International Business

Submitted to:- Prof Kavita Mathad Submitted By:- Himansu Joshi 1221015 -IJK Marketing

Chapter-1: IntroductionConcepts related to MNC

A multinational corporation (MNC) or multinational enterprise (MNE) is hard to define precisely to obtain consensus from different professions. For example, when a corporation that is registered in more than one country or that has operations in more than one country may be attributed as MNC. Usually, it is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international corporation. They play an important role in globalization. Arguably, the first multinational business organization was the Knights Templar, founded in 1120. After that came the British East India Company in 1600 and then the Dutch East India Company, founded March 20, 1602, which would become the largest company in the world for nearly 200 years. Anti-corporate advocates criticize multinational corporations for entering countries that have low human rights or environmental standards. They claim that multinationals give rise to large merged conglomerations that reduce competition and free enterprise, raise capital in host countries but export the profits, explore countries for their natural resources, limit workers' wages, erode traditional cultures, and challenge national sovereignty. Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) services, business solutions and consulting company headquartered in Mumbai, Maharashtra. TCS operates in 46 countries and has 199 branches across the world. It is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and the National Stock Exchange of India. Its main function is to provide IT services. TCS is the largest Indian company by market capitalization and is the largest India-based IT services company by 2013 revenues. TCS has been recognized by Forbes as one of the World's Most Innovative Companies. TCS ranked 40th overall, making it not only the highest ranked IT services company to make the list, but also the top Indian company. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery Model, recognised as the benchmark of excellence in software development. A part of the Tata group, Indias largest industrial conglomerate, TCS has over 285,000 of the world's best trained consultants. The company generated consolidated revenues of $11.6 billion for year ended March 31, 2013 and is listed on the National Stock Exchange and the Bombay Stock Exchange in India.

Manages Production In More than one country

Delivers Services

Chapter 2: Product/Service Profile

TCS and its 58 subsidiaries provide a range of information technology-related products and services including application development, business process outsourcing, capacity planning, consulting, enterprise software, hardware sizing, payment processing, software management and technology education services. Its established software products are TCS BaNCS and TCS MasterCraft. TCS helps clients optimise business processes for maximum efficiency and galvanise their IT infrastructure to be both resilient and robust. TCS' services are currently organised into the following service lines (percentage of total TCS revenues in the 2012-13 fiscal year generated by each respective service line is shown in parentheses):

Application development and maintenance (42.80%) Asset leverage solutions (2.70%) Assurance services (7.70%) Business process outsourcing (12.50%) Consulting (3.00%) Engineering and Industrial services (4.60%) Enterprise solutions (15.20%) IT infrastructure services (11.50%)

TCS offers the following solutions: Assurance services Business information and performance management Business process outsourcing Cloud services Connected marketing solutions Consulting Engineering and industrial services Enterprise solutions iON small and medium businesses IT infrastructure services IT services Mobility solutions and services Platform solutions

TCS has the depth and breadth of experience and expertise that businesses need to achieve business goals and succeed amidst fierce competition. TCS helps clients from various industries solve complex problems, mitigate risks and become operationally excellent. Some of the industries it serves are:

Banking and financial services Construction Energy and utilities Government Healthcare High tech Insurance Life sciences Manufacturing Media and information services Metals and mining Retail and consumer products Telecom Travel, transportation and hospitality

Software which are mainly used are: TCS BaNCS TCS MasterCraft TCS technology products

As of 31 March 2013, TCS had 199 offices across 44 countries and 124 delivery centers in 21 countries. At the same date TCS had a total of 58 subsidiary companies.

Chapter 3: Brief profile of selected Countries

South Africa:
South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa. It has 2,798 kilometres (1,739 mi) of coastline that stretches along the South Atlantic and Indian oceans. To the north lie the neighbouring countries of Namibia, Botswana and Zimbabwe; to the east are Mozambique and Swaziland; and within it lies Lesotho, an enclave surrounded by South African territory. South Africa is the 25th-largest country in the world by land area, and with close to 53 million people, is the world's 24th-most populous nation. South Africa is a multi-ethnic society encompassing a wide variety of cultures, languages, and religions. Its pluralistic makeup is reflected in the constitution's recognition of 11 official languages, which is among the highest number of any country in the world. Two of these languages are of European origin: English and Afrikaans, the latter originating from Dutch and serving as the first language of most white and coloured South Africans. Though English is commonly used in public and commercial life, it is only the fourth most-spoken first language. Geographical: South Africa is located at the southernmost region of Africa, with a long coastline that stretches more than 2,500 km (1,553 mi) and along two oceans (the South Atlantic and the Indian). At 1,219,912 km2 (471,011 sq mi), South Africa is the 25th-largest country in the world and is comparable in size to Colombia. Mafadi in the Drakensberg at 3,450 m (11,320 ft) is the highest peak in South Africa. The interior of South Africa consists of a vast, in most places, almost flat, plateau with an altitude of between 1,000 m (3,300 ft) and 2,100 m (6,900 ft), highest in the east, sloping gently downwards towards the west, south and north. This plateau is surrounded by the Great Escarpment whose eastern, and highest stretch is known as the Drakensberg. In the south-west corner of the country the Cape Peninsula forms the southernmost tip of the coastal strip which borders the Atlantic Ocean, and ultimately terminates at the countrys border with Namibia at the Orange River. The Cape Peninsula has a Mediterranean climate, making it and its immediate surrounds the only portion of Africa south of the Sahara which receives most of its rainfall in winter. South Africa also has one possession, the small sub-Antarctic archipelago of the Prince Edward Islands, consisting of Marion Island (290 km2 or 110 sq mi) and Prince Edward Island (45 km2 or 17 sq mi)

Political: South Africa is a parliamentary republic, although unlike most such republics the President is both head of state and head of government, and depends for his tenure on the confidence of Parliament. The executive, legislature and judiciary are all subject to the supremacy of the Constitution, and the superior courts have the power to strike down executive actions and acts of Parliament if they are unconstitutional. The National Assembly, the lower house of Parliament, consists of 400 members and is elected every five years by a system of party-list proportional representation. The National Council of Provinces, the upper house, consists of ninety members, with each of the nine provincial legislatures electing ten members. After each parliamentary election, the National Assembly elects one of its members as President; hence the President serves a term of office the same as that of the Assembly, normally five years. No President may serve more than two terms in office. The President appoints a Deputy President and Ministers, who form the Cabinet which consists of Departments and Ministries. The President and the Cabinet may be removed by the National Assembly by a motion of no confidence. South Africa has no legally defined capital city. The fourth chapter of the Constitution of South Africa, states that "The seat of Parliament is Cape Town, but an Act of Parliament enacted in accordance with section 76(1) and (5) may determine that the seat of Parliament is elsewhere." The country's three branches of government are split over different cities. Cape Town, as the seat of Parliament, is the legislative capital; Pretoria, as the seat of the President and Cabinet, is the administrative capital; and Bloemfontein, as the seat of the Supreme Court of Appeal, is the judicial capital, while the Constitutional Court of South Africa sits in Johannesburg. Most foreign embassies are located in Pretoria. Since 2004, the country has had many thousands of popular protests, some violent, making it, according to one academic, the "most protest-rich country in the world". There have been a number of incidents of political repression as well as threats of future repression in violation of this constitution leading some analysts and civil society organisations to conclude that there is or could be a new climate of political repression, or a decline in political tolerance. In 2008, South Africa placed 5th out of 48 sub-Saharan African countries on the Ibrahim Index of African Governance. South Africa scored well in the categories of Rule of Law, Transparency & Corruption and Participation & Human Rights, but was let down by its relatively poor performance in Safety & Security. In November 2006, South Africa became the first African country to legalise same-sex marriage.

Legal: The Constitution of South Africa is the supreme rule of law in the country. The primary sources of South African law are Roman-Dutch mercantile law and personal law with English Common law, as imports of Dutch settlements and British colonialism. The first European based law in South Africa was brought by the Dutch East India Company and is called Roman-Dutch law. It was imported before the codification of European law into the Napoleonic Code and is comparable in many ways to Scots law. This was followed in the 19th century by English law, both common and statutory. Starting in 1910 with unification, South Africa had its own parliament which passed laws specific for South Africa, building on those previously passed for the individual member colonies. The judicial system consists of the magistrates' courts, which hear lesser criminal cases and smaller civil cases; the High Courts, which are courts of general jurisdiction for specific areas; the Supreme Court of Appeal, which is the highest court in all but constitutional matters; and the Constitutional Court, which hears only constitutional matters.

Economy: South Africa has a mixed economy, the largest in Africa in terms of both nominal GDP (at $375.944 billion) and GDP at purchasing power parity (at $608.804 billion). It also has a relatively high GDP per capita compared to other countries in Sub-Saharan Africa ($11,750 at PPP as of 2012). Despite this, South Africa is still burdened by a relatively high rate of poverty and unemployment, and is also ranked in the top 10 countries in the world for income inequality, measured by the Gini coefficient. Unlike most of the world's poor countries, South Africa does not have a thriving informal economy; according to OECD estimates, only 15% of South African jobs are in the informal sector, compared with around half in Brazil and India and nearly three-quarters in Indonesia. The OECD attributes this difference to South Africa's widespread welfare system. World Bank research shows that South Africa has one of the widest gaps between per capita GNP versus its Human Development Index ranking, with only Botswana showing a larger gap. After 1994 government policy brought down inflation, stabilised public finances, and some foreign capital was attracted, however growth was still subpar. From 2004 onward economic growth picked up significantly; both employment and capital formation increased. South Africa is a popular tourist destination, and a substantial amount of revenue comes from tourism. Illegal immigrants are involved in informal trading. Many immigrants to South Africa continue to live in poor conditions, and the immigration policy has become increasingly restrictive since 1994. Principal international trading partners of South Africabesides other African countries include Germany, the United States, China, Japan, the United Kingdom and Spain. The South African agricultural industry contributes around 10% of formal employment, relatively low compared to other parts of Africa, as well as providing work for casual labourers and contributing around 2.6% of GDP for the nation. Due to the aridity of the land, only 13.5% can be used for crop production, and only 3% is considered high potential land.

In August 2013, South Africa was ranked as the top African Country of the Future by FDi magazine based on the country's economic potential, labour environment, cost-effectiveness, infrastructure, business friendliness, and foreign direct investment Strategy. The FSI ranks South Africa as the 36th safest tax haven in the world, ahead of the Philippines but behind the Bahamas. Cultural: The South African black majority still has a substantial number of rural inhabitants who lead largely impoverished lives. It is among these people that cultural traditions survive most strongly; as blacks have become increasingly urbanised and Westernised, aspects of traditional culture have declined. Members of the middle class, who are predominantly white but whose ranks include growing numbers of black, coloured and Indian people, have lifestyles similar in many respects to that of people found in Western Europe, North America and Australasia. The South African Scout Association was one of the first youth organisations to open its doors to youth and adults of all races in South Africa. This happened on 2 July 1977 at a conference known as Quo Vadis. South African art includes the oldest art objects in the world, which were discovered in a South African cave, and dated from 75,000 years ago. The scattered tribes of Khoisan peoples moving into South Africa from around 10000 BC had their own fluent art styles seen today in a multitude of cave paintings. South African literature emerged from a unique social and political history. One of the first well known novels written by a black author in an African language was Solomon Thekiso Plaatje's Mhudi, written in 1930. During the 1950s, Drum magazine became a hotbed of political satire, fiction, and essays, giving a voice to urban black culture. The South African media sector is large, and South Africa is one of Africa's major media centres. While South Africa's many broadcasters and publications reflect the diversity of the population as a whole, the most commonly used language is English. However, all ten other official languages are represented to some extent or another. South African culture is diverse; foods from many cultures are enjoyed by all and especially marketed to tourists who wish to sample the large variety of South African cuisine. In addition to food, music and dance feature prominently. South African cuisine is heavily meatbased and has spawned the distinctively South African social gathering known as a braai, or barbecue. South Africa has also developed into a major wine producer, with some of the best vineyards lying in valleys around Stellenbosch, Franschhoek, Paarl and Barrydale. South Africa's most popular sports are soccer, rugby and cricket. Other sports with significant support are swimming, athletics, golf, boxing, tennis and netball. Although soccer commands the greatest following among the youth, other sports like basketball, surfing and skateboarding are increasingly popular.

Chapter 4: Marketing Aspects

TCS operates in a large, growing global market for IT and IT-enabled services. Globally, organizations are spending more on IT as new technologies emerge, offering unique opportunities to gain a competitive advantage. Moreover, industries and geographies that lagged behind others in leveraging technology are now catching up. Further, the proportion of IT services budgets that is spent on external providers is going up as the shelf-life of technologies is reducing and corporations are looking for greater efficiency and variability in their costs. With a minuscule market share in this growing market, there is much headroom for TCS longer-term growth.

TCS strategy for longer-term growth is to continually extend the core IT services business by expanding its geographic reach, industry coverage and service capabilities and deepening existing client relationships, building or acquiring emerging businesses and adopting or creating new business models and business solutions through continuous innovation. Key elements of this strategy are summarized here: Customer-centricity: We seek to build, nurture and deepen customer relationships so we are trusted strategic partners to our customers. Our industry-segmented, customer-centric organization is an important enabler that has ensured high levels of accountability, superior customer service and intimacy.

Full Services Capability: TCS has been investing in building a comprehensive, integrated portfolio of services to capture the entire value chain of IT, presenting a compelling value proposition for global enterprises making us a one-stop shop for many key clients, significantly deepening the relationship and boosting our share of the wallet.

Global Network Delivery Model (GNDM): TCS' GNDM lets us seamlessly and uniformly deliver services to global customers from multiple locations across India, China, Europe, North America and Latin America. Teams separated by time zones collaborate on projects, leveraging all of TCS' assets while subscribing to one global service standard. It uses multiple levers of time zone, language, skills and local business knowledge to deliver high quality business solutions seamlessly across the globe, using a globally connected workforce, integrated delivery processes and multi-tiered infrastructure. This model developed by TCS is now recognized as the benchmark of excellence in software development. For large clients expanding beyond their home markets, the scale and depth of our GNDM capability makes us their preferred strategic partner.

Strategic Acquisitions: While primarily focusing on organic growth, TCS is also open to selective strategic acquisitions in order to penetrate select markets, strengthen verticals and enhance service offerings.

Non-linear Business Models: TCS has been building non-linear growth businesses that can enable revenue growth without commensurate headcount growth. Non-linearity in the existing businesses comes from productivity-enhancing tools, frameworks, solution accelerators and managed services engagements.

In addition, TCS is pursuing three strategic initiatives for non-linear growth:

Software Products (Asset Leveraged Solutions) Platform-based BPO services (Process Clouds) iON an IT-as-a-service solution for small and medium business

Chapter -5: Organization & Human Resource aspects

A volatile global economy and dynamic market conditions have compelled HR functions to reduce costs, maximize operational efficiency and focus on strategic initiatives. TCS complete HR Services provides with a choice of end-to-end HR processes, which are delivered with minimal risk and controlled costs. They have a lot of initiatives from an employee engagement point of view: how to get irritants out of the way and what are the career options the employees have. They have created 'Maitree', an organisation within HR. It's employees plus their spouses. There are clubs for trekking, music, dance, photography, quiz, etc. They continuously have to work on our strategy, they look at our compensation benefits and conduct an annual survey called 'Pulse', which goes across the globe and supports 4-5 languages and these inputs are collected. Then, there is promotion, which is considered as recognition in India. These are various things we look at. The designation is significant, it's a recognition of your performance. During the crisis of 2008-2009, we learnt that while pay hikes are nice, what mattered to employees more were promotions because that gave them a sense that their careers were on track. Managers quickly adjusted their strategy to ensure promotions came through even though there were no across the board hikes that year. But there are different employment recognition programmes they run. Within each project one can nominate a star of the project. What they use is GEMS points. They have tied up with vendors. So one trade their points for whatever products they want. They also provide the best healthcare benefits in the industry. They have 103 nationalities and about 6.7 per cent of their employees are non-Indians. With strong HR policy, TCS is all set to make its make its mark on the world market & lead it as well.