Mutli-National Company Entering India Research Paper

Mutli-National Company Entering India - Research Paper Example Gazprom operates in the industry of natural gas. From the demand side the factors affecting sales of the company and its profitability are weather, demographics, economic growth, fuel consumption, storage and exports. From the supply side, the factors affecting sales are pipeline capacity, storage, gas drilling, natural phenomena, technical issues and imports. The demand of natural gas has followed the cyclical pattern. It depends on time and season changes. The peak season of demand is the coldest months while demand is low in the hotter months although demand increases slightly in summer to meet the requirements of electric generators. The price of natural gas can affect demand of particularly those consumers who have the capacity to switch the fuel of their dependence. An expanding economy tends to give rise to more demand for the industrial consumers. The study of the recent activities of Gazprom will reveal whether the company is utilizing its resources. The company in collabora tion with Shell is on the discussion to take joint efforts abroad with Russia as the epicenter. The company is progressing with the joint projects of EDF and Total. The company launched the informatorium website in English (Gazprom, 2012). It recently completed the pre-commissioning of Bovanenkovo. Along with DONG Energy the company is developing investment rationale for the projects of power generation in North Western Europe. Brief Summary of the business A straight forward market structure characterized the market for natural gas prior to deregulation and unbundling of pipeline. The industry has changed dramatically in the present times and exposed to choice and competition. Free market regulates the prices. Interstate pipelines offers on the components of transportation which is under the regulation of the federal. LDCs are continuing to offer bundled products although many states allow the use of distribution network but only for transportation. Producers or LDCs are the suppli er to the end users. Marketers are present in the existing market structure. They serve in the process of mobilizing natural gas from producers to end users. Marketers can have their mark in sale and transport of natural gas. Fluctuations In exchange rate The following chart and the table show the fluctuations in the exchange rate: SDRs per currency unit for the period January 31, 2010 - January 30, 2011 Date Indian rupee(INR) Russian ruble(RUB) 1-Feb-10 0.01393 Â   0.0212344 Â   2-Mar-10 0.0142143 Â   0.0218208 Â   5-Apr-10 0.0147268 Â   0.0225517 Â   4-May-10 0.0149466 Â   0.0227324 Â   1-Jun-10 0.0146398 Â   0.0219997 Â   2-Jul-10 0.0143573 Â   0.0214848 Â   2-Aug-10 0.0142177 Â   0.0217556 Â   1-Sep-10 0.0140855 Â   0.0214345 Â   1-Oct-10 0.0143587 Â   0.0210278 Â   1-Nov-10 0.0142717 Â   0.0206002 Â   1-Dec-10 0.0143023 Â   0.020779 Â   10-Jan-11 0.0144437 Â   0.0216247 Â   1-Feb-11 0.0139117 Â   0.0214905 Â   1-Mar-11 0.0140906 Â   0.0221084 Â   6-A pr-11 0.0142449 Â   0.0223142 Â   3-May-11 0.0139446 Â   0.0226197 Â   1-Jun-11 0.0139248 Â   0.0223499 Â   1-Jul-11 0.0140143 Â   0.0224329 Â   1-Aug-11 0.014103 Â   0.0225737 Â   2-Sep-11 0.0136119 Â   0.0214996 Â   3-Oct-11 0.013013 Â   0.0197337 Â   1-Nov-11 0.0129771 Â   0.0207838 Â   1-Dec-11 0.0124078 Â   0.0207745 Â   9-Jan-12 0.0124032 Â   0.0203137 Â   The factors that contribute to the changes in the exchange