swat analysis and case study of mnc in india

2. What is a Multinational
Corporation???
 It is a corporation that:
Manages
production
In more than
one country
Delivers
services
And/or

3. Definition
 The International Labour Organization (ILO) has defined MNC as:
“a corporation that has it’s management headquarters in one country known as the home
country, and operates in several other countries, known as host countries”.

4. MNC v/s TNC
MNC TNC
MNC have an international identity as
belonging to a particular home
country where they are
headquartered
TNC are more or less borderless in this
regard as they do not consider a
particular country as their base.
MNC’s have branches in other
countries
TNC’s have subsidiaries in other
countries
MNC does not undertake research
and development activities in other
countries
TNC undertakes research and
development activities in all its
subsidiary countries

6. Examples of MNC
IN WORLD IN INDIA OF INDIA
GOOGLE MICROSOFT ONGC
SAS INSTITUTE IBM TATA STEEL
NET APP NESTLE TATA GLOBAL
BEVERAGES
W.L GORE & ASSOCIATES PROCTER & GMBLE
(P&G)
MOTHERSON SUMI
SYSTEMS
BELCORP COCA COLA HCL
MICROSOFT PEPSICO TATA COMMUNICATIONS
MARRIOTT CITI GROUP HINDALCO INDUSTRIES
MONSANTO SONY CORPORATION SUZLON ENERGY
CISCO HEWLETT & PACKARD
(HP)
TATA MOTORS
AMERICAN EXPRESS APPLE DR. REDDY’S
LABORATORIES

7. Features of MNCs
Following are the main features of MNCs:
 Location
 Assets
 Board of Directors
 Size

9. SWOT Analysis of MNCs:
Strengths
• Low Cost
• Supply Chain
Weakness
• Location Problems
• Lack of Transportation facilities
Opportunities
• New Markets
• International Expansion
Threats
• Govt. restrictions
• Substitute Product

10. Advantages
To the Home
Country
To the Host
Country

11. Merits of MNC to Host Country:
 Employment Opportunities
 Marketing Opportunities
 Customer Satisfaction
 Domestic Investment

12. Merits of MNC to Home Country:
 Access to Consumers
 Accesses to Labor
 Technology
 Favorable BOP

13. Disadvantages
To the Home
Country
To the Host
Country

14. Disadvantages of MNC to Host
Country:
 Outdated Technology
 Depletion of Natural Resources
 Loss to Local Businesses
 Transfer of Capital

15. Disadvantages of MNC to Home
Country:
 No Employment Opportunities
 Laws and Protectionism
 Neglect Development

16. Impact of MNC
 Increase in job opportunities
 Cheaper goods
 Payment of dividends and royalty
 Political Interference
 Technology Transfer not necessarily conducive to
development

17. Role of MNC
Positive Role
 An inflow of foreign capital can reduce or even remove the deficit in the
balance of payments
 Multinationals not only provide financial resources but they also supply a
“package” of needed resources including management experience,
entrepreneurial abilities, and technological skills.
 Moreover, MNCs bring with them the most sophisticated technological
knowledge about production processes while transferring modern
machinery and equipment to capital poor LDCs.

18. Role of MNC
Negative Role
 While MNCs do contribute to public revenue in the form of corporate taxes,
their contribution is considerably less than it should be as a result of liberal
tax concessions, excessive investment allowances, subsidies and tariff
protection provided by the host government..
 Multinationals may damage the host countries by suppressing domestic
entrepreneurship through their superior knowledge, worldwide contacts,
and advertising skills. They drive out local competitors and constrain the
emergence of small-scale enterprises.

19. MNC in INDIA: A Case Study

20. Conclusion
 In almost all cases FDI is beneficial for investing firm and host countries, and the
importance of MNC in the world economy will continue to expand.
 Today nations across the globe are moving towards a more open and positive
approach regarding MNC and FDI, a trend that has been reinforced by recent
international agreement and new institutions, such as WTO, APEC ( Asia Pacific
Economic Cooperation) etc.