Multi National Corporation

In India
 CONTENTS
What 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

conclusion
 Definition

 Multinational 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)
 SWOT Analysis of MNC

Strengths Weakness
• Low Cost • Location is often very distant
• Well Developed Infrastructure • Lack of Transportation facilities
• Relative Inflexibility

Opportunities Threats
• Leverage Government
• Emergence of Private companies
• Create the necessary infrastructure
• Establishment of monopoly
• Attract new industries
 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. . .