Multinational Corporation
In India

Ihr Logo
What is a Multinational
Corporation???
 It is a corporation that:

And/or

Your Logo
 Multinational corporation (MNC) is a

enterprise that manages production or
delivers services in more than one
country c...
How Is A Company Classified As
An MNC?
Subsidiaries in
foreign
countries;
Operations in a
High proportion of
number of
ass...
Multinational corporation
structure:

Your Logo
Multinational corporate
structure
Horizontally integrated multinational

corporations manage production
establishments lo...
Vertically integrated multinational

corporations manage production
establishment in certain country/countries
to produce...
Multinational corporate structure
(Contd)
 Diversified multinational corporations

manage production establishments locat...
Organization of Multinational
Corporations
Subsidiaries
Joint Ventures Companies
Franchise Holders
Turn Key Project.
Y...
Micro-multinationals
A new breed enabled by Internet based
communication tools.
Employees, clients and resources located...
Fortune Global 500 List 2013: Top
10
RANK

COMPANY

COUNTRY

FIELD

1

Wal-Mart Stores

 United States

Retail

2

Royal D...
SWOT Analysis of MNC
Strengths
• Low Cost
• Well Developed Infrastructure

Opportunities
• Leverage Government
• Create th...
Advantages of MNC in India

Your Logo
Your Logo
Advantages of MNCs to the Host
Country:
 Transfer of technology, capital and entrepreneurship.
 Increase in the investme...
Advantages of MNCs to the
Home Country.
 Acquisition of raw materials from abroad.
 Technology and management expertise ...
Pros & Cons of MNC
Pros:
 Increase investment level
 Transferring the technology
 It increase host country exports & re...
Pros & Cons of MNC (cont.)
Cons:
 May acquire monopoly power
 Underestimate local culture
 Think only about profit rath...
MNC In India
 MNC in India are attracted

towards:

India’s large market potential
India presents a remarkable

busines...
MNC In India
 vast population


increasing
power

its

purchasing

 emerging as the

manufacturing and sourcing
locatio...
MNC In India…
 MNC in India represent a diversified portfolio of

companies representing different nations.

Your Logo
Indian companies in fortune global 500
list 2013:
COUNTRY
RANK

COMPANY

GLOBAL
500 RANK

CITY

REVENUE
($ millions)

1

I...
The Indian MNCs ………………
 Paints – Asian Paints
 Auto & Components – Tata Motors, Bharat Forge
 Chemicals – Tata Chemical...
Bottlenecks Of MNC in India
 Socio-economic challenges
 Language
 Culture
 Autonomy to “local” managers – how comforta...
International powers of MNC’s
 International - Large MNC’s influence

in international relations
 Tax competition- Tax b...
Threats to MNC
 Nationalization
 Lack of Govt. assistance
 Opposition by local traders.

Here comes your footer  Page ...
THANK YOU

Here comes your footer  Page 27

Your Logo
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Mnc 1226082281842875-9

  1. 1. Multinational Corporation In India Ihr Logo
  2. 2. What is a Multinational Corporation???  It is a corporation that: And/or Your Logo
  3. 3.  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. Your Logo
  4. 4. How Is A Company Classified As An MNC? Subsidiaries in foreign countries; Operations in a High proportion of number of assets in or/ and countries; revenues from global operations; Your Logo Stakeholders are from different countries.
  5. 5. Multinational corporation structure: Your Logo
  6. 6. Multinational corporate structure Horizontally integrated multinational corporations manage production establishments located in different countries to produce the same or similar products. (example: McDonald's) Your Logo
  7. 7. 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) Here comes your footer  Page 7 Your Logo
  8. 8. 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) Your Logo
  9. 9. Organization of Multinational Corporations Subsidiaries Joint Ventures Companies Franchise Holders Turn Key Project. Your Logo
  10. 10. 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 traveling 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. Service sector micro-multinationals, like Indigo Design & Engineering Associates Pvt. Ltd. Your Logo
  11. 11. Fortune Global 500 List 2013: Top 10 RANK COMPANY COUNTRY FIELD 1 Wal-Mart Stores  United States Retail 2 Royal Dutch Shell  Netherlands Petroleum 3 Exxon Mobil  United States Petroleum 4 BP  United Kingdom Petroleum 5 Sinopec  China Petroleum 6 China National Petroleum  China Petroleum 7 State Grid  China Power 8 Toyota Motor  Japan Automobiles 9 Japan Post Holdings  Japan Diversified 10 Chevron  United States Your Logo Petroleum
  12. 12. SWOT Analysis of MNC Strengths • Low Cost • Well Developed Infrastructure Opportunities • Leverage Government • Create the necessary infrastructure • Attract new industries Weakness • Location is often very distant • Lack of Transportation facilities • Relative Inflexibility Threats • Emergence of Private companies • Establishment of monopoly Your Logo
  13. 13. Advantages of MNC in India Your Logo
  14. 14. Your Logo
  15. 15. Advantages of MNCs to the Host Country:  Transfer of technology, capital and entrepreneurship.  Increase in the investment level and thus, the income and employment in the host country.  Greater availability of products for local consumers.  Increase in exports and decrease in imports.  MNC’s generate jobs &income Technology transfer  Cost reduction Your Logo
  16. 16. Advantages of MNCs to the Home Country.  Acquisition of raw materials from abroad.  Technology and management expertise acquired from competing in global markets.  Export of components and finished goods for assembly or distribution in foreign markets.  Inflow of income from overseas profits, royalties and management contracts. Your Logo
  17. 17. 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 Your Logo
  18. 18. 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 Your Logo
  19. 19. 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 FDI attractiveness Your Logo
  20. 20. MNC In India  vast population  increasing power its purchasing  emerging as the manufacturing and sourcing location of choice for various industries Your Logo
  21. 21. MNC In India…  MNC in India represent a diversified portfolio of companies representing different nations. Your Logo
  22. 22. Indian companies in fortune global 500 list 2013: COUNTRY RANK COMPANY GLOBAL 500 RANK CITY REVENUE ($ millions) 1 Indian Oil 98 New Delhi 68,837 2 Reliance Industries 134 Mumbai 58,900 3 Bharat Petroleum 272 Mumbai 34,102 4 State Bank of India 292 Mumbai 32,450 5 Hindustan Petroleum 336 Mumbai 28,593 6 Tata Motors 359 Mumbai 27,046 7 Oil & Natural Gas 361 Dehradun 26,945 8 Tata Steel 370 Mumbai 26,065 Your Logo
  23. 23. 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 Your Logo
  24. 24. 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 ! Your Logo
  25. 25. International powers of MNC’s  International - Large MNC’s influence in international relations  Tax competition- Tax breaks, pledges of govt. assistance etc.  Market withdrawal-Eg. Pharmaceutical companies  Lobbying & Patents Here comes your footer  Page 25 Your Logo
  26. 26. Threats to MNC  Nationalization  Lack of Govt. assistance  Opposition by local traders. Here comes your footer  Page 26 Your Logo
  27. 27. THANK YOU Here comes your footer  Page 27 Your Logo
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