Study Material Format updated-Module V

Programme Name and Semester: BBA, 5th Semester
Course Name (Course Code): Retail Management, BBAD502M

Class
Academic Session : 2023-24
Study Material
(Retail Management - BBAD502M)
_____________________________________________________________________________________________
Table of Contents
Contents
Multi National Corporation (MNC)............................................................................................................................... 2
TOP 10 MNCS IN INDIA ................................................................................................................................................ 2
Evolution of MNC ......................................................................................................................................................... 3
Growth of MNCs in India .............................................................................................................................................. 3
Reasons for the growth MNC ....................................................................................................................................... 3
Characteristics of a Multinational Corporation ............................................................................................................ 4
Models of MNCs ........................................................................................................................................................... 5
Advantages of Being a Multinational Corporation ....................................................................................................... 6
ASEAN........................................................................................................................................................................... 6
ASEAN Members .......................................................................................................................................................... 6
SAARC ........................................................................................................................................................................... 7
SAARC – Countries........................................................................................................................................................ 7
Current crises ............................................................................................................................................................... 8
MCQ ............................................................................................................................................................................. 9
Short Answer Questions............................................................................................................................................. 12
Long answer questions............................................................................................................................................... 13
Additional Practice Exercises for advanced learners.................................................................................................. 13
References .................................................................................................................................................................. 13
Name of the Faculty : Anik Ghosh

Designation and Department : Assistant Professor, Department of Management
Brainware University, Kolkata 1
Class
Module V: HR Policies and Franchising in Retail

Growth and evolution of Indian MNC’s, Current crises in US/Europe/Asia and its impact on
economic growth of India. SAARC, ASEAN and India.
-------------------------------------------------------------------------------------------------------------------------------
Multi National Corporation (MNC)
Multi National Corporation is a Corporate organization which owns or controls production of goods or
services in at least one country other than its home country.
TOP 10 MNCS IN INDIA
• Apple India Pvt. Ltd.

• Amazon Development Centre India Pvt. Ltd.
• Citibank India
• Coca-Cola India Pvt. Ltd.
• Google India Pvt. Ltd.
• Hewlett-Packard India Pvt. Ltd.
• IBM India Pvt. Ltd.
• Microsoft Corporation India Pvt. Ltd.
• PepsiCo India Holdings Pvt. Ltd.
• Sony India Pvt. Ltd.

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Evolution of MNC
Like, the East India Company, which came to India as a trading company and then its net throughout the
country to become politically dominant, these multinationals first start their activities in extractive
industries or control raw materials in the host countries during 1920s and then slowly entered. In to the
manufacturing and service sectors after 1950s. Most of the MNC’s at present belong to the four major
exporting countries viz., USA, UK, France, Germany. However, the largest is American. 11 of the 15 largest
multinationals are Americans.
Growth of MNCs in India

A common form of MNC Participation in Indian industry is through entering into cooperation with Indian
industrialist. Trends of liberalization in the 1980s gave a substantial spurt to foreign collaborations.
This would be clear from the fact that of the total 12,760 foreign collaboration agreements signed between
1948-1988. As a result of liberalized foreign investment policy (FIP) announced in July-Aug 1991 there
has a further spurt of foreign collaborations and increase flow of foreign direct investment.
Reasons for the growth MNC

1. Expansion of Market territory.
As the operations of large sized firm expand, it seeks more and more extension of its activates beyond the
physical boundaries of the country in which it is in corporate.
2. Marketing superiorities:
A multinational firm enjoys a number of marketing superiorities over the national firms. It enjoys market
reputation and faces less difficulty in selling its products and it adopt more effective advertising and sales
promotion techniques.
3. Financial Superiorities

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It has financial resources and high level of funds utilization. It has easier access of external capital markets.
Because of its international reputation it is able to raise more international resources.
4. Technological superiorities:
The main reason why MNCs have been encouraged by the underdeveloped countries to participate in their
industrial development is on account of the technological superiorities which these firms posses as
compared to national companies.
5. Product innovations:
MNCs have research and development engaged in the task of developing new products and superior designs
of existing products.
Characteristics of a Multinational Corporation

The following are the common characteristics of multinational corporations:
1. Very high assets and turnover

To become a multinational corporation, the business must be large and must own a huge amount of assets,
both physical and financial. The company’s targets are high, and they are able to generate substantial profits.
2. Network of branches
Multinational companies maintain production and marketing operations in different countries. In each
country, the business may oversee multiple offices that function through several branches and subsidiaries.
3. Control
In relation to the previous point, the management of offices in other countries is controlled by one head
office located in the home country. Therefore, the source of command is found in the home country.
4. Continued growth
Multinational corporations keep growing. Even as they operate in other countries, they strive to grow their
economic size by constantly upgrading and by conducting mergers and acquisitions.
5. Sophisticated technology
When a company goes global, they need to make sure that their investment will grow substantially. In order
to achieve substantial growth, they need to make use of capital-intensive technology, especially in their
production and marketing activities.
6. Right skills
Multinational companies aim to employ only the best managers, those who are capable of handling large
amounts of funds, using advanced technology, managing workers, and running a huge business entity.
7. Forceful marketing and advertising

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One of the most effective survival strategies of multinational corporations is spending a great deal of money
on marketing and advertising. This is how they are able to sell every product or brand they make.
8. Good quality products

Because they use capital-intensive technology, they are able to produce top-of-the-line products.
Models of MNCs
The following are the different models of multinational corporations:
1. Centralized
In the centralized model, companies put up an executive headquarters in their home country and then build
various manufacturing plants and production facilities in other countries. Its most important advantage is
being able to avoid tariffs and import quotas and take advantage of lower production costs.
2. Regional
The regionalized model states that a company keeps its headquarters in one country that supervises a
collection of offices that are located in other countries. Unlike the centralized model, the regionalized model
includes subsidiaries and affiliates that all report to the headquarters.
3. Multinational
In the multinational model, a parent company operates in the home country and puts up subsidiaries in
different countries. The difference is that the subsidiaries and affiliates are more independent in their
operations.

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Advantages of Being a Multinational Corporation

There are many benefits of being a multinational corporation including:
1. Efficiency
In terms of efficiency, multinational companies are able to reach their target markets more easily because
they manufacture in the countries where the target markets are. Also, they can easily access raw materials
and cheaper labor costs.
2. Development
In terms of development, multinational corporations pay better than domestic companies, making them
more attractive to the local labor force. They are usually favored by the local government because of the
substantial amount of local taxes they pay, which helps boost the country’s economy.
3. Employment
In terms of employment, multinational corporations hire local workers who know the culture of their place
and are thus able to give helpful insider feedback on what the locals want.
4. Innovation
As multinational corporations employ both locals and foreign workers, they are able to come up with
products that are more creative and innovative.
ASEAN
Association of Southeast Asian Nations or ASEAN is an organisation formed by the governments of

Malaysia, Indonesia, the Philippines, Thailand, and Singapore in 1967 to promote economic growth, peace,
security, social progress and cultural development in the Southeast Asian region.
ASEAN Members
• Thailand (founding member)

• The Philippines (founding member)
• Malaysia (founding member)

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• Singapore (founding member)

• Indonesia (founding member)
• Brunei (joined in 1984)
• Vietnam (joined in 1995)
• Lao PDR (joined in 1997)
• Myanmar (joined in 1997)
• Cambodia (joined in 1999)
SAARC
SAARC stands for South Asian Association for Regional Cooperation, is an intergovernmental organization
for the development of economic and regional integration. The organization has the support of different
countries known as member-state.
SAARC – Countries

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Current crises
Hunger
The threat of starvation now faces 45 million people in 43 nations around the globe. Children in hunger
hotspots in Africa, Latin America, Asia and the Middle East do not know where their next meal is coming
from. Millions are living on the cusp of famine and need food urgently if they are to survive. Dreams of
defeating hunger by 2030 are seriously off track due to the conditions driving hunger, which include
conflict, COVID-19 and climate change. Aside from the threat of starvation, severe malnutrition affects
over 45 million children around the world and the hunger crisis is growing rapidly. Children’s long-term
physical health and mental development is damaged when they do not get the vital nutrition they need.
Conflict
There are now more active conflicts than at any time since 1945. Civil and internal conflicts, insurgencies
and political chaos in places such as Yemen, South Sudan, Ethiopia, DR Congo, Afghanistan, Venezuela
and Myanmar are driving massive displacements of people. Globally there are now more than 82 million
people living in refugee and displacement camps or away from home, creating tensions among host
communities, forcing families to make dangerous journeys and opening up the vulnerable and especially
women and children to trafficking gangs and exploitation. As the world grapples with the numbers, food
rations are being cut, even for refugees, to feed those who will die without help.
Climate Change
Extreme weather is becoming common as the world warms. The latest international climate change
conference in Glasgow, Scotland, failed to produce the commitments to keep temperatures to 1.5C,
threatening the world with tipping points and unpredictable outcomes. Recurring droughts in East and
Southern Africa and Afghanistan; flash floods in Asia and Latin America; and violent wind and fire storms
that affect even wealthy countries, are destroying homes and livelihoods and creating new vicious cycles
of poverty. Rising sea levels, changing seasons and the threat of new disease outbreaks are affecting both
rural and urban communities and increase tensions as water supplies shrink, food prices spikes and people
abandon their homes to find security elsewhere. At the centre of this are children who are forced to abandon
school to find work, who go hungry or who become climate refugees.
Child abuse
In the face of multiple types of disasters girls and boys face huge challenges that are deeply damaging to
their dreams and hopes for a better life.
Conflict, hunger, displacement and poverty are forcing them and their families to take terrible decisions in
order to survive. The pandemic has seen child marriage rates increase by the largest amount in 25 years.
World Vision’s own analysis found a child going to bed hungry is 60% more likely to be married than peers
who are not. In places like Latin America children are especially vulnerable to trafficking and drug gangs
and sexual exploitation, while around the world 160 million children are now working, the first rise in two
decades.

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COVID-19
The spread of the Omicron variant has laid bare the inequalities in access to vaccines around the world.
The very poorest nations have received only a tiny fraction of the global supply, even as wealthy nations
give their populations a third booster vaccine. These inequalities create the conditions in which new
variants will arise, demonstrating why no one is safe until everyone is. With more than five million people
killed by COVID, hospitals and health systems have been overwhelmed. Lockdown measures have
decimated livelihoods for the poorest, especially in countries with no social welfare.
Hundreds of millions or children have also suffered months locked out of schools, their schooling set back
my many months. Around the world, mental health issues have spiked as populations have grappled with
isolation, job losses and the deaths of friends and families… and no one knows when the pandemic will be
over. The WHO and World Bank say that the pandemic has pushed half a billion people into extreme
poverty, and UNICEF says an additional 100 million children are now living with multi-dimensional
poverty creating the worst crisis for children in 75 years.
MCQ
Question Option A Option B Option C Option D Answer
C. Multi
1. What A. Multi B. Multi D. Multi B. Multi
National
does MNC National National National National
Collaboratio
stand for? Company Corporation Consortium Corporation
n
2. Which
of the A. Amazon
B. Hewlett-
following Developme D. Sony
Packard C. Intel India C. Intel India
is not one nt Centre India Pvt.
India Pvt. Pvt. Ltd. Pvt. Ltd.
of the top India Pvt. Ltd.
Ltd.
10 MNCs Ltd.
in India?
3. What
was the
A. A.
main B.
Technologic C. Financial D. Product Technologic
reason Marketing
al superiorities innovations al
why MNCs superiorities
superiorities superiorities
were
encourage
Class
d by
underdeve
loped
countries
to
participate
in their
industrial
developm
ent?
4. Which
of the
following
is not a
A. High C. C.
characteris B. Network
assets and Continued D. Control Continued
tic of a of branches
turnover decline decline
multinatio
nal
corporatio
n?
5. Which
model of
MNCs
includes
subsidiarie
C.
s and A. A.
B. Regional Multination B. Regional
affiliates Centralized Centralized
al
that all
report to
the
headquart
ers?
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6. What is C. To hire C. To hire

the aim of the best the best
multinatio managers D. To managers
A. To hire B. To hire
nal who can outsource who can
foreign local
corporatio handle large jobs to handle large
workers workers
ns in terms amounts of other amounts of
only only
of funds and countries funds and
employme advanced advanced
nt? technology technology
B. An B. An
A. An C. An D. An
organizatio organizatio
organizatio organizatio organizatio
n formed by n formed by
n formed by n formed by n formed by
the the
7. What is the the the
government government
ASEAN? government government government
s of s of
s of South s of East s of North
Southeast Southeast
Asian Asian American
Asian Asian
countries countries countries
countries countries
8. Which
country is
D.
not a A. Thailand B. Indonesia C. China C. China
Philippines
member of
ASEAN?
A. An B. An C. An D. An B. An
intergovern intergovern intergovern intergovern intergovern
mental mental mental mental mental
9. What is organizatio organizatio organizatio organizatio organizatio
SAARC? n for the n for the n for the n for the n for the
developmen developmen developmen developmen developmen
t of t of t of t of t of
economic economic economic economic economic

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and and and and and

regional regional regional regional regional
integration integration integration integration integration
in Southeast in South in East Asia in North in South
Asia Asia America Asia
10. What is
the current
crisis
C. Climate D. Child
mentioned A. Hunger B. Conflict A. Hunger
change abuse
in the
document
?
Short Answer Questions
1. What is a Multinational Corporation (MNC)?

2. Name the top 10 MNCs in India.
3. What was the primary reason that encouraged underdeveloped countries to invite MNCs to
participate in their industrial development?
4. What are the common characteristics of a multinational corporation?
5. What are the different models of MNCs?
6. What is the aim of multinational corporations in terms of employment?
7. What is ASEAN and which countries are its members?
8. What is SAARC and which countries are its members?
9. What is the current crisis mentioned in the document?
10. In which industries did MNCs first start their activities in host countries during the 1920s and then
slowly expand to manufacturing and service sectors?

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Long answer questions
1. Explain the evolution of Multinational Corporations (MNCs) and how they have grown over time.
2. Discuss the reasons for the growth of MNCs in India and how they have participated in Indian
industry.
3. Describe the advantages of being a Multinational Corporation (MNC) and the various superiorities
that MNCs enjoy over national firms.
4. Explain the different models of MNCs and discuss their advantages and disadvantages.
5. Discuss the impact of the current crises in the US, Europe, and Asia on the economic growth of
India, with a focus on Indian MNCs.
Additional Practice Exercises for advanced learners
1. Apple India Pvt. Ltd. is a multinational corporation operating in India. Discuss the factors that contributed
to Apple's success as an MNC in the Indian market.
2. Coca-Cola India Pvt. Ltd. faced a controversy related to water usage and environmental concerns in one of
its manufacturing plants. Analyze the impact of this controversy on the reputation and operations of
Coca-Cola in India.
3. A multinational corporation is considering entering into a foreign collaboration with an Indian
industrialist. Explain the potential benefits and challenges of such a collaboration for both parties
involved.
4. A multinational corporation wants to expand its market territory beyond its home country. Discuss the
key considerations and strategies that the company should employ to successfully enter and establish its
presence in a new international market.
5. A multinational corporation is facing criticism for its aggressive marketing and advertising practices in a
host country. Evaluate the ethical implications of such practices and discuss the potential consequences
for the company's reputation and relationship with the local community.
References
Text Books
1. Pradhan, Swapna, Retailing Management Text and cases 3rd Edition, The McGraw Hill, New Delhi
2. Bajaj, Chetan; Tuli, Rajnish and Srivastava, Nidhiv, Retail Management 2nd Edition, Oxford University Press, New
Delhi
Reference Books
1. Bhalla Swati, S. Anuraag. Visual Merchandizing, the McGraw Hill, New Delhi
Other Learning Resources (Name and/or URL of Journals/MOOCs/Online Resources, if

Applicable)
1. International Journal of Retail & Distribution Management
(https://www.emerald.com/insight/publication/issn/0959-0552):
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2. Journal of Retailing (https://www.sciencedirect.com/journal/journal-of-retailing)


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Programme Name and Semester: BBA, 5th Semester

Course Name (Course Code): Retail Management, BBAD502M

Name of the Faculty : Anik Ghosh

Module V: HR Policies and Franchising in Retail

Multi National Corporation (MNC)

TOP 10 MNCS IN INDIA

• Apple India Pvt. Ltd.

Name of the Faculty : Anik Ghosh

Growth of MNCs in India

Reasons for the growth MNC

Name of the Faculty : Anik Ghosh

Characteristics of a Multinational Corporation

1. Very high assets and turnover

7. Forceful marketing and advertising

Name of the Faculty : Anik Ghosh

8. Good quality products

Name of the Faculty : Anik Ghosh

Advantages of Being a Multinational Corporation

Association of Southeast Asian Nations or ASEAN is an organisation formed by the governments of

• Thailand (founding member)

Name of the Faculty : Anik Ghosh

• Singapore (founding member)

Name of the Faculty : Anik Ghosh

Name of the Faculty : Anik Ghosh

Question Option A Option B Option C Option D Answer

Question Option A Option B Option C Option D Answer

Question Option A Option B Option C Option D Answer

6. What is C. To hire C. To hire

Name of the Faculty : Anik Ghosh

Question Option A Option B Option C Option D Answer

and and and and and

Short Answer Questions

1. What is a Multinational Corporation (MNC)?

Name of the Faculty : Anik Ghosh

Long answer questions

Additional Practice Exercises for advanced learners

Other Learning Resources (Name and/or URL of Journals/MOOCs/Online Resources, if

2. Journal of Retailing (https://www.sciencedirect.com/journal/journal-of-retailing)

Name of the Faculty : Anik Ghosh

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