Impact of FOREIGN Mncs in Entreprenuer

Impact of Foreign MNCs on Indian Entrepreneurs : 

Impact of Foreign MNCs on Indian Entrepreneurs By, Sandeep Kule Rahul Sharma Shrikant Belokar Mangesh Avad Sachin Agarawal

Flow of Presentation : 

Flow of Presentation Introduction History of MNCs in India MNCs Impact on Entrepreneur Case Studies Bata ITC Action plan for Future Summary Conclusion References

Introduction : 

Introduction Since 1991, India has experienced a dramatic increase in the presence of Multinational corporation (MNCs), and with it, a tremendous expansion in the amount of foreign direct investment inflows to the Indian economy. This paper will analyze the effect with this change has had on Indian entrepreneur. The overall conclusion reached is that the increased presence of MNCs has had a positive impact on India entrepreneur. However, India entrepreneur has not even come close to reaching its potential, and thus, much more change needs to occur.

MNCs in India have a long history and tradition … : 

MNCs in India have a long history and tradition … Names of MNCs n LOGOS

Various studies have shown that there are 3 key success factors for MNCs operating in India … : 

Various studies have shown that there are 3 key success factors for MNCs operating in India … Commitment at global level Raise the profile of India Formulation of bold long term targets Empowered local Management More cost effective, enhances continuity, leverages understanding of local environment Localized product / market business models ; create customized products and services in response to unique environment in India Deliver the right product at the right price with right positioning for India

Where does Entrepreneurs Stand today in India? : 

Where does Entrepreneurs Stand today in India? Inadequate availability of finance and credit Inadequate Import Quota of Raw Materials Expensive Mode of Communication Problem in introduction of products in overseas market Insufficient Incentive Cheap and low Quality Product Lack of Knowledge to customs officers. Delayed Payments Equity participation by large scale units Limited partnership act technological obsolescence

Case Study 1 : BATA : 

Case Study 1 : BATA Bata was originally a Czechoslovak company. BATA in India spends nearly Rs.70 million on the purchase of finished leather from big and small tanneries. BATA buyers are to be found in the most remote areas buying raw hides and providing expertise on methods of preservation and treatment of hides. To manufacturing shoes on a large scale, BATA buys many necessary items, such as PVC soles, shoe brushes, eyelets, laces, buckles, labels etc. For the supply of these items BATA depends on over 130 small-scale units. BATA has about 100 suppliers of handmade leather shoes in and around Agra, Delhi, Madras, Kanpur, Bangalore and Calcutta. To encourage small-scale entrepreneurs of the country, BATA in collaboration with the Institute of Marketing and Management gives out annual prestige awards for excellence in marketing.

Case Study 2 : ITC : 

Case Study 2 : ITC The “Imperial Tobacco Company of India ltd” was incorporated on August,1910 in Kolkata, India by British American Tobacco (BAT). The name of the company was changed to ITC (Indian Tobacco Company) Ltd. In 1974. A quiet digital revolution is refreshing the lives of farmers in remote Indian village. In these villages, farmers grow soya beans, wheat and coffee in small plots of land, as they have for thousands of years. A typical village has no reliable electricity and has antiquated telephone lines. The farmers are largely illiterate and have never seen a computer. But farmers in these villages are conducting e-business through an initiative called e-Choupal, created by ITC, one of India’s largest consumer product and agribusiness companies

Case Study 2 : ITC : 

Case Study 2 : ITC e-Choupal at a Glance: Commencement of Initiative: 2000 * State covered: 6 (Maharashtra, UP, MP, AP, Rajasthan and Karnataka) * Villages covered : 31000 * e-Choupal installation : 5200 * Empowered e-farmers : 3.1 millions Agenda for the decade: * States to be covered : 15 * Villages to be covered : 100,000 * e-Choupals to be installed: 20,000 * Farmers to be e-empowered: 25 million

Where does Entrepreneurs Stand today in India? : 

Where does Entrepreneurs Stand today in India? Inadequate availability of finance and credit Inadequate Import Quota of Raw Materials Expensive Mode of Communication Problem in introduction of products in overseas market Insufficient Incentive Cheap and low Quality Product Lack of Knowledge to customs officers. Delayed Payments Equity participation by large scale units Limited partnership act technological obsolescence

Action Plan for future : 

Action Plan for future Increasing Productivity Technological Up gradation Marketing and Brand Development Skill Development Improving the infrastructure

Summary : 

Summary Our small and medium scale entrepreneurs must change their mindset and be prepared to accept the challenge of globalization. They need to throw the ‘protective umbrella’ provided by the government and prove their ability. “Excellence in adversity” should be our mantra for future development. Then only small scale industries sector will emerge as an ‘engine for growth’ in the new millennium

Slide 13: 

Thank You !!!