A Critical Review of Multinational

Companies, Their Structures and

Strategies
BY : ANKUR KUKRETI [MBA/4521/13]
PULKIT PATHAK [MBA/4568/13]
GYANENDRA KUMAR [MBA/4571/13]

WHAT ARE MNCs..?
Multinational Corporations have been broadly defined as business firms that
uphold value added-holdings overseas.
According to Spero and Hart (1999) a multinational corporation (MNC) as a
business enterprise that maintains direct investments overseas and that upholds
value-added holdings in more than one country.
An enterprise is not truly multinational if it only operates in overseas or as a
contractor to foreign firms. A multinational firm sends abroad a package of
capital, technology, managerial talent, and marketing skills to carry out
production in foreign countries.
Merits Of MNCs..
According to Heidenreich, (2012) and ILO (2010) the main merits and demerits
of MNCs are:
Help to increase investment, income and employment in host country.
Transfer technology to developing countries.
Make a commendable contribution to inventions and innovations
DEMERITS OF MNCs..
It is true that MNCs have some advantages for host countries however; MNCs have
been criticized on the following grounds :
MNCs technology is designed for world wide profit maximization, not for the
development need of poor countries.
Through power and flexibility, MNCs can evade national economic autonomy and
control, and their activities inimical to the national interest of particular countries.
MNCs cause fast depletion of some of the non-renewable natural resources in the
host country
MNCs That We Have Taken For Studying
1. HILTI INDIA PRIVATE LIMITED
2. HINDUSTAN UNILEVER
HILTI
ABOUT HILTI INDIA PVT. LIMITED
MARKETIN
G
FINANCE
HUAMN
RESOURCE
PRESIDENT
STRUCTURE
OPERATIO
NS
DIRECTOR DIRECTOR DIRECTOR DIRECTOR
HR
CSR
SERVICES
MARKETIN
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AR
STRATEGY
Hilti India has the Champion 3-C strategy, which is divided into 3 parts,
Customer
Competence
Concentration
GOAL
The goal of Hilti is :
We passionately create enthusiastic customers to create a better future
HINDUSTAN UNILEVER
INTRODUCTION
HUL works to create a better future every day and helps people feel good, look good and get more out of life
with brands and services that are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes,
deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the
everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux,
Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk,
Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit
The Company has over 16,000 employees and has an annual turnover of around Rs.25,206 crores (financial year
2012 - 2013). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer
goods with strong local roots in more than 100 countries across the globe with annual sales of 51 billion in
2012. Unilever has about 52% shareholding in HUL.

VISION
The four pillars of our vision set out the long term direction for the company where we want to go and how we are going to get
there:
We work to create a better future every day
We help people feel good, look good and get more out of life with brands and services that are good for them and good for
others.
We will inspire people to take small everyday actions that can add up to a big difference for the world.
We will develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental
impact.
We've always believed in the power of our brands to improve the quality of peoples lives and in doing the right thing. As our
business grows, so do our responsibilities. We recognize that global challenges such as climate change concern us all.
Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.

MISSION
Our mission is to add vitality to life. We meet everyday needs of
nutrition's, hygiene and personal care with brands that help people
feel good, look good and get more out of life.
STRATEGY
The volatility and uncertainty facing the world remain the new normal and are set to last for the medium term. These ongoing
pressures economic, social and environmental frame our approach to our business strategy and our business model.
We call our business strategy the Compass, since it sets out a constant path for Unilever for the long term. The Compass lays
out our ambitious vision and purpose, and defines four Winning with pillars within the business that will help us achieve both:
brands and innovation; marketplace; continuous improvement; and people. Our performance against these pillars is explained in
our Annual Report and Accounts 2012. First developed in 2009, the Compass was sharpened in 2012 but its core elements
remained the same.
In 2012 we added our new purpose To make sustainable living commonplace.
This builds on the original purpose of our 19th century founder, William Lever, to make cleanliness commonplace.
The Compass gives life to our determination to build a sustainable business for the long term and to find new ways to operate
that do not just take from society and the environment. This is captured in the Unilever Sustainable Living Plan (USLP).


ORGANISATION STRUCTURE