MNC

An outlook into the MNC’s TATA group and INFOSYS

-prepared by SIDHARTH.P
MERITS
• Job Creation and Economic Growth: MNCs create new job opportunities,
contributing to economic growth and development in the host country.
• Transfer of Technology and Skills: MNCs bring advanced
technology and management skills to the host country, helping to upgrade the
local industry and workforce.
• Increased Competition and Efficiency: MNCs introduce new
products, services, and management practices, increasing competition and
forcing local companies to become more efficient.
• Foreign Exchange Earnings: MNCs can generate significant foreign
exchange earnings for the host country through exports.
• Improved Infrastructure and Amenities: MNCs often invest in
infrastructure development, such as roads, telecommunications, and housing,
which benefits both the company and the local community.
DEMERITS
• Exploitation of Natural Resources: MNCs may exploit the natural
resources of the host country, leading to environmental degradation and depletion
of resources.
• Cultural Imperialism and Homogenization: MNCs can lead to cultural
imperialism, where local cultures and traditions are replaced by globalized,
homogenized cultures.
• Displacement of Local Industries and Businesses: MNCs can displace local
industries and businesses, leading to unemployment and economic disruption.
• Tax Evasion and Corruption: MNCs may engage in tax evasion and corruption,
depriving the host country of revenue and undermining good governance.
• Environmental Degradation and Pollution: MNCs may engage in
environmentally harmful practices, leading to pollution and environmental
degradation in the host country.
TATA GROUP
PROFILE
• Type: Corporate group
• Industry: Conglomerate
• Founded: 1868 (156 years ago)
• Founder: Jamsetji Tata
• Headquarters: Bombay House, Mumbai,
Maharashtra, India
• Services: Airlines, Aerospace, Consultancy,
Electric utility, Electric power, Finance,
Hospitality, Hotels, Information Technology,
Retail, E-Commerce, Real Estate,
Telecommunications
KEY STATISTICS
• Revenue: Over $100 billion
• Market capitalization: Over $250 billion
• Employees: Over 800,000 worldwide
• Presence: Operations in over 100 countries
HISTORY

• 1868: Jamsetji Tata founded the Tata Group as a trading company.

• 1870: Tata Group started its first business venture, a textile mill in
Nagpur.
• 1887: Jamsetji Tata established the Tata Iron and Steel Company
(TISCO), which later became Tata Steel
Expansion and Diversification:
• 1903: Tata Group established the Indian Institute of
Science (IISc) in Bangalore.
• 1907: Tata Group started the Tata Power Company,
India's first power company.
• 1910: Tata Group established the Tata Oil Mills
Company.
• 1917: Tata Group started the Tata Locomotive and
Engineering Company (TELCO), which later became
Tata Motors.
MODERN ERA
• 1991: Ratan Tata took over as the chairman of Tata
Group.
• 1998: Tata Group established the Tata Consultancy
Services (TCS)
• 2008: Tata Group launched the Tata Nano, the world's
cheapest car.
• 2012: Cyrus Mistry took over as the chairman of Tata
Group.
• 2016: Natarajan Chandrasekaran took over as the
chairman of Tata Group.
SWOT ANALYSIS
• Strengths:
• Diversified Business Portfolio: Tata Group has a diversified business portfolio
across various sectors, including automotive, steel, IT, hospitality, and
consumer goods.
• Strong Brand Reputation: Tata Group has a strong brand reputation built
over 150 years, with a presence in over 100 countries.
• Innovation and R&D: Tata Group has a strong focus on innovation and R&D,
with several research centers and institutes, including the Tata Research
Development and Design Centre (TRDDC).
• Global Presence: Tata Group has a significant global presence, with
operations in over 100 countries and a workforce of over 800,000
employees.
• Financial Stability: Tata Group has a strong financial position, with a market
capitalization of over $250 billion and a revenue of over $100 billion.
• weakness
• Dependence on Indian Market: Tata Group's revenue is heavily dependent on
the Indian market, which makes it vulnerable to economic fluctuations in the
country.
• High Debt Levels: Tata Group has high debt levels, which can impact its
financial stability and limit its ability to invest in new projects.
• Bureaucratic Structure: Tata Group's organizational structure can be
bureaucratic, which can slow down decision-making and hinder innovation.
• Limited Presence in Emerging Markets: Tata Group has a limited presence in
emerging markets, such as Africa and Latin America, which can limit its growth
opportunities.
• Dependence on Few Key Businesses: Tata Group's revenue is heavily
dependent on a few key businesses, such as Tata Steel and Tata Motors, which
can make it vulnerable to fluctuations in these industries.
Opportunities
• Growing Demand in Emerging Markets: Tata Group can leverage the growing
demand in emerging markets, such as Africa and Latin America, to expand its
presence and increase revenue.
• Increasing Focus on Sustainability: Tata Group can capitalize on the increasing
focus on sustainability and renewable energy by investing in green
technologies and sustainable practices.
• Digital Transformation: Tata Group can leverage digital technologies, such as
AI, blockchain, and IoT, to transform its businesses and improve operational
efficiency.
• Growing Demand for Electric Vehicles: Tata Group can capitalize on the
growing demand for electric vehicles by investing in EV technology and
expanding its presence in the EV market.
• Strategic Acquisitions: Tata Group can pursue strategic acquisitions to expand
its presence in new markets, increase its revenue, and improve its
competitiveness.
 THREATS
• Intense Competition: Tata Group faces intense competition in various
industries, including automotive, steel, and IT, which can impact its market
share and revenue.
• Economic Fluctuations: Tata Group is vulnerable to economic fluctuations,
including recession, inflation, and currency fluctuations, which can impact its
revenue and profitability.
• Regulatory Changes: Tata Group is subject to various regulatory changes,
including tax laws, labor laws, and environmental regulations, which can
impact its operations and profitability.
• Cybersecurity Threats: Tata Group is vulnerable to cybersecurity threats,
including data breaches and cyberattacks, which can impact its reputation and
operations.
• Environmental and Social Concerns: Tata Group is subject to environmental and
social concerns, including climate change, pollution, and labor practices, which
can impact its reputation and operations
CONCLUSION
• The Tata Group's diversified business portfolio,
global presence, and commitment to innovation
and sustainability make it a leader in the global
market. Despite challenges, the group's strong
brand reputation, focus on R&D, and strategic
acquisitions have enabled it to maintain its
competitive edge. This project highlights the Tata
Group's strengths, weaknesses, opportunities,
and threats, providing valuable insights into its
success and future prospects. The group's legacy
continues to inspire and shape India's business
INFOSYS
PROFILE
• Founded: 1981 by 7 entrepreneurs, including N.R.
Narayana Murthy and Nandan Nilekani.
• Headquarters: Bengaluru, Karnataka, India.
• Industry: Information Technology (IT) and Business
Process Outsourcing (BPO).
• Founders:N. R. Narayana Murthy, Nandan Nilekani, Kris
Gopalakrishnan, S. D. Shibulal, K. Dinesh, N. S.
Raghavan, Ashok Arora
key statistics
• Market Capitalization: $93.29 billion
• Enterprise Value: $90.92 billion
• Revenue: $18.84 billion
• Net Income: $3.23 billion
• Employee Count: 300,000+
 HISTORY
Early Years (1981-1990)
• Founded on July 2, 1981, by 7 entrepreneurs, including
N.R. Narayana Murthy and Nandan Nilekani, with an
initial capital of ₹10,000.
• First office: Established in Pune, India.
• First client: Data Basics Corporation, USA.
Expansion and Growth (1990-2000)
• IPO in 1993: Infosys went public with an initial public
offering (IPO) and raised ₹13.5 crores.
• Established offices in the US and UK: In 1994 and 1995,
respectively.
• Launched Finacle: In 1996, Infosys launched Finacle, a
banking software solution.
• Reached $100 million in revenue: In 1999.
Global Expansion and Acquisitions
(2000-2010)
• Established offices in Europe and Asia: In 2000 and
2001, respectively.
• Acquired Expert Information Services: In 2003, Infosys
acquired Expert Information Services, a US-based
consulting firm.
• Launched Infosys Consulting: In 2004, Infosys launched
its consulting arm, Infosys Consulting.
• Reached $1 billion in revenue: In 2004.
SWOT ANALAYSIS
• Strengths:
• Strong brand reputation : Infosys has a well-established
brand reputation, with a strong presence in the global IT
services market.
• Diversified service offerings : Infosys offers a wide range
of services, including IT services, consulting, and business
process outsourcing.
• Global delivery model : Infosys has a strong global
delivery model, with a presence in over 50 countries.
• Strong leadership team : Infosys has a strong leadership
team, with experienced professionals at the helm.
• Robust financial performance : Infosys has consistently
Weaknesses
• Dependence on Key Clients: Infosys generates a significant
portion of its revenue from a few key clients, which can make it
vulnerable to client losses.
• High Employee Attrition: Infosys has historically faced high
employee attrition rates, which can increase recruitment and
training costs.
• Limited Presence in Emerging Technologies: Infosys has been
slow to adapt to emerging technologies such as artificial
intelligence, blockchain, and cloud computing.
• Dependence on Indian Market: Infosys generates a significant
portion of its revenue from the Indian market, which can make it
vulnerable to economic downturns in the country.
 Opportunities
• Growing Demand for Digital Transformation: The increasing
demand for digital transformation services provides a significant
opportunity for Infosys to grow its business.
• Emerging Technologies: Infosys can leverage emerging
technologies such as AI, blockchain, and cloud computing to offer
new services and solutions to clients.
• Expansion into New Markets: Infosys can expand its presence into
new markets, such as Latin America, Africa, and Southeast Asia,
to increase its revenue and diversify its client base.
• Acquisitions and Partnerships: Infosys can pursue acquisitions and
partnerships to enhance its capabilities, expand its presence in
new markets, and increase its revenue.
Threats

• Intense Competition: The IT services industry is highly

competitive, with many players competing for market
share.
• Economic Downturns: Economic downturns in key
markets can reduce demand for IT services and impact
Infosys' revenue.
• Regulatory Changes: Changes in regulatory
requirements, such as those related to data privacy and
security, can increase costs and complexity for Infosys.
• Cybersecurity Threats: Infosys, like other IT services
companies, is vulnerable to cybersecurity threats, which
can impact its reputation and revenue.
CONCLUSION
• Infosys is a leading IT services company with a strong
brand reputation, global presence, and diversified
service offerings. The company has consistently
delivered strong financial performance and has a large
and skilled talent pool. However, Infosys also faces
challenges such as dependence on key clients, high
employee attrition, and limited presence in emerging
technologies.