PROFIT MAXIMISATION

INTERNATIONAL NETWORK OF MARKETING

Companies have profit maximisation as their main objective. MNCs are expected to behave like a corporate citizen. But, MRTP commission had shown that Philips has undervalued its expenses.

MNCS are expected to increase their exports and earn foreign exchange for India.

DIVERSIFICATION POLICY

CONCENTRATION IN CONSUMER GOODS

MNCS are expected to diversify their activities into the untapped areas and the priority areas. But, most of the MNCs diversify into more profitable areas. For example, ITC ventured into hotel industries.

Most of the MNCs entered Indian consumer market due to the high profitability rather than the capital goods market which is less profitable. For Example, HLL