SUBJECT- ECONOMICS OF GLOBAL TRADE AND FINANCE

TOPIC- STRATEGY OF MULTINATIONAL COMPANIES IN INDIAN MARKETS

-JUGAL

SHAH ROLL NO. 66

INTRODUCTION

Multinational corporations are business entities that operate in more than one country. The typical multinational corporation or MNC normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries.

MULTINATIONAL COMPANIES IN INDIA

WHY ARE MNCS IN INDIA ?

India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India. Indias large 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

OBJECTIVES

PROFIT MARKET DOMINANCE INNOVATION EXPANSION

SUCCESS FACTORS FOR MNCS IN INDIA

COMMITMENT AT GLOBAL LEVEL EMPOWERED LOCAL MANAGEMENT LOCALISED PRODUCT/MARKET BUSINESS MODELS

ADVANTAGES OF MNCS

Initiating a higher level of investment. Reducing the technological gap as there is a transfer of technology. The natural resources are utilized in true sense. The foreign exchange gap is reduced. Boosts up the basic economic structure. It increases the host country exports and reduce its imports. There is increase in competition. More scope for innovation.

DISADVANTAGES OF MNCS

Competition to SMSI. Pollution and Environmental hazards. Some MNCs come only for tax benefits only. Exploitation of natural resources. Lack of employment opportunities. Diffusion of profits. Working environment and conditions. Slows down decision making. Economical distress. May acquire Monopoly power. Think about Profit only and no welfare motive. Inflexibility in terms and conditions.

CASE STUDY-MCDONALDS THE SUCCESSFUL JOURNEY OF AN EXTREMELY POPULAR INTERNATIONAL BRAND IN INDIA

THE BRAND-MCDONALDS BEGINNING TWELVE YEARS OF MCDONALDS IN INDIA PHASE I - LAUNCHING THE BRAND PHASE II BRAND ADVERTISING PHASE III APPEALING TO BOTH ENDS OF THE AGE SPECTRUM

CONCLUSION OF THE CASE STUDY

The journey of MCDONALDS has not been easy. However, due to extensive marketing and advertising strategy, it has been established itself very successfully and has become a success story for other MNCs to follow.

OVERALL CONCLUSION

MNCs have had mixed results in India. Many MNCs who were remarkably successful elsewhere, have failed or are yet to succeed. Indian markets poses special challenges due to its heterogeneity , in terms of economic development, income, religion, cultural mix and tastes. Success in India will not happen overnight; companies need to have an open mind. MNCs have to invest substantially financial and managerial resources to understand customers needs and come up with suitable products.