MNC

Multi National Corporation

(or)
Trans – National Co-operation
(TNC)
(or)
Multi National Enterprise
 DEFINITION
• Enterprise that manages production or delivers
services in more than one country. It can be
referred to as International corporations.
• According to Internation Labour Organization
MNC is a corporation that has its management
headquarters in one country know as home
country and operates in several other
countries known as host countries.
 Characteristics of MNC’s
• Some MNC’s are very big, with budget that
exceeds some nations GDP’s
• Powerful influence in local economies and even
world economy. Eg: Reliance in India.
• They play an important role in international
relations and globalization.
• The market imperfections are inherent conditions
in markets and MNC’s are institutions that try to
bypass these market imperfections
• Tax Competition

• Market Withdrawal

• Patents

• Micro – Multinationals
 Tax Competition
• Countries and sometimes subnational regions
must compete against one another for the
establishment of MNC facilities and
subsequent tax benefits.
• To compete countries and regional political
districts sometimes offer incentives to MNC’s
such as tax breaks.
 Market Withdrawal
• Because of their size MNC can have a
significant impact on government policy.
eg: In effort to reduce medical costs
countries force the MNC’s to reduce the price
so it can be available to all kinds of people.
 Patents
• Many MNC’s hold patents to prevent
competitors from arising.
For eg:
Adidas holds patents on shoe design
Microsoft from software patents
 Micro - Multinationals
• Small Multi national can are called as Micro –
MNC’s
eg:
Software development companies hire
people from different countries.
 Criticism of MNC’s

Anti – corporate Activism:

The rapid rise in MNC’s has been drawn

into a big issue among intellectuals.
 First MNC in world
Dutch East India Company and first
company to issue stock.
• Mega Corporation – World 1st
• had ability to wage war.
• Negotiate treaties.
• Coin Money.
• Establish Colonies.
 PEPSI
• CEO: Indra Nooyi [CEO, Chair woman]
• Type – Cola
• Manufacturer – Pepsico
• Country of Origin – United States
• Old Name – Brad’s Drink
Started in – 1898
Introduced June 16, 1903 as Pepsi – Cola.
 HISTORY OF PEPSI
• Carbonated soft drink that is produced and
manufactured by Pepsico, invented in 1898 as
Brad’s drink it was later renamed as Pepsi –
cola on 1903.
• It was introduced in a place called New Bern,
North Carolina in 1898 by Caleb Bradham who
made it at his pharmacy and it is sold there.
• Later it was called as Pepsi cola, due to digestive
enzymes Pepsin and Kola nuts.
• Bradham who sold these cola to people to aid
them in digestion and boost energy.
• In 1903, moved Brad’s drink from his pharmacy
to rented warehouse.
1903 alone sold 7,968 gallons of syrup.
1904 19,848 gallons.
• During world war company went bankruptcy
then pepsi assets were purchased by Charles
Guth, President of Loft Inc.
 Development
• In 1997, pepsico launched the highly
successful pepsi stuff marketing strategy.
• By 2002, the Strategy was cited by Promo
Magazine as one of 16 “ geless wonders”
• By 2007, pepsico redesigned their cans for 14th
time and 1st time included more than 30
backgrounds
• By late 2008, pepsi overhauled their entire
brand simultaneously introducing a new logo
and minimalist label design.

• In 2009, “Bring Home the cup” changed to

“Team up and Bring Home the cup”.
 SPONSORS

• National Football League.

• Nation Hockey League.

• Major League Baseball.

• Major League Soccer.

• International Cricket Team.(pakistan)