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International Business

notes over the years. Things might be improving, but the pace is very slow and as our economy
drifts towards a free market scenario supinely, it might just prove to be too little too late in
the end,” says Rajesh.
Today, Mayor Group is sitting pretty as its competitors; Soccer International Sakay Trades,
Savi, Wasan, Cosco, Nivia, and Spartan are only trying to catch up in the inflatable’s
category. With 1.2 million dozen golf balls, Mayor is way ahead of its competitors. The
company is planning to enhance its manufacturing capacity to 1.5 million dozen golf balls
next fiscal. With approval from the world’s two top golf associations – the US PGA and
RNA of Scotland, demand for its product is not a problem, the company’s senior marketing
officials point out. With the markets in Mayor’s current export destinations – Europe, North
America, Australia, and New Zealand – all set to expand in the coming years after the
present slump, Mayor wants to expand its sports goods business that caters to 60 per cent
of its overall exports. Though 40 per cent of exports come from house ware manufactured
in Delhi and Mumbai, with export centres in the same countries for its sports goods, just
about maintaining this business at its present state, and concentrating entirely on sports
goods is what the Mayors are intent on. With nearly 2000 skilled workforce; quality
certification from ISO 9001:2000 and ISO 14001: 2004; and having spread to more than 40
countries, Mayor and Company is obviously sitting pretty.
Questions
1. What routes of globalization has the Mayor group chosen to go global? What other
routes could it have taken?
2. What impediments are coming in the Mayor group’s way of becoming a major and
active player in international business?
3. Why is ‘Made in India’ not liked in foreign markets? What can be done to change the
perception?
Source: International Business Management by Raj

self assessment

Match the following:
11. Path A (a) Deepening mode of commitment
12. Path B (b) Leapfrogging of Expansion
13. Path C (c) Geographic diversification
14. Path D (d) Passive to active expansion
15. Path E (e) External to internal handling of operations

1.8 summary

This unit attempts to give an overview of the functions in as simple manner as possible.

l z International business is all commercial transactions – private and governmental –
between two or more countries. Private companies undertake such transactions for profits;
Government may or may not do the same. These transactions include sales, investments
and transportation.
l z Study of international business has become important because (i) it comprises a large and
growing portion of the world’s total business, (ii) All companies are affected by global
events and competition whether large or small since most sell output to and secures raw
materials and supplies from foreign countries. Many companies also compete against
products and services that come from outside India.

18 lovely Professional university