Curry Crisis A) Madhu's Business Is Not Essay

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Curry Crisis

a) Madhu's business is not highly globalized. He produces and sells in the UK. However, one of his major inputs is chefs, and the ones with the skills he needs are not typically found in the UK. Indian chefs almost always come from India or from expat Indian communities elsewhere. This element of his business is globalized, because Indian cooking is a specialized skill that originates from a specific geography, and is not readily found either in the UK or in other parts of the world.

b) The four drivers of globalization are cost, market, government and competition. In the case of Madhu, the most important are market and competition. Cost is not a major factor. Madhu does not appear to have an issue with the cost of Indian chefs in Britain. There is no indication in the case that he is unwilling to pay a higher price for local talent -- there simply appears not to be local talent.

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Madhu does have the option of training some workers, but the learning curve is steep and the cost of training is prohibitively high. Intense competition in the industry means that there is a need to control costs in addition to being differentiated on quality, especially when dealing with department store and other institutional customers.

Market drivers are much more important for Madhu. In this case, the market for curry has moved to Britain, but the result is that there is a very high demand for this product in Britain. It is much easier to produce locally, given the nature of Madhu's food. This means, however, that Madhu needs to find a supply of labour that will allow him to undertake that production. He is finding that his labour cannot readily be obtained but from India. Thus, he….....

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