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ROLE OF MNC’S IN INDIA
BY
ASHIQUE .CK
M.COM :SEC A
REG NO:133C51011
CONTENT
 MNC
 HISTORY OF MNC
 FEATURES OF MNC
 MNC’s IN INDIA
 IMPACT ON INDIA
 SWOT ANALYSIS
 MERITS AND DEMERITS
 ROLES OF MNC
 Top MNCs in India
 CONCLSION
MNC
 An enterprise operating in several (host) countries but
managed from one (home) country.
HISTORY OF MNC
 First MNC in world - East India company
 First MNC in India – IBM
 Indian MNC - Infosys
EAST INDIA COMPANY(English east India co)
 Established by Royal charter on 31 dec 1600.
 Established as GVT CO, of Merchants of London trading into east indies ).
 Formed for the exploitation of east and south east Asia and India.
 Company settled down to trade cotton and silk from south India.
 They extended trade activities into Persian Gulf, south east Asia, east Asia.
 It’s commercial monopoly was broken in 1813.
 From 1834 it was merely managing agency for British Govt of India.
 It was abolished after the after the Indian mutiny 1857.
 It is ceased to EXIT as a legal entity in 1873.
HISTORY OF MNC conti..
 It is a multinational computer technology and IT consulting corporation.
 It is the largest & most profitable IT Employers in the world.
 Established in the year 1880s.
 It have a nick name as “ BIG BLUE”
 It is Head quatwd in New York (US)
 Ginni Rometty is the President, chairman and CEO of IBM
 It has 4,33,363 employees in the year 2012.
 IBM hold more patents than any other US based IT company .
 Today's share value of IBM in NYSE is US $ 162.860.52 (^ 0.32%)
HISTORY OF MNC conti..
IBM (Industrial Business Machine )
Infosys
 Infosys is a NYSE listed global consulting and IT services company
with more than 1,65,000 employees.
 Established in 1981 by 7 engineers.
 1st headquarted in Pune and in 1983 The company headquarter
relocated in to Banglore.
 became the first IT company from India to be listed on NASDAQ
 From a capital of US$ 250, grown to become a US$ 8.64 billion.
 Today’s market price of Infosys in NSE is 2,228. 75 (^ 0.62%)
HISTORY OF MNC conti..
FEATURES OF MNC
 Big size
 Huge intellectual capital
 Operates in many countries
 Large number of customer
 Large number of competitors
 Structured way of decision making
• Wal-Mart is bigger than Norway, Royal Dutch/Shell Group is bigger than South
Africa and General Motors is over twice as big as Nigeria.
• The largest 100 economic actors in the World today are 51 are corporations and 49 are
countries.
WHY MNC’s IN INDIA..??
 Huge market potential of the country
 FDI attractiveness
 Labor competitiveness
 Macro-economic stability
 One billion plus population
IMPACT ON INDIA
 Large amount of tax collections through MNC’s
 Increased revenue
 Economic health improved
 Employment increased
 Foreign relation increased
SWOT ANALYSIS
strength
weakness
opportunities
Well developed infrastructure
Location and
Transportation
Inflexibility
Leverage government
Attract new industries
MERITS AND DEMERITS
MERITS
 It increase host company export than import
 Integrating national economy
 Implementing new innovations
 Initiating a higher level of investment.
 Reducing the technological gap
 The natural resources are utilized in true sense.
 The foreign exchange gap is reduced
 Boosts up the basic economic structure.
MERITS AND DEMERITS CONT…
DEMIRITS
Roses does not come without thrones.
 Competition to SMSI
 Pollution and Environmental hazards
 Some MNCs come only for tax benefits only
 Exploitation of natural resources
 Diffusion of profits and Forex Imbalance
 Working environment and conditions
 Slows down decision
MERITS AND DEMERITS CONT
 Making Economical distress
 May acquire monopoly power
Think about profit rather than the host country interest
 Inflexibility in terms and conditions
 Underestimate local culture
ROLES OF MNC IN INDIA
 Profit maximization.
 International network of marketing.
 Diversification policy.
 Concentration in consumer goods.
 MNC’s & Process of planned economic development in india.
 Cultural explosion .
Top MNCs in India
 IBM -International Business Machines (U.S)
 Microsoft (U. S)
 Nokia Corporation ( Finland )
 PepsiCo ( U.S )
 Ranbaxy Laboratories Limited ( India)
 Reebok International Limited ( U. S. A.)
 Sony (Japan)
 Tata Consultancy Services (India)
 Vodafone (UK)
 Tata Motors Limited ( India)
CONCLUSION
 Global marketing is enhanced year by year
 Competition increased and more employment opportunity are
available in India as well as in the world
 Gives advantages to domestic companies by purchasing of raw
materials
 Influenced on customer behavior and culture.
Hot news
 Leading MNC brands get tax relief from HC (March 17, 2015)
 Indian markets in bull run since 2009; auto, pharma companies to surprise in Q4: SMC Investments
(ECONOMICTIMES.COM 8 Apr, 2015 )
 Samsung India expects growth to pick in FY2016, aims to be No 1 MNC (Mar 16, 2015)
 Gionee Aims TO be A Billion Dollar company by FY 16 (April 4, 2015)
ROLE OF MNC IN INDIA

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ROLE OF MNC IN INDIA

  • 1. ROLE OF MNC’S IN INDIA BY ASHIQUE .CK M.COM :SEC A REG NO:133C51011
  • 2. CONTENT  MNC  HISTORY OF MNC  FEATURES OF MNC  MNC’s IN INDIA  IMPACT ON INDIA  SWOT ANALYSIS  MERITS AND DEMERITS  ROLES OF MNC  Top MNCs in India  CONCLSION
  • 3. MNC  An enterprise operating in several (host) countries but managed from one (home) country.
  • 4. HISTORY OF MNC  First MNC in world - East India company  First MNC in India – IBM  Indian MNC - Infosys
  • 5. EAST INDIA COMPANY(English east India co)  Established by Royal charter on 31 dec 1600.  Established as GVT CO, of Merchants of London trading into east indies ).  Formed for the exploitation of east and south east Asia and India.  Company settled down to trade cotton and silk from south India.  They extended trade activities into Persian Gulf, south east Asia, east Asia.  It’s commercial monopoly was broken in 1813.  From 1834 it was merely managing agency for British Govt of India.  It was abolished after the after the Indian mutiny 1857.  It is ceased to EXIT as a legal entity in 1873. HISTORY OF MNC conti..
  • 6.  It is a multinational computer technology and IT consulting corporation.  It is the largest & most profitable IT Employers in the world.  Established in the year 1880s.  It have a nick name as “ BIG BLUE”  It is Head quatwd in New York (US)  Ginni Rometty is the President, chairman and CEO of IBM  It has 4,33,363 employees in the year 2012.  IBM hold more patents than any other US based IT company .  Today's share value of IBM in NYSE is US $ 162.860.52 (^ 0.32%) HISTORY OF MNC conti.. IBM (Industrial Business Machine )
  • 7. Infosys  Infosys is a NYSE listed global consulting and IT services company with more than 1,65,000 employees.  Established in 1981 by 7 engineers.  1st headquarted in Pune and in 1983 The company headquarter relocated in to Banglore.  became the first IT company from India to be listed on NASDAQ  From a capital of US$ 250, grown to become a US$ 8.64 billion.  Today’s market price of Infosys in NSE is 2,228. 75 (^ 0.62%) HISTORY OF MNC conti..
  • 8. FEATURES OF MNC  Big size  Huge intellectual capital  Operates in many countries  Large number of customer  Large number of competitors  Structured way of decision making
  • 9. • Wal-Mart is bigger than Norway, Royal Dutch/Shell Group is bigger than South Africa and General Motors is over twice as big as Nigeria. • The largest 100 economic actors in the World today are 51 are corporations and 49 are countries.
  • 10. WHY MNC’s IN INDIA..??  Huge market potential of the country  FDI attractiveness  Labor competitiveness  Macro-economic stability  One billion plus population
  • 11. IMPACT ON INDIA  Large amount of tax collections through MNC’s  Increased revenue  Economic health improved  Employment increased  Foreign relation increased
  • 12. SWOT ANALYSIS strength weakness opportunities Well developed infrastructure Location and Transportation Inflexibility Leverage government Attract new industries
  • 13. MERITS AND DEMERITS MERITS  It increase host company export than import  Integrating national economy  Implementing new innovations  Initiating a higher level of investment.  Reducing the technological gap  The natural resources are utilized in true sense.  The foreign exchange gap is reduced  Boosts up the basic economic structure.
  • 14. MERITS AND DEMERITS CONT… DEMIRITS Roses does not come without thrones.  Competition to SMSI  Pollution and Environmental hazards  Some MNCs come only for tax benefits only  Exploitation of natural resources  Diffusion of profits and Forex Imbalance  Working environment and conditions  Slows down decision
  • 15. MERITS AND DEMERITS CONT  Making Economical distress  May acquire monopoly power Think about profit rather than the host country interest  Inflexibility in terms and conditions  Underestimate local culture
  • 16. ROLES OF MNC IN INDIA  Profit maximization.  International network of marketing.  Diversification policy.  Concentration in consumer goods.  MNC’s & Process of planned economic development in india.  Cultural explosion .
  • 17. Top MNCs in India  IBM -International Business Machines (U.S)  Microsoft (U. S)  Nokia Corporation ( Finland )  PepsiCo ( U.S )  Ranbaxy Laboratories Limited ( India)  Reebok International Limited ( U. S. A.)  Sony (Japan)  Tata Consultancy Services (India)  Vodafone (UK)  Tata Motors Limited ( India)
  • 18. CONCLUSION  Global marketing is enhanced year by year  Competition increased and more employment opportunity are available in India as well as in the world  Gives advantages to domestic companies by purchasing of raw materials  Influenced on customer behavior and culture.
  • 19. Hot news  Leading MNC brands get tax relief from HC (March 17, 2015)  Indian markets in bull run since 2009; auto, pharma companies to surprise in Q4: SMC Investments (ECONOMICTIMES.COM 8 Apr, 2015 )  Samsung India expects growth to pick in FY2016, aims to be No 1 MNC (Mar 16, 2015)  Gionee Aims TO be A Billion Dollar company by FY 16 (April 4, 2015)