Multi National CorporationIn India

Presented By:-Silky Thakkar

CONTENTSWhat is an MNC?

Multinational corporate structure

SWOT Analysis of MNC

MNC In India

Trends Of MNC’s In INDIA…

MNC in INDIAN economy

India’s Big Dream

Sources Of Information

DefinitionMultinational 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.

Multinational corporate structure

• Horizontally integrated multinational corporations manage production establishments located in different countries to produce the same or similar products. (example: McDonald's)

• 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)

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)

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 travelling 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.

SWOT Analysis of MNC

Strengths

• Low Cost• Well Developed Infrastructure

Weakness

• Location is often very distant• Lack of Transportation facilities• Relative Inflexibility

Opportunities

• Leverage Government • Create the necessary infrastructure• Attract new industries

Threats

• Emergence of Private companies• Establishment of monopoly

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• India’s vast population is

increasing its purchasing power

Trends Of MNC’s In INDIA…

• First MNC in INDIA is EAST INDIA Co. in 1600.

• American companies accounts for around 37% of the turnover of the top 20 firms operating in India.

• Finnish mobile handset manufacturing giant Nokia is the largest Multinational Corporation In India.

• Also insurance companies like AIG and Max New York Life Insurance doing business in India.

Success factors for MNCs operating in India …

• Commitment at global level – Raise the profile of India – Formulation of bold long term targets

• Empowered local Management – More cost effective, enhances continuity, leverages

understanding of local environment • Localized product / market business models : create

customized products and services in response to unique environment in India – Deliver the right product at the right price with right

positioning for India

MNC In India…• MNC in India represent a diversified portfolio of companies representing

different nations.

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

MNC in INDIAN economy

• Increase investment level• Foreign Technology Transfer• Sector-wise Inflow of FDI

• Top 5 American employers in India:-

• General Electric: : 17,800 employees

• Hewlett-Packard : 11,000 employees

• IBM : 6,000 employees

• American Express : 4,000 employees

• Dell : 3,800 employees

India’s Big Dream

• Harnessing the global trends by encouraging the MNCs to engage in product innovation for local consumers represents a big challenge in India.

• Policy-makers, industry leaders and academic institutes need to work together to create and disseminate a list of "dream innovations" that will inspire people.

conclusion

Due to this MNC’s,Competition increase and

more employment opportunities are available& there will be reduction

In inequalities. . .