This document provides an overview of multinational companies (MNCs). It discusses how MNCs originated in the early 20th century and expanded globally after World War II. The document defines an MNC as a company that manages production or delivers services in more than one country, often through foreign subsidiaries. It also outlines different structures MNCs use, such as horizontal, vertical, and diversified integration. The document analyzes the strengths, weaknesses, opportunities, and threats to MNCs, as well as their reasons for establishment and advantages/disadvantages.

1. MULTINATIONAL
COMPANIES
PRESENTED BY : SUKHADIYA KRISHNA(28)
PRESENTED TO : SNEHAL MA’AM

2. INTRODUCTION

3. History And Evolution of MNCs:
 These corporations originated early in the 20th
century and expanded after World War II.
 A multinational corporation developed new
products in its native country and manufactured
them abroad.
 Almost all the earliest and largest multinational
firms were either American, Japanese, or West
European.

4. History And Evolution of MNCs:
 During the last three decades, many smaller
corporations have also become
multinational.
 Such enterprises maintain that they create
employment, create wealth, and improve
technology in countries.

5. What is a Multinational
Companies???
It is a companies that:
Manages
production
In more than
one country
Delivers
services
And/or

6. Definition
Multinational companies (MNC) is a enterprise that
manages production or delivers services in more than
one country can also be referred to as an
international companies.

7. How Is A Company Classified As
An MNC?
Subsidiaries in
foreign countries;
Example: Tata
Operations in a
number of
countries;
High proportion
of assets in or/
and revenues
from global
operations;
Stakeholders
are from
different
countries.

8. MNC In India…
 MNC in India represent a diversified collection of
companies representing different nations.

10. Multinational companies
structure:

11. 1) Horizontal integration :
Horizontal integration is the
process of a company increasing production
of goods and services at the same part of
supply chain. A company may do this via
internal expansion, acquisition or merger.
Example : McDonald’s
Cont…

12. 2) Vertical integration :
vertical integration is a
strategy where a company expands its
business operation into different steps on
the same production path, such as when a
manufacturer owns its supplier and/or
distributors.
Example : Adidas
Cont…

13. 3) Diversified integration
Diversification occurs when a
business develops a new product or expand
into a new market. Often, businesses
diversify to manage risk by minimizing
potential harm to the business during
economic downturns.
Example : Microsoft
Cont…

15. SWOT Analysis of MNCs:
Strengths
• Low Cost
• Well Developed
Infrastructure
Weakness
• Location is often very distant
• Lack of Transportation facilities
Opportunities
• power of Government
• Attract new industries
Threats
• Govt. restrictions
•Quotas

16. Reasons for The Establishment of
MNCs
 To increase market share.
 To secure cheaper premises and labour.
 Employment and Health & Safety rules and
regulation in other countries may be more relaxed.
 To avoid or minimise the amount of tax to be paid.
 To take advantage of government grants available.

17. Advantages of MNCs
 Improved financial performance.
 Lower operating costs.
 Enhanced brand image and reputation.
 Increased sales and customer loyalty.
 Greater production and quality.
 More ability to attract and retain
employees.

18. Cont…
 Make a positive image among stakeholders.
 Access to Capital.
 Product Safety and Liability.
 Help to Attract Investors.
 Improves Business Image And Reputation.
 Increase in competitiveness.
 It help to Correct the social problems
Caused by the Company.

19. Disadvantages of MNCs
 Fundamental principles of business gets
violated.
 CSR projects will not be successful.
 There are not the special areas of any business.
 CSR causes to slow down innovations.

20. CONCLUSION