Comparative Analysis Of Business Environment In Canada And India Assessment Answer

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Question :

You will scan the world of business through internet search, news reports, expert analysis etc. and select your own topic for preparing an analysis on the importance, currency, implications, future possibilities and your views of this topic. The purpose is to make you aware of the business environment in Canadian and international (Indian)arena.

You will submit a brief comparison of how Canada and your home country India differ or are similar in any aspect relevant to business environment as covered in this class.

Use APA style

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 Times New Roman font, 12 point, double spaced

 One inch margins (top/bottom/left/right). Left alignment (only). Ragged right.

 Paginate your paper in the header

o Use headings; this makes the paper more readable.

o Include both an introduction and a conclusion of half a page (15 lines) at most.

o Citing should be entered in a formal manner in the body of the paper and referenced at the end of the paper.

o The title page should contain the course name and number, student’s first and last name, the assignment number and due date, and the instructor’s name as well as the word count (excluding title page and references).

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Answer :

Comparative analysis of the business environment in Canada and India


Business environment refers to the accumulation of the internal and external factors which influences the functioning of a business successfully in the competitive market. Some of this factor have a direct impact on organisational productivity, while other factors are connected indirectly. In regards to the specific topic, a comparative analysis of Indian and Canadian business environment will be taken into consideration by critically evaluating similarities and differences present between two types of business environment. The external environment of the business comprises of the outside factors influencing the operational aspects of the business ( Sloka et al., 2014). Every company should align its business perspectives with the external factors for maintaining a proper flow of operations. Likewise, the internal business environment comprises of the attributes within the organisational context. The internal business environment is company specific by nature and in this context, the internal operations aim to equip the capabilities for addressing external needs and demands. For conducting a comparative analysis of the business environment, the study will be critically evaluating the external and internal business factors in context of India and Canada. As the external business factors are concerned, the study will seek a deep insight in evaluating economic, political, competitive, global, technological, competitive, technological, global and social forces as the external business environment is concerned (Karakowsky et. al., 2015). Likewise, the internal business comprises of the labour environment, managing of the workforce, organisational design and strategic business application within the organisational context (Karakowsky et al., 2015). The study will focus on conducting a comparative analysis of the futuristic initiatives to be taken by the Indian and Canadian business respectively for gaining supremacy in the competitive market. While, conducting the comparative analysis of the business environment, the more favourable area of carrying out business functions will be identified, by considering aspects of both internal and external factors of business. 

External Factors

Political forces in Indian and Canadian context 

In context to Canadian business environment, the nation is subjected to capitalist economy, however, government plays a pivotal role in political acquisitions. In Canadian context, government has strong involvement in protection and promotion of the industries. Tarif on goods that are imported are articulated for protecting the domestic business, by causing the costing of international goods to rise further in comparison to Canadian products (Karakowsky & Guriel, 2015, p.26). The government also takes active participation in offering direct incentives for industrial advancement and development of resources. In the Indian context, the volatile political environment has a strong influence on the Indian business format. After the Pulwama attack, national security is considered as a top priority for the government. Any situation of military oriented retaliation could be resulting in swift outflowing of the foreign investments (Moneycontrol2020). While the government has been supportive towards domestic and international business acquisition owing to tax relaxation and low other legislative facilities, acts of corruption and malfeasance has affected the business perspective of Indian to a wider extent. 

Economic forces in Canadian and Indian context 

The GDP of India is 4.7% in comparison to 1.44% of Canadian economy, which is clearly suggesting, the advancement stages of the Indian economy (Tradingeconomics, 2020). The inflation rate of India is 4.09% which is high than that of Canada (2.24%), thus suggesting it have hampered the economic growth of Indian economy. The futuristic aspect of economy in Canada is an area of speculation. The aspects of distinguishing amongst the short-term alterations within the domestic aspects of economy and present trends within the system of enterprise business will have a strong impact on the Canadian economy (Karakowsky & Guriel, 2015, p.13). The rate of unemployment is minimised after 2010 in regards to Canadian economy. In the Indian context, the rate of unemployment is still a concern for Indian business environment. Irrespective of having a strong capital, Canadian banks needs to be competitive, increase the size and reduce complicated regulations for gaining competitive supremacy. 

Social Forces in Canadian and Indian context 

As far the Canadian society is concerned, it can be stated that Canada holds the second spot out of the 17 nations in the educational context. Therefore, it could be stated that Canada has a prospective system of public education, which refers to the basic criteria of entering a workplace (Karakowsky & Guriel, 2015, p. 28). As far Indian aspect is concerned, the overall education system is improving, however, the rural regions still lack the needful level of literacy. In this context, Canada is leading in the educational context, with highest rates of university and school completing rates, which can contribute effectively towards initiation of a productive environment of business. However, the completion of university and school completion rates are mixed in the Indian context. However, owing to the increasing population and urbanisation there is always scope of conducting business on a large scale within the Indian environment of business (Singh & Sharma, 2015). Usually Canadians spend heavily owing to their rich earning status. However, irrespective of having a strong reputation, the country is subjected to corruptive and scandalised activities with issues rising related social responsibilities and corporate governance. If the ill reputation is not checked, it might have a negative impact on the overall image of Canadian business environment. Similarly, the Indian business environment is also characterised by poor CSR practises, while focusing mainly on organisational productivity. 

Technological forces in the Canadian and Indian context 

On a traditional note, it has been observed that the economy of Canada is based on resources. Irrespective of the dependency on natural based resources, there has been a speculation, that the country needs to catch up in the area of technological development and innovation. In this context, the high-tech sectors are gaining popularity in leading edge aspects of R & D (Karakowsky & Guriel, 2015, p.18). In context of Indian business environment, technological advancement was experiencing a slow progress until the year 2016 when the Indian prime minister promised to transform India into a digital society (World Economic Forum, 2020). Emphasis on e-government, rapid expansion in ICT and emphasis on artificial intelligence are promising from the technological perspective of Indian business environment. Rapid advancement of information and communication technology, aeronautics, nano technology, bio technology etc have contributed towards the technological advancement of Canada. The need for human capital has reduced significantly owing to rapid technological advancement, however productivity still remains an area of concern for the Canadian business environment. In the Indian business context, resistance to change is a challenge as several citizens are not tech- savvy and are more comfortable with traditional practises. 

Competitive forces in Canadian and Indian context 

Apart from competitive rivalry between companies, there has been instances of monopoly affecting industry concentration. In a market monopoly companies can tend set prices they prefer for colluding with other types of business activities (Karakowsky & Guriel, 2015, p.16). When individual starts thinking regarding the Canadian economy they often start thinking of the natural resources. However, owing to continuous business environment, depletion of resources has been evidential particularly within the industrial belt. The cost has enhanced at an alarming rate for improvement of technologies and extraction of the equipment. International competition also poses a significant threat for the natural resource-based industry of Canada. Abundance consumption of clean energy has reduced the dependency on fossil fuels. However, in the Indian context, irrespective of prioritising clean consumption of energy, use of coal is still prevalent particularly in rural regions. Animal protecting companies have also experienced a positive impact as several individuals have started refraining themselves from purchasing such type of products. There is a speculation that the resource sector of Cana is under a period of transition. However, it is believed that Mining and resource industry are key areas of competitive advantage for Canada. In contrast, India holds the 43rd spot in regards to being a competitive economy. The robustness of economic growth, expanding labour force, low cost of labour and prominent market size are key areas of competitive strength for Indian business environment. Increased rate of expending on public education and opportunities for foreign direct invest gives a huge area of opportunity for international business transactions. 

Internal factors

The labour environment 

In both India and Canada, the overall business environment revolves around ever changing demands for skilled and knowledgeable workforce and labours. One significant similarity is overlapping of the labour market for highly skilled and medium skilled workforces in different occupational and geographical areas. In both the markets, higher demands are there of technologically adept workforce in various industrial and service sectors (Gaur &Jasmin, (2017). Therefore, from overall perspective, demand of labours with varied skills is high in both India and Canada, where higher academic background is desirable for higher designations and job responsibility. In both cases, there are opportunities of employment in state-owned, government and private sector enterprises. For instance, in Indian organised sector, 27.5 million workers are employed, out of which almost 17.3 million works for the government and government associated entities. Moreover, in both markets, large number of workforces is associated agriculture-based employment. In both labour environments, Unions have significant roles in bargaining greater financial advantages for workers.

Unlike in the market of labour force in India, requirement of higher educational background for job responsibility is not too strict and practical skills and knowledge has higher values in the labour market, specifically of the workforce with IT skills. A considerable dissimilarity between labour environment of India and Canada is that in Indian market, almost 70% of total labour force is engaged in direct farming and agriculture but in Canada, this is agriculture and Argo-food sector, where 1 of every 8 Canadian people (2.3 million) is employed (, 2020). Significant difference is there in average rate of wage and compensation for labours in private sector in India and Canada. In Indian market, wage rate is quite low compared to that in Canada. However, In Indian business also, IT skills have higher possibilities (Kota, 2018).Management of Workforce 

I. Working approach

According to Mehta, (2019) the business leaders in business environment in both India and Canada have undertaken nurturing a powerful and effective leadership approach. In both cases, the performance at workplace depends on effective interactive approach with management and co-workers and thus, adoption of an interactive approach of managing workforce is common for bother he business environments. Therefore, the entrepreneurs are emphasising on application of these approaches for workforce motivation (Sloka et al., 2014). Apart from this, application of direction-based authoritative approach by the business leaders is observed in Indian as well as Canadian business environment. Thus, there are overall similarities between maintenance of basic workforce approach.

One of the most important dissimilarities is emphasised on practical knowledge and skill based working approach in Canadian business environment, whereas, in Indian, the leaders mostly prefer theoretical direction-based approach at workplaces. Moreover, in Canada, the business leaders prefer the policy of peer monitoring and coaching for improving overall capability and performance of workforce, which is not much common in Indian business environment. Again, leadership potential based work approach, emphasising on career development aspects is more common in Canadian business operations.

II. Employee-employer relation

In both the business environments, relationship between employer and employees depends on mutual understanding of benefits and trust and working performance of employees. However, different levels of issues between the employers and employees are common in India and Canada, which mostly involve the cases of inappropriate wage rate, employee performance issues, lack of mutual understanding and effective performance appraisal system. This is the reason, why higher rate of employee turnover is a significant similarity in this case.

In spite of significant level of issues faced by the employees in both business environments, lack of mutual understanding and trust between employees and management is higher in Indian business environment. On other hand, lack of proper performance appraisal and policy development for employees are common in Canada (Canadian Labour Congress, 2020). Moreover, yearly employee turnover rate is higher in India (almost 24.5%), in compared to that in Canada (16.5-17%). This reflects dissimilarities in relation of employee and employer in business environments in India and Canada.

III. Diversity

In case of the question of workplace diversity maintenance, in business environment of Indian and Canada, this assumes considerably valuable place in terms of inclusion of diverse talents in business operations. Therefore, diversity management is considered as an essential aspect of overall business environment in both the cases, which can be regarded as the similarity (Geetha, 2016). However, the difference is in adoption of the practical approach of ensuring diversity at workplaces. 

In Indian business environment, the organizational leaders are not much concerned of the factor of inclusion of proper policy arrangements for ensuring diversity management. On the contrary, in Canada, the organizations provide higher focus on action-oriented strategy implantation for diversity management through maintaining the social justice and anti-discrimination imperatives. Moreover, in Canadian business environment, application of antiracism approach is quite significant step, which is absent in most of the Indian organizations (Karakowsky & Guriel, 2015). Hence, major differences are there between approaches towards diversity maintenance at workplace in India and Canada.

Organisational design 

In case of adoption and implementation of organizational design, there is similarity between the approaches maintained by Indian and Canadian businesses. In both cases, the management and business leaders adopt application of different organizational structures or designs based on nature of the business and its scopes. In both cases, conditional application of Hierarchical model and Horizontal structure is common. Moreover, in many cases, application of combined features of these organizational designs is common also in India as well as Canada. Hence, this is the essential similarity between adoption of organizational design and structure in two different business environments concerned.

As per observations, in Indian business environment, the management mostly focusses on application of strict Hierarchical structure or well-developed Network structure, which all are based on hierarchy and management level based relationship between employee and employers. These help the Indian organizations in performing transactional business governance (Eberlein et al., 2014). Oppositely, in Canadian business environment, there is higher tendency of applying effective combination of Hierarchical structure and Horizontal design model for facilitating inclusion of best characteristics of both the models.

Business strategies 

Core economic operation of business is concerned with the generation of the property management in business and in this regard IPR plays an important role. For domestic and international business both the countries have developed their strong IPR to ensure the successful business operations. India has developed its IPR based on the WTO Agreement on TRIPS whereas Canada has followed the same rules such as TRIPS and various WIPO treaties. Both the countries are operating with the international market players with the aid of international IP agreements. The business process conductance with proper rules and regulations are concerned with meeting the international obligations, safeguarding the public interest and creation of the awareness about the intellectual property rights (GAC, 2020).

However, a pint of dissimilarities has been found in case of the trade policy related affairs. Business development strategies for the operating organizations in Canada are different based on Pacific links, Atlantic links and North American links. It has ensured the generation of explicit trade benefits for the Canadian companies. One concerned reason is associated with the infrastructure and development of the country. Depending on the purchase power of the consumers in Canada the pricing and promotional strategies has been decided from the end of business organizations. On the other hand, for India significant potential is present in the nation for domestic and international business to ensure proper strategies in the market so that major development can be performed. However, compared to Canada, the infrastructure of the country, government bureaucracy, and workplace discriminations are restricting the organizations to maintain temporary labor mobility in business (Tapp, 2015). 

Futuristic initiatives

Canadian government has revised the trade policies and tax allocations. It has ensured the fact that the country is open for prospective business. Considering the business areas such as AI it has been found that the country is experiencing a future dominance with the AI enabled facilities. The country has created the business environment in such a manner that it is combining the experts, businesses, universities, and nonprofits to work together and solve the problems (Wired, 2020). In this regard, it has been found that India in recent time has revised its business-related policies and thus a major investment has been performed in the country from the end of multinational organizations. India has created the chance of sustainability maintenance in the country for business development with the promotion of acceptable living standards, along with urban infrastructure, and unlocking the potential of women. Thus, Canada and India both can experience a possible better future in business (Madgavkar & Kaka 2016).

However, certain backlogs need to be recovered from the end of Indian government to ensure better future in the business development. Considering the business initiatives licensing process along with Export Subsidy Programs and Export Subsidies and Domestic Support are still creating major barriers of business. Whereas in Canada, the government has minimized the issues with these aspects and it has made investment possible from the business organization (Madgavkar & Kaka 2016). 


While concluding, it could be estimated that both Indian and Canadian business environment has respective competitive advantages. As far the external factors are concerned, more political stability is experienced in Canada in comparison to volatile business environment of India. The GDP of India is more promising in the business context; however, the inflation rate is in favour of Canadian context. The social prospectus is more commanding and promising in respect to Canadian business environment. However, the technological context is somewhat stagnant in comparison to India which has made rapid expansion in regards to digitalisation of services. Both India and Canada have respective competitive advantage in regards to business environment. In context to Indian and Canada, the overall environment of business revolves around altering needs for skilled labour and knowledge related workforces. The hierarchical organisational structure is mostly prevalent in both nation’s business context. The internal capabilities of Indian and Canadian business are subjected to their respective benefits and constraints for addressing the external demands in the competitive market.