INTERNATIONAL BUSINESS ENVIRONMENT

International Business Environment

[Name of the Seminar Tutor]

[Word Count: 2754]

Contents

Introduction3

PESTEL ANALYSIS ON INDIA, CHINA & IRELAND3

Overview3

Pestel Analysis of Microsoft4

India4

Political Factor4

Economical Factors5

Social Factor5

Technological Factors5

Environmental Factors6

Legal Factors6

China7

Pestel Analysis on China7

Ireland8

Pestel Analysis for Ireland8

Five Forces of PORTER Analysis9

New Entrants10

Bargaining Power of Customers10

Alternative Products11

Bargaining power of suppliers11

Country Most Appropriate for Outsourcing Services - India12

Locations Advantage Demographics12

Facts about India13

References15

International Business Environment

Introduction

A global company like Microsoft, who have realized the importance of outsourcing the primary chain activities of value to be able to consolidate and for strengthening their high-end activities by for more profits and better results. To access how suitable the activity is three countries have been, identified and using various approaches it will be determined which is the most suitable. Ireland, India and China have been, identified as target companies for the intended outsourcing of Microsoft's services of Software development (Penfield, 1999).

The senior management is, contacted as the data and information collected needs sharing to give them an idea on what the decision was based on. After Analysing and researching, a suitable country to handle the outsourcing services for Software development of Microsoft has been, identified.

PESTEL ANALYSIS ON INDIA, CHINA & IRELAND

Overview

The Pestel analysis is a useful tool and allows researchers to identify the Political, Sociological, technological, legal and environmental factors associated with countries/regions. The Pestel analysis is widely used by researchers and allows them to conduct a thorough analysis when making decisions regarding diversification; expansion etc.

Pestel Analysis of Microsoft

Microsoft is a global leader in the Information Technology industry. Microsoft is a huge company and needs to thoroughly investigate the opportunities, possible difficulties and issues in conducting business overseas i.e. China, India, and Ireland etc. In this paper, we would conduct a “Pestel Analysis” for each country discussed above. The various sociological, technological, legal and environmental factors associated with these countries would be discussed and a suitable path would be suggested for Microsoft Corporation.

Lets conduct a Pestel Analysis for the given countries:

INDIA

Political Factor

If we analyze the political situation in India, it seems to be quite conducive to investments. The country has a democracy and elections are held regularly on the scheduled times. A vast number of IT companies are operative in India because of the governmental support, continuous flow of investments in the IT sector.

The governmental policies and present legislation also encourage major IT companies to invest in the company and to expand their ground presence in the different regions of the country. Banglore is considered as the IT capital of the country; and for the most part the whole of South Asia.

Hence, the level of political stability in India is conducive to investments by Microsoft and any other IT company. Microsoft should be looking to expand its revenues by making use of the stable democracy in India.

Economical Factors

The present economic conditions in India are not encouraging at all. If Microsoft invests in India and moves its operations to the country; it would certainly enhance the living standard of people in ...