Bahama Bucks Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Political landscape

The political environment is very stringent as foreign companies are not allowed to get a license for operating in India and a joint venture is the only source of entering the Indian market. Secondly, in a joint venture a foreign company is restricted to seek only 74% of the share and the major positions like Chairman and CEO are reserved for Indians only. These factors are very important for the company, Bahamas Bucks and can discourage the company in its initiative (Gomez-Mejia, 2013).

Being the largest democracy in the world India has a government structure that is being operated on federal basis, which makes this political environment completely different form US. Bahamas Bucks will have to give immense importance towards these factors as operating in such an environment will be challenging for the company.

Before operating in India, the company will have to consider some major factors like the political ideologies of different political groups which are different to a great extent. This factor is very important to consider as it has a strong influence in developing the overall political condition of the country. Besides that, another factor that influences the political condition is the political and personal interests of different individuals occupying strong positions (Manfred, 2003).

Furthermore, the instability in the political condition can occur at any point of time, which is vital to consider before starting a set-up in the country. On the other hand, the taxation system of the country is quite strong and is well structured.

Different taxes like the sales, income and other related taxes will have to be considered. Overall the country is quite supportive of foreign direct investments and provides multiple benefits, but there are some important aspects to consider while entering in India that is illustrated above.

Economical situation

The GDP of the country is increasing and the new technology is getting hype very quickly. Since 1991 the company is on the verge of growing economies as the introduction of the industrial reforms gave a significant boost to the Indian economy and made it an attractive feature for the foreign investors (Swain & Ray 2013).

This factor is quite apparent and is provoking investors to invest in the country in order to exploit the opportunities available. During the last two decades, the country has witnessed a number of new entrants in the market in different sectors that has played a vital role in boosting the economy.

Therefore, Bahama Bucks can also gain significant encouragement from this factor and enter in the market to target one of the largest and growing economies in the world. The company can identify various economic factors that will be favoring the company and its objective of entering into the country (Dutt, 2009).

The opportunity is quite attractive as it is one of the largest populations in the world, but besides that the economic condition of the country is ever improving and becoming attractive. The GDP growth rate of the country is facing an inclining trend and is increasing steadily every year, which is due to the strong economic reforms initiated by the government.

Furthermore, the buying power of the consumers and the income levels are also increasing, presenting a strong argument to invest in India. Although the country’s economic condition is not as attractive as US but it is one of the growing economies in the world and the inclusion in BRICK nation justify the economic stability of the country. Thus the Indian opportunity is quite attractive as far as the economic aspect is concerned (Stroh, 2002).

Bahama Bucks Case Solution

Cultural landscape

In India, lifestyles are changing with a rapid pace and with the advancements in technology, communication has become easier as well as a necessity for people. However, the ageing population is one of the concerning factors as the majority of the population in India is residing in the age bracket of 15-65. This can be a challenging aspect while deciding on the market segment to target for the company (Cf. Messner, 2013).

However, the social trends in the country suggest that people are getting aware of new trends and ideas and are accepting change readily. The majority of the Indian population resides in rural areas, but the population residing in the urban areas can be a significant target market for the company. The people living in the urban areas are facing a strong transformation and a state towards brands and foreign products is getting developed (Clothey, 2006)......................

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