Introduction:

YTL Cooperation
Many various companies want intent to expand business whole world wide globally and many of
them successfully expanded ittheir business operations. Because now days it’s easy to expand
business because this world is known as Global village. Every country is connected with each
and other. YTL Corporation is one of the huge large corporation which is operating in Malaysia.
YTL Corporation is founded in 1955 by Yeoh Tiong Lay. Company start with small
construction firm. This corporation is doing work in different sectors. The sectors they are
working are YTL Construction, YTL Power International, YTL Cement, YTL Hotels and YTL
land and developments. YTL 70% revenues came from another countries they are operating in
different part of the world’s such as Australia, Japan, Indonesia, Singapore and different parts of
Europe. Now taking the advantage of One Belt One Road Project they need to expand their
expansion to India. They decided India because India is one of the most populated country in
Asia. From India they can deal different countries such as Pakistan, Bangladesh, China and much
more. They want to make another headquarter in India. As we know that YTL get most of the
revenue from another foreign countries and now they decided to increase their revenue that’s
why they decide expand their operations to India. For Starting they are expanding one industry in
India that’s a cement factory. After checking the response of cement factory they will open other
sectors as well in India (Taghizadegan, 2014).

One Belt One Road

This project consists of making various routes linkage with This project is making connection of
different countries each other. Behind this project China prime minster paying is leading very
important role. China want to connect too many various countries with the help of this road.
China Prime minster Xi Jingling take a tour from different countries from Asia and Europe then
he proposed this idea which is very good for every countries which is connected to this project.
After this project different countries can get chance to exchange their culture and improve their
GDP by exporting their product. In this project many countries are connected such as Pakistan,
India, Bangladesh, China and much more. We can see the route of One Belt One Road above.
Problems face by YTL as operating in different countries:
To operate in different country is not easy for any company, therefore YTL need to face many
barriers to start operations in India. But many of difficulties were ended by introducing One Belt
One Road (OBOR). YTL will get totally different business environment in India from Malaysia.
If they get some proper solution of that problem they will get success in India as well. Some
problems cultural difference, language difference, religion difference and much more. These are
the main differences which YTL face during operations in India.

Different Political Condition:Political Factor

In this factor of analysis the company have to find evaluate the out political conditions of India.
The political conditions can play positive and negative both impact to YTL. In this factor YTL
become to know how much government interfere in India economy. That includes political
stability or instability, government policies, tax policy, environmental laws, foreign trade policy,
labor law and much more. Above policies can give direct impact on YTL operations. If the above
policies are in favor of YTL this mean that they will face very good business environment in
India. If India political conditions are unstable YTL face many problems as usual. They should
have some alternate plan. Indian political condition are totally different from Malaysia first they
need to analysis of political condition of India and decide the plan which is implemented (Xu and
Chung, n.d.).
Different Technological ConditionsTechnological Factor
Technology changes day by day because every company is working in their own sectors. So
every day there is new invention in each sector. But India is not too much back in technological
section. They are up to date with technology of market. India in IT companies are one of the best
in the world. YTL will not face any problem in this sector. Cement manufacturing don’t need so
much technology. If we analysis in this sector India is very suitable and in future they will not
face any problem. If in future YTL invent some new technology in manufacturing process the
labor will accept it easily. In future YTL need to invent some new technology for manufacturing
process they can take help from Indian technology sector and they can implement that method in
other cement factories in the world. In new method of manufacturing the profit margin is
increased and labor efficiency will also improve. It’s beneficial in accountant terms as well

Different Environment conditions

Every country have different environment condition so for India there are various different
conditions if we compare in contrast with Malaysia. So YTL need to do homework on Indian
environment conditions. Cement factory will do different type of pollutions. YTL need to take
care of these pollution otherwise India government can take some actions. For the pollutions they
need to use new machine for manufacturing process because if they do this noise pollution and
air pollution should be less. They need to start their new setup where the population rate is low
the people will not affect from YTL operations (Xu and Chung, n.d.).

Opportunities and Threats

The opportunities and threats that are lying beneath the initiation of one belt strategy can be
determined with the help of Micro-Environmental tools which are discussed in above section.
Opportunities
Following are the opportunities which are available to YTL Corporation while expanding its
business operations in India.
1. Sustainable political conditions
2. Government of India implement various strategies to promote the investment of foreign
companies.
3. Indian government provides government grant to help offshore companies to enter into
the market
4. India has the world largest market where there are various opportunities to enter into the
market
5. India has lower employees production cost
Threats
Following are the threats which are available to YTL Corporation while expanding its business
operations in India.
 1. There might be change in corporate regulations.
2. Strict tax laws.
3. The market segmentation in India has reached at its maturity stage.

Requirement 2
It has been said that building relationship among management and employees is one of the most
crucial factors that enable the management to achieve its overall corporate objectives. In India,
the corporate culture is too much dynamic, every individual is keen to accept challenges and
develops a creative learning environment in the organization. On the other hand, in Malaysian
organizational culture, every employee reports for their own task, and the management promotes
to follow the hierarchy in order to achieve their overall corporate objective. When it comes to
language, the management of YTL Corporation may not face any hurdles as both countries
speaks English at corporate level. Furthermore, the management of the company in Indian
organizational cultures promotes equality and innovation in their business environment. This will
enable the management of the company not to hire additional staff to develop a communication
channel among the Indian employees and Malaysian Employees (Xu and Chung, n.d.).
However, on the other hand, they need hire an expert individual who knows Indian corporate
laws, their regulations and assist management of YTL Corporation to deal with critical and
complicated issues related to sales tax, civil law, and Indian environmental laws (Stanat, 1998).
Furthermore, in Indian culture, the meetings are take place on spot, where the staff of
organization are pre-planned for the meetings, they did not want a formal pre-meeting schedule,
defined location, etc. on the other hand, in Malaysian corporate culture, the similar exercise is
being carried out where the management of an organization conducts interview on spot without
having a pre-scheduled setting of meeting. Therefore, in the case of YTL Corporation, the
management of the company may not face hurdles in creating friendly relationship among both
employees of nations. They even don’t have to change their code of conduct and the exercises
which is already been carried out in Malaysian organizational environment. In Indian culture,
there is a strict action taken place when individual reach the office after specific hours, however,
in Malaysia, some relaxation is given to those employees who comes from very distant location.
In this manner, the management of YTL Corporation has to set some rules and regulations which
may not offend the employees of India.
Malaysia and India both exercise the formal business arrangement, where any business activity is
not conducted orally. A proper documentation has to be provided for every event that is being
taking place. In Malaysian and Indian business culture, both the executive management are
accountable for designing strategic goals of the organization which is then conveyed to middle
and lower management of an organization. Therefore, it can be said that there is the top-down
approach is being followed in both countries. However, when it comes to personal lifestyle,
Indian workers compromise their personal life for professional working, they are more concern
related to their work rather than enjoying their overall lifestyle. On the other hand, Malaysian
people are fonder of enjoying their lifestyle and they create a balance between work and life.
Therefore, in the case of YTL Corporation, the management of an organization should enforce
the Indian staff to work on the specified office timing and develop a healthy organizational
environment. This will enable the Indian employees work more effective and efficient while
maintaining a balance between their overall professional and personal life (Weiss, 2003).
Requirement 2
Hofstede’s theory of cultural dimension
Hofstede during the period of 2013 proposed a study which is based over the cultural dimension
in which the inept study of culture and individual values has been discussed. These culture and
values has significant impact over the attitude of society in which the organization is operating
(Bhagwati and Panagariya, 2013). Therefore, in the case of YTL Corporation, there are various
measures introduced by the Hofstede to measure the values and beliefs of individuals belong to
Malaysia and India. These measures are as follows:
1. Power distance
2. Time orientation
3. Uncertainty avoidance
4. Masculinity and felinity
5. Individualism – collectivism.
When the concept of power distance is discussed, it is related relates to the level where the
individual of both nations places their beliefs in Equivalency and stability. However, both
Malaysian and Indian employees beliefs in women empowerment, and Equivalency. In
Malaysian organizational culture, people prefer to work alone rather than working as a team.
Their phycology is that individual can perform better then working in a team to which he is
accountable for his own work. Therefore, most of the individual who belongs to Malaysia prefer
to work individually and takes the given task as a challenge. On the other hand, employees who
belongs to Indian organizational culture prefer to work in the team, as they belief that working in
the team provides an effective solution to a problem and solve problems quickly. When it comes
YTL Corporation, the management of the company may face hurdles in bringing the employees
of two distinct platform on one platform. Management should implement certain strategy which
enable the employees to work comfort within their job parameters and implement the strategy of
adaptability according to the need of an employee and in the way they find comfortable. In this
way, the management of the company may attain success in achieving their overall corporate
objective while expanding in Indian business market (Rudner, 1994).
Table 1: Cross-cultural comparison of India and Malaysia using Hofstede framework
Hofstede's cultural
dimensions India Malaysia
power distance Medium Very High
Low to Low to
individualism medium medium
masculinity High medium
 Low to
uncertainty avoidance Low to High medium
long term orientation High medium
indulgence High medium

Furthermore, culture has a close relationship with Technology which changes rapidly in overall
the world. India is determined as hub of Information Technology where new softwares are
introduced on daily basis. Therefore, Indian IT companies are determined as one of the leading
companies globally. However, cement industry does not need much innovation in their overall
business functions, but if we talk about inventory management, IT plays a vital role in managing
the inventory and enable the management of the company to maintain a float level to reorder it.
Innovation in technology also requires individuals who are fond of changing, that is why, the
culture of company is depended on the technological factor too (Rudner, 1994).
Requirement 3
Market Entering Strategy
There are various marketing entering strategy available to expand the business operation in
foreign country. During the period of 2010, a study was proposed by Morschett in which he
stated that every company has to evaluate the possible risk and benefits prior to implement the
expansion strategy in order to avoid the unfavorable results. These strategies are as follows:
1. Joint Venture (JV)
2. Licensing
3. Long-term alliances
4. Exporting
5. Partnership
Joint venture is the strategy in which the two parties are entered into the contract to run the
business venture, therefore, in the case of YTL Corporation, it is a feasible option, where the
management of the company entered into the certain arrangement with the existing Indian
company to enter into the market. This will enable the management to form a new enterprise
with the help of existing Indian firm. This will allow to share the expertise, ideas, and resources
with each other. The second option is the long-term alliances, which will enable the management
of YTL Corporation to a form a strategic partnership with existing Indian company. However the
exporting is not a favorable option for YTL Corporation. As the major function of the company
is to provide the engineering services to its customer, their products will be resources and
services which cannot be exported. It can be said that in the case of YTL Corporation, the
management should consider the long-term alliance with the existing Indian company. There are
various benefits of long-term alliances which are as follows (Siddiqi, 1995):
1. For the objective of settling smaller transverse of time, long-term alliances is the feasible
option.
2. New ideas, resources, and even innovation for designing the new product and services
can be determined with the help of implementing long-term strategic alliance.
Long-term strategic alliances will enable the management of YTL Corporation to build an
alliance with the Indian company which assist them in launching their business in Indian market,
and enable them in developing their business unit in India. Therefore, the management of YTL
Corporation should first study the modes of penetration into the Indian market and then enter
into the arrangement of strategic alliance with the Pakistani company.
There are various theories proposed which suggest the management of the organization which
are planning to expand their business operation in foreign territory to evaluate all the possible
risk and benefits prior to expand in the foreign country. This process may include conducting the
adept study of country’s political, economic situation, and factors which can result in
catastrophic impact over the organization process. The political factor is considered as one of the
most crucial impact over the operations of the company in offshore nation. The company may
face tremendous complication when it comes to taxation policies, company’s regulations which
is being exercised in India, and management style. Since there is a political stability in India, the
management of YTL Corporation may not face complication in a form of instant change in
government policy and trade policy. According to the latest statistics that has been published by
the world bank during the period of 2017, the GDP rate of India has achieve a tremendous peak,
which determines that overall economic condition is favorable for YTL corporation to expand
and conduct its business operations in India (Bayly, 1988).
Conducting Seminars
The management of YTL Corporation should conduct various training and development
seminars in order to make the Indian employees understand their objective and requirement.
Conducting seminar will also enable the management of YTL Corporation to bring a balance
between the work style of Indian and Malaysian employees and develop a friendly learning
environment (Mitchell, Ray and Sutcliffe, n.d.).
Evaluating and Understanding the Macro-Level Environment of India
Before setting the foothold in Indian market, YTL management should first evaluate the political
and economic factors of India which may pose significant threat to their existence. This threat
may result in winding up their business prior to successfully entering into the market.
Political factor will enable the YTL to know how much government interfere in India economy.
That includes political stability or instability, government policies, tax policy, environmental
laws, foreign trade policy, labor law and much more. Above policies can give direct impact on
YTL operations. Another factor of economic is the trade policy which is implemented by the
government of india during the period of 2013, in which all the foreign country are taxable at the
rate of 20%.
In India, the technology is subject of advancement, therefore, the management of the company
should evaluate various methods to meet the technological need of Indian employees, if the
management of YTL does not meet the technological requeirement which is currently prevailing
in India, then it will not attain the competitive advantage.
Conclusion
One Belt Initiative is the strategy which will favor not only China but all the countries which are
the part of it, as it will enhance the economy, trade and other factors of the country. It can be
concluded that YTL corporation will not face any such issues while launching its business
operations in India as both nation exercise same business culture and environment.
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