Briefly explain five features of MNCs.
Briefly explain five features of MNCs.
Features of MNCs are given below :
(a) Giant size : The assets and sales of a multinational companies are quite large. The sales turnover of some MNCs exceed the Gross National Product of several developing countries.
(b) International operations : A multinational operates through a network of branches spread across various host countries. MNCs might operate through franchising, branches. subsidiaries, joint ventures etc in other countries.
(c) Advanced Technology : These enterprises use sophisticated technology in their methods of production. Technological superiority gives them an edge over other companies in host countries. Innovative product of MNCs conforms to international standards and quality specifications which helps them in maximising sales and profits.
(d) Professional management : MNC's hire professional managers to manage their huge physical and financial resources. Professional managers with their expertise and training make optimum use of available opportunities and encounters threats effectively.
(e) Centralised control : A MNC has its headquarter in home country, from where it controls its branches and subsidiaries. The subsidiaries in host countries work according to broad policies formulated by the headquarter.
(f) Marketing strategies : MNCs have aggressive marketing strategies. They acquire major portions of market using effective marketing strategies and attractive sales promotion techniques. Since they have already carved out a place for themselves in the global market and their brands are well known, selling their products is not a problem.
Features of MNCs are given below :
(a) Giant size : The assets and sales of a multinational companies are quite large. The sales turnover of some MNCs exceed the Gross National Product of several developing countries.
(b) International operations : A multinational operates through a network of branches spread across various host countries. MNCs might operate through franchising, branches. subsidiaries, joint ventures etc in other countries.
(c) Advanced Technology : These enterprises use sophisticated technology in their methods of production. Technological superiority gives them an edge over other companies in host countries. Innovative product of MNCs conforms to international standards and quality specifications which helps them in maximising sales and profits.
(d) Professional management : MNC's hire professional managers to manage their huge physical and financial resources. Professional managers with their expertise and training make optimum use of available opportunities and encounters threats effectively.
(e) Centralised control : A MNC has its headquarter in home country, from where it controls its branches and subsidiaries. The subsidiaries in host countries work according to broad policies formulated by the headquarter.
(f) Marketing strategies : MNCs have aggressive marketing strategies. They acquire major portions of market using effective marketing strategies and attractive sales promotion techniques. Since they have already carved out a place for themselves in the global market and their brands are well known, selling their products is not a problem.
