International Business Essay Example | Topics and Well Written Essays - 1500 words

International Business - Essay Example The Indian FDI policy allows 100 percent under the automatic route for Greenfield projects. British Airways, due to the options available for investment in India, aims to devise strategic framework to enter the Indian market. Introduction International business is different from domestic or national business operations and management. Conducting business in different countries requires strategic thinking from the management of the company. There is a greater difficulty in performing the functions effectively and integrating them to serve organizational objectives (Aswathappa, 2010). According to Johnson and Turner (2009) the essence of international business is based on the firm undertaking and dealing with the consequences of international diversity which is mainly driven by globalization of markets, firms following customers, the desire to overcome limitations of the home market, exploitation of differences between countries and regions based on culture, regulation and specific eco nomic factors. Katsioloudes and Hadjidakis (2007) mention that laws, cultures and economic conditions differ within countries which are usually less marked that those among various countries. It is further stated that polices in most of the countries vary altering the decision of the company to operate in a particular country. Internationalization of business has benefited many organizations like TCS, Asian Paints, GE, Hewlett Packard and many more (Aswathappa, 2010). Moreover globalization has also led to the internationalization of business breaking the national boundaries allowing foreign companies to operate in their backyard. Underpinning the importance expanding its business operations, British Airways (BA) is planning to initiate business operations in India and other Far East countries in view of the increasing traffic, population and FDI policies. This paper analyses the opportunities and examine other factors for expansion strategy of British Airways. British Airways Briti sh Airways is one of the world’s leading airlines and it has been on an apparent roller coaster with highs and lows since its privation in 1987. The airline has always been a strong supporter of the process of globalization and has tried to exploit the opportunities (Homer and Swarbrooke, 2004). BA aims to serve existing routes and markets, to identify new opportunities for branded services and products and to ensure its freedom to compete in world markets, all being undertaken in such a manner as to meet the paramount and subsidiary objectives (www.britishairways.com). British Airways operates a fleet of over 243 aircraft to around 140 destinations in 75 countries catering over 35 million passengers in 2006 (National Audit Office, Great Britain, 2007). Since its merger with Iberia, Willie Walsh, CEO of British Airways declared of examining the possibility of entering the Indian and Far Eastern markets. Therefore the paper examines the internationalization strategies by evalu ating the cultural and sociological impact on the staff in context of India. Internationalization Strategies Jansson (2008) mentions that multinational corporation’