A multinational corporation (MNC) is an enterprise that manages production or delivers services in multiple countries. To be classified as an MNC, a company typically has subsidiaries in foreign countries, operates in many places globally, derives a high proportion of its assets or revenues internationally, and has stakeholders from different home nations. MNCs can have horizontal, vertical, or diversified structures and organize their foreign operations through subsidiaries, joint ventures, franchises, or turnkey projects. While MNCs bring benefits like technology transfer and jobs to host countries, they also face challenges such as potential monopoly power and lack of cultural understanding. Many leading MNCs operate in India due to its large market size, low costs

1. Multinational Corporation
In India
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2. What is a Multinational
Corporation???
 It is a corporation that:
And/or
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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.
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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;
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Stakeholders
are from
different
countries.

5. Multinational corporation
structure:
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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)
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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)
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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)
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9. Organization of Multinational
Corporations
Subsidiaries
Joint Ventures Companies
Franchise Holders
Turn Key Project.
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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.
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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
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Petroleum

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
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13. Advantages of MNC in India
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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
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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.
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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
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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
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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
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20. MNC In India
 vast population

increasing
power
its
purchasing
 emerging as the
manufacturing and sourcing
location of choice for various
industries
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21. MNC In India…
 MNC in India represent a diversified portfolio of
companies representing different nations.
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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
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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
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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 !
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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
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26. Threats to MNC
 Nationalization
 Lack of Govt. assistance
 Opposition by local traders.
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27. THANK YOU
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