Business in context Essay Example | Topics and Well Written Essays - 2000 words

Business in context - Essay Example China’s GDP growth was 9.9% in the year 2005 and according to World Bank, China’s projected growth rates from 2005–2009 was 8%. China was one of the top recipients among developing countries which had inflow of around 72 billion USD in 2005. While China had experienced already high growth rate, India’s growth rate was around 4% per annum. According to World Bank, India’s growth rate was around 8.3% - 9.2% after 2003. Therefore, both the countries are relatively attractive for British companies (Homlong & Springler, 2009). India’s Business Relation with the UK India’s relation with the UK has strengthened with regard to business. Both countries have maintained a healthy relationship, for several years, in term of export and import and business relationship. In whole European region, the UK is largest business partner of India and compared to the whole world, the UK is 5th largest business partner of India. The import and export between UK and India had increased by 20% in the year 2005, i.e. ?7.9 billion. The UK’s export to India had increased by 21.3% in the year 2005. ... This company has 4 business units which are the UK business, International Business, Retailing Services and Non –food. Approximately 4 million t-shirts and vests were sold in Tesco’s Indian stores, which accounted 40% of Tesco’s import in the year 2004. Tesco provide low cost and quality products in India. Tesco supplies textiles worth 72 million USD annually. In the year 2004, the company’s revenue from India was around 67.5 million USD (Tesco, 2005). Attractiveness in India India’s low cost advantage for sourcing cheap but quality products is the major reason for attracting business. Tesco sources around 72 million USD of textiles from India annually. Tesco has realised that India’s major strength is their availability of skilled and educated labour with low cost. This is the reason for Tesco’s successful business in India (Tesco, 2005). Johnson Matthey Johnson Matthey is a UK company which deals with pharmaceutical materials, precio us metals and catalysts. It is one of the leading companies in superior material technology. It has two divisions in India which are Catalyst and Ceramic. The company is making automobile emission catalysts in India since 1998. For Johnson Matthey, India is a key base for export. Approximately 75% of catalysts and technologies product are exported from Johnson Matthey (Johnson Matthey, 2005). Attractiveness in India India’s major attractiveness is skilled and educated manpower, which is available at competitive cost than any other countries. It helps companies to set up manufacturing unit in India and operate at less fixed costs. The other important aspect is India’s potential market. The vehicle market of India is growing rapidly which in turn is a great opportunity for Johnson Matthey. The company perceived that