1MULTINATIONAL CORPORATIONS

THE KING OF GOOD TIMES

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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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MNC’s in India

-an exploitation or A win-

win Opportunity

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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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EVOLUTION- 3 STAGES1. Export stage

2. Foreign production stage

3. Direct Investment

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ORGANIZATIONAL STRUCTURE OF MNC

• FUNCTIONAL STRUCTURE

• DIVISIONAL STRUCTURE

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1. FUNCTIONAL STRUCTURE

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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

10 2. DIVISIONAL STRUCTURE

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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

DDD

COMPANIESTHAT CHANGE

THE WORLD

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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

15FORTUNE GLOBAL 500 LIST OF YEAR 2016 (TOP

TEN)

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INDIAN MNCs

THE BEST OF THE BEST

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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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IMPACT OF MNC’s ON

INDIAN ECONOMY

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WHAT MNC’S BRING TO INDIA 

1) Foreign capital

2) Technology

3) Better processes

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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 DO THEY GET FROM THIS INVESTMENT?

1) Growth of their business

2) Increased market share

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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

PROTESTS AGAINST MNC’S

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• Coca cola disaster in Saudi Arabia

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•Uber & Ola

•Nestle

•TATA in West Bengal

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Adapting

the Dynamic

Business

Environment

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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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“A brand for a company is like a reputation for a person”

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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”

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BY : KRINA(56), RUSHABH(38), JAY(65), AJJ(21), UTSAV(46), MOHIT(13)

-TEAM MNC - 4