Multi National Companies
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Transcript of Multi National Companies
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Multi National CorporationIn India
Presented By:-Silky Thakkar
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CONTENTSWhat is an MNC?
Multinational corporate structure
SWOT Analysis of MNC
MNC In India
Trends Of MNC’s In INDIA…
MNC in INDIAN economy
India’s Big Dream
Sources Of Information
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DefinitionMultinational corporation (MNC) is a
enterprise that manages production or delivers services in more than one country can also be referred to as an international corporation.
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Multinational corporate structure
• Horizontally integrated multinational corporations manage production establishments located in different countries to produce the same or similar products. (example: McDonald's)
• Vertically integrated multinational corporations manage production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries. (example: Adidas)
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Multinational corporate structure (Contd..)
• Diversified multinational corporations manage production establishments located in different countries that are neither horizontally nor vertically nor straight, nor non-straight integrated. (example: Hilton Hotels)
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Micro-multinationals
• A new breed enabled by Internet based communication tools.
• Employees, clients and resources located in various countries.
• Use of internet, cheaper telephony and lower travelling costs.
• Internet tools like Google, Yahoo, MSN, EBay, Skype and Amazon make it easier for the micro-multinationals to reach potential customers in other countries.
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SWOT Analysis of MNC
Strengths
• Low Cost• Well Developed Infrastructure
Weakness
• Location is often very distant• Lack of Transportation facilities• Relative Inflexibility
Opportunities
• Leverage Government • Create the necessary infrastructure• Attract new industries
Threats
• Emergence of Private companies• Establishment of monopoly
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MNC In India MNC in India are attracted
towards:
• India’s large market potential
• India presents a remarkable business opportunity by virtue of its sheer size and growth
• Labor competiveness• India’s vast population is
increasing its purchasing power
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Trends Of MNC’s In INDIA…
• First MNC in INDIA is EAST INDIA Co. in 1600.
• American companies accounts for around 37% of the turnover of the top 20 firms operating in India.
• Finnish mobile handset manufacturing giant Nokia is the largest Multinational Corporation In India.
• Also insurance companies like AIG and Max New York Life Insurance doing business in India.
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Success factors for MNCs operating in India …
• Commitment at global level – Raise the profile of India – Formulation of bold long term targets
• Empowered local Management – More cost effective, enhances continuity, leverages
understanding of local environment • Localized product / market business models : create
customized products and services in response to unique environment in India – Deliver the right product at the right price with right
positioning for India
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MNC In India…• MNC in India represent a diversified portfolio of companies representing
different nations.
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The Indian MNCs ………………
• Paints – Asian Paints • Auto & Components – Tata Motors, Bharat Forge • Chemicals – Tata Chemicals, United Phosphorus • Metals – Sterlite Industries, TISCO • Packaging – Essel • Pharmaceuticals – Ranbaxy, Wockhardt, Sun,
DRL • Oil & Gas – ONGC
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MNC in INDIAN economy
• Increase investment level• Foreign Technology Transfer• Sector-wise Inflow of FDI
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• Top 5 American employers in India:-
• General Electric: : 17,800 employees
• Hewlett-Packard : 11,000 employees
• IBM : 6,000 employees
• American Express : 4,000 employees
• Dell : 3,800 employees
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India’s Big Dream
• Harnessing the global trends by encouraging the MNCs to engage in product innovation for local consumers represents a big challenge in India.
• Policy-makers, industry leaders and academic institutes need to work together to create and disseminate a list of "dream innovations" that will inspire people.
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conclusion
Due to this MNC’s,Competition increase and
more employment opportunities are available& there will be reduction
In inequalities. . .
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