Developing of Indian Mobile Industry - Term Paper Example

1 Introduction: For the development of every industrial sectors and organization many factors are influencing. The growth and decline is depends on these factors. In every day many new organizations are born and many existing organizations are shut down in the world. Behind the two phenomenons several reason are there. These reasons are spread from the bottom public to the judiciary and from the operational level employees to the top management. In this report these factors are termed as external factors and internal factors. This report also mentioned about Indian mobile industry. It is an example for the industrial sector which is in the developing stage and which shows a dramatic growing tendency. It effects the social and cultural growth of the country. 2 External and internal factors influencing an organization or industrial sector 2.1 External Factors: External factors are not coming under the control of the particular organization. External factors are unpredictable. It influences the structure and development and smooth running of the organization. Major external factors effecting the organization are 1. Economic factors 2. Social and cultural factors 3. Technological factors 4. Political-administrative factors 5. Legal factors 6. Stakeholders 2.1.1 Economic factors: - Economic factors means econonomic situation of the organization and various financial factors which effecting the working of the company. Even though it is an external factor it is the centre of the business. Entire business is concentrated on this economic factor. So it has a direct contact with the organization. Inflation and deflation in the stock market and fluctuation in the raw material price, labour charges are the major economic factors influence in an organization. If the organization’s product is essential for the day to day life then its price variation in the market is does not hardly affect the organization. Otherwise people pull back from purchasing those products from the market. For example present financial crisis is affects to all most all sectors in the world. Many companies were shut down or decrease their production rate. But in Indian mobile industry, this financial crisis has almost unaffected. Of course there is a slight negative influence in the mobile industry also. Compare to other industries financial crisis is not affect the Indian mobile industry. It affect to almost all industrial sectors in the world. Major reason for the survival of Indian mobile industry is India’s economic growth. India has 7-8 % economic growth per year in the recent periods. It leads to the increasing of annual income in the middle class families. (Drives). (Opportunities and overview of mobile industry in India 2006). Another example, petrol is an essential factor in the world. So its increased price never affects the mining and distribution of the petroleum products. (Economic Environment) 2.1.2 Social and Cultural factors: - “Social and cultural forces at local, national, and often regional levels have profound influence on the way organizations conduct their work and on what they value in terms of outcomes and effects.” (Chapter 3 key forces in the external environment: Social and cultural environments). Social factor means the social background in which the organization is functioning. Simply social trend is the social factor in the industry sector. Social factors like low education status and poverty will badly affect the functioning of the organization. Cultural factors like language and religion are affecting the functioning of the organization. In India one of the fastest growing industrial sectors is mobile industry. Major reason for that is India is a developing country. Science and technology is very much developed in this country. Here education status and social status of the public is in developing stage. It affects the mobile industry also. Major reason is that in India’s middle class families show a consumerism trend. 2.1.3 Technological Factors: - Emergence of new technology will effect the functioning of the organization. For example the value of computer and internet technology is a millstone in the history of the world. Any organization which works with high technology will be a positive factor for the success of the organization. For the proper working of organization needs relevant technology in their environment. In India mobile industry had overtaken the telecom sector. The technologies like GSM and internet connection through GPRS were helps to the growth of mobile industry in India. Technical facility like internet connection, games, radio facility etc. in the mobile helps to increase the popularity of the mobile industry in India. 2.1.4 Political-administrative factors: - Relationship between the political governing body and the organization is an important factor. If the policy of the governing body is unfavourable for the particular industr5ial sector definitely that sector will struggle under the control of that political party. So for the proper functioning of any organization, needs a mutual understanding between the political party’s and the organization. “Governments have to manage the economy to try to achieve their aims and to do this they have to use all the policy tools at their disposal. They have three main types of policy; fiscal policy, monetary policy and supply-side policy.” (External environment – government policy 2009). It will help the organizations to accomplish their objectives. India support both public and private sectors. Most of the mobile companies are in private sector. Indian democracy supports the working of the mobile phone industry in public and private sector. India government gives support to the Indian mobile companies and to the foreign mobile companies in India. It helps to the growth of this sector. 2.1.5 Legal factors: - Legal factors mean low and regulations in the existing environment. It influences the smooth functioning of the organization. Every organization must be working under the control of the legal framework of the country. In some country their laws about the industrial sector is very restive. In such situation the legal factors have a significant impact on the managing and functioning of the organization. Some specific rule and regulations will help the development of the organization. So the administrative body checks whether the organization is working under the flowing legal factors. It Otherwise it negatively influence the organization. 1. The organization must have a constitutional restriction. 2. The regulation must administrate the goal and arrangement of the specific institution The organization should have a legislative for control the management of the organization. (Chapter 3 key forces in the external environment). The Global System for Mobile communication (GSM) association selected India to the Government Leadership Award 2007. The reason for this selection is the India’s rules and regulation related to the mobile industry. This framework helps to the potential growth of this industry in the past three years. (GSMA honours Indian Government for achievements in mobile communications 13 February 2007). 2.1.6 Stakeholders: - Stakeholders plays an important role in the existence of an organization. Almost all industry sectors have continued existence is depends on the stake holders group. Stakeholders include customers, suppliers, sponsors etc. “Influences from these multiple environmental contexts can become major facilitating or constricting forces on the institution as it works to accomplish its mission. In the extreme, these forces can keep an institution alive artificially; conversely, they can thwart organizational survival.” (Chapter 3 key forces in the external environment: stakeholder environment). In this report early mentioned that India gets GSM award in 2007. It was accepted by Shri Dayanidhi Maran, India’s Minister of Communications & Information Technology. According to his words based on this award winning “The results of the combined efforts of all stakeholders are now apparent and I am sure India will continue to benefit from the strong and vibrant spirit of public-private partnership that is now being witnessed in the telecom sector.” (GSMA honours Indian Government for achievements in mobile communications 13 February 2007). From this statement itself it is clear that stake holders give a excellent support to the Indian mobile industry. 2.2 Internal Factors: Internal factors are coming under the management of the organization. These factors can be controlled by the management. Major internal influences of an organization are 1. Quality Management 2. Leadership 3. Human resources management 4. Organizational culture 5. Work environment 6. Compensation and salary 7. Growth opportunity 2.2.1 Quality Management: - Quality management includes all the activities performing in the company. Major parts of the quality management system are quality planning, quality assurance and quality control. Quality management is a key factor for the success of any organization. Total Quality Management helps the organization to guarantee that they meet the full requirements of the customers. Simply quality management is the management of all the qualities of an organization. According to Gitlow quality is “the expectations that accompany a product or service being delivered which are: 1) is at par with customer standards, 2) meets and satisfy the needs of the customer, 3) meets the customer level of expectations, and 4) will meet unforeseen needs and aims in the future.” (How to attain quality management in business organizations 2009). For achieving the quality management the organization should have accurate scheduling, identified objectives, and keeps a good relationship with the customers and the suppliers. Basic goal of quality management is get better the value of the products and services of the industrial sector. (How to attain quality management in business organizations 2009). Indian mobile industry has an improved quality in their product, service and marketing. So it is one of the fastest growing industry sectors in India. 2.2.2 Leadership: - Leadership is a quality. It influences the success of the organization in a direct way. To catch the victory, any organization needs a good leadership. A leader should have a controlling and managing power. That means he can direct his subordinates in the proper way. Most important role of a leader in an organization is inspiring the other employees in an organization to achieve the objectives of the organization. 2.2.3 Human Resource Management (HRM):- Human Resource Management in an organization means managing the relationship with employees, managing their morality and ethics in the business sector and keeps a good communication with them. It is clear that employees are an important part of an organization. Human resource management handles mainly the employees in the organization. Human resource management should be works for the progress of the organization. For the progress of any business sector, working atmosphere is very important. In this case senior management attitude and relationship between co workers are very important. For this organization needs good communication with each other and top management should consider the problems faced by the operational level employees. Moreover the management should be careful to provide a good working environment to the employees. 2.2.4 Organizational culture: - Culture is an important factor for the success of any organization. Organizational culture is a self reflection of the organization. It is the organization’s behaviour and the sum f all employees behaviour. Goodwill and brand name are the outcome of organizational behaviour. “It is the foundation for profit, productivity and progress. While it can accelerate getting to the next level of performance, it can just as easily act as drag.” (It’s a choice organizational culture by design or by default 2008). 2.2.5 Work environment: - For the success of any industrial sector, needs good working environment. Good working environment means environment with modern working life which helps to the development of the organization. Technology, management etc are the major factors influencing the working environment. Good working environment will helps to increase productivity and efficiency of the employees in an organization. It also helps to manage the stress in the organization. It boosts the employees to work. So it has a direct influence. 2.2.6 Compensation and salary:-Compensation is a remuneration given to the employees for their service. Giving compensation will encourage the people in their duty. In usual case salary is giving as a monthly payment. Give a reasonable salary to the employees. Otherwise it will ruin their interest to the work and it reduces the manpower. It will badly affect the productivity and service of the company. Give salary improvement in necessary time will help the organization to gets more efficient and skilled employees. 2.2.7 Growth opportunity: - For the growth of the organization, they give promotion to the employees when they are eligible for that. Give proper training in the new technologies. Allot scholarship to the employees for studying will improve the education level of the employees. Through this way organizations can get skilled employees. It will influence the working profit of the industry. Otherwise skilled employees will leave from that organization. Check the carrier growth of the employees and make more and more opportunities to the skilled peoples. Every industrial sector has different kind of factors to influence the day to day activities. Some of them are external and some of them are internal. Some common and very important such factors are discussed above. Many other factors are remained. Here only the important factors are mentioned. For the proper working of any organization/ industrial sector it needs good management, proper communication between various levels of employees in the organization, coordination, and dedicated employees. Some other external factors like the government policies, advanced technology, financial situations etc are also influence the functioning of an organization. 3 Changing social and cultural environment in India: India is one largest democratic country in the world. It has a well developed social and cultural environment. In India there are different states. In each state have people with different religion and cast and social status. All of these states have their own language. There dressing style and tradition are entirely different from one another. Each of then has different culture. So India has a diverse culture. But it keeps a unity. In 1947 India got freedom from under the ruling of British. After independence this country had a lot of changes occurred in its social and cultural environment. Presently it is the fastest growing country in the world. Now India has a significant role in world’s scientific and technological growth. Now India is in a transition phase. One cannot identify its social and cultural changes easily. The reason behind that is at every time its culture is mixture of tradition and modernity. So while accepting modernity it keeps its tradition, ethics and morality. According to Haviland “Modernization refers to a global process of change by which traditional, non-industrial societies seek to acquire characteristics of industrially “advanced societies”.” (Sachchidananda, Upadhyaya & Sharma VP 1992, p.35). Usually modernization leads to a culture of discontent. Every Indians give priority to the relationship. It is the base of Indian culture. It gives priority for the family relations. Relationship between husband and wife and parents and children are very strong in India compared to any other countries in the world. Indian people are well adjusted and humours in nature. Now India is in developing stage. It has a lot of changes occurred in its life style, education, fashion etc. In this developing stage at rural area peoples are become literate and try to learn more about the science and technology. IT helps to the growth of science and technology as well as the industry sectors related to séance and technology in India. Some of the fastest growing industry sectors in India are mobile industry, Information technology (IT) sector, medical sector, tourism etc. The major reasons for the growth of these sectors are the changing in the social and cultural environment in India. Before some years ago Indian culture did not allow women to get good education. They were finishing their life in the home itself. But now women become in front of the society. They are sited in the top level of the organizations and politics. IT is a key factor for the growth of the country. Many ladies are posed ad CEO’s and other major posts in organizations. It helps to accept new trends and life style in the homes. It helps the business sector also. Before a 5 or 10 years Indians social and economic culture did not support the consumerism. But now India is a one of the fertilized land for the concept of consumerism. Globalization and consumerism is very much effected in the Indian industry. Emergence of new technologies helps to the changes in the social and economic culture in India. It helps to introduce new and modern products in Indian market. Computer plays a significant role at here. Today almost all organizations and industry sectors in India are computerized. Now people in India are ready to accept new treads and technologies. One reason for that is the economic growth of the middle class families. In India more peoples are come under the middle class and lower class. Economic growth of the middle class families leads to the growth of the market. A major factor influencing the social changes is cultural changes. Cultural factors include religions, media, and the leadership. Religion is either conventional or modern. It had an influence in the society. (Giddens, Anthony & Griffiths, Simon 2006, p.46). Medias include television, radio, newspaper, Internet etc. Now media are very popular in India. Many people learn and heard about the new treads and new products in the market through these media. Organization and industry sectors use this opportunity very well. Almost all Medias earn major part of their income through advertisement. Leadership is another factor influencing the social change. India has a well structured governing system. The governing body is elected the public. Indian constitution supports both the public and private sector. It helps to the advancement of the society. In Indian industrial sector has a competitive rivalry. To a certain extent it helps to improve the quality of the products and services in the industry. It helps to gets qualitative products and services to the people. So peoples are ready to buy the products and services from the market. But in the past there were not many industries in India. So the chance for the competitive rivalry is less. At that time media is not so developed. Moreover at that time poverty rate is very high compared to the present situation. Because of these reasons peoples not aware about the importance of accepting new technologies. Today the condition is changed. Compared to the past years illiteracy rate is reduced. People had keep awareness about the social and cultural values. Most of them are ready to accept new products and services in the market. They understood the positive and negative impacts of these products. This helps them to take proper decision about things. 3.1 How social and cultural changes influence the policies and decision making in Indian mobile industry: In this report I early mentioned that social and cultural changes make India as valuable place for the industrial sector. Major social and cultural changes occurred in India are the education level is improves, life style is changed, development of science and technology, and the development of medias and the development of rural areas etc. For well developed or developing country communication is necessary. It is a major part of the social and cultural change in the society. In India also communication media are very well advanced in these decades. Phone id one of the major communication medium. Now mobile phone is more common than the land phone. In Indian industrial sector mobile industry is a fastest growing sector. In the past decades no one think about such a facility. Because in that time it is un imaginary facility of an Indian. But now technology is developed. Like other people in the developed countries Indian are also have dreams. They think about mobile phone and other modern technologies and are ready to accept those things. Mobile phone has a significant role in the social and cultural growth in India. When people are educated their job opportunity is also increase. Now college and school going children and employees are the major customers of the mobile phone. So the development in the educational level helps to the growing of mobile industry in India. In some premises some regulations in the case of mobile usage. But it does not affect the mobile industry. People understand the reason behind regulations and cooperate with that. In such situations user swathed off their mobile. An educated man cannot be introverted. He tries to keeps existing relationship and create new relationships. Mobile phone helps him very much for this purpose. More over it helps to handover new information within seconds. In this situation no one time for wasting anything. Especially for the peoples like students, employees etc get very limited time. In such situation mobile phone is act as a good friend for such people. Based on the social and cultural change in the Indian economy lifestyle of the people are also changes. People are become modern. Now many people in India think mobile phone is an essential part of their life. Because it helps them to reduce the risks in there life. Social and cultural changes leads to the technological growth in India. It is the major reason for the growth of mobile industry in India. Now people are familiar with the team computer and internet. They are interested in new technology and the products with give them the advantages of the technology. Mobile phone is one of such a product. Medias also plays an important role in the growth of the mobile we industry in India. Many people depend on Media for getting information and also for entertainment. Almost all mobile companies give their advertisement thorough media. From the above stated points it is clear that Indian cultural and social changes are positively affect the Indian mobile industry. Studies show that Indian mobile industry is rapidly growing sector. In India at 1995 the new technology mobile phone was introduced. The average annual growth of this industry is 80 percent. Young people are very interested in this device. (Mhealth for development). Because of the above reasons and the annual growth of India it is clear that Indian mobile industry has a bright future. 3.2 Effectiveness of mobile industry in India: Mobile industry sector is very effective in India. In these period more than one new company are introduced. Market trend is also show positive for the mobile industry. In India the global financial crisis is not affected in the mobile industry. Both in rural area and in cities are gave a warm welcome to this industry sector. For developing such a positive environment mobile industry announce many packages to the public. At 2008 October India has 320million mobile phone users. It is the 26% of the population in the country. Among them 24 million have GSM facility. In Indian market supports both domestic and imported handsets. People use prepaid cards than post paid. In India men use mobile than women. (Mhealth for development). All most all categories of people in India support the mobile phone services. There is some exceptions exist. But the publicity and impotence of mobile phone overcome that exception category. Now many Indian people consider or carry their mobiles as unavoidable thing. Mobile phone and its services help to improve the job opportunity in India. It indirectly improves the English language quality of the Indians. Through these ways it helps to improve the social and cultural environment in India. 3.3 Some areas for improvement in the Indian mobile industry: Mobile tower emits some rays. It is harmful for the health. Scientist already warned about this rays and health problems related to it. Whenever one accepting a call electro magnetic radiation is also with this call. It is dangerous for the health. Mobile industry must take remedial action against this. Add or develop new technology or technique to prevent these electromagnetic rays. Install this facility to the mobile towers and to the mobile phones. Currently most of the mobile phones in the Indian market available are from foreign countries. Regional companies are not come into the top level of the Indian mobile industry. Try to more regionalize this industry in India. Because many educated people in India are struggle due unemployment. If regional companies are comes into the industrial in will improve the job opportunities in India. It will helps to a social and cultural progress in Indian economy. Many people do not have a proper awareness about mobile phone. They cant distinguish the advantages and disadvantages of this device properly. So the mobile crime rate is increasing in India. It may affect the credibility of the mobile industry. To prevent that mobile companies make a good decision. They conduct social awareness program and illustrate to the people about the advantages and disadvantages of the mobile phone. They lead people in the positive way. It an interlocking system is available it will helps to avoiding the misuse of the mobile phone by the students and children. Still now mobile connection is not available in some rural area at India. People lives in this area are not socially and culturally developed. So to improve the profit Indian mobile industry must to take an action or package for their service to the rural areas. It will help them to create a relationship with the people in the urban areas. Many people in India are now also illiterate. These reasons push back them from the usage of mobile phone. Almost all mobile phones its menus and other settings are displayed in English. Majority of the Indians are not familiar in English language. If mobile phone settings is in local language it will helps such peoples. 4 Conclusions: This report mainly deals with two topics. First one is various factors influencing an organization or an industrial sector especially in the Indian mobile industry and the second one is about social and cultural change in the Indian environment due to the emergence of the mobile industry. From the study it is crystal clear that Indian mobile industry has a bright future. In this particular financial crisis situation also Indian mobile industry is going ahead. It is working in profit. Various survey report and studies show that it will have a lot of chances for growth. Major reason behind it is India’s economic and technological and educational growth. References Chapter 3 key forces in the external environment, The International: Science for Humanity. Development Research Centre, viewed 26 March 2009, http://www.idrc.ca/en/ev-28364-201-1-DO_TOPIC.html Chapter 3 key forces in the external environment: Social and cultural environments, The International: Science for Humanity. Development Research Centre, viewed 26 March 2009, http://www.idrc.ca/en/ev-28364-201-1-DO_TOPIC.html Chapter 3 key forces in the external environment: stakeholder environment, The International: Science for Humanity. Development Research Centre, viewed 26 March 2009, http://www.idrc.ca/en/ev-28364-201-1-DO_TOPIC.html External environment – government policy 2009, Bank of Bized, viewed 26 March 2009, http://www.bized.co.uk/virtual/bank/business/external/policy/index.htm Giddens, Anthony & Griffiths, Simon 2006, Sociology, Polity, viewed 26 March 2009, http://books.google.co.in/books?id=vbu2gis26C0C&pg=PA46&lpg=PA46&dq=factors+influence+the+social+and+cultural+changes+in+India&source=bl&ots=GXhLlsGOMl&sig=jAxKNGS8aY0TEyWZSge8hzODiZo&hl=en&ei=dI_ISamYNtWGkAWRtvzZAg&sa=X&oi=book_result&resnum=7&ct=result GSMA honours Indian Government for achievements in mobile communications 13 February 2007, Thiru Dayanidhi Maran, viewed 26 March 2009, http://dmaran.nic.in/prdisplay.php?id=275 How to attain quality management in business organizations 2009, Bukisa: Share Your Knowledge Earn Money, viewed 26 March 2009, http://www.bukisa.com/articles/18337_how-to-attain-quality-management-in-business-organizations Mhealth for development, United Nations Foundation, viewed 26 March 2009, http://www.unfoundation.org/global-issues/technology/mhealth-report.html Opportunities and overview of mobile industry in India 2006, Global Equations, viewed 26 March 2009, http://www.globalequations.com/Mobile_VAS_Zinnov_GE_brief.pdf Sachchidananda, Upadhyaya, Vijay, S & Sharma VP 1992, Contemporaray Indian society: essays in honour of Professor Sachchidananda , Anmol Publications, viewed 26 March 2009, http://books.google.co.in/books?id=7lnyOFYtX6YC&pg=PA33&dq=social+and+cultural+changes+in+India&as_brr=3#PPA35,M1 It’s a choice organizational culture by design or by default 2008, Culture Strategy Fit, viewed 26 March 2009, http://www.culturestrategyfit.com/ Read More