Copy Of Mpob
- 3. CONTENTSmultinational corporation-(definition)multinational corporate structureprocess of evolutionmultinational corporationshierarchy of MNCs activitiesfactors leading to growth in IBbenefits of MNCscode of conductwhat MNCs have to do ?conclusion list of MNCs in India
- 4. MULTINATIONAL CORPORATIONMultinational corporation (or Transnational corporation) (MNC/TNC) : It manages production establishments or delivers services in at least two countries Definition: It engages in foreign direct investment (FDI) and that owns and controls value added activities in more than one country.
- 5. Large multinationals have budgets that exceed those of entire countries. They have a powerful influence in international relations and local economies.They have play an important role in globalization ; some argue that a new form of MNC is evolving in response to globalization: the 'globally integrated enterprise'. MNCs have existed since1602, in which year the first MNC, the Dutch East India Company, was established.
- 6. According to MNCs,it represents a cluster of affiliated firms located in different countries that: Are linked through common ownership
- 8. Respond to a common strategy All this shows high degree of integration among different units of the firm.
- 9. MULTINATIONAL CORPORATE STRUCTURE Multinational corporations can be divided into three broad groups according to the configuration of their production facilities:1.Horizontally integrated multinational corporations ;manage production establishments located in different countries to produce the same or similar products.(example: McDonald's)
- 10. 2.Vertically integrated multinational corporations: It manages production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries. (example: Adidas)3.Diversified multinational corporations: It manages production establishments located in different countries that are neither horizontally nor vertically nor straight, nor non-straight integrated. (example: Microsoft or Siemens A.G.)
- 11. PROCESS OF EVOLUTION MNCs did not merge overnight. Domestic firms after going through various stages of the evolution process, qualify for being called as an MNC. The process of evolution can broadly be grouped in three successive stages. They are:Trade
- 13. IntegrationMULTINATIONAL CORPORATIONSThe Multinationality of MNCs increase withNumber of countries in which it has subsidiaries or affiliate firms
- 14. Number of countries in which the firm has operations of various sorts
- 15. Foreign assets, revenues, employees over total
- 16. Proportion of foreign employees, managers, stockholders
- 17. HIERARCHY OF MNC ACTIVITIESSales or marketing Office
- 19. Full-Scale manufacturing (final products and components manufacturing abroad)
- 20. R & D operationsFACTORS LEADING TO GROWTH IN IB The factors leading to the growth in IB are:Rapid technological advancement
- 21. Emergence of supportive institutions
- 22. Openness of economic policies among large number of countries
- 23. Increase in competitionBENEFITS OF MNCBenefits from MNCs can be studied under two broad heads:-Benefits to the host
- 24. Benefits to the home countries
- 25. Benefits to the host countries :
- 26. Transfer of technology, capital and entrepreneurship to the host country.
- 27. Improvement of the host country’s balance of payment .Creation of local job and career opportunities .
- 28. Improved competition in the local economy and better utilisation of available resources .
- 29. Greater availability of products for local consumers .
- 30. Encouragement to World economic unityBENEFITS TO HOME COUNTRIES :-Acquisition of raw materials from abroad
- 31. Technology and management expertise acquired from competing in global markets .
- 32. Inflow of income from overseas profits .
- 33. Job and career opportunities at home and abroad .
- 34. CODE OF CONDUCTThe multinational corporation shall :-Respond affirmatively to the social and economic plans of the host country.
- 35. Seriously consider credible complaints and try to eliminate them .
- 36. Confirm to the established policies and the laws of the host country .Supply appropriate information to local authorities about health, safety and environment effects of company‘s products .
- 37. Be concerned about human rights in decision making.
- 38. Provide clear statement of the basic mission and policies of the company WHAT MNC HAVE TO DO ?MNCS need to respond in the following ways :-Provide employment .
- 39. Train managers .
- 40. Provide products and services that raise the standard of living .Introduce and develop new technical skills .
- 41. Introduce new managerial and organisational practices
- 42. Raise the GDP .
- 44. Helps build up foreign exchange reserves .CONCLUSIONTo conclude, we would opine that MNC’s having a wide ambit is envitable to us, as to the fact that, there exists lots of job opportunity paves a path for the increase in National Income. And also to create a better society, with better standard of living,and it increases labour productivity ,decrease in unemployment,and also increases the net national income of the country.This will help the government and this will lead to increaseinm the export and imports in the country.
- 45. Wipro TechnologiesType :Public (NYSE: WIT)Founded :1945 (Pre Independence)Headquarters :BangaloreKey people: Azim Premji, Suresh Vaswani, Girish S. ParanjpeIndustry: Information technology servicesRevenue: ▲$5.0 billion (2008) USDNet income:▲$677 million (2007) USDEmployees:100,000+ (2008)Website :www.wipro.com
- 46. Aditya Birla GroupType :Private Conglomerate/Listed Companies.Founded :1900sHeadquarters :Mumbai, IndiaKey people: Kumar Mangalam Birla (Chairman)Industry: Metals and several others.Products:Aluminium, Copper, Cement, Fertilizer, Textile, Fibre, etc.Revenue:▲ $24 billionEmployees:100,000+Subsidiaries: Several.Website: www.adityabirla.com
- 47. RELIANCE GROUPThe Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 34 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
- 48. RELIANCE GROUP The Group exports products in excess of US $ 20 billion to 108 countries in the world. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited ) and Reliance Industrial Infrastructure Limited Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
- 49. TATA Type: Private Conglomerate (BSE)Founded :1868 by Jamshedji TataHeadquarters :Mumbai, Maharashtra, IndiaKey people: Ratan Tata, ChairmanIndustry: EngineeringMaterialsInformation technologyCommunicationAutomotiveChemicalsEnergy
- 50. TATAProducts:SteelAutomobilesTelecommunicationsSoftwareHotelsConsumer goodsRevenue :US$ 62.5 billion[1](Feb 2008)Net income: ▲ US$ 4 billion (FY 2007)Employees:2,89,500 (2007)Website :www.tata.com
- 51. INFOSYS Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US $ 250. Today, we are a global leader in the "next generation" of IT and consulting with revenues of over US$ 4 billion. Infosys' service offerings span business and technology consulting , application services, systems integration, product engineering, custom software development maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing.
- 53. Thank you