CHAPTER ilobalizaton nd Intematonal Business

27

The third view argues that the pace of globalization will one of the reasons why the globalization process has so
or may in tact already be in the process of tar progressed in fits and starts.
stow down
collapse.52 Even in Chapter 1, we' ve had occasion to cite Finally, there is a view that for globalization to succeed,
a few antiglobalization sentiments, and it's easy to see efficient institutions with clear-cut mandates are neces-
that some people are adamant and earnest in voicing sary; hovwever, there is concern that neither the institu-
their reservations. The crux of the antiglobalizatlon tions nor the people working in them can
adequately
movement is the belief there's a growing schism between handle the complexities of an interconnected world5
parties (including MNEs) who are thriving in a globalized
environment and those who aren't.
Antiglobalists pressure governments to promote Going Forward
nationalism by raising barriers to trade and rejecting
international organizations and treaties. Historically, Only time will tell, but one thing seems certain frorn
Such groups have often been successful (at least tem- everything we've read in this chapter: If a company
wants to capitalize on international opportunities, it
porarily) in obstructing either technological or commer-
cial advances that threatened their well-being. Recently, can't wait too long to see what happens on poltical and
for example, antiglobalization interests in Austraiia and economic fronts. Investments in research, equipment,
Austria succeeded in electing anti-immigration par- plants, and personnel training can take years to pan out.
ties. In Brazil and South Africa, voters have authorized Forecasting foreign opportunities and risks is always a
domestic companies to copy pharmaceuticals under challenge, but by examining different ways in which the
Bolivia and Venezuela have future may volve, a company's management has a bet
global patent protection.
nationalized some.foreign investments, and the United ter chance of avoiding unpleasant surprises. That's why
States prevented China from purchasing a domestic oil each chapter of this book includes a box that shows
company and Dubai from purchasing U.S. port opera how certain chapter topics can become subjects for
tions. The sparring between pro- and antiglobalists is looking into the future of international business.

Globalization of Production and Markets of Indian CASE

Motion Pictures--A Case of Krrish

The History of Cinema

the French.34
few people know that the credit of film industry creation goes to
ery a portable single-unit cmera,
In 1894 Louis Lumiere invented the cinematographe,
train en gare de la Cictat (The Arrival
developer, and movie projector 4. L'Arrivee d'un
distributed by Lumiere and his brother
of a Train at the Ciotat Station) was produced and
was tremendous, all the people
Auguste. The effect of the images of a moving train emotions.
screamed and ran to the back of the room, filled with petrified
invented a thing called Kinetoscope which
The American Inventor Thomas Edison also
invention was that only one person at.
debuted in 1891. The biggest drawback with Edison's
more popular.
a time could watch a film, hence
Louis Lumiere cinematographe proved to be
into four major generations. They are
The Indian film industry can be divided
1950-1960-A Golden Age of Indian
() 1920-1950-The Early Days of Indian Cinema, (i) 1990-2000-Bollywood
Cinema, (ii) 1970-1980-The Angry Young Man Awakens, and (iv)

Gains Global Popularity.

Lumiere Brothers introduced Motion Picture technology in 1896 in
India.

Globalization
Indian liberalization has helped the Indian film industry the entry of multinational corporations
and foreign investments. The invention of new media technologies such as satellite televisio
 Business
International

Background
for
PARTI

spread of the cinema. The Indian.

diaspora which are there in
facilitated the
and the
Internet new
tecnnologlcal means to see Indiarn filme
the worid
nas now
1E cOuntries around there are two
tw oducing glants in the world-one in the United
said,
As normally of movies in the world. In 2006, Incdia
India. producer
inala is te ii9s produced
Ctates and another in HOIlywood only 607. In revenue terms it was the
ed ahout 1,090 films while
opposite. the indian movie Industry when in the year 1999 Sir Laurence
The Orld started to look at to an Indian Movie legend Mr Amitabh Bachchan in the
lost
liar and Sir Alec Guinness that Indian movies were seen and appreci-
"BBC Super Star
of the Milennium. Ihis showed
to Ihdian
belonging The success of DDLJ-
origins.
ated by largerpeople including viewers that world is the market for Indian Films.
1995 showed
Diwale Dulhania Le Jayenge-in to
has an annual growth rate of 12.6 percent when compared
Indian film industry
Indian films have become an international commodity. The
Hollwood that has 5.6 percent.
that income is
NRI (nonresident Indian) is roughly US$375 billion, and
income of an Indian of Afghanistan
40 percent of any bollywood production profits. People
said to account for
movies due to its Songs and portrait of righteousness.
and Pakistan like Indian

in General
The Film-Making Process
a GEM of
The director or producer, or even a writer comes up with
It all begins with an idea.
fleshed into a viable script.
an idea which is
considered worthmaking into a movie. This is
and first generáte a synopsis. This is followed by an
..
The writers work on that little thought,
down into one-paragraph scenes, concentrating on
the dra-
outline, which breaks the story
This is a 25-30-page description of the story
matic structure. Next, a treatment is prepared.
is then written overa period of perhaps six to eight
its mood, and characters. The screenplay
times to improve the dramatization, clarity, structure,
months, and will be rewritten several
characters, dialogue, and the overall style.
financiers, and so on. Once this is
The final screenplay is then pitched-to actors,
locked, the film moves into:

Preproduction
on board. A whole team is
Here the movie is planned and designed. Technicians are brought
is finalized. Schedules
put together. Locations are scouted and. fixed. Casting
are made keeping locations and artistes' dates in
mind. Costumes, sets, music, and so on
are worked out.

Production
per the script and sched-
Here the movie is actually created and shot. Scenes are filmed as
various factors
ule. Sometimes, feature films have many shooting schedules-depending on
the film moves into:
ike actors, locations, and so on. Once all the shooting is complete,

Postproduction
Here the film (output) is assembled by the film editor. The various pieces of footage is put into

the script order so as to generate a flow. The best shots per scene are used
to create individ-
ual scenes, which are then put in the order of the script. A rough cut is thus created which

goes through various stages of fine tuning.

muiSIC, and
Once that is done, work
begins on the film's soundtrack-dialogues, erfects,
the synchronizing of all of these with the
picture. come togetner in a

peclal elfects are also handled at this stage. Once all the elements
final form, it is printed on film and made ready for exhibition.
VE are very optimistic that within the next five years a Bolywood moVe wil meate uie
aid
film prodUcer
s O r Couching Tiger, Hidden Dragon in the Global market-Indian
director Bobby Bedi,
February 27, 2005.
 Intemtioml Business
PART Backgronnmd tor

and the Internet faclitated the Spread or tne Cinema. Ihe lhdlan dlaspora which are theroi

156 countries aroundthe word has now new technological means to see Indianfimis
As normally said, there are two m-producng giants in the world-one in the United
States and another in India. ndla is the largest producer of movies in the world. In 2006, India
Droduced about 1,090 flms whlle Holywo0d produced only 607. In revenue terms it was the
opposite.
The world started to look at the lndian movie Ihdustry when in the
year 1999 Sir Laurence
Olivier and Sir Alec Guinness lost to an indian Movie legend Mr Amitabh Bachchan in the
"BBC Super Star of the Millennium." Inis showed that Indian movies were seen and
ated by larger people including viewers belonging to Indian origins. The success of appreci-
DDLJ-
Diwale Dulhania Le Jayenge-in 7995 showed that world is the market for Indian Films.
Indian film industry has an annual growth rate of 12.6
percent when
Hollvwood that has 5.6 percent. Indian films have become an international compared
to

income of an Indian NRI (nonresident Ihdian) is roughly US$375

commodity. The
said to account for 40 percent of any bollyWood
billion, and that income is
production profits. People of Afghanistan
and Pakistan like Indian movies due to its Songs and of portrait righteousness.
The Film-Making Process in General
begins with an idea. The director, or producer, or even a writer comes with a
It all
anidea which is considered worthmaking into a movie. up GEM of
This is fleshed into a viable script.
The writërs wörk'on that little thought, and first generáte a synopsis. This is
outline, which breaks the story down into followed by an
matic structure. Next, a treatment is
one-paragraph scenes, concentrating on the dra-
prepared. This is a 25-30-page description of the story,
its mood, and characters. The
screenplay is then writteh over a period of perhaps six to eight
months, and will be rewritten several times to
improve the dramatization, clarity, structure,
characters, dialogue, and the overall style.
The final screenplay is then
pitched-to actors, financiers, and so on. Once this is
locked, the film moves into:

Preproduction
Here the movie is planned and designed. Technicians are
together. Locations are scouted and. fixed. brought is finalized.whole team is
on board. A
put
are made keeping locations and artistes' Casting Schedules
dates in mind. Costumes, sets, music, and so on
are worked out. .

Production
Here the movie is
actually created and shot. Scenes are filmed as per the script and sched-
ule. Sometimes, feature films
have many shooting
ike actors, locations, and so
on. Once all the
schedules-depending
on various factors
shooting is complete, the film moves into:
Postproduction
Here the film
(output) is assembled by the film editor. The various
the script order so as
to generate a flow. The pieces of footage is put into
ual scenes, which
best shots per scene are used to create individ-
are then put in the
order of the script. A rough cut is thus created which
goes through various stages of fine tuning.
Once that is done, work begins on the film's
the
synchronizing of all of these with the picture. soundtrack-dialogues, effects, music, and
Special effects are also handled at this
final form, it is printed on film and made stage. Once all the elements come togetner d
VVE are ready for exhibition.
very optimistic that within the
next five years a Bollywood movie will match
uccess ot
Crouching Tiger, Hidden
ne
director Bobby Bedi, Dragon in the Global market-ndian film producer
ail
February 27, 2005.
 CHAPTER I Globaliz.t i0on and International Business
What Mr Bobby Bedi said
in the
year 2005 was proved within
in2006, wherein an Indian mvie Krrish the next year itself, that
is,
made by an excellent
took the Hollywood movie
Superman Director Rakesh Roshan, over-
world. Even the World Cup football Returns in revenues, not only in India but all around the
matches could not
The strategy of success of
Krrish was very stop its success in Europe.
produce the product
using the best simple: Look at the world as one market arnd
Indian production
costs as well by technologies
available in the world and capitalize on
FILMKRAFT-the Media house which made leveraging
the Indian
diaspora abroad.
things in its own Krrish, to implement the above stratgeies did
unique way which constituted a new
concept of "Superhero" itself was very new successful
The
to
business model: Scripting.
India.
successfully, Roshan decided not to model theconvince
market the concept To the masses and
counterparts. Therefore, Krrish has superhuman Superhero on its Western
nary USPs strength and skills, but no other
extraordi-
(unique-selling propositions).
he cannot fly or spin webs. He
He can scale mountains
and run very fast but
is a normal, average Indian boy who has been blessed with
the ability to maximize his
strength and skills. Of course, what made that
even more plausi-
ble was that a world of aliens and
successfully in Koi Mil
supernatural powers had been established, extremely
Gaya.
Preproduction
Putting together the huge end crew:
Bollywood'sbest techniçians would have made their
dates available to Roshan very easily and would have been
comparatively reasonable too,
but Roshan decided to gamble on
.
foreign technicians. Foreign technicians
crew, huge pay-scales and expenses, extended meant: bigger
time-lines, and a change in the regular
mechanics of
day-to-day functions.
However, despite all this, Roshan made trips to
Hong Kong and Singapore meeting
reputed action directors who have created masterpieces for
Brothers (Matrix, Crouching Tiger Hidden Hollywood-including the Yuen
Dragon, Charlie's Angels, etc.) and Sammo Hung
(many Jackie Chan films).
The Oriental action directors are
very much the source of all the exotic action being seen
in Hollywood these days and thus, Roshan chose Asia as
the grounds for his hunt.
After meeting six or seven action directors he
opted for Tony Ching Siu Tung of the Hero
and House of Flying
Daggers fame. Tony was opted for over others because Roshan could
sense that Tony's strive for
perfection and nothing less than that, matched his own standards
of guality. Surprisingly, Tony had been Roshan's very first choice.
Tony was 20 times much costlier than the most expensive Indian action directors. And
this was just his remuneration. He required a whole team of Orientals
and assistants.
comprising of fighters
Another problem Tony's recruitment posed was that he did not speak English and neither
did his fighters. This might
have led to a lot of confusion and time loss but Roshan opted for
an expensive but effective solution. He hired Tony's manager as a full-time assistant cum
an
translator to Tony. This noi only added to the foreign technicians' head count but was also an
expensive option as the lady was charging in hundreds of dollars by the hour. But it took care
of the communication and
saved a lot of time and money which could have arisen out of con
fusion and chaos.
Hrithik Roshan's time is a rare commodity and to get him to commit a month extra for
Just training alone is like asking for the impossible. However, Superheroes are not made by
Just cutting corners and an extensive training for Hrithik was planned in
and his team.
Hong Kong by Tony
This was a costly decision as Tony not only charged extra for the training but also meant
hiking up the actor's fees, his staff's fees, lodging and boarding in Hong Kong, and paying for
all the expenses of the team
including Tony's, during the training.
t h e story was complete, a detailed story board was prepared by a Chinese artist
under iony's guidance in China. The meter was ticking and in dollars! But stili, he felt spend-
ng money on the
story board would be a far-more cheaper option than just discussing things
PART Backgrournd for Internatioal Business

verbally and then finding d i c r e p a n c i e s arising at the time of the shoot. The s t o r y b o a r d in s

opininion would help the creative- and the production team to put in the proper requirernens
and so ol,
Such as adequate permissions, safe-guard measures, back-up plans, insurances,
needed to pull off the fancy and intricate action sequences.
Ihe costs were mounting. And then Roshan decided to opt for live action rather than
-animated action. CG-animated action would have been far-less risky and easier to shoot.

This would have meant less shooting days in a foreign country and less expense in toreg
exchange. But then, CG animation would have compromised on the real feel of the acto
stunts and also CG animation of the quality Roshan desired would have cost moe
Therefore, it would have been a matter of saving pennies to pay in pounds. A foreign acuon

teamalso meant expensive insurance policles for everyone and work permits.
Tony was the sequence designer but to execute it, an Indian action director was also
needed. In addition, Bollywood has strict association rules regarding safety and proper prac
tices making the presence of Indian action director in India mandatory. Roshan could have
opted for any action director to fulfill the mandatory requirement but his experience told him
to hire the best Indian director since the sequences would be tough and hazardous and with-
out a proper action team may even prove hazardous.
Therefore, India's leading action director Sham Kaushal with a team of 15 assistants and
fighters was recruited for the job.
Another important factor in choosing this team was to select a technician who could
work in perfect synch with the Chinese team. At.times,.varied.temperaments and working
styles and ethics can cause disturbing and harmful altercations. Sham Kaushal's experience
of having collaborated on foreign projects earlier made him a suitable candidate. Even
though Roshan had not worked with him earlier he decided to take a risk and it really proved
worthwhile.

Recruiting the Special FX Team

Once the action team was locked, Roshan focused upon supporting it with a highly trained
special-effects team.
He focused upon Los Angeles, the Mecca of Hollywood, and state-of-the-art special-
effect features. While sifting through many special FX designers, Roshan knew that the SFX
team would have to be very skilled, experienced in big-budget adventure, action films;
willing
to lend that much time and effort to an Indian film; and willing to travel to India and flexible
enough to adapt to lIndian work mannerisms and especially to the functioning of an Indian
film lab.
He found all this and more in Craig Mumma and Marc Kolbe, a team which had films like
Godzilla and Independence Day in its portfolio.
But getting all these qualities also meant huge payments in dollars, and just to the team
for designing and supervising. The cost of many up-and-down travels and hotels was a dif-
ferent expense head altogether.
By this time, the estimates of the foreign crew were running into millions of dollars.
Roshan knew that he was about to risk millions of dollars on just two teams and that too
only
in remuneration! The rest of the crew and the actual execution expenses were yet to be
encountered. A huge risk but he took it. He believed in his script and the instinct that India
was ready to witness its own super hero.

Picture: Special Effects

Selecting Perfect Locations
The script gave a clear indication that of the two big outdoor locations one was in The
Himalayas and the other had to be in Asia somewhere. Roshan was very sure that he needed
skyscrapers and flyovers for his shooting.
Hong Kong, Bangkok, Malaysia, Singapore, or Japan-they all might have fitted the
But the bil
shooting requirements were such that full government support on permissions, and
 CHAPTER Globalizntion and Inteational business

Was essentially required. Ihis was because instead of CG, live-action stunts had to be
an

eformed which involved dangling from tall buildings, running on heavy-traffic roads, flying
building to building in the heart of the city, and leaping on to flyovers. This wassa
offfrom
tough call.
Roshan was approached by many tourism boards to shoot in their country but of the lot,
fitted the bill on every cOunt. The government was keen to support the shoot
only Singapore
since only one or two proper features and that too
and the landscape was ideal. However,
only song sequences had been shot in Singapore in the past, the country was not fully pre-
shoots could have been
pared infrastructure-wise to support the shoot. The fewer film
because of the fact that it's an expernsive country when conversions are from rupees to dol-
lars. The cost of shooting there meant seven times higher than in India and at least three
times higher than any other popular foreign destinations.
After many discussions and recess to Hong Kong, Los Angeles, and Bangkok, Roshan
chose Singapore and undertook five recesses to the country, twice with 15 key-crew mem-
bers prior to the shoot.
For the first time in the Indian film history, a large-scale alliance was created with the pro-
duction house and Singapore's tourism board (STB). As such, as a first venture again, the
shooting was undertaken with a complete government approval.

nof

slack hdcedi
aFF F
heartoFtha IING IN
PROGR}SS
 International Busincss
PART I Background for

Special Recruitment
was sought. AS is the case,
Toward the end of the film, in two moreareas, foreign expertise
Australian sound-
the need to bring in an
for a particular bike-fight sequence, Roshan felt
that he liked. He con-
noticed in some Hollywood films
design company, whose work he had discussed the
flew down to lndia,
tacted them and brought them on board. Their experts
sequences with him, and then created
it in a studio in Australia.
heros, an orches-
Similarly in the background score, to bring in the grandeur of the super music
tra from Prague wascommissioned to playthe violins and a team of background
directors and assistants flew to Prague for the recording.
Roshan's thorough drafting in the deal with STB insured that all permissions were sought
and therefore,
in advance. Singapore has a very little experience in large-scale film shooting
Roshan's experience and foresight in anticipating problems and making back-up
plans for
out much in advance.
them came in handy. With his guidance, the permissions were sought
The entire film was insured in India, prior to the shooting, and even STB opted for insur-

ing the deal through the same agency as FilmKraft.

Substantial publicity was
The overseas distribution was outsourced to Adiabs Films Ltd.
given in the international media through Electronic Media, Print Media, and different Posters

Flyers, Standees, and so on.

Premiere shows were organized in Dubai, Press Conference and Premiere in London,
and Press Conference in Singapore. Pantaloon handled the Merchindizing of Krish products

internationally. June 23, 2006 to save

Krrish was released in various countries simultaneously, that is,
on

on piracy and capitalize on demand globally.

POCrAL C0SUPLRVINOR
MARCKOUBC
GCRAIG MUMMA

E TF ECTS
 Which International cinema hall to
halls which traditionally target?-Krrish
get the cinema team had simple
tne areas of cater to Indian movies and models: (). First tar-
asian population and then (). Traditional theatres in
booked. whichever theatre Owners
approached, the same were
Krrish was
marketed in the same manner in all the
with two
great entertainments, first there countries. Krrish faced
diately the
in was the film Superman Returns which came competition
subsequent
tournament. Of course,
of Krrish release. Besides, there
was also the World imme
neither affected much to the
Cup Football
these were taken business of Krrish because the effect of
into consideration
he V
channels which by way of product, promotion, and
technology usage.
Channel, ETC, B4U, Music were used for commercial activities were Star TV, Sony TV, MTV,
TV and Asia TV India, News Channels, HBO. In the United
Local; In the United States we used Cable
Kingdom, it was Zee
Krrish was 60
percent made in Singapore. The Channels.
international media like leading
pers and TV channels
abroad,
Everyone appreciated the film forwas very supportive of Krrish. The reviews were good.
newspa
in Indian cinema. uplifting the standards of technique, imagery, and quality,
They all agreed that the special effects in the action sequences were at par
With international
standards of film-making. They also
super hero on the screen was acknowledged that the first Indian
The evolving nature of successfully and fantastically launched
through Krrish.
global demand for cinema carried major business
implications.
There will be a time when the future
generations of Hollywood studios will flock Indian stu-
dios.to.learn.the.art.of
vival
Globalization of Production and Markets, as a business model for sur-
in the global/local world of media.

QUESTIONS
1. How has Indian Film industry evolved through ages?
2. How did the project (Krish) created taking into consideration Indian Diaspora abroad?
3. How did Mr Rakesh Roshan used two countries competitivesness for the project (ndia and
Singapore).
4. What are the globalization factors that influenced the production of Krrish in Singapore? How
many countries representatives helped in creation of mega success fim Krish?

SUMMARY
Globalization is the ongoing process that deepens
and broadens the relationships and interde-
countries. International business is a mechanism to bring about globalization.
pendence among
International business has been growing rapidly in recent decades because of technological
cross-border movements
on (goods,
expansion, the liberalization of government policies needed to support
of institutions
services, and the r e s o u r c e s to produce
them), the development
and ser
c o n s u m e r pressures to buy foreign products
and facilitate international transactions, and in dealing
political situations, cooperation
Vices, increased global competition, changing of these factors, foreign countries increasingly
issues. Because
with transnational problems and
and sales for domestic companies.
are a source of both production
growth that
feel it weakens national sovereignty, promotes
Globalization has many critics, who
income distributions.
environment, and skews
is detrimental to the earth's
terms of who benetits
abroad-is controversial in
Offshoring-the transferring
of production bad ones.
reduced and whether the process
exchanges good jobs for
when costs are
resources, and to diver-
international business to expand sales, to acquire
Companies engage in
sify o r reduce their risks.
international business through various operating modes, including
engage in
and
A
company can
merchandise and services, direct and porttolio investments,
Cxporting and importing
Collaborative arrangements with other companies.