Case Discussion Questions
1. Why is the Indian retail industry so inviting?
Indian retail industry is so inviting because it is a developing site for global retailers and the profitability is declining in developed countries. Because of the indulgence of many small organizations, its existing retail system has been divided into various parts and this division is beneficial such as it is leading to lower prices of farmers and higher prices of the consumers. Furthermore, in order to maximize return on investment, the new rules of India for international trade are attractive for FDI across nations(Dey, 2007).
2. From a resource-based view, what are the unique resources and capabilities ...view middle of the document...
I will determine those who benefit from present status. But the voice of the opposition is likely to be high, therefore, there will need to not only consider the support of mainstream but also consider the enthusiastic support.
5. ON ETHICS: If you were a career government official in India (that is, your career does not depend on your popularity in elections), would you recommend the full-blown opening of the retail industry?
Depending on the circumstances, the recommendation may vary from person to person. But it’s very necessary to consider all those conditions that can aid the small retailers and can make them able to move on. If this opening of retail industry is beneficial for the domestic retailers, small retailers and for the size economy, I will definitely recommend for it.
a) Approach this case as if you were providing policy advice to the Indian Government on strategies to create a climate that would attract more foreign direct investment. (FDI)
In order to enhance the growth of FDI in India, Government should maintain safeguards including: resources, big retail outlets, employment level, format of retail chains, size limitation of resources, monopolization and predatory pricing that shows the market environment regulated.
* Resources: For comprehensive study of retail and related industry, the resources should be dedicated.
* Big retail outlets: On the basis of criteria of population and the level of employment of local youth, the number of big retail outlets should be decided in a particular city.
* Format of retail: Regulated format should be made for the retail chains.
* Size limitation of stores: minimum and maximum limit of size of the stores should be cleared.
* Monopolization: in order to protect the local suppliers, it should be clear that no one retailer monopolizes the operations in an area.
* In order to generate a platform for local retailers, anti-competitive practices and predatory pricing should be prohibited.
Some encouragement to local manufacturers and industrial level undertaking should be given by Government. For underdeveloped state, a format should be set up by the government in any specific industry or territory that are industry based should be made in any specific underdeveloped state. Government should provide small level industrial agreements that are always available for investors in order to make them able to start production of articles and products. In order to set up a manufacturing structure, Government should provide assurance to industries. Government should provide all those benefits to the industries that are necessary for the industries for creativity and innovation in their products. Government should make categories for industrial sector including: category A; for the first five years,100 tax exemption on profits, category B; for the next five years, 30% exemption on profits.
Government should set up an industrial assurance for any part of resources and...