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Writer's pictureLaxmi Mathur

Characteristics of a Multinational Company – MNC


Multinational Company
Multinational Company

1. High turnover and many assets


MNCs operate on a global scale. This means that they have huge assets in almost all the countries where they operate. Their turnover can also be huge. For example, Apple has a market capitalization of $1 trillion. This is bigger than the entire economy of Saudi Arabia!


2. Control


MNCs have unity of control. So, while they have many branches in many countries, the main control will remain with the headquarters located in their country of origin. They have their own management and offices for business operations in the host country, but the ultimate control will still remain with the headquarters.


3. Technological advantage


As we saw earlier, an MNC has a lot of money and investment. This allows them to use the best technology available to promote their products and their company. Most companies also invest a lot of money in their research and development departments to invent and discover new technological marvels.


4. Management by professionals


An MNC is run by very qualified and competent individuals. They have suitable managers to look after their business operations, technology, finance, expansion, etc. And they are also able to attract top talents to their corporations because of their resources and their reputation.


5. Aggressive marketing


MNCs can spend a lot of their money on marketing, advertising and promotional activities. They target international audiences, so effective marketing becomes important. Aggressive marketing helps them to capture the market and sell their products globally.


Want to get a list of multinational companies in India? Click on the text link.




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