Multi National Corporation In India

Presented By:Harshil Shah - 82 Meet Sanghavi - 77 Khelan Shah- 84 Rikin Shah - 86 Hiren Thakkar -112 Neha Gupta -34

CONTENTS
What is an MNC? Multinational corporate structure SWOT Analysis of MNC MNC In India

Trends Of MNCs In INDIA

Pros & Cons of MNC

Bottlenecks Of MNC in India

Indias Big Dream Sources Of Information

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)

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: Indias large market potential India presents a remarkable business opportunity by virtue of its sheer size and growth Labor competiveness

FDI attractiveness

MNC In India(Contd)
Indias vast population is increasing its purchasing power

India is also emerging as the manufacturing and sourcing location of choice for various industries

Trends Of MNCs 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.

The scenario for 'MNC in India' has changed a lot in recent years, since more and more firms from European Union like Britain, Italy, France, Germany, Netherlands, Finland, Belgium etc have outsourced their work to India.
Finnish mobile handset manufacturing giant Nokia is the largest Multinational Corporation In India.

Trends Of MNCs In INDIA(Contd..)

A host of automobile companies like Fiat, Ford Motors, Piaggio etc from Italy have opened shop in India with R&D wing attached. Oil companies, Infrastructure builders from Middle East are also flocking in India to catch the boom. South Korean electronics giants Samsung and LG Electronics and small and mid-segment car major Hyundai Motors are doing excellent business and using India as a hub for global delivery.

Trends Of MNCs 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.

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

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

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

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 !

Indias 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. The development of Tata Motor's Rs 1 lakh car provides a powerful example

Sources Of Information
www.wikipedia.com www.mapsofindia.com www.maddan.com Reference:Business Environment By Francis Cherunilam