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MULTINATIONAL CORPORATIONS
GROUP II TEAM MEMBERS VINEETHA CINDHYA DEEPA RENJU SUJIN THOMSON
CONTENTS multinational corporation-(definition) multinational corporate structure process of evolution multinational corporations hierarchy of MNCs activities factors leading to growth in IB benefits of MNCs code of conduct what MNCs have to do ? conclusion  list of MNCs in India
MULTINATIONAL CORPORATION Multinational corporation    (or Transnational corporation) (MNC/TNC) :      It    manages     production establishments  or   delivers   services in at  least two countries     Definition:  It engages    in    foreign    direct investment   (FDI)  and  that  owns  and controls value   added    activities   in    more   than   one country.
	Large multinationals have budgets that exceed those of entire countries. They have a powerful influence in international relations and local economies. They have play an important role  in  globalization ;  some  argue that a new form  of MNC  is  evolving  in   response   to globalization: the 'globally integrated enterprise'.  MNCs have existed since1602, in which year the first MNC, the Dutch East India Company, was established.
According to MNCs,it represents a cluster of affiliated firms located in different countries that: ,[object Object]
    Draw upon a common pool of 	resources
    Respond to a common strategy		    All this shows high degree of integration among different units of the firm.
 MULTINATIONAL CORPORATE STRUCTURE 			     Multinational corporations can be divided into three broad groups according to the configuration of their production facilities: 1.Horizontally integrated multinational corporations ;manage production establishments  located in different  countries  to produce the same or similar products. (example: McDonald's)
2.Vertically integrated multinational corporations:             			                                                            		          It manages production establishment in certain country/countries  to   produce products that serve as input to its production establishments in other country/countries.  (example: Adidas) 3.Diversified multinational corporations: 					        It manages production establishments  located  in  different  countries  that  are  neither horizontally nor vertically nor straight, nor non-straight integrated.  (example: Microsoft or Siemens A.G.)
PROCESS OF EVOLUTION   MNCs did not merge overnight.            			 Domestic firms after going through various stages of the evolution process, qualify for being called as an MNC.                                             The process of evolution can broadly  be  grouped   in  three successive stages. They are: ,[object Object]
Assembly or production
Integration,[object Object]
Number of countries in which the firm has operations of various sorts
Foreign assets, revenues, employees over total
Proportion of foreign employees, managers, 	stockholders
HIERARCHY OF MNC ACTIVITIES ,[object Object]
Simple assembly plants
Full-Scale manufacturing (final 	        	products and components 			 manufacturing abroad)
R & D operations,[object Object]
Emergence of supportive institutions
Openness of economic policies among large number of countries
Increase in competition,[object Object]
Benefits  to the home countries
Benefits  to the host countries  :
Transfer of technology, capital  and entrepreneurship to the host country.
Improvement of the host country’s balance of payment .,[object Object]
Improved competition in the local economy and better utilisation of available resources .
Greater availability of products for local consumers .

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Copy Of Mpob

  • 2. GROUP II TEAM MEMBERS VINEETHA CINDHYA DEEPA RENJU SUJIN THOMSON
  • 3. CONTENTS multinational corporation-(definition) multinational corporate structure process of evolution multinational corporations hierarchy of MNCs activities factors leading to growth in IB benefits of MNCs code of conduct what MNCs have to do ? conclusion list of MNCs in India
  • 4. MULTINATIONAL CORPORATION Multinational corporation (or Transnational corporation) (MNC/TNC) : It manages production establishments or delivers services in at least two countries Definition: It engages in foreign direct investment (FDI) and that owns and controls value added activities in more than one country.
  • 5. Large multinationals have budgets that exceed those of entire countries. They have a powerful influence in international relations and local economies. They have play an important role in globalization ; some argue that a new form of MNC is evolving in response to globalization: the 'globally integrated enterprise'. MNCs have existed since1602, in which year the first MNC, the Dutch East India Company, was established.
  • 6.
  • 7. Draw upon a common pool of resources
  • 8. Respond to a common strategy All this shows high degree of integration among different units of the firm.
  • 9. MULTINATIONAL CORPORATE STRUCTURE Multinational corporations can be divided into three broad groups according to the configuration of their production facilities: 1.Horizontally integrated multinational corporations ;manage production establishments located in different countries to produce the same or similar products. (example: McDonald's)
  • 10. 2.Vertically integrated multinational corporations: It manages production establishment in certain country/countries to produce products that serve as input to its production establishments in other country/countries. (example: Adidas) 3.Diversified multinational corporations: It manages production establishments located in different countries that are neither horizontally nor vertically nor straight, nor non-straight integrated. (example: Microsoft or Siemens A.G.)
  • 11.
  • 13.
  • 14. Number of countries in which the firm has operations of various sorts
  • 15. Foreign assets, revenues, employees over total
  • 16. Proportion of foreign employees, managers, stockholders
  • 17.
  • 19. Full-Scale manufacturing (final products and components manufacturing abroad)
  • 20.
  • 21. Emergence of supportive institutions
  • 22. Openness of economic policies among large number of countries
  • 23.
  • 24. Benefits to the home countries
  • 25. Benefits to the host countries :
  • 26. Transfer of technology, capital and entrepreneurship to the host country.
  • 27.
  • 28. Improved competition in the local economy and better utilisation of available resources .
  • 29. Greater availability of products for local consumers .
  • 30.
  • 31. Technology and management expertise acquired from competing in global markets .
  • 32. Inflow of income from overseas profits .
  • 33. Job and career opportunities at home and abroad . 
  • 34.
  • 35. Seriously consider credible complaints and try to eliminate them .
  • 36.
  • 37. Be concerned about human rights in decision making.
  • 38.
  • 40.
  • 41. Introduce new managerial and organisational practices
  • 44.
  • 45. Wipro Technologies Type :Public (NYSE: WIT) Founded :1945 (Pre Independence) Headquarters :Bangalore Key people: Azim Premji, Suresh Vaswani, Girish S. Paranjpe Industry: Information technology services Revenue: ▲$5.0 billion (2008) USD Net income:▲$677 million (2007) USD Employees:100,000+ (2008) Website :www.wipro.com
  • 46. Aditya Birla Group Type :Private Conglomerate/Listed Companies. Founded :1900s Headquarters :Mumbai, India Key people: Kumar Mangalam Birla (Chairman) Industry: Metals and several others. Products:Aluminium, Copper, Cement, Fertilizer, Textile, Fibre, etc. Revenue:▲ $24 billion Employees:100,000+ Subsidiaries: Several. Website: www.adityabirla.com
  • 47. RELIANCE GROUP The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 34 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
  • 48. RELIANCE GROUP The Group exports products in excess of US $ 20 billion to 108 countries in the world. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited ) and Reliance Industrial Infrastructure Limited Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
  • 49. TATA   Type: Private Conglomerate (BSE) Founded :1868 by Jamshedji Tata Headquarters :Mumbai, Maharashtra, India Key people: Ratan Tata, Chairman Industry: EngineeringMaterialsInformation technologyCommunicationAutomotiveChemicalsEnergy
  • 50. TATA Products:SteelAutomobilesTelecommunicationsSoftwareHotelsConsumer goods Revenue :US$ 62.5 billion[1](Feb 2008) Net income: ▲ US$ 4 billion (FY 2007) Employees:2,89,500 (2007) Website : www.tata.com
  • 51. INFOSYS Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US $ 250. Today, we are a global leader in the "next generation" of IT and consulting with revenues of over US$ 4 billion. Infosys' service offerings span business and technology consulting , application services, systems integration, product engineering, custom software development maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing.
  • 52.