MNC

swat analysis and case study of mnc in india

1. What is a Multinational Corporation??? It is a corporation that: And/or

2. D efinition The International Labour Organization (ILO) has defined MNC as: “a corporation that has it’s management headquarters in one country known as the home country, and operates in several other countries, known as host countries”.

3. MNC v/s TNC MNC TNC MNC have an international identity as belonging to a particular home country where they are headquartered TNC are more or less borderless in this regard as they do not consider a particular country as their base. MNC’s have branches in other countries TNC’s have subsidiaries in other countries MNC does not undertake research and development activities in other countries TNC undertakes research and development activities in all its subsidiary countries

4. Examples of MNC IN WORLD IN INDIA OF INDIA GOOGLE MICROSOFT ONGC SAS INSTITUTE IBM TATA STEEL NET APP NESTLE TATA GLOBAL BEVERAGES W.L GORE & ASSOCIATES PROCTER & GMBLE ( P&G) MOTHERSON SUMI SYSTEMS BELCORP COCA COLA HCL MICROSOFT PEPSICO TATA COMMUNICATIONS MARRIOTT CITI GROUP HINDALCO INDUSTRIES MONSANTO SONY CORPORATION SUZLON ENERGY CISCO HEWLETT & PACKARD (HP) TATA MOTORS AMERICAN EXPRESS APPLE DR. REDDY’S LABORATORIES

5. Features of MNCs Following are the main features of MNCs: Location   Assets   Board of Directors  Size

6. SWOT Analysis of MNCs: Strengths Low Cost Supply Chain Weakness Location Problems Lack of Transportation facilities Opportunities New Markets International Expansion Threats Govt. restrictions Substitute Product

7. Merits of MNC to Host Country : Employment Opportunities Marketing Opportunities Customer Satisfaction Domestic Investment

8. Merits of MNC to Home Country : Access to Consumers   Accesses to Labor Technology Favorable BOP

9. Disadvantages of MNC to Host Country : Outdated Technology Depletion of Natural Resources Loss to Local Businesses  Transfer of Capital  

10. Disadvantages of MNC to Home Country : No Employment Opportunities Laws and Protectionism Neglect Development

11. Impact of MNC Increase in job opportunities   Cheaper goods  Payment of dividends and royalty Political Interference Technology Transfer not necessarily conducive to development

12. Role of MNC Positive Role An inflow of foreign capital can reduce or even remove the deficit in the balance of payments Multinationals not only provide financial resources but they also supply a “package” of needed resources including management experience, entrepreneurial abilities, and technological skills. Moreover, MNCs bring with them the most sophisticated technological knowledge about production processes while transferring modern machinery and equipment to capital poor LDCs.

13. Role of MNC Negative Role While MNCs do contribute to public revenue in the form of corporate taxes, their contribution is considerably less than it should be as a result of liberal tax concessions, excessive investment allowances, subsidies and tariff protection provided by the host government.. Multinationals may damage the host countries by suppressing domestic entrepreneurship through their superior knowledge, worldwide contacts, and advertising skills. They drive out local competitors and constrain the emergence of small-scale enterprises.

14. MNC in INDIA: A Case Study

15. Conclusion In almost all cases FDI is beneficial for investing firm and host countries, and the importance of MNC in the world economy will continue to expand. Today nations across the globe are moving towards a more open and positive approach regarding MNC and FDI, a trend that has been reinforced by recent international agreement and new institutions, such as WTO, APEC ( Asia Pacific Economic Cooperation ) etc.