3. What is MNC ?
History and Evolution of MNC.
MNC Structure.
Organization of MNC.
Swot Analysis of MNC.
Advantage and disadvantage of MNC.
MNCs in India.
OVERVIEW
4. An enterprise operating in several countries but managed from one
(home) country. Generally, any company or group that derives a
quarter of its revenue from operations outside of its home country
is considered a multinational corporation.
There are four categories of multinational corporations:
1- A multinational, decentralized corporation with strong home
country presence.
2 -A global, centralized corporation that acquires cost advantage
through -centralized production wherever cheaper resources are
available.
3- An international company that builds on the parent corporation's
technology or R&D.
4 A transnational enterprise that combines the previous three
approaches.
WHAT IS MNC ?
8. Innovative Culture (MNC) -: An innovative culture
helps MNC to produce unique products and services that meet
their customer’s needs...
Supply Chain (MNC) -: A strong supply chain helps MNC obtain
the right resources from suppliers and delivery the right product to
customers in a timely manner…
Size Advantages (MNC) -: Size advantages lower MNC’s risks.
The larger MNC gets, the more resources they have to pursue
new markets and defend themselves against rivals…
Customer Loyalty (MNC) -: When given a choice, customers
are loyal to MNC. Instead of targeting all customers, MNC only
needs to target new customers in order to grow their business…
Weak Management (MNC) -: Weak management increases
business risks and reduces profits for MNC, because they are
SWOT ANALYSIS OF
MNC.
9. Advantages of MNC's
1. MNC's create opportunities for marketing the products
produced in the home country throughout the world.
2. They create employment opportunities to the people
of home country both at home and abroad.
Disadvantages of MNC's
1. MNC's may transfer technology which has become outdated
in the home country.
2. As MNC's do not operate within the national autonomy, they
may pose a threat to the economic and political sovereignty of
host countries.
ADVANTAGE AND
DISADVANTAGE OF
MNC
10. In turn, India also derives a lot of benefits from MNCs such as higher
level of investment, reduction in technological gap, optimum utilization of
natural resources, reduction in foreign exchange gap and boost to basic
economic structure. But roses do not come without thorns.
So there are certain disadvantages of having MNCs in a developing
country like India like competition to SMSI, increased pollution and
environmental hazards, improper diffusion of profits and Forex
imbalance, slow decision making and sometimes economic distress. But
these don’t overcome the gains of having MNCs.
With just a few days left for the announcement of the Union Budget
2016, a survey has found that the youth’s desire to work in start-ups has
increased from 8% to 14%. While half of the respondents conveyed their
intention to start their own company, a marginal ¾ students actually
didn’t have any idea as to how to take the ideas forward. Therefore, a
majority of students looking for stable job opportunities would want to
work with an MNC or some SME.
In India, a large number of MNCs are operating. So, here we have
MNCs IN INDIA
