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Case Study - Vodafone in India
Please use the attached guidelines (Vodafone Case Study Instructions) and the 4 PDF articles to assist me with the following assignment. Thanks!
According to the Wall Street Journal:
It wasn`t long ago that India was hailed as one of the world`s most promising growth markets. But mercurial regulation, stifling bureaucracy and slower economic growth have shaken foreign companies` confidence about making big investments here. Now a case at the country`s highest court threatens to make the climate chillier still. India`s Supreme Court is preparing to issue its decision on whether U.K.-based Vodafone Group PLC must pay about $2.6 billion in taxes on an $11.1 billion deal it struck in 2007 with a unit of Hong Kong`s Hutchison Whampoa Ltd. to enter India. (Sharma, Becket & Bahree, 2012).
Reading Materials
I suggest that you read the materials that I am providing to you in this order:
1. Multinational Firms Brace for Vodafone Ruling in India.pdf
2. Vodafone India.pdf
3. Vodafone.pdf
4. Vodafone-Outcome.pdf
I am required to write an 8-10 page case study based on the attached 4 documents.
In this case study, I am required to examine the company Vodafone in the context of its merger to form Vodafone India. I am required to consider the merger in light of the suit brought against Vodafone India by the government of India to collect about $2.6 billion in taxes that India asserts are owed to it as a result of the merger.
For this case study I am also required to:
1) Frame the issues of the case
2) Do a SWOT analysis
3) Analyze the corporate-level strategy pursued by the company as compared to the SWOT analysis
4) Make specific recommendations for what the company should do next and directions that it should take
5) Specifically consider the cultural orientations of the countries participating in case, and their impact upon it
6) Answer these questions:
-What are the pros and cons of the mode of entry chosen by Vodafone to enter the India market? What is your opinion of the one they chose?
-What is your opinion of the strategies that Vodafone used to hedge their risks in their India market entry, and do you think these were sufficient? Should Vodafone have anticipated the legal entanglement they encountered? What, if anything, would you have done differently?
- Vodafone has developed a reputation as a company that is relentless in its determination to avoid taxes. At the same time, India has developed a reputation for taxing foreign entities in ways that are unexpected, and that many companies think are unfair. Having reviewed the materials for this case, what do you think about the merits of the Vodafone India tax case?
I am also required to have at least 8 website references in addition to the attached case study references. Please use in-text citations so I understand what reference source each citation comes from and can look them up on the internet. I am assigning the maximum number of credits to this assignment because it is very important to my studies. Please be sure to provide a thorough response that is understandable so I can learn from it.
Thanks for your assistance.