Indian multinational corporations face several major challenges when operating abroad, including competition from established local businesses and other multinationals, restrictions on foreign investment in some countries, and increased scrutiny and criticism of their activities. They must address issues like differing cultural values and business practices, ethical concerns, and political risks in order to successfully manage their operations overseas and strengthen their legitimacy and reputation. Adapting to these challenges requires a focus on reducing costs and risks, building competitive advantages, and creating mutually beneficial partnerships in different cultural contexts.

1. Challenges faced by
Indian MNCs
Abroad
Presentation By : Arjun.Govind

2. INTRODUCTION
 A few MNC’s in India:
 Asian Paints,
 ONGC,
 Ranbaxy,
 IBM
 Reliance and
 Kingfisher.

3. Major Challenges
 Competition
 Indigenous business – a threat
 MNC’s - Already rooted
 Restricted foreign investments
 Technologically behind;
 Unfriendly to resources and the environment;
 Engaged in the exploitation of minerals that are specifically
protected by the State; or
 Classified as industries that the government is opening up in
stages

4.  Increased surveillance and Criticisms:
Indian MNCs face surveillance abroad, the territorial
governments keep watchdogs to assess the overall activity of
the corporation.
Steps to face critisisms:
 (1) Reducing cost and risk;
 (2) Strengthening legitimacy and reputation;
 (3) Building competitive advantage; and
 (4) Creating win–win situations through synergistic value
creation.

5.  Cross cultural issues and values affecting Organizational
culture
• Motivational approaches
• Eg. Asian Paints manager
 Ethical issues
• Manipulation of stock markets
• Lobbying
• Fudging of accounts and balance sheet:
• Product Piracy
• Surrogate and deceptive advertising
• Discrimination in selection, compensation and promotion

6.  CSR is becoming compulsion
(1) Clear in terms of objectives and aspirations,
(2) Transparent from both sides and
(3) Committed with a better prospect through
continuous feedback.

7. Corruption
• Of India
• Of the other nation
Subversion
• Riots, political emergency situations, terrorism and
government regulations to protect domestic business

8.  Norms, Policies and Political
challenges
a. Unfair legal proceedings
b. Government regulations
c. Reserved workers
d. Taxation

9. Conclusion
 An MNC must focus on the following aspects to
sustain globally:
 Face the CSR challenges
 Focus on developing the HRM
 Training on work culture and ethos internally
 Reputation management
 Competence analysis

10. THANK YOU