Question

what are MNCs and their functions

Answer 1

MNCs are the companies that have thier head office in one country and regional branches all over the world.
Thier presence can be found in every country and their function is for providing access of different products to different countries and "Globalization. "

Answer 2

Planning involves analyses of international and external environment to find out the strengths, weaknesses, opportunities and threats. After conducting the SWOT analysis, the management sets the objectives. It is very difficult to analyse the external environment. This is because the world markets, are changing continuously.

Even large MNCs find it difficult to compete in the world markets. Therefore, they form Global Strategic Partnerships (GSPs) with local companies. Due to GSPs, planning becomes easier. That is because the managers of the local branches have full knowledge about the local environment. Some MNCs use consultants to study the external environment of foreign countries.

2. Organising in the MNC

Organisation is a structure, which helps to achieve corporate objectives.

A MNC can select an organisation structure from the following options:-

A MNC may appoint one Vice-President for all its foreign branches. He will control all the foreign branches from the MNC's head office.

A MNC may use geographic structures. It may appoint a head in every single country or region in which it operates. For e.g. A manager may be appointed as a Head for the Asian region or for India; another manager may be in-charge of the European region, etc.