EXAMPLE OF MNC

INTRODUCTION
Vodafone India , formerly Vodafone Essar and Hutchison Essar, is the third largest mobile network operator in India after Airtel and Reliance Communication by subscriber base. It is based in Mumbai, Maharashtra. It has approximately 147.48 million customers as of December 2012. In July 2011, Vodafone Group agreed terms for the buy-out of its partner Essar from its Indian mobile phone business. The UK firm paid $5.46 billion to its Indian counterpart to take Essar out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning 74% of the Indian business, while the other 26% will be owned by Indian investors, in compliance with Indian law. On 11 February 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion. The transaction closed on 8 May 2007. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros.

HISTORY
Hutchison Essar (1992-2007)
In 1992, Hutchison Whampoa and its Indian business partner Max Group, established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai and launched commercial services as Hutchison Max in November 1995. In Delhi, Uttar Pradesh (East), Rajasthan and Haryana, Essar Group was the major partner. But later Hutch took the majority stake. By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL Mobile that number increased to 16. In 2006, it announced the acquisition of a company (Essar Spacetel A subsidiary of Essar Group) that held licence applications for the seven remaining licence areas. Initially, the company grew its business in the largest wireless markets in India in cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it was able to establish a robust network, well-known brand and large distribution network all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User (ARPU) than its Timeline

ANGEL STORES
Vodafone Angel Store, is a first of its kind retail concept store, that is completely managed and run by women employees, including security, pantry staff, customer service resources and management level personnel. As of 3 September 2013, there are 16 Vodafone Angel Stores across 14 states of India. Stores are currently operating in Agra, Ahmedabad, Bhubaneshwar, Chennai, Delhi, Goa, Haryana, Hyderabad, Jaipur, Kerala, Kolkata, Lucknow, Mumbai, Mysore, Pune, Shillong and Vadodara. According to Marten Pieters, Managing Director and CEO, Vodafone India, "The Angel Stores are a part of Vodafones commitment to provide our women employees with one of the most secure and productive work environment. Additionally, our women customers feel more welcomed while visiting the store. Vodafone's own research and customer feedback revealed that the Angel Stores help improve the quality of customer service as women generally show greater patience and empathy than men, and are able to act and help in speedy resolution. Vodafone also found that higher productivity and performance parameters recorded in Angel Stores, across locations.

COMPETITORS
Vodafone has strengthened its position in high-growth emerging markets after revealing a series of initiatives to improve the growth prospects of its Indian business, while securing a licence to launch services in Qatar, a potential platform for growth in the Middle East. After its acquisition of a majority stake in India's Hutchison Essar and a rapid improvement in its Turkish and Egyptian business, Vodafone's emerging markets arm has taken centre stage this year. Yet the company has hit a couple of potholes recently after the collapse of talks over a deal to increase its stake in South Africa's Vodacom and a spat between some of India's largest operators, including Vodafone Essar as the UK's company is now branded, and the Indian telecoms regulator over the issue of new spectrum allocations. Despite the spectrum showdown, the Vodafone chief executive, Arun Sarin, told an investor conference held in London that the company's long-term growth target is to increase its market share to 20 to 25 per cent from 17.5 per cent. Vodafone is keen to strengthen its position in India the world's fastest-growing mobile telecoms market and Mr Sarin said that once the "dust settles" on the spectrum issue, he would expect some consolidation among the Indian operators. Despite the huge growth opportunity in India, where only one person in five has a mobile phone, Mr Sarin said having up to eight players in each "circle" the operating regions that India's mobile market is divided into is too many, although he stressed that any action would not be likely until the government's spectrum policy was clear. India's Department of Telecommunications recently granted a licence to Reliance Communications that allows it to extend its network using the GSM standard, rather than the CDMA standard it has used in other territories. The plan is opposed by India's existing GSM operators Bharti, Vodafone and the smaller operator Idea which have petitioned the government to adhere to its original spectrum guidelines, whereby existing GSM licence holders have the first right of refusal to buy new spectrum to improve their coverage.

Bharti, India's largest operator, has been the most vocal in its opposition to the government's plans and has offered to pay about $673m (329m) for a new slice of spectrum well above the regulator's minimum asking price. The issue is due to come to a head this week when an Indian court will hear a petition and attempt to resolve the dispute. Meanwhile, Vodafone, Bharti and Idea have signed an agreement to share transmission masts to slash costs and improve network coverage. Vodafone has struck similar deals to save costs in European markets, including Spain and the UK. Vodafone has revealed a separate fiveyear agreement with IBM to outsource its billing and general IT functions in India to save further costs. Separately, a consortium led by Vodafone has won a licence to build a new network in Qatar, seeing off competition from AT&T, its US partner. Although the UK company's brand is used in Bahrain and Kuwait, due to a partnership agreement with local player MTC, Vodafone has not built a new network in the Middle East, and the new unit could act as a springboard for further investment as opportunities arise. Qatar has a population of only 840,000 and mobile penetration is more than 100 per cent, making it a less enticing investment prospect than markets such as India.

SWOT Analysis
Strengths

Diversified geographical portfolio with strong mobile telecommunications operations in Europe, The Middle East, Africa, Asia Pacific and to some extent the US. Network Infrastructure Leading presence in emerging markets such as India Strong in Cities Huge Capital to invest Too much manpower. Advanced technology in home country.

Weakness

Negative return on assets (ROA) underperform key competitors like AT&T, BT Group, Deutsche Telecom. Subjected to high government regulations. US business not nearly as strong as European/rest of the world operations.

80% of its business is generate in Europe. No Network in Rural Areas.

Opportunities

Focus on cost reductions improving returns. Majority stake in Hutchison Essar in India. Research and Development of New mobile Technology Good tariff Packages

Threats

Highly competitive market. Still lags behind major competitors in the US Extremely high penetration rates in key European market. European Union regulation on cross-border cell phone usage by customers.

CONCLUSION
They serve the customers and the institution best and therefore chemistry between country and foreign MNCS has fruitful results .FDI attractiveness, labour competitiveness. Huge market potential of the country. Policies such as FDI, Industrial licensing, taxation, exchange control has helped MNCS to grow .there is a growth of MNCS in India because of huge market and fast growing economies in world has played important role. Due these MNCS competition increase and more employment opportunities are available & there will be reduction in regional disparities To conclude, we would opine that MNCS having a wide ambit is enviable to us, as to the fact that, there exists lots of job opportunity paves a path for the increase in national income. And also to create a better society, with better standard of living, and it increases labour productivity , decrease in unemployment, and also increases the net national income of the country. This will help the government and this will lead to increase in the export and imports in the country. Gives advantages to Domestic Companies through purchasing of raw material & resources. New company having network to expand their business. The present scenario is a highly transformed one. Multinational giants are vying with one other to launch their models. Big names of the vehicle industry like the Korean giant, Hyundai, general motors, Mitsubishi etc. Have already opened their account. In other vehicle segments too, Volvo, Mercedes Benz, and Audi etc. Have carved out their niche. One of the fastest growing sectors in the country, telecommunications has been growing at a feverish pace in the past few years. The speed of growth can be judged by the fact that in 2004, ten years after private telephony was introduced in India, the mobile subscriber base had crossed the number of fixed line connections.