role of mnc’s in organized retail format

Multinational corporations(MNCs):

“An enterprise which allocates company resources without regards to national frontiers, but is nationally based in terms of ownership and top management”.

“ An enterprise which own or control production or service facilities outside the country in which they are based”.

Features of MNC1. Big size2. Huge intellectual

capital3. Operates in many

countries4. Large number of

customer5. Large number of

competitors6. Structured way of

decision making

Organized retail formats

The term organized retailing means to have a formal organization to coordinate and carry out activities.

The organized retail formats are generally owned by corporate entities.

They may include: hyper market, super market, convenience store, exclusive outlet, departmental store and cash-n-carry.

Organized retail outlet is a place where the product attributes in terms of quality, weight/quantity, price, service of the providers are homogenous.

They have the advantages of economies of scale and scope, as the purchasing is done in bulk orders.

Its now constitutes 5% of the total retail sector, is likely to grow at a much faster pace of 45-50percent per annum.

Capital, the means of production, is basic need of any retailing format. Through FDI, MNCs are able to diffuse the much needed resources into developing country.

The movement of technology to produce goods as well as for communication purpose. The introduction of technology to the developing world can lead to cleaner and more efficient technologies.

The skill level of the workers within the host country would also increase because many MNCs can and do educate them in the job skills.

Their GDP and GNP will also reflect the growth of industry. These changes will potentially attract more investors in the same industry.

FDI through MNCs is Far Easier:

FDI through MNCs is Far Easier to attain than national development aid or multilateral bank lending because there are so many firms looking for opportunities for optimizing profits.

Reasons for Growth of MNCs in RetailingFactor mobilityEconomic reformsManagement cultureGrowth urgeMarket potentialRisk minimizingDeveloping in communication technology

MNC

LIST OF MNC IN

RETAILING

List of Retail Companies in India

Aditya Birla Retail Ltd. Crossword Bookstores Limited

Ebony Retail Holdings Ltd Fabindia

Heritage Foods (India) Ltd

Levi Strauss

Nalli NEXT Retail India Ltd

F Zodiac Clothing Co. Ltd

Vishal retail. Ltd

Arvind LtdBalaji Distilleries Ltd.Bannari Amman Sugars Ltd.Bharat Petroleum Corporation Ltd.Bombay Swadeshi Stores Ltd.Brandhouse Retails LtdDamas Goldfields Jewellery Pvt. Ltd.Garden Silk Mills LimitedGini Silk Mills LtdGivo Ltd.

Garden Silk Mills LimitedGini Silk Mills LtdGivo Ltd Globus Corporation LtdGR Thanga MaligaiGuardian Lifecare Ltd.ITC Ltd – LRBDKalanjali Arts and CraftsKirtilal Kalidas & CoKoutons Retail India Ltd.