Multinational corporations - MNC
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Transcript of Multinational corporations - MNC
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OVERVIEW• Introduction to MNCs• History and Evolution • Organisational Structure• The world’s biggest MNCs• INDIAN MNCs – The Best Of The Best• Impact of MNCs on Indian economy• Adapting Dynamic Business Environment• Corporate Social Responsibility• Swot Analysis
"The secret of business is to know something that nobody else knows"
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INTRODUCTION“A multinational corporation or worldwide enterprise is an organization that owns or controls production of goods or services in one or more countries other than their home country. It can also be referred as an international corporation”
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HISTORY• Originated – 20th century
• Develop new products in native country and manufacture them abroad
• Last 3 decades- Smaller corporations have become Multinational
"If you dont drive your business, you will be driven out of business"
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ADVANTAGES DISADVANTAGES
• Product Specialization
• Efficient control
• Optimum utilization of resources
• CO-ORDINATION is established
• Training is facilitated
• Conflict of interest
• Lack of flexibility
• Functional empires
• Ignorance of objectives
• Difficulty in inter-departmental co-ordination
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ADVANTAGES DISADVANTAGES
• Accountability – profits and Losses
• Managerial Experience for top management
• Better decision making
• Boosts morale
• Duplication of efforts
• Conflict regarding allocation of resources
• Costly
• Compartmentalization can lead to incompatibilities
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WHAT SETS THE BEST MNCS
APART FROM THE REST• MNCs are built on great products• MNCs don’t throw money at problems, they throw ideas at
problems• MNCs succeed because the founders want to change the
world and not make a fast buck• MNCs are built by the people who never stop thinking
new ways to improve the business
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IN SEARCH OF SMART IDEASThe 6 Trends That Matter
From fighting the old markets to ruling the new markets
Fight the battle at home, overseas or both?
Giving control to the customers
Paperless will be the norm
Engaging millennials in their playground
If it scares you, it might be a good thing
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COMPANIES
TATA
RELIANCE
INFOSYS
WIPRO
L&T
STATE BANK OF
INDIA
INDIAN MNC’S IN FORTUNE GLOBAL 500 LIST OF YEAR
2016
COMPANIES BRAND VALUE TATA GROUP 742.18 bn RELIANCE 349.24 bn INFOSYS 230.64 bn WIPRO 139.69 bn
LARSEN & TOUBRO 134.89 bn HCL 85.33 bn
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WHY THEY INVEST IN INDIA?
1) Huge domestic market
2) Qualified and cheap labor
3) Resource potential
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WHAT INDIA GAINS?
1) Employment to its citizens
2) Market for its raw materials
3) Availability of products to Indian consumers
4) Increased revenue through taxes and duties
5) Overall development
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NEGATIVE IMPACTS OF MNC’S
1) Affect local businesses
2) Over dependence on technology
3) Unbalanced/uneven development
4) Corporate lobbying
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ECONOMIC ENVIRONMENT
• Inflation rate – Less compared to all these years
• Lower Interest rate
• Bullish Capital Markets – Interglobe aviation IPO, RBL. Larsen & Toubro
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TECHNOLOGICAL ENVIRONMENT
• Airtel – open network
• 4G- 5G
• Driverless Cars in Singapore
• Online Marketplace
• Bullet Train project from Ahmedabad to Mumbai
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SOCIAL ENVIRONMENT
• McDonalds- changed their Menu
• Snapdeal – Amir Khan
• Amazon- Floor mats of Indian deities
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POLITICAL ENVIRONMENT• Pro Business Government
• Beef Ban – huge impact on food industry
• Forcing RBI to cut interest rates
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LEGAL ENVIRONMENT
• Goods and Services Tax bill, 2016
• Benami transaction Bill
• Real Estate investment Bill
• 100% FDI in Defense Sector
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CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and
environmental benefits for all stakeholders. CSR is a concept with many definitions and practices.
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TATA COMPANY •
Impact of CSR Measures• Curative and preventive health services were rendered to
295,075 community members;• Scholarships for higher studies were awarded to 891 students• School infrastructure was developed for 100 schools• Technical training was provided to 1542 youth• Green cover was increased by planting 290,850 trees
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Infosys• Spent Rs 50-60 Crore (2% Avg Net profit)
• Donated 240cr to Infosys Foundation
• Provide Healthcare Facilities, Mid Day Meals, Education and rural Development
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CONCLUSION “Multinationalism & expanding world trade are two sides of the same coin. MNCs collect huge profits through their participation in international trade. At the same time, give the benefit of growing world trade to all countries. ” - PETER DRUCKER.
“THE GLASS IS ALWAYS HALF FULL OR HALF EMPTY ! IF IT APPEARS FULL YOU’RE HALLUCINATING, IF IT APPEARS EMPTY YOU’RE MANIC DEPRESSIVE”