International human resource management, HR Management

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International Human Resource Management

ACN Inc is a UK based company who wishes to expand in other markets. The company offers wide range of products. Presently it is centralized to UK but wishes to expand its operations to India or Srilanka.

To chose out of the two countries the external environment analysis of two countries has been carried out with the help of Pestle analysis.

  • Political situation- of India is much better than that of Srilanka. Srilanka has been in war with LTTE since 30 years due which there has been exploitation of resources of the country. India is a democratic country with a stable political scenario but suffers from corruption and bureaucracy. But with the strong ruling government, these issues have been handled drastically.
  • Economic situation- as compared to Srilanka, the economic situation of India is much better. The country was not affected by global crisis. Also it offers huge investment opportunities to the foreign investors and business developers.
  • Social factors- social situation is almost the same with same literacy and poverty rate. Since Srilanka has less population so it offers more employment opportunities.
  • Technological factors- the state of Indian technological environment is very enthusiastic as it has become the second country to use internet for e-commerce and e-education. Srilanka on the other hand is also not far behind as it is using technology in every sphere.
  • Legal factors- of both the countries is absolutely the same. It is complex and rigid and very old. Srilankan govt. has done little to update its legal structure as compared to India who continuously is taking steps to improve the legal scene.
  • Environmental factors- environment of both the countries suffers from pollution, soil erosion, climatic changes. But since Srilanka is situated by water on all its sides it is on a more danger side because of the eruption of tsunami or coastal erosion. India does not suffers from any such limitation. Indian govt is doing its bit to save the environment.

Cultural factors- the cultural practices of both the countries is quite similar except for some minor differences. However they are in complete contrast with respect to UK business norms.

Compensation benefits of both the countries is similar but different from UK economy. Allowances which enjoy tax exemptions India and Srilanka are taxable in UK.

India has a huge pool of untapped human potential. Indian managers have made their way and name in the international market. Also India is very flexible in adjusting to the demands of others. The country offers huge scope and resources for business development. In the coming future it is anticipated that the without India the overall global economic growth of other countries will slow down. Hence it would be vital to invest.


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