Difference between revisions of "Scenario 4 - Empire with Walls"
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The application is not effective in developing countries where regulation and rule of law is lax and business continues as normal, encouraged by growing middle class. In the past, big corporations have found it difficult to produce tailored-made products for emerging markets, preferring to transfer their current products and business processes, which offer lower margins than their primary markets. To counter this, the new companies expand on joint ventures set-up, establishing subsidiaries and partnership with local entities, allowing them to manage operations faster and with less bureaucratic challenges. Unconstrained by legacy investments in capital equipment, processes, and technology, the working environment in these markets stimulates innovations that begin to breed profit in the companies. <br> | The application is not effective in developing countries where regulation and rule of law is lax and business continues as normal, encouraged by growing middle class. In the past, big corporations have found it difficult to produce tailored-made products for emerging markets, preferring to transfer their current products and business processes, which offer lower margins than their primary markets. To counter this, the new companies expand on joint ventures set-up, establishing subsidiaries and partnership with local entities, allowing them to manage operations faster and with less bureaucratic challenges. Unconstrained by legacy investments in capital equipment, processes, and technology, the working environment in these markets stimulates innovations that begin to breed profit in the companies. <br> | ||
[[File:risk management.jpg| | [[File:risk management.jpg|200px|left]] | ||
The activities of emerging companies like Bharti Airtel, Tata and Godrej group benefit these economies through employment, increased productivity and a burgeoning middle class. The governments implement strict financial laws to ensure economic sustainability for their country but environmental regulation is still lax. <br> | The activities of emerging companies like Bharti Airtel, Tata and Godrej group benefit these economies through employment, increased productivity and a burgeoning middle class. The governments implement strict financial laws to ensure economic sustainability for their country but environmental regulation is still lax. <br> | ||