a critical review of multinational companies, their

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    A Critical Review of MultinationalCompanies, Their Structures and

    Strategies

    BY : ANKUR KUKRETI [MBA/4521/13]

    PULKIT PATHAK [MBA/4568/13]

    GYANENDRA KUMAR [MBA/4571/13]

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    WHAT ARE MNCs..?

    Multinational Corporations have been broadly defined as business firms thuphold value added-holdings overseas. According to Spero and Hart (1999) a multinational corporation (MNC) asbusiness enterprise that maintains direct investments overseas and that uph

    value-added holdings in more than one country. An enterprise is not truly multinational if it only operates in overseas or ascontractor to foreign firms. A multinational firm sends abroad a package ocapital, technology, managerial talent, and marketing skills to carry outproduction in foreign countries.

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    Merits Of MNCs..

    According to Heidenreich, (2012) and ILO (2010) the main merits and demof MNCs are: Help to increase investment, income and employment in host country.

    Transfer technology to developing countries. Make a commendable contribution to inventions and innovations

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    DEMERITS OF MNCs..

    It is true that MNCs have some advantages for host countries however; MNCs havbeen criticized on the following grounds : MNCs technology is designed for world wide profit maximization, not for the

    development need of poor countries. Through power and flexibility, MNCs can evade national economic autonomy

    control, and their activities inimical to the national interest of particular countr MNCs cause fast depletion of some of the non-renewable natural resources in

    host country

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    MNCs That We Have Taken For Studyin

    1. HILTI INDIA PRIVATE LIMITED 2. HINDUSTAN UNILEVER

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    HILTI

    ABOUT HILTI INDIA PVT. LIMITED

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    MARKETING

    FIHUAMNRESOURCE

    PRESIDENT

    STRUCTURE

    OPERATIONS

    DIRECTOR DIRECTOR DIRECTOR DI

    HRCSR

    SERVICESMARKETIN

    G

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    STRATEGY

    Hilti India has the Champion 3-C strategy, which is divided into 3 parts, Customer Competence Concentration

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    GO L

    The goal of Hilti is :

    We passionately create enthusiastic customers to create a better future

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    HINDUST N UNILEVER

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    INTRODUCTION HUL works to create a better future every day and helps people feel good, look good and g

    with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos,

    deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Comeveryday life of millions of consumers across India. Its portfolio includes leading househo

    Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline,Lakm, Dove, Clinic Plus, SPepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls andPureit The Company has over 16,000 employees and has an annual turnover of around Rs.25,206

    2012 -2013). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast mgoods with strong local roots in more than 100 countries across the globe with annual sale52012. Unilever has about 52% shareholding in HUL.

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    VISION

    The four pillars of our vision set out the long term direction for the company where we want to go and howthere:

    We work to create a better future every day We help people feel good, look good and get more out of life with brands and services that are good

    others.

    We will inspire people to take small everyday actions that can add up to a big difference for the worl We will develop new ways of doing business with the aim of doubling the size of our company while

    impact. We've always believed in the power of our brands to improve the quality of peoples lives and in doin

    business grows, so do our responsibilities. We recognize that global challenges such as climate changConsidering the wider impact of our actions is embedded in our values and is a fundamental part of w

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    STR TEGY

    The volatility and uncertainty facing the world remain the new normal and are set to last for the mpressures economic, social and environmental frame our approach to our business strategy and our

    We call our business strategy the Compass, since it sets out a constant path for Unilever for the lonout our ambitious vision and purpose, and defines four Winning with pillars within the business thbrands and innovation; marketplace; continuous improvement; and people. Our performance againsour Annual Report and Accounts 2012. First developed in 2009, the Compass was sharpened in 201remained the same.

    In 2012 we added our new purpose To make sustainable living commonplace. This builds on the original purpose of our 19th century founder, William Lever, to make cleanliness The Compass gives life to our determination to build a sustainable business for the long term and to

    that do not just take from society and the environment. This is captured in the Unilever Sustainable

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    ORG NIS TION STRUCTURE