Role of mnc's in india
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ROLE OF MNC’s IN INDIA
PRANAV DHANANIWALA
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CONTENT
MNCHISTORY OF MNCFEATURES OF MNCMNC’s IN INDIAIMPACT ON INDIASWOT ANALYSISMERITS AND DEMERITSROLES OF MNCCONCLSION
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MNC
An enterprise operating in several countries but managed from one (home) country.
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HISTORY OF MNCFirst MNC in world First MNC in India
Indian MNC
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FEATURES OF MNCBig size Huge intellectual capitalOperates in many countriesLarge number of customerLarge number of competitorsStructured way of decision making
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MNC’s IN INDIA
Huge market potential of the countryFDI attractivenessLabor competitivenessMacro-economic stabilityOne billion plus population
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IMPACT ON INDIA
Large amount of tax collections through MNC’sIncreased revenueEconomic health improvedEmployment increasedForeign relation increased
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SWOT ANALYSISstrengt
h
weakness
opportunities
threats
Well developed infrastructure
LocationTransportation
Inflexibility
Leverage governmentAttract new industries
Emergence of new companiesMonopoly
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MERITS AND DEMERITS
MERITSIncrease in investment levelTransferring the technologyIt increase host company export than importIntegrating national economyImplementing new innovations
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MERITS AND DEMERITS CONT…
DEMIRITSMay acquire monopoly powerUnderestimate local cultureThink about profit rather than the host country interestInflexibility in terms and conditionsHeavy use of non-renewable natural resources
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ROLES OF MNC IN INDIA
Profit maximizationInternational network of marketingDiversification policyConcentration in consumer goodsMNC’s & Process of planned economic development in indiaCultural explosion
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CONCLUSIONCompetition increased and more employment opportunity are
availableGives advantages to domestic companies by purchasing of
raw materialsNew company having network to expand their business