Critical analysis of the prospects along with the challenges, which the firm might come across when their expats would be in the targeted nation:
The selected MNC tourism firm for the report is Thomas Cook. Thomas Cook is a leading MNC tourism companies operating at the global stage. The firm provides a wide range of tourism services such as flight bookings, holiday packages, hotel bookings, and inclusive holiday packages, and so on. The firm has both high-street stores as well as online facilities. The company serves approximately 19 million customers all across the world. Lastly, the company is focused on evolution of the business in order to serve more clients in ways of catering better services (Thomascook, 2019).
India is a South-Asian country and is the 7th largest nation in regards of area with a population density of over 1.3 billion. India has a quite stable democracy with diverse culture. Besides this, the score of economic freedom is 55.2, making the nation 129th freest economy in the index of 2019. Apart from this, the governing body of the nation is looking forward to enhance the climatic conditions for the business in order to adopt the populist steps due to the arrival of 2019 elections. The nation is developing in an open market economy. The GDP of India is $9.5 trillion with a growth rate of 6.7% whereas the GDP per capita of the nation is $7,183. In addition, the rate of unemployment is 3.5% and the rate of inflation is 3.6%. Lastly, the FDI inflow of the nation as of 2019 is $39.9 billion (Heritage.org, 2019).
India is country with diverse culture with a population of over 1.3 billion people. The different regions of the nation has different cultures, as the nation has 28 states along with 7 territories and Hindi is the official mother tongue used by the natives of the country along with 23 other official languages. Besides this, the country is culturally rich and incorporates a wide range of traditions in the different regions.
In this dimension, India score quite high that clearly points to the high level of disparity in terms of wealth as well as power in the community. Such a condition is not essentially sabotaged on the populace instead it is accepted by the people in the form of cultural customs. The nation is a perfect exemplar of comprising a culture with immense distance in power because the system of caste segregates the population in five categories with each of them possessing higher status from them other (Hofstede Insights, 2019).
India comprises of a community with traits of collectivist scoring 48 in this specific dimension. It clearly specifies the high level of preference for being from a bigger social chassis. Besides this, the individuals in the nation are anticipated to act as per the betterment of the ones defined in the groups. The actions of individuals are widely impacted by the variety of notions like the opinion from the family members, neighbours, and co-workers. The relationship between the employee and employer is highly based on expectations like family fortification from the employer alongside the loyalty from the worker. The promotional and employing decisions at the workplace are taken on the grounds of expectations (Juhasz, 2014).
India is accounted for its masculinity scoring 56 in this dimension. The nation is masculine in regards of displaying visuals of power and success, in spite of the aspect that it scores hardly over the midrange. In this country, the main concentration is on the accomplishments and success and validated by the materialistic gains (Rana, 2018). Besides this, work is of extreme significance in one’s life and portraying the signs of success at the workplace is necessary. Lastly, the culture of India values competitiveness, assertiveness, as well as ambition.
In this dimension, India scores 40 and therefore, it has a moderate to little preferences in staying away from uncertainties. In India, imperfection is accepted, as no one has to act as what is or was planned. Conventionally, the country is highly patient in which the lenience for unanticipated outcomes is significantly high. Besides this, the Indian population usually does not feel compelled or driven in order to take initiatives as well as sense comfort while inhabiting into the well developed routines along with rolls with questioning. Apart from this, the people belonging from the culture having moderate to little avoidance level of uncertainties lean to take risks for value, illustrate high levels of lenience for error or differences, as well as seek alterations rather than neglecting it. Possession of such traits makes the nation a favourable climate for the foreign firms in establishing business linkages.
In this dimension, India score 61 and thus, making the country with a culture having orientation for long-term. In the country, the notion of karma plays a substantial role in dominating each of the philosophical and idealistic thoughts along with the religious perceptions as well. Time in polychromic by nature instead of being linear in India and therefore, not of utmost significance to the societies of the Western regions who prefer perceiving time in a completely monochromic way as well as generally achieve low score specific to the dimension (Hofstede Insights, 2019). Apart from this, in this nation, there is a recognition, which contains several truths as well as quite frequently relies on the one seeking it. The nation’s scores quite high in this dimension specifies that the members of the nation pardon the lack of promptness, usual comfort with exploring the destined path as the individuals prefer going along with instead of complying with the exact plan, as well as alterations of the plans are done on the grounds of altering reality.
Introduction and Greetings: For Thomas Cook, greetings and introductions are essential, as it would provide the company with a flexible approach. It would make it possible for Thomas Cook to guide their expats in performing effectively. The expats will required following certain etiquettes, as it will enable the company to set up the pace for their business in India (Office and Limited, 2016).
Language and Communication: English is the broadly spoken language in India in the field of business. Thus, it is of utmost importance for Thomas Cook to train their employees and develop their English communication skills for ensuring they are capable of performing their roles as expats in India. It would also make it feasible for the company to operate their business effectively in the nation.
Forge healthy relationships: For Thomas Cook, it is necessary that they comprehend that Indian people base the decisions on the grounds of intuition and trust, which is same as in case of relying on credible data and statistics. Therefore, the firm requires being mindful regarding the significance positive as well as healthy relationships for operating the business (Office and Limited, 2016). Besides this, the expats of the firm needs taking time in order to entail themselves in small discussions as well as learn their potential partners in business, as precipitating directly to the issue of business might be considered or perceived as rude.