Deepali adhana


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Deepali adhana

  1. 1. Multi National Corporation In India By: Deepali Adhana XI C (DAV Public School, Ballabhgarh)
  2. 2. CONTENTS What is an MNC? Multinational corporate structure SWOT Analysis of MNC MNC In India Trends Of MNC’s In INDIA… Pros & Cons of MNC Bottlenecks Of MNC in India India’s Big Dream Sources Of Information
  3. 3. What is MNC? Multinational 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.
  4. 4. 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)
  5. 5. 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)
  6. 6. 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.
  7. 7. 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
  8. 8. 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
  9. 9. MNC In India(Contd…) India’s vast population is increasing its purchasing power India is also emerging as the manufacturing and sourcing location of choice for various industries
  10. 10. Trends Of MNC’s In INDIA…(Contd..) Companies like SingTel of Singapore and Malaysian giant Salem Group are showing huge interest for investment. Also insurance companies like AIG and Max New York Life Insurance doing business in India.
  11. 11. MNC In India… MNC in India represent a diversified portfolio of companies representing different nations.
  12. 12. 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
  13. 13. Pros & Cons of MNC Pros: Increase investment level Transferring the technology It increase host country exports & reduce its imports Integrating national economy Implement new innovations Increase competition
  14. 14. Pros & Cons of MNC (cont.) Cons: May acquire monopoly power Underestimate local culture Think only about profit rather than host country interest Inflexibility in terms & conditions Heavy use of non-renewable natural resources
  15. 15. Bottlenecks Of MNC in India Socio-economic challenges Language Culture Autonomy to “local” managers – how comfortable are we? Handling of potential liabilities related to Labour, IPR etc Difficult operating environment Weak infrastructure And ………………Patience !