MULTINATIONAL

CORPORATIONS
MNC- Multinational Company

• MNC is most simply defined as a corporation or

enterprise that conduct and control productive activities is
more than one country with the head office being
established in a developed country

• As the name suggests any company is referred to as

a multinational company or corporation when the
company manages its operation or production or
services from more than a single country

Eg. Nokia Corporation , PepsiCo etc.

Manmeet Singh BBA018255
Why MNC's comes to India?

• Huge market
potential of the
country
• FOi attractiveness
• Labour
competitiveness
• Macro-economic
stability
Manmeet Singh BBA018255
 Features of MNC

• Live and operate under

the law and custom of
other country
• Multibranches
• Huge amount of capital
• Advance technology
• Market expansion
• Profit is the main
objective
• Control of head office
Manmeet Singh BBA018255
 SWOT Analysis of MNCs:
Strengths
•Low Cost
Weakness
•Well Developed
• Location is often very distant
Infrastructure
• Lack of Transportation facilities
• Relative Inflexibility

Opportunities
• Leverage Threats
Government
• Attract new
• Govt. restrictions
industries
• Quotas

Shraddha Shetty BBA018249

Top MNCs in India

IBM:

• IBM India Private Limited, has been

operating in India since 1992. this global
company is known for invention and
integration of sof tware, hardware as well
as services.
• It is best known to have introduced
Personal Computers in India
Yash Zendekar BBA018285
Top MNCs in India

IBM

• Present in more than 200 cities, this

company is making constant progress
in global markets to maintain its leading
position

• With innovative technology and solutions,

this company is making a constant
progress in India.
Yash Zendekar BBA018285
Top MNCs in India
Microsoft

• A subsidiary, named as Microsoft

corporation India Private Limited , of the
U.S. based Microsoft Corporation , one of
the software giants has also got their
headquarter in New Delhi.

• Microsoft India | Mission & Vision |

Empowering every person and every
organization on the planet to achieve more.
Pranav Thirkul BBA018265
Top MNCs in India
Microsoft Cntd ......

• The company is committed towards the

development of the Indian software as well
as l.T

Today, Microsoft entities in India have over

8,000 employees, engaged in sales and
marketing, research and development and
customer services and support, across 11
Indian cities
Pranav Thirkul BBA018265
 Reasons for Establishment of
MNC’s in India

 To increase market share.

 To secure cheaper premises and labour.

 Employment an d Health & Safety

Legislations in other countries ma y be
more relaxed.
Umar Masood BBA018268
 Reasons for Establishment of
MNC’s in India

 To take advantage of government grants

available.

 To save on costs of transporting goods

to the market place.

 To develop an international brand.

Umar Masood BBA018268
MNC is a Boon or Bane?
 Some points in favour of MNC

• Globalization
Make the Entire World an Global Village
• Reduce Technological gap
• Quality Products
• Monopoly Reduction
* Employment Generation

Apoorva Vedpathak BBA018272

Some points in favour Cntd ......

• Healthy competition
• Generation of FDI
• Generation of income
• Brain gain instead of
brain drain
• Developed our life style

Apoorva Vedpathak BBA018272

Advantages of Mnc’s

• Initiating a higher level

investment
• Natural resources are
utilized properly
• Foreign exchange gap
reduction
• Recruit people on the
basis of their talent

Anurag Singh BBA018254

Points against MNC

• Indigenous product and

small organization
suffer
• Native corporation
crumbled under the
competition of MNC
• National security threat
• No profit except taxes
remain in home country

Harshal Shinde BBA018251

Points against MNC Cntd ......

• Global warming
evolved due to MNC
• Exploit resources
• Human resource
practices are not good
• Caused to restless life
style

Harshal Shinde BBA018251

 TRENDS OF MNC S IN INDIA:

 First MNC in India was the EAST INDIA Company. in

1600.

 American companies account for around 37% of the

turnover of the top 20 firms operating in India.

 Oil companies and Infrastructure builders from the

Middle East are also flocking in India to catch the boom

Smit BBA0182
 Increasing flocking of Europian Union companies to
India.
 Finnish mobile handset manufacturing giant Nokia
is the largest Multinational Corporation In India.
 Italian automobile giants like Fiat, Ford Motors,
Piaggio etc expanded their operations in India with
R&D wing attached.

 South Korean Electronics giants Samsung and LG

Electronics and small and mid-segment car giant
Hyundai Motors are doing excellent business and
using India as a hub for global delivery.

Smit BBA0182
HISTORY A N D E VOLUTION OF MNCS:

 These corporations originated early in the 20 th

century a n d expanded after World War II.

 A multinational corporation developed new

products in its native country a n d
manufactured them abroad.

 Almost all the earliest a n d largest

multinational firms were either American,
Japanese, or West European. Sumer BBA0182
HISTORY A N D E VOLUTION OF MNCS:

 During the last three decades,

man y smaller corporations have
also become multinational.

 Such enterprises maintain that

they create employment, create
wealth, an d improve
technology in countries. Sumer BBA0182
 KEY CHALLENGES THAT I NDIAN
MNC S FACE:
 Domestic market like India vis - a - vis International expansion.

 Language.

 Culture.

 Autonomy to “local” managers .

 Styles of doing business.

 Handling of potential liabilities related to Labor, IPR etc.

Vishal Singh BBA018259

Conclusion

• It is a route or way to move India

forward which have been failed early
90's. If it is properly regulate by
government.

• MNCs help in breaking protectionism and

also helps in curbing local monopolies, if at
all it exists in the country.
TBH