country. 

It has been seen that Revolution IT is trying to expand the business in the Indian IT market. It is noticed that the India has captured the significant place in the business market due to the fastest growing IT sector ( 2016). The emergence of the globalisation made the country more skilled in acquiring the potential growth in the business market. The liberalization process influenced the investment inflow of other countries. Giant companies like Microsoft, SAP, and Oracle also established their business in India and presented the success report in IT field. The business expansion in the Asia Pacific country like India would be justified for expanding the IT business. 

Culture and Ethics in India

As defined by Asante, Miike & Yin (2013), the cultural aspects have been considering the system including values and rules that are needed to be shared among the people. The political and economic influences are considered as the major determinants for a nation. It is to be indicated while expanding the business internationally; it is required to keep the concentration on the cultural aspect of the country.  The examination of the traditional values is essential for understanding the cultural interests. The values of each country depend on the standards, situations, and regulations (Alon, Jaffe & Vianelli, 2013). In case of explaining the traditional aspect in India, it is seen that the scope for the entrepreneurialism in a very significant manner. The acceptability of the employee mobility in India has been rapidly growing. Wipro, one of the most renowned companies in India mentioned about the positive influence in maintaining the employee turnover rate. The company also specified the enormous opportunity for the employees and it also specified not only company retention, but the recruitment of the eligible workers. Apart from the cultural, the maintenance of the corporate ethics is also one of the major concerns in the Indian companies. Laufs & Schwens (2014) revealed that the corporate ethics is considered as the cornerstone for the establishment of trust and confidence among the stakeholders. 

On the other hand, the divisions in casts and creeds, religions, and the ethical behaviours are much considered while expanding a business in an international country.  In keeping concentration on the corporate ethics in India, the primary aspect is to promote the discipline (Terpstra, Foley & Sarathy, 2012). The emergence of the huge competition in this current scenario is the major driving force for establishing the corporate ethics in Indian companies. The MNC companies in India have been concentrating on the maintenance of the proper business ethics. However, the performance of the Indian companies has been evaluating against such ethical standards. The interests of the Indian companies to be merged with foreign corporations require the maintenance of the responsibilities related to the business codes of ethics (He, Lin & Wei, 2016). The corporate governance is much focused on improvising the ethical standards by applying the ISO 9001 practices. The development in the economy is also needed to be aligned with the proper business codes of ethics. 

International Market Selection, Strategy and Entry Mode

During the business expansion in the international market, it is required to understand the overseas market and the clarifications of the goals of business expansion. According to Coeurderoy & Murray (2014), the recognition of the business goals determines the capabilities of the firms, which are planning to expand the business in the international market. In such cases, selection of the proper strategy is much necessary. The major market entry strategies are joint ventures, Exporting, Acquisition, Turnkey projects, Strategic Alliance, Franchising, and owning subsidiaries. The business need to focus on these strategies while expanding the business overseas. More specifically, the understanding the Indian market is much important. Before entering to the Indian market, some of the important factors are needed to be considered more specifically. These factors are described further:

Selection of the proper partnership that is well aware of local market and can deal with the procedural issues

Identification of the target market is essential

Proper planning process is necessary

Promotions of products and services

Connection with the distributors and appropriate agents. 

Revolution IT has been trying to expand their business market in India where the IT professions are fruitful enough to generate more revenues. Hence, it is important to identify the suitable strategy that can be selected for business expansion. In case of the Indian market, the political influence is much foreseen (Clarke, Tamaschke & Liesch 2013). Hence, the application of Joint Venture would be the most preferable strategy for entering the Indian market. It is to be indicated that the Indian cultures and the regulations are different from other countries. The application of the joint venture process would be preferable because the local companies are much aware of the business procedures. More specifically, the rules and the regulations, market needs, and different traditionalisms are needed to be identified during the business expansion process (Ang, Benischke & Doh, 2015). However, some of the advantages and the disadvantages are also associated with the process of joint ventures. When Australian companies try to expand the business in the Indian market, it is required for them to generate knowledge about the local market. Moreover, the knowledge based on legal, political, and cultural aspects is also much required. Based on such aspects, the justified costs and risks are needed to be discussed with the partner company. On the other hand, the major disadvantage of undertaking such strategy is there is no scope for knowing the future competitors (Child & Hsieh, 2014). Joint ventures are mainly undertaken for minimising risks and controlling the technological equipment. The limitation on the contract based work is also considered as the disadvantages for the company. However, the complete knowledge about the local market would be preferable for entering a complete different traditional country. 

International Marketing and R&D

Some of the industrial project like information technology needs to undertake the global changing procedure to conduct the business globally. While expanding the business globally, it is required to identify the market segment to planning the procedure by adding skilful features (Hitt, 2016). The reduction of the trade barriers is important while undertaking the international business marketing process. The GDP fluctuations sometimes affect the business development process. On the other hand, the research and development process require the technological changes that will be fruitful for business purposes.  However, in considering the international marketing process, Revolution IT needs to concentrate on the International marketing mix (Eng & Ozdemir, 2014). The target market of Revolution IT in India would be the MNC companies, which require the technological equipment regarding the information technologies. The international marketing mix is often termed as 4P’s of marketing, which consists of four different elements, such as product, place, price, and promotions. The concentration on these elements is thus described further:

Products: The concentration on the products is the most necessary segment for conducting the international market. The emergence of the globalisation is the major reason behind the diverse demands of the consumers (Hajela & Akbar, 2013). However, the study is based on the products associated with the information technologies. The computers and the products are mainly concentrating on the business purposes. However, since the Indian IT market is quite effective in this current scenario, the company Revolution IT needs to concentrate on the innovative aspects to generate the profitability assurance. The modification of the technical equipment, improvisation of the cultural segments, and customizing the product benefits would simply be the driving force for gaining the profitability. 

Price: In general, it has been seen that the price of the technological products are quite expensive. In fact, in making progress, the companies usually try to avail the equipment with higher quality (Choi & Yeniyurt, 2015). However, during the business expansion, Revolution IT has been concentrating on keeping the cost lower in the initial stage. At first when the company would establish the business successfully, the values can be added and equally, the price of the technological equipment can be increased. Hence, the recognition of the market segmentation would be quite fruitful. 

Place: In considering the place for marketing, the traditional and cultural diversification is mostly seen in India. The states of India have been considering success in a very significant manner. The growing economy of the Indian economy has been considering the development of the different states. Hence, it is important to consider the places where the technical equipment will be available and people would be much aware of the technicalities related to the information and communication.  

Promotion:  The development of the social media and media channels is the major source of promoting business. In India, the influence of media and social media is much recognised. Hence, it is important to keep the concentration on the promotional sources that will be beneficial for the business establishment (Czinkota, & Ronkainen, 2012). However, if Revolution IT is establishing the partnership business with the local firms, it would be easier to deal with the governmental regulations and the procedures of the media channels. Hence, the opportunity to promote the business is much effective in India. 

Research and Development in India: The multinational corporations and the foreign companies have the significant opportunity in the India software market related to the research and development procedures (Nair et al. 2015). The intellectual capital investment in India has been considering the expansion of the market research. Indian based R&D Globalization is estimated almost US$20 billion in the year of 2015. This ratio is almost 9.9% higher than the ratio in 2014 ( 2016). The investments in the software industries are also quite commendable in this case. More specifically, the collaboration with the other foreign companies is also increasing the opportunity in a significant manner. Due to such reason, the Revolution IT can avail the chance to access the fruitful research and development system in India. 


It is to be stated that the managers associated with the operational process in the International companies have to face many of the dilemmas related to global and multinational perspectives. In considering the global perspectives, the managers usually concentrate on the availability of the resources. The major arise due to the three major aspects, such as globally supply chain, production, and procurement. The issues associated with these three aspects would be preferable for the enhancements of the productivity. 

The choice of the production location is the major issue for the operation managers during the business expansion. It has been seen some of the macro environmental factors are associated with such issues. In mitigating such risks related to this specific segment, it is required to keep the concentration on the political, technological, and economic concerns. Revolution IT needs to recognise the proper location that has the stable political scenario. The stability in the political scenario is much essential for a business. On the other hand, the growth of the economy is also much needed as the business has to deal with the expenditures associated with the technological equipment. In comprising these entire segments, the major concern has been focusing on the capital investment. The recognition of these segments would refer the exact capital that is needed to be invested for the business development. 

The business establishment in the foreign market require the inputs, raw materials, energy, and labour. The selection of the proper source is thus necessary for a business while expanding the business in India. On the other hand, the concentration on the logistic network is also considered as an area of concerns. The production site is the major source for delivering the higher quality materials for the business. Hence, the establishment of the simplified process of delivering technical products requires the detailed information based system, which will be helpful for the further amendments in time of need. 

 HRM issues and considerations

In determining the international business market, it has been seen that practices of international human resource management is quite a complex area (Castellani, Jimenez & Zanfei, 2013). The reason behind such complexities is the proper differentiation between the labour markets, cultures, economic system, and the legal structure. However, some of the issues and the considerations related to the international human resource management are discussed further:

Differentiation in the legal structure: It is to be indicated that the stability in the political and the legal scenario vary from country to country. In case of establishing in Indian business market, it has been seen that the legal and political scenario in India is absolutely different to other countries. The regulations imposed by the governments influence the business practices (Leonidou, Katsikeas, & Morgan, 2013). Moreover, during the political instability, the business companies face several issues with the strikes and other obstacles. On the other hand, the amount of taxes and the legal structure is also different to other countries. Hence, the diversified scenario is quite influencing for the business. 

Adaptation of the rapid changes in the workers’ profile: The demographic changes is quite challenging for the human resource management. While recruiting the people from the diversified cultural environment, the human resource management face the potential challenges (Rahmani, Emamisaleh & Yadegari, 2015). In establishing the business in the global market requires the involvement of the people from that very country, as this will help in generating knowledge regarding the cultural aspects. On the other hand, managing the people from different cultural background is really challenging. 

Employee retention: While the changes in the demographic composition of the workforce are seen in a prominent manner, the changes in the expectations and motivations are accordingly seen (Bader, Schuster & Dickmann, 2015). It is to be notified that recruiting people is not the last stage. Retaining the employees by providing them enough motivations is the most required aspect for each of the companies. However, the changing desires and expectations of the employees are quite difficult to fulfil. 

Alignment of the technological and organisational practices: The advancements in the technological and communication system are foreseen in this current scenario. Hence, it is important for the human resource management to provide the proper training session to the employees for making them skilful enough in this global environment (Minbaeva et al. 2014). However, the issues associated with the relocation of the business for the business purposes, training purposes, and repatriation purposes. Hence, the challenges related to these segments are much influencing the practices in the human resource management in the international business context. 


The study has been associated with the business expansion of Revolution IT in the Indian business market. The company has captured the remarkable position in the IT business market. However, the company has been looking forward to achieve the business potentiality by accessing the global market opportunities. Hence, the company is trying to expanding the business in the Indian market. The study has been associated with the business ethics and cultures in Indian IT market. It has been recognised that the scope of the IT business in India is quite fruitful for the foreign companies due to the growing demands. Hence the improvisation in the corporate ethics is much concerned. The marketing mix and research and development system associated with the Indian market is also considering the huge opportunities for Revolution IT. The identifications of the issues related to the productivity, procurement, and logistic is also helpful for the company while expanding the business. On the other hand, it has been seen that the challenges with the international human resource management during the recruitment and retention of the employees are also considerable in this context. The overall study is thus reflecting the complete knowledge about the international business marketing procedure for the foreign company.  


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