Indian Philosophy Of Business
In USA, building an organization means, a big organization, hundreds of employees, turnover in billions. The organization has social committement. Employment and equal opportunity to all, pension, healthcare, charity and supporting social cause in USA and around the world. In USA, almost all the Fortune – 500 companies, have the charity foundations and has millions of dollars in the kitty. Ford Foundation, Rockfeller Foundation, Melinda – Gates Foundation and the list goes on….

The Japanese culture have the strong bond between the organization and the society. It is almost inseparable. There It comes the permanent employment, job security, promotions based on seniority. The money from Japan corporate tax is enough to run the country.

In India , the philosophy of doing business is ‘building personal wealth’ or ‘personal fortune’. This Cultural difference is very important to understand the way Indian companies are functioning and working. In the 70’s and 80’s Indians prefer to work in the Government sector, The reason is very clear, job security, monthly salary, need not fold your hands and answer to any body. Even now, Indian Government servants are different. They are not accountable, they are not answerable. They take care their purpose is served. Productivity, efficiency, innovation. Don’t mind. Modern corporate mantra “break all the rules”. It is an alien and untouchable. You will be thrown out from the Government services. Focus on result. No, procedure is more important.

In Indian private sector, procedure is there. It should be strictly followed. Break the rules. Not possible. Break at you own risk. If the Boss break the rules it is revolutions and innovations. If the subordinates break the rules, it is indiscipline and insubordination. Indians don’t tolerate subordinates active brain. It is top – down organization.

If you don’t get a Government job, next thing, Indians prefer self-employment. Start your own business. The reason is “need not fold you hand and answer to others”. It is in Indian Culture. What a deadly combination in the Indian philosophy of doing business – Building personal fortune and need not answer to others.

Now, in this competitive world, if you think you need not answer to others, you will not be in any business. Every body is answerable to their own customers. Indians are learning their way. But a long way to go. Americans and Japanese believes spending on customer is an investment and in India it is expenditure. Since Indian think, it is an expenditure, Indian companies spend less money on market research. Indian spending on employee training and development is less because it is expenditure.

This is the reason why Indian companies are so bad in customer service. In the Fortune-500 list very few Indian companies, but good number of rich Indians.

My advice to foreign companies.
Foreign companies coming to India think, They don’t know Indian consumers and Indian market. So they wish to take an Indian partner with the impression, Indians understand the Indian market. On the negotiation table the Indian companies put forth the strong arguments, They are Indian companies, Indians are different, They know about Indian consumers and Indian market. But the hard truth is, Indian companies are as bad as foreign companies in understanding Indian consumers and Indian market.
You take any product category in India. Only when the foreign companies entered Indian, Indian market was expanded laterally and vertically. In most of the cases foreign brands are the market leader.
Foreign companies don’t know Indian consumers, but Indian consumers know well about Foreign brands and companies. Indian consumer perceive global brands are better than Indian brands. Indian consumers vote for the best.