ROLE OF MNC’s IN INDIA

PRANAV DHANANIWALA

CONTENT

MNCHISTORY OF MNCFEATURES OF MNCMNC’s IN INDIAIMPACT ON INDIASWOT ANALYSISMERITS AND DEMERITSROLES OF MNCCONCLSION

MNC

An enterprise operating in several countries but managed from one (home) country.

HISTORY OF MNCFirst MNC in world First MNC in India

Indian MNC

FEATURES OF MNCBig size Huge intellectual capitalOperates in many countriesLarge number of customerLarge number of competitorsStructured way of decision making

MNC’s IN INDIA

Huge market potential of the countryFDI attractivenessLabor competitivenessMacro-economic stabilityOne billion plus population

IMPACT ON INDIA

Large amount of tax collections through MNC’sIncreased revenueEconomic health improvedEmployment increasedForeign relation increased

SWOT ANALYSISstrengt

h

weakness

opportunities

threats

Well developed infrastructure

LocationTransportation

Inflexibility

Leverage governmentAttract new industries

Emergence of new companiesMonopoly

MERITS AND DEMERITS

MERITSIncrease in investment levelTransferring the technologyIt increase host company export than importIntegrating national economyImplementing new innovations

MERITS AND DEMERITS CONT…

DEMIRITSMay acquire monopoly powerUnderestimate local cultureThink about profit rather than the host country interestInflexibility in terms and conditionsHeavy use of non-renewable natural resources

ROLES OF MNC IN INDIA

Profit maximizationInternational network of marketingDiversification policyConcentration in consumer goodsMNC’s & Process of planned economic development in indiaCultural explosion

CONCLUSIONCompetition increased and more employment opportunity are

availableGives advantages to domestic companies by purchasing of

raw materialsNew company having network to expand their business