Development Stages of MNC:

INTRODUCTION
In today's business world, most successful companies have
adapted their long range strategic planning to survive. In
addition, business environments now encompass worldwide
markets, not only national markets. Introducing global
strategies into planning is complicated and presents many
unique problems, such as methods of penetrating a foreign
market, foreign exchange risk analysis, and foreign political
factors.
If a company decides to tackle the global market, it will have to
constantly monitor and evaluate the international market for
new developments. Not only will the foreign country itself have
to be monitored for differences, but any other countries that
highly influence the foreign market will also have to be
monitored.
1. Planning
Global market planning of the MNC is an expansion of a
companys strategy; however, global market planning is much
more complex because of the highly complicated foreign
environmental factors that exist. Domestic markets consider
these complicated foreign environmental factors irregularities,
but for MNC, these complicated factors are the rule.
2. Predicting Future Variables
Predicting future environmental conditions are the most
difficult step, for the MNC because discovering future
problems is a hit and miss situation in most cases. Not all
people regard planning as the solution for avoiding
impending pitfalls. However, before entering into any new
market the MNC do the proper survey regarding the
demand and supply of their services or product and this is
very important step for any developing MNC for the new
market.



3. Resource Allocation
At the core of planning is resource allocation. A MNC
should decide to work in countries that have an ample
supply of the resources necessary in the production of its
product or required to provide its intended service. At the
same time, however, the MNC should also consider
promising, low-cost countries that may benefit the
company in the future. Another option for the MNC is to
focus excess financial resources in areas where it has
enormous proficiency in every functional aspect.
4. Location
When contemplating entering a foreign market, a MNC
should closely consider its internal strengths and
weaknesses emphasizing on specific issues pertaining to
the foreign locale. Lists are a few of the issues that must be
considered when analyzing a foreign market location:
MARKETING,RAW MATERIALS,TECHNOLOGY,etc
5. Environmental Scanning
Once MNC has selected possible locations, the MNC must
further reduce their lists of alternative locations by
conducting an environmental scan, which will reveal
governmental restriction, cultural, and economic
restrictions of the potential country along with the License
Restriction.


6. Legal Formality: After the Scanning of the working
environment the last and the final step is to complete all
the legal formaility which is prescribed by the government
according to the Local laws such as registration of the
company, Various type of License, Various format of the
company which to be selected like FDI, etc along with the
Local taxes. After it is done the MNC is legal entitled to
operate business in India.