BE - Multinational Co.

8/8/2019 BE - Multinational Co.

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TOPIC : MULTINATIONAL

COMPANIES

GROUP 5

LALA LAJPAT RAI COLLEGE

Business Environment Presentation



S A C H I AG G A RWA L ( 9 1 0 0 1 0 1 )

TA R A N D E E P S I N G H A H U J A ( 9 1 0 0 1 0 2 )

PA L L AV I A RO R A ( 9 1 0 0 1 0 7 )

P O O J A C H H E DA ( 9 1 0 0 1 2 0 )

RU C H A ( 9 1 0 0 )

R A D H I K A J A R I WA L A ( 9 1 0 0 1 5 4 )

A AT I F S U M A R ( 9 1 0 0 1 5 6 )

Group Declaration



Introduction

Multinational companies are the organizations or enterprises that manage

production or offer services in more than one country. And India has been the home

to a number of multinational companies.

And India has been the home to a number of multinational companies. In fact, since

the financial liberalization in the country in 1991, the number of multinationalcompanies in India has increased noticeably.

Though majority of the multinational companies in India are from the U.S., however

one can also find companies from other countries as well. The multinational

companies in India represent a diversified portfolio of companies from different

countries.

Though the American companies - the majority of the MNC in India, account for

about 37% of the turnover of the top 20 firms operating in India, but the scenario has

changed a lot off late. More enterprises from European Union like.



Definition And Meaning

y A multinational corporation (MNC) or transnational corporation (TNC), also

called multinational enterprise (MNE), is a corporation or enterprise that

manages production or delivers services in more than one country.

y It can also be referred as an international corporation.

y

ILO defined MNC as a corporation which has his managerial head quarters inone country known as the home country and operates in several other countries

known as host countries.

y The first modern MNC is generally thought to be the Poor Knights of Christ

and the Temple of Solomon, first endorsed by the pope in 1129. The key

element of transnational corporations was present even back then: the British

East India Company and Dutch East India Company were operating indifferent countries than the ones where they had their headquarters.

y Multinational corporations can have a powerful influence in local economies as

well as the world economy and play an important role in international

relations and globalization.



Why are Multinational Companies in India?

There are a number of reasons why the multinational companies

are coming down to India.

y India has got a huge market.

y It has also got one of the fastest growing economies in the world.

y Besides, the policy of the government towards FDI has also played a

major role in attracting the multinational companies in India. For quite a

long time, India had a restrictive policy in terms of foreign direct

investment. As a result, there was lesser number of companies that

showed interest in investing in Indian market. However, the scenario

changed during the financial liberalization of the country, especiallyafter 1991. Government, nowadays, makes continuous efforts to attract

foreign investments by relaxing many of its policies.

As a result, a number of multinational companies have shown

interest in Indian market.



List of Multinational Companies in India

The list of multinational companies in India is ever-growing as a number

of MNCs are coming down to this country now and then. Following are some

of the major multinational companies operating their businesses in India:

y British Petroleum

y Vodafoney Ford Motors

y LG

y Samsung

y Hyundai

y Accenture

y Reebok

y Skoda Motors

y ABN Amro Bank



Business Etiquettes in India

y Do use titles to address your Indian counterparts, such as Professor or

Doctor. If he/she does not have a title, use Mr., Mrs., or Miss.

y Do wait for a female business colleague to initiate a greeting whether it is

verbal or physical. Indian men do not generally shake hands with women

out of respect.

y Do remain polite and honest at all times in order to prove that your

objectives are sincere.

y Don't be take large or expensive gifts as this may cause embarrassment. If

you do take a gift make sure you present the gift with both hands.

y

Don't refuse aggressive in your business negotiations it can be interpretedas a sign of disrespect.

y Don't take any food or drink offered to you during business meetings as this

may cause offence (sample small portions at least). In addition, it is useful to

keep in mind that traditionally, and religiously, majority of Indians are

vegetarians and do not drink alcohol or smoke.





y POLITICAL AND LEGAL

DIFFERENCES

y CULTURAL DIFFERENCES

y ECONOMIC DIFFERENCES

y DIFFERENCES IN THECURRENCY UNIT

y DIFFERENCES IN THE

LANGUAGE

y DIFFERENCES IN THE

MARKETING INFRASTRUCTUREy TRADE RESTRICTIONS

y HIGH COSTS OF DISTANCE

y DIFFERENCES IN TRADE

PRACTICES

The Difficulties of Multinational Companies



Conclusion

The role and impact of multinational corporations, and the degree to which they can

dictate outcomes to their advantage, have evolved with the changes that have occurred

over the last 50 years in the prevailing economic policy regime. In the post-war decades,

multinational companies enjoyed a profile and political significance that reflected policy-

makers' belief that the future lay with big organizations - in both the private sector and

the public sector - that had outgrown market forces and could control their owncommercial environments. The disappointing outcomes of this approach have served to

show that 'bigness' in itself confers no competitive advantage.

We have consequently moved away from misconceived policies of corporatism and

dirigisme to an understanding of the causes of the wealth of nations which tells us that

multinational companies are, broadly speaking, as subject to market forces (and also to

political forces) as other producers. They are important players, but not necessarily moreimportant, for good or ill, than other economic entities that evolve spontaneously. We

have learned that big is not necessarily best: consumers' interests are served simply by

efficient businesses, and these vary enormously in size. Equally, our present

understanding of public policy shows us how governments can promote (or, if they insist,

undermine) the potential benefits of the international activities of businesses.



We are g ra tef u l t o Va dehi M am f o r g ivi ng u s a n

o p po rt u n i ty t o give a p re se n t a ti o n on t h e Wor ki ng O f

Mu l ti n at io n a l Co mp a n i e s . Th i s ex per i e n ce h as b ee n

e n l i ght e ni n g . Th a nk yo u Mam f o r g ivi n g u s a c h a n ce t o

g a i n m ore k n owl edg e o n our s ub j e c t . We wo ul d al s o l i ke

t o th a n k a l l the peo p l e wh o p ai d a tten t i o n ! Th a n k you

f o r c o- o pe ra t in g .

Acknowledgement



Thank YouEveryone!!

BE - Multinational Co.

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