multinational enterprises

multinational enterprises

-Ishika Agarwal

index

1. meaning

7. turn key points

8. advantages

2. types of MNCs

9. disadvantages

3. franchising

10. apple

4. branches

11. nike

5. subsidiaries

12. Thanks

6. joint venture

WHAT IS MULTINATIONAL ENTERPRISES

A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management. Some of these companies, also known as international, stateless, or transnational corporate organizations, may have budgets that exceed those of some small countries.

types of multinational enterprises

1. Franchising2. Branches3. Subsidiaries4. Joint Venture5. Turn Key Projects

1. Franchising

In this form, multinational corporation grants firms in foreign countries the right to use its trade marks, patents, brand names etc.The firms get the right or licence to operate their business as per the terms and conditions of franchise agreement. They pay royalty or licence fee to multinational corporations.

2. Branches

In this system multinational corporation opens branches in different countries. These branches work under the direction and control of head office. The headquarters frames policies to be followed by the branches

3. Subsidiaries

A multinational corporation may establish wholly owned subsidiaries in foreign countries. In case of partly owned subsidiaries people in the host countries also own shares.

4. Joint Venture

In this system a multinational corporation establishes a company in foreign country in partnership with local firms. For example, in Maruti Udyog the Government of India and Suzuki of Japan have jointly supplied capital. Suzuki supplies technology and the day to day management lies with the Government of India.

5. Turn Key Projects

In this method, the multinational corporation undertakes a project in foreign country. The multinational constructs and operates the industrial plant by itself. It provides training to the staff in the operation of plant.

ADVANTAGES

1. Modern Technology 2. Growth of Industry 3. Expands Export. 4. Remove Monopolies 5. Increase Employment

DISADVANTAGES

1. Damage Environment2. Pressurize Governments. 3. Reduces Tax Liability 4. Export Profits . 5. Inappropriate technology

APPLE

Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The Apple I was the first product of the company. After that it introduced many products such as Macintosh, Apple Lisa, Apple II which proved to be great success, though not without many ups and down. Apple Inc. is a multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company is best-known for the Macintosh line of computers, the iPod, the iPhone and the iPad. It has retail stores all round the world and also online store, a distinct feature, where hardware and software products are sold

APPLE

Apple is one of the largest companies in the world and the most valuable technology company in the world. Apple has established a unique reputation in the consumer electronics industry. It was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The Apple I was the first product of the company. After that it introduced many products such as Macintosh, Apple Lisa, Apple II which proved to be great success In 2019, Indian Prime Minister Narendra Modi relaxed rules that required foreign retailers like Apple to meet a 30% made-in-India threshold to sell directly to Indian consumers via online and physical stores. The rule had forced Apple to sell its wares through Indian phone stores and other domestic retail chains.

NIKE

Nike is a multinational company that produces sports goods and apparel. According to nikebiz.com the company was established in 1964 and traded as Blue Ribbon sports and officially became Nike in 1978. It’s the largest sports retail company in the world. It sells to approximately 19,000 retail accounts in the US, and then in approximately 140 countries around the world. The manufacturing part of Nike is outsourced to independent contractors in developing countries like China, Taiwan, Korea, Mexico, Vietnam, Indonesia, India and Italy.

NIKE

Nike's entry into India was through a seven-year licence agreement with Sierra Industrial Enterprises, which was later done away with to become a 100 per cent-owned subsidiary of the US parent company. ... Experts say the application by Nike is a sign of greater commitment of the brand to the Indian market.

thanks!