Copy Of Mpob
-
date post
14-Sep-2014 -
Category
Documents
-
view
2.718 -
download
1
description
Transcript of Copy Of Mpob
MULTINATIONAL CORPORATIONS
GROUP IITEAM MEMBERSVINEETHACINDHYADEEPARENJUSUJINTHOMSON
multinational corporation-(definition) multinational corporate structure process of evolution multinational corporations hierarchy of MNCs activities factors leading to growth in IB benefits of MNCs code of conduct what MNCs have to do ? conclusion list of MNCs in India
CONTENTS
MULTINATIONAL CORPORATION
Multinational corporation (or Transnational corporation) (MNC/TNC) : It manages production establishments or delivers services in at least two countries
Definition: It engages in foreign direct investment (FDI) and that owns and controls value added activities in more than one country.
Large multinationals have budgets that exceed those of entire countries. They have a powerful influence in international relations and local economies.
They have play an important role in globalization ; some argue that a new form of MNC is evolving in response to globalization: the 'globally integrated enterprise'.
MNCs have existed since1602, in which year the first MNC, the Dutch East India Company, was established.
According to MNCs,it represents a cluster of affiliated firms located in different countries that:
Are linked through common ownership Draw upon a common pool of resources Respond to a common strategy
All this shows high degree of integration among different units of the firm.
MULTINATIONAL CORPORATE STRUCTURE
Multinational corporations can be divided into three broad groups according to the configuration of their production facilities:
1.Horizontally integrated multinational corporations ;manage production establishments located in different countries to produce the same or similar products.(example: McDonald's)
2.Vertically integrated multinational corporations: It manages production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries. (example: Adidas)
3.Diversified multinational corporations:
It manages production establishments located in different countries that are neither horizontally nor vertically nor straight, nor non-straight integrated. (example: Microsoft or Siemens A.G.)
PROCESS OF EVOLUTION
MNCs did not merge overnight.
Domestic firms after going through various stages of the evolution process, qualify for being called as an MNC.
The process of evolution can broadly be grouped in three successive stages. They are:
TradeAssembly or productionIntegration
MULTINATIONAL CORPORATIONS
The Multinationality of MNCs increase with
Number of countries in which it has subsidiaries or affiliate firms
Number of countries in which the firm has operations of various sorts
Foreign assets, revenues, employees over total
Proportion of foreign employees, managers, stockholders
HIERARCHY OF MNC ACTIVITIES
Sales or marketing Office
Simple assembly plants Full-Scale manufacturing (final
products and components manufacturing abroad)
R & D operations
FACTORS LEADING TO GROWTH IN IB
The factors leading to the growth in IB are:
Rapid technological advancement Emergence of supportive institutions Openness of economic policies among large
number of countries Increase in competition
BENEFITS OF MNC
Benefits from MNCs can be studied under two broad heads:-
Benefits to the host Benefits to the home countries
Benefits to the host countries : Transfer of technology, capital and entrepreneurship to
the host country. Improvement of the host country’s balance of payment .
Creation of local job and career opportunities .
Improved competition in the local economy and better utilisation of available resources .
Greater availability of products for local consumers .
Encouragement to World economic unity
BENEFITS TO HOME COUNTRIES :-
Acquisition of raw materials from abroad Technology and management expertise
acquired from competing in global markets . Inflow of income from overseas profits . Job and career opportunities at home and
abroad .
CODE OF CONDUCTThe multinational corporation shall :-
Respond affirmatively to the social and economic plans of the host country.Seriously consider credible complaints and try to eliminate them .Confirm to the established policies and the laws of the host country .
Supply appropriate information to local authorities about health, safety and environment effects of company‘s products .
Be concerned about human rights in decision making.
Provide clear statement of the basic mission and policies of the company
WHAT MNC HAVE TO DO ?
MNCS need to respond in the following ways :-
Provide employment .Train managers .Provide products and services that raise the standard of living .
Introduce and develop new technical skills .
Introduce new managerial and organisational practices
Raise the GDP .Increase productivity .Helps build up foreign exchange reserves .
CONCLUSION
To conclude, we would opine that MNC’s having a wide ambit is envitable to us, as to the fact that, there exists lots of job opportunity paves a path for the increase in National Income. And also to create a better society, with better standard of living,and it increases labour productivity ,decrease in unemployment,and also increases the net national income of the country.This will help the government and this will lead to increaseinm the export and imports in the country.
Type :Public (NYSE: WIT)
Founded :1945 (Pre Independence)
Headquarters :Bangalore
Key people: Azim Premji, Suresh Vaswani, Girish S. Paranjpe
Industry: Information technology services
Revenue: ▲$5.0 billion (2008) USD
Net income:▲$677 million (2007) USD
Employees:100,000+ (2008)
Website :www.wipro.com
WIPRO TECHNOLOGIES
Type :Private Conglomerate/Listed Companies.
Founded :1900s
Headquarters :Mumbai, India
Key people: Kumar Mangalam Birla (Chairman)
Industry: Metals and several others.
Products:Aluminium, Copper, Cement, Fertilizer, Textile, Fibre, etc.
Revenue:▲ $24 billion
Employees:100,000+
Subsidiaries: Several.
Website: www.adityabirla.com
Aditya Birla Group
RELIANCE GROUP
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 34 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
RELIANCE GROUP
The Group exports products in excess of US $ 20 billion to 108 countries in the world. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited ) and Reliance Industrial Infrastructure Limited
Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
Type: Private Conglomerate (BSE)Founded :1868 by Jamshedji TataHeadquarters :Mumbai, Maharashtra, IndiaKey people: Ratan Tata, ChairmanIndustry: Engineering
MaterialsInformation technologyCommunicationAutomotiveChemicalsEnergy
TATA
Products:SteelAutomobilesTelecommunicationsSoftwareHotelsConsumer goods
Revenue :US$ 62.5 billion[1](Feb 2008)Net income: ▲ US$ 4 billion (FY 2007)Employees:2,89,500 (2007)Website :www.tata.com
TATA
INFOSYS Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US $ 250. Today, we are a global leader in the "next generation" of IT and consulting with revenues of over US$ 4 billion.
Infosys' service offerings span business and technology consulting , application services, systems integration, product engineering, custom software development maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing.
THANK YOU