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  2. 2. GROUP II<br />TEAM MEMBERS<br />VINEETHA<br />CINDHYA<br />DEEPA<br />RENJU<br />SUJIN<br />THOMSON<br />
  3. 3. MAIN CONTENTS<br />Definition of MNC ;<br />Multinational corporate structure ;<br />Corporate hierarchy ;<br />Factors leading to the growth of MNC;<br />Benefits of MNC ;<br />Code of conduct ;<br />
  4. 4. MULTINATIONAL CORPORATION<br />Multinational corporation (or Transnational corporation) (MNC/TNC) : is a corporation or enterprise that manages production establishments or delivers services in at least two countries . <br />
  5. 5. Definition: A multinational corporation is an enterprise that engages in foreign direct investment (FDI) and that owns and controls value added activities in more than one country.<br />
  6. 6. Multinational corporations play an important role in globalization ; some argue that a new form of MNC is evolving in response to globalization: the 'globally integrated enterprise'. <br /> MNC’s have existed since1602, in which year the first MNC, the Dutch East India Company, was established.<br />
  7. 7. According to MNCs,it represents a cluster of affiliated firms located in different countries that:<br /><ul><li> Are linked through common ownership
  8. 8. Draw upon a common pool of resources
  9. 9. Respond to a common strategy</li></li></ul><li> MULTINATIONAL CORPORATE STRUCTURE<br /> Multinational corporations can be divided into three broad groups according to the configuration of their production facilities:<br />1.Horizontally integrated multinational corporations<br />2. Vertically integrated multinational corporations<br />3.Diversified multinational corporations<br />
  10. 10. PROCESS OF EVOLUTION<br /> <br />MNCs did not merge overnight.<br /> Domestic firms after going through various stages of the evolution process, qualify for being called as an MNC.<br /> The process of evolution can broadly be grouped in three successive stages. They are:<br /><ul><li>Trade
  11. 11. Assembly or production
  12. 12. Integration</li></li></ul><li>MULTINATIONAL CORPORATIONS<br />The Multinationality of MNCs increase with<br /><ul><li>Number of countries in which it has subsidiaries or affiliate firms
  13. 13. Number of countries in which the firm has operations of various sorts
  14. 14. Foreign assets, revenues, employees over total
  15. 15. Proportion of foreign employees, managers, </li></ul> stockholders<br />
  16. 16. HIERARCHY OF MNC ACTIVITIES<br /><ul><li>Sales or marketing Office
  17. 17. Simple assembly plants
  18. 18. Full-Scale manufacturing (final products and components manufacturing abroad)
  19. 19. R & D operations</li></li></ul><li>FACTORS LEADING TO GROWTH IN IB<br /> The factors leading to the growth in IB are:<br /><ul><li>Rapid technological advancement
  20. 20. Emergence of supportive institutions
  21. 21. Openness of economic policies among large number of countries
  22. 22. Increase in competition</li></li></ul><li>BENEFITS OF MNC<br />Benefits from MNCs can be studied under two broad heads:-<br /><ul><li>Benefits to the host
  23. 23. Benefits to the home countries</li></li></ul><li>CODE OF CONDUCT<br />The multinational corporation shall :-<br /><ul><li>Respond affirmatively to the social and economic plans of the host country.
  24. 24. Seriously consider credible complaints and try to eliminate them .
  25. 25. Confirm to the established policies and the laws of the host country .</li></li></ul><li><ul><li>Supply appropriate information to local authorities about health, safety and environment effects of company‘s products .
  26. 26. Be concerned about human rights in decision making.
  27. 27. Provide clear statement of the basic mission and policies of the company </li></li></ul><li>WHAT MNC HAVE TO DO ?<br />MNCS need to respond in the following ways :-<br /><ul><li>Provide employment .
  28. 28. Train managers .
  29. 29. Provide products and services that raise the standard of living .</li></li></ul><li><ul><li>Introduce and develop new technical skills .
  30. 30. Introduce new managerial and organisational practices
  31. 31. Raise the GDP .
  32. 32. Increase productivity .
  33. 33. Helps build up foreign exchange reserves .</li></li></ul><li>CONCLUSION<br />To conclude, we would opine that MNC’s having a wide ambit is enviable to us, as to the fact that, there exists lots of job opportunity paves a path for the increase in National Income.<br /> And also to create a better society,<br /> with better standard of living,<br /> and it increases labour productivity ,<br /> decrease in unemployment, <br /> and also increases the net national income of the country. <br />This will help the government and this will lead to increase in the export and imports in the country.<br />
  34. 34. Wipro Technologies<br />Type :Public (NYSE: WIT)<br />Founded :1945 (Pre Independence)<br />Headquarters :Bangalore<br />Key people: Azim Premji, Suresh Vaswani, Girish S. Paranjpe<br />Industry: Information technology services<br />Revenue: ▲$5.0 billion (2008) USD<br />Net income:▲$677 million (2007) USD<br />Employees:100,000+ (2008)<br />Website<br />
  35. 35. Aditya Birla Group<br />Type :Private Conglomerate/Listed Companies.<br />Founded :1900s<br />Headquarters :Mumbai, India<br />Key people: Kumar Mangalam Birla (Chairman)<br />Industry: Metals and several others.<br />Products:Aluminium, Copper, Cement, Fertilizer, Textile, Fibre, etc.<br />Revenue:▲ $24 billion<br />Employees:100,000+<br />Subsidiaries: Several.<br />Website:<br />
  36. 36. TATA<br /> <br />Type: Private Conglomerate (BSE)<br />Founded :1868 by Jamshedji Tata<br />Headquarters :Mumbai, Maharashtra, India<br />Key people: Ratan Tata, Chairman<br />Industry: EngineeringMaterialsInformation technologyCommunicationAutomotiveChemicalsEnergy<br />
  37. 37. TATA<br />Products: SteelAutomobilesTelecommunicationsSoftwareHotelsConsumer goods<br />Revenue :US$ 62.5 billion[1](Feb 2008)<br />Net income: ▲ US$ 4 billion (FY 2007)<br />Employees:2,89,500 (2007)<br />Website :<br /><br />
  38. 38.
  39. 39. Thank you<br />