Asian Management Ownership - Networking and Management

Question: Describe the aspects of Ownership, Networking, and Management in the Indian Business System. Answer Introduction Over the past few years, different aspects of the business including the ownership, networking and management have created huge impacts on the Indian trading system. The prime forms of the ownership involve the professional, entrepreneurial businesses, public sectors, international companies, cooperatives and the non-government organizations (NGOs) (Gedajlovic et al. 2012). Moreover, it includes the family trading and interlinked family business groups. Since 1990, the government had launched the major divestment programs. Consequently, it has reduced the emphasis on the particular public sectors (Budhwar et al. 2013). However, after launching the divest program, the emphasis on the public-private partnership has been enhanced in an efficient manner. During that period, most of the entrepreneurial firms have been formed with the facilitation of the co-founding professional partners. For forming the entrepreneurial firms, professional partners have utilized the venture capital and oth er resources of funding. On the other hand, it has been seen that over the past decades, many foreign companies have invested adequate financial resources in India utilizing the joint venture and new investment and acquisition. Besides this, the family businesses are also increasing in the Indian market and most of the family businesses have been following the ownership structure. By analyzing the business report, it can be assessed that in 1990, there was an average of 18 businesses among the top 50 business houses including Tata Group (Garengo, Patrizia and Milind 2014). Hence, it can be assessed that over the years, the process of ownership has been changed in an effectual manner. In the Indian business system, there is a huge impact on the network. The particular business system is defined by the reliance on horizontal networks as well as the vertical networks. The vertical networks indicate the close and long-standing inter-firm relational contacts between consumers and suppliers. Due to the linkage of large component suppliers with the large automotive firms, the automotive industry exemplifies. For instance, in the 1950s, many indigenous automotive firms had been formed through a particular policy framework following the requirement of the local content prerequisites (Jayaram et al. 2014). It indeed encouraged the vertical disintegration. The renowned car selling company Maruti was formed in 1982 through a joint venture between the Government of India and Suzuki of Japan. However, the particular company needed to follow a particular business framework stating the requirements of the local Indian components. Aside from this, the comparative advantages of In dia are leading the value-added services and designs. It indicates the higher potentiality of the growth in a structural manner. The business management style in India is structural. By analyzing the history of the Indian business, it can be assessed that the particular country believes in the hierarchical society. Consequently, it should have some impacts on management style in the business. The managers position demands some roles for executing the business in an efficient manner. Most of the businesses in India follows either participative or the autocratic management style (Budhwar et al. 2013). Most of the multinational organizations have been showing adequate interest in establishing the business in India due to its diverse workforce culture at the workplace. Hence, it can be assessed that the effective management style indeed facilitates the Indian businesses in experiencing the enormous growth within the certain timeline. References: Budhwar, Pawan S., and Yaw A. Debrah, eds.Human resource management in developing countries. Routledge, 2013. Garengo, Patrizia, and Milind Kumar Sharma. "Performance measurement system contingency factors: a cross analysis of Italian and Indian SMEs."Production Planning Control25, no. 3 (2014): 220-240 Gedajlovic, Eric, Michael Carney, James J. Chrisman, and Franz W. Kellermanns. "The adolescence of family firm research taking stock and planning for the future."Journal of Management38, no. 4 (2012): 1010-1037 Jayaram, Jayanth, Mita Dixit, and Jaideep Motwani. "Supply chain management capability of small and medium sized family businesses in India: A multiple case study approach."International Journal of Production Economics147 (2014): 472-485.