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Role of mnc’s in organized retail format

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  • 1. “An enterprise which allocates company resources without regards to national frontiers, but is nationally based in terms of ownership and top management”. “ An enterprise which own or control production or service facilities outside the country in which they are based”.
  • 2. Features of MNC 1. Big size 2. Huge intellectual capital 3. Operates in many countries 4. Large number of customer 5. Large number of competitors 6. Structured way of decision making
  • 3. Organized retail formats  The term organized retailing means to have a formal organization to coordinate and carry out activities.  The organized retail formats are generally owned by corporate entities.  They may include: hyper market, super market, convenience store, exclusive outlet, departmental store and cash-n-carry.
  • 4.  Organized retail outlet is a place where the product attributes in terms of quality, weight/quantity, price, service of the providers are homogenous.  They have the advantages of economies of scale and scope, as the purchasing is done in bulk orders.  Its now constitutes 5% of the total retail sector, is likely to grow at a much faster pace of 45-50percent per annum.
  • 5. The movement of technology to produce goods as well as for communication purpose. The introduction of technology to the developing world can lead to cleaner and more efficient technologies. Capital, the means of production, is basic need of any retailing format. Through FDI, MNCs are able to diffuse the much needed resources into developing country.
  • 6. Their GDP and GNP will also reflect the growth of industry. These changes will potentially attract more investors in the same industry. The skill level of the workers within the host country would also increase because many MNCs can and do educate them in the job skills.
  • 7. FDI through MNCs is Far Easier: FDI through MNCs is Far Easier to attain than national development aid or multilateral bank lending because there are so many firms looking for opportunities for optimizing profits.
  • 8. Reasons for Growth of MNCs in Retailing Factor mobility Economic reforms Management culture Growth urge Market potential Risk minimizing Developing in communication technology
  • 9. List of Retail Companies in India Aditya Birla Retail Ltd. Crossword Bookstores Limited
  • 10. Fabindia Ebony Retail Holdings Ltd Heritage Foods (India) Ltd
  • 11. Levi Strauss Nalli NEXT Retail India Ltd
  • 12. F Zodiac Clothing Co. Ltd Vishal retail. Ltd
  • 13. Arvind Ltd Balaji Distilleries Ltd. Bannari Amman Sugars Ltd. Bharat Petroleum Corporation Ltd. Bombay Swadeshi Stores Ltd. Brandhouse Retails Ltd Damas Goldfields Jewellery Pvt. Ltd. Garden Silk Mills Limited Gini Silk Mills Ltd Givo Ltd. Garden Silk Mills Limited Gini Silk Mills Ltd Givo Ltd Globus Corporation Ltd GR Thanga Maligai Guardian Lifecare Ltd. ITC Ltd – LRBD Kalanjali Arts and Crafts Kirtilal Kalidas & Co Koutons Retail India Ltd.

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