MNC Environment

BYCapt. Rajeshwar Singh

Multinational Corporations MNC’s are network of firms, linked together by ties of

ownership and control, and operating in multiple countries.

MNCs …• Operate in more then one country.• Sell their products in International markets• Managers and owners are of different nationalities• Must learn to work effectively with people from

different countries

Importance of MNCs MNCS have important organisational advantages which

domestic firms cannot match Economics of Scale MNC’s to produce technologically sophisticated

products at lowest possible cost. MNCs can maximize the firms access to less expensive or more

productive capital ,resources and labour located in variety of countries. MNCs have access to transnational marketing networks which enable

them to distribute their products in a variety of countries.

Most importantly , MNC can integrate these advantages in order to To develop latest technology Use them to innovate new products or production processes Coordinate production and marketing on a multinational scale

MNC’s KSF in India View India as Key Focus Area Formulate bold, long term targets that drive decision

making Create processes that accelerate the integration as well as

localisation of the organisation Change the rules regarding Global metrics Build for the long term in India regarding People, HR

practices Define a country added role for country management. Establish local team credibility

MNC’s KSF in India

Leverage India opportunities beyond product market.

Localize parts of the value chain to obtain Indian costs and capability benefits.

Formulate India specific business model strategies [ product, value pricing]

What MNC Requires leader with vision Decision maker Mentor Learner Go-getter Honest Integrity SMART Goals Setter Initiative / Innovative

Leaders Impartial Straightforward Visionary Team worker Attitude Values Decision Maker Motivation communication

Mentorship Be guide to your peers, collogues and seniors. Support them to grow Share your knowledge Investment of Time Commitment

Success Factors Accomplishments / getting Results. Taking initiative Communication skills Problem solving Team work and team leadership Project Management Decision making Strategic / Innovative thinking Handling Pressure

What do you See ?

Global compact Labour Standards

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect

of employment and occupation

Global compact The Global Compact is a framework for businesses

that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption.

Human Rights Principle 1: Businesses should support and

respect the protection of internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Global compact Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Global Compact

Anti-Corruption Principle 10: Businesses should work against

corruption in all its forms, including extortion and bribery.

Corporate Governance Key elements of good corporate governance principles

include honesty, trust and integrity, openness, performance orientation, responsibility and accountability, mutual respect, and commitment to the organization

Rights and equitable treatment of shareholders Interests of other stakeholders Role and responsibilities of the board Integrity and ethical behavior Disclosure and transparency Mechanisms and controls Internal corporate governance controls

Corporate Governance External corporate governance controls Systemic problems of corporate governance Role of the accountant Regulation Enforcement Action Beyond Obligation

Developing Individual Induction Achievement Responsibility Authority-Delegation of Power-empowerment Training Recognition Growth Performance Reward Task- communcerate with person Grievances and redressal Security

Interview strategies Gather your Resources networking and get

ready. Your Resume and Cover letter. PAR Problems [solved]-Action [taken]-Results Researching the company and deciding the

career. Preparing for interview. The interview