Introduction

The 21st maritime silk road and the silk road economic belt is determined as one road
initiative and one belt. The road initiate and the belt is the development policies which is
execute the presedint of republic of china that placed the streategic focus over the
cooperation and the connectivity among different Eurasian nation, majorly the China, the
oceangoing and land-bsed economic belt silk road. The objective of such policies is to
establish a trading network among china and other developed or developing nation. This
policy was initiated during the period of October 2013 for MSR and SREB respectively. During
the visiti of Eurpoe and Asia this policy was promoted by the Chinese Leader Li Kegiag, and
this concept was mentioned in the newspaper known as People’s daily during the period of
2016. During the peior three years, the Silk Economic Road mainly place its focus over the
construction of material, Infrastructure investment, automobile, highway and railway, iron
and stell, and power grid.

Requirement A

The environmental analaysis of OROB has been evaluated by applying Political, Economical and social
factors that has significant impact over on OROB initiatives which is followed by Opportunities and
threat

1.1 Political differences

During the period of 2013, Craig and Eberhard stated that doing the business in international
market is not the art of everybody, it requires extensive understanding and research of various
factors before entering into the market. Therefore, the major factor is the political factor as it has
significant impact over the business. The major variation in the political mechanism among
operating enterprises is the complicated situation for the enterprise which is trying to launch its
operation in the other nation. According the Garmuda Berhad, the management of the company
may face various obstacle and complication to launch its business operation in China due to its
political instability. There is a catastrophic impact of country’s political sitation which may have
adverse impact over the trade and business policies of the nation. According to the Porter (2015),
the related country’s political risk are the barrier in the Chinese economic progress that develop
unpredictable venture environment for the multinational enterprises. During the period of 2017
World bank stated that the economic prosperity of the china is lying under the adverse position in
economic graph, which determines the existing weal stablitiy of politics.
create the uncertain business environment for the multinational companies. According to World
Bank (2017), Chinese score of political stability is lying in the negative quadrant of the graph. That
shows the present of weak political stability.

1.2 Difference in economic systems

According the the Knight ( 2013), in order to understend the economic mechasnim of the nation,
the management of the company should evaluate the risk of launching the operations as it may be
a challenging task. Management of the company has to design various effective and efficient
strategies in order to cope up with the target nation economic mechanism. There are four most
common economic mechanism which is being exercised by various nation such as socialism,
traditional, mixed economic mechanism and capitalism. In this scenario, Gamuda Berhad relates
with the mechanism of mixed economy which is perceived as favaoruable and consistent for the
venture. However, it can be said that for the management of Gamuda Berhad, it is ery challenging
to conduct the business operations in China. The reason for such compication is mainly the Chinese
practice of socialism in its economic system. The set of nature and rules of policies and regulation
are quite vary in the socialist economic mechanism, therefore, it result in challenging outcome for
the mangemetn to conduct its operation under various economic mechanism.
 Source: The Global Economy (2017).

As per mentioned by Peev & Mueller (2012), the freedom of business is highly dependent of the
adopted economic system by the country. In China- a socialist economy has less freedom of
business because majority of the economic matters are controlled by government. On the other
hand, it is highlighted by The Global Economy (2017), Malaysia is following mixed economic
system therefore business freedom is far better than china. The mixed economic system is the
mixture of socialist and capitalist economic systems.

Figure 1: Business freedom in Malaysia

Source: The Global Economy (2017).

1.3 Social Factors

In the view of Shenkar (2012), along numerous benefits that are enjoyed by business entities while
expending their operations in the countries of other regions, they have to face different hurdles and
challenges too. The major issue they have to face is cultural issue. As per highlighted by Vaara,
Sarala, Stahl & Björkman (2012), different cultures have different set of beliefs, follow different
religions, speak different languages and enjoy different festivities. There is the significant impact
of these differences on the business environment of the country and the employees who are
working in the countries. Being a Malaysian based company, the employees and managers of
Gamuda Berhad would face cultural challenges while working in China due to different cultural
setting between the employees of Malaysia and China.

Requirment 2

Relationship building is exceptionally important factor in India esp. at proficient level. In

India pattern of giving perfect arrangements to known individual is taken after. Accordingly,
more you keep up the genial and benevolent relations more it is helpful, whereas Chinese take
after extremely formal connections in venture. It isn't that they are not entertaining but rather
may in view of dialect issue; silliness now and again can wind up plainly impolite. Likewise,
while doing venture there, you ought to dependably build up a contact with a man who can go
about as an intermediate. This will help in taking care of issue of dialect, organization and
legitimate framework systems.

In India meeting are to be re-planned well ahead of time and should be settled either in
composing or on telephone. When you are in meeting room, the underlying discussion begins
with some most loved themes like cricket, venture news or some most recent happenings. In the
terms reliability Indians fall behind. They would expect promptness however they themselves
won’t be reliable. Deferral in planned time by 1 hour or 2 hour is ordinary, despite what might be
expected in China, in the terms of booking a meeting, it is prudent to plan a meeting earlier
ahead of time. Additionally, it is required to give some earlier writing to present the organization.
Indeed, dependability is most extreme important factor. When meeting is begun then the
underlying talks ought to be founded on your encounters in china up until this point.
Continuously send a motivation of meeting before meeting, as it'll help in controlling the stream
of meeting.

Procedure of basic leadership is entirely moderate in India esp. on the off chance that
some venture deal must be concluded on the premise of some earlier arrangement or gatherings
or a few talks. Top-level administration does the basic leadership. You can expect the great
choice by building the well-disposed relations with individual concerned. Be that as it may, the
procedure of venture in China streams in progression. Chinese are accord players in wording of
venture. They lay social accentuation on gather introduction alongside singular wants and needs.
Individuals are by and large slanted towards family regardless of they have a place with different
gatherings.