This document discusses multinational corporations (MNCs) operating in India. It defines an MNC as a company that manages production or services across multiple countries. MNCs in India take various forms such as horizontally integrated companies that produce similar goods across countries, vertically integrated companies that use inputs from one country to produce goods in another country, and diversified companies with operations in different industries across countries. The document also lists pros and cons of MNCs, trends of MNCs investing in India, and challenges they face such as socio-economic and cultural differences, language barriers, and weak infrastructure.
2. CONTENTS
What is an MNC?
Multinational corporate structure
SWOT Analysis of MNC
MNC In India
Trends Of MNC’s In INDIA…
Pros & Cons of MNC
Bottlenecks Of MNC in India
India’s Big Dream
Sources Of Information
3. What is MNC?
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.
4. 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)
5. 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)
6. 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.
7. 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
8. 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
9. MNC In India(Contd…)
India’s vast population is
increasing its purchasing
power
India is also emerging as
the manufacturing and
sourcing location of choice
for various industries
10. Trends Of MNC’s In INDIA…(Contd..)
Companies like SingTel of Singapore and Malaysian
giant Salem Group are showing huge interest for
investment.
Also insurance companies like AIG and Max New York
Life Insurance doing business in India.
11. MNC In India…
MNC in India represent a diversified portfolio of companies
representing different nations.
12. 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
13. Pros & Cons of MNC
Pros:
Increase investment level
Transferring the technology
It increase host country exports & reduce
its imports
Integrating national economy
Implement new innovations
Increase competition
14. Pros & Cons of MNC (cont.)
Cons:
May acquire monopoly power
Underestimate local culture
Think only about profit rather than host
country interest
Inflexibility in terms & conditions
Heavy use of non-renewable natural
resources
15. Bottlenecks Of MNC in India
Socio-economic challenges
Language
Culture
Autonomy to “local” managers – how comfortable
are we?
Handling of potential liabilities related to Labour,
IPR etc
Difficult operating environment
Weak infrastructure
And ………………Patience !
