MNC

MULTINATIONAL
CORPORATION

Business Studies Assignment

Group Presentation
CONTENT
• What is MNC?
• Features of MNCs
• Objectives of a MNC
• SWOT Analysis
• Advantages & Disadvantages
• What India offers to MNCs?
• Some of the top MNCs in India
• Future of MNCs
• Criticism towards MNCs
WHAT IS MNC?
• A Multinational Corporation (MNC) is a large corporation
which produces and sells goods or services in multiple
countries.

• It is an enterprise operating in several countries but

managed from one country.

• Examples- Microsoft, Coca Cola, Aditya Birla Group,

Honda, etc.
FEATURES OF MNCS
• Big Size
• Huge intellectual capital
• Operates in multiple countries
• Huge customer base
• Huge number of competitors
• Structured way of decision making
OBJECTIVES OF A MNC
• To expand business beyond the boundaries of the home
country
• To dominate lucrative foreign markets against other
international competitors
• To maximize profits and minimize cost of production
• To be more innovative than competitors to anticipate
future needs of people
• To establish an international corporate image
ADVANTAGES OF MNC
• MNCs create employment opportunities in host country.
• Greater availability of products for local consumers
• Transfer of technology and capital to the host country
• Technical and Managerial development
• Improvement in standard of living
• Improvement in Balance of Payment
• Boosts industrial activities of home country
• Improve trade relations between countries
DISADVANTAGES OF MNC
• Threat to domestic industries of the host country
• The host country is likely to lose its economic sovereignty
• Careless exploitation of natural resources
• The host country may experience some loss of control
over its economy
• Development of social welfare or economy is ignored as
their focus is to maximise profit
WHAT DOES INDIA OFFER?

• Huge market potential (Large population)

• Third largest economy by Purchasing Power Parity (PPP)

and fastest growing economy in the world

• Labor is easily available

• Macro-economic stability
TOP CORPORATIONS IN INDIA
• IBM
• Microsoft
• Samsung
• Aditya Birla Group
• Amazon
• Google
• Sony
• Tata
FUTURE OF MNC
• Increasing international competition
• Technological advancement
• Reduction in friction among nations
• World business community uniting together
• Growing role of private sector in developing nations
• Global regional economic integration
• Globalization of firms and industries
CRITICISM TOWARDS MNC
• Creation of false needs in people
• Interference and dominance in the internal affairs of
sovereign nations
• Intrusive advertising and corporate lobbying
• Creation of monopolies endangering small local
businesses
• Tax avoidance practiced on a large scale
Thank You