International Business

Submitted by:-

Group (8) MBA (B2)

Ahmad Nadeem Shahid 06

Shumaila Asnath 48

Sadaf Jabeen 43

Yusra Younas 50

Asad Ali Khan 11

Submitted To:- MAZHER JAVED (Lecturer)

Multinational Corporation

Multinational Corporation (MNC) is a corporation or enterprise that manages

production or delivers services in more than one country. The first modern MNC is

generally thought to be the Dutch East India Company, established in 1602. Very large

multinationals have budgets that exceed some national GDPs. Multinational corporations

can have a powerful influence in local economies as well as the world economy.

Multinational corporations play an important role in international relations and

globalization. In Pakistan there are 165 companies out of which there are 47

multinational companies

Total MNCs working in Pakistan

AAB Chartered

Unilever

Proctor & Gamble

Nestle

Chartered Bank

Siemens

KFC

Toyota

Pepsi Cola International

Mobilink

ICI

Citigroup

Coca cola

Gillette

Honda

Nestle

Shell

Sony

Toyota

Toshiba

Samsung

HSBC

LG

Nissan

Orascom

Philips

Mc Donald

Microsoft

Mother care

Al-Falah Bank

Royal Bank Of Scotland

Standard Charter Bank

Pak al Saudi Bank

Crescent Commercial Bank

Hinopak Motors

Suzuki

Nissan

Murree Brewery

Colgate-Palmolive Pakistan

Pizza Hut

Novartis

Aventis

Warid Telecom

Telenor

Wateen Telecom

China Mobile

Mod

GAP

Reebok

SECTOR WISE BREAKUP

AUTOMOBILE

Toyota

Honda

BMW

Nissan

Hinopak Motors

SUZUKI

Electronics

Philips

Hawaii

Samsung

LG

Sony

Toshiba

Intel

BANKING

Citibank

HSBC

Al-Falah Bank

Royal Bank Of Scotland

Standard Charter Bank

Pak al Saudi Bank

Crescent Commercial Bank

Dubai Islamic Bank

Telecommunication and IT

Mobilink

Warid Telecom

Telenor

Wateen Telecom

China Mobile

Food and personal care products

Murree Brewery

Procter & Gamble

Unilever Pakistan

McDonald

Pizza Hut

KFC

Pepsi

Coca-Cola

Nestle Pakistan

Chemical

Colgate-Palmolive Pakistan

ICI Pakistan

Engineering

Siemens

Medicines

Novartis

Aventis

Garments

Mod

GAP

Reebok

Top Ten MNCs in Pakistan

1. Unilever

2. Proctor & Gamble

3. Nestle

4. Chartered Bank

5. Siemens

6. KFC

7. Toyota

8. Pepsi Cola International

9. Mobilink

10. ICI

Unilever Pakistan LTD

Overview

The modern Unilever was established in 1929 as an association between the British

manufacturer Lever Bros. and several other European soap and margarine

manufacturers. Today most Unilever sales are in household products, including soaps

and detergents, margarines, cooking fats, dairy products, toiletries, and packaged and

processed foods. The group also produces paper and plastic products, industrial

chemicals, and animal feeds.

Unilever in Pakistan

The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan Limited was

established in Pakistan in 1958. The town of Rahimyar Khan was the site chosen for

setting up a vegetable oil factory. Unilever Pakistan is the largest FMCG company in

Pakistan, as well as one of the largest multinationals operating in the country. Now

operating six factories at different locations around the country. The Unilever's Head

Office was shifted to Karachi from the Rahimyar Khan site in the mid 60's.

Unilever Brands in Pakistan

Blue Band

Supreme Tea

Clear Shampoo

Close Up

Comfort

Fair & Lovely

Lifebuoy soap & shampoo

Lipton

Lux

Ponds

Rexona

Sunsilk

Surf Excel

Wall’s

Wheel

Operations of Unilever:

160 million times a day, someone somewhere chooses a Unilever product. From

feeding your family to keeping your Since the time Unilever Pakistan began its

operations in 1948, the Company has been closely connected to the Pakistani people

and its brands have been an integral feature in their daily lives. In fact, the nature of

our business enables our brands to be the pulse and heartbeat of the 164 million

people in Pakistan. This is a huge commitment, which makes us responsible and

accountable to all our stakeholders and society as a whole and strengthens our resolve

to: Make a positive difference to the lives of low income consumers Create new

opportunities for growth Improve the overall quality of life in Pakistan, by promoting

education, nutrition, health and hygiene. home clean and fresh, our brands are part of

everyday life.

Food brands

Home care brands

Personal care brands

Nutrition

Health, hygiene & beauty

Our advertising

Unilever Food solutions

Unilever Pakistan (70.4% Unilever equity) is the largest FMCG Company in

Pakistan, as well as one of the largest multinationals operating in the country

Procter & Gamble

Overview

William Procter, a candle maker, and James Gamble, a soap maker, formed distinct

companies. The two men, immigrants from England and Ireland respectively who had

settled earlier in Cincinnati, might never have met, had they not married sisters,

Olivia and Elizabeth Norris. Since both their industries used similar resources, the

Panic of 1837 caused intense competition between the two and as a result it led to

discord with the family. Alexander Norris, their father-in law decided to call a

meeting where he convinced his new sons-in-law to become business partners. On

October 31, 1837, as a result of the suggestion, a new enterprise was born. Procter &

Gamble. Procter & Gamble headquarters in Cincinnati, Ohio.

History in Pakistan

Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in

Pakistan in 1991. Our goal was to become the finest global consumer goods company

operating locally in Pakistan. To fulfill this goal, we are serving Pakistani consumers

with 12 high-quality brands locally that strive to make everyday lives better.

Operations:-

P&G Pakistan headquarters are consistently upgraded to the company's progressive

values. Investments of $1 million and a recent $600,000 investment have taken place

in the work-space environment to date. The P&G Pakistan head office today hosts

high-speed digital networks and advanced systems and facilities.

As a company with vast global experience, P&G always has believed in the potential

Pakistan has as a country. Since 1989, the total amount invested by P&G Pakistan in

assets, working capital and market development has exceeded Rs 6 billion. In

addition, Procter & Gamble contributed Rs 3.1 billion to the national exchequer in the

form of taxes and duties during 2005 and 2006, increasing 13 percent over the

previous year.

P&G has attracted outstanding individuals since the day it began operations in

Pakistan. The company employs more than 257 people and creates more than 4,000

jobs indirectly in Pakistan, 99 percent of which are held by Pakistanis. All this makes

P&G a more locally focused company.

Beauty Care

Beauty segment

Grooming segment

Household Care

Baby Care and Family Care segment

Fabric Care and Home Care segment

Health & Well-Being

Health Care

Snacks, Coffee and Pet Care

Procter & Gamble brands.

Ariel

Actonel .

Bounty

Braun

Crest

Dawn .

Downy/Lenor

Duracell

Gain .

Gillette

Head & Shoulders

High Endurance

Ivory

Nice 'n Easy

Olay .

Oral-B .

Pampers

Pantene

Prilosec OTC

Pringles .

Puffs

Secret

Tide

Vicks

Whisper

pany.

Nestle Pakistan LTD

Overview:

Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and

is today the world's biggest food and beverage company. The Company's strategy is

guided by several fundamental principles. Nestlé's existing products grow through

innovation and renovation while maintaining a balance in geographic activities and

product lines.

The company succeeded in achieving sustainable profitable growth during the year under

the view driven by successful marketing and sales strategies and focus on key initiatives.

Consumer confidence in the company’s brand has further strengthened and the trade

remains confident as ever in doing business with it. Innovation and renovation remained

the key to development of new products. Food services business unit is fast developing

the required skill and competencies to meet specialized needs of out-of –home customers

and hope that the organization structure will be more strengthened in the coming

years.This is changed 12% i.e. last year. 22.62% as per share. Over all company market

share is 80%. Nestlé share as compared to nurpur, nirala and other are moves around 20

to 30%.Total turnover:- 12.9 Billion Rupees

Nestle Deal in:

Baby Foods

Breakfast Cereals

Beverages

Bottled Water

Chocolate & Confectionery

Dairy Products

Food Services

Ice Cream

Prepared Foods

Petcare

Cosmetics

NESTLE Brands:

Infant nutrition Nestlé,

Lactogen,

Nestogen,

Cerelac,

Neslac,

PowerBar,

Pria etc..

Coffee Nescafé

Nestlé fruit juices

Nestlé Pure Life

Nestlé Aquarel etc..

Chocolate confectionery and biscuits

Nestlé

Crunch

Galak/Milkybar

Kit Kat

Smarties

Butterfinger

Aero

Polo

Nido

Nespray

Carnation

La Lechera etc..

Nestle Operations:

Nestlé MilkPak Limited (NML) was incorporated in Pakistan under the Companies

Ordinance, 1984 & listed on Karachi and Lahore stock exchanges since 1980. Joint

venture between Nestle Switzerland and MilkPak Limited came about in 1988.Nestle

always make sure that all of its operations are convenient and easily accessible to its

target market. Product handling is responsibility of company. Quality and nutritional

value are the essential ingredients in all of its brands. Nestle has two factories in Pakistan

for the production of different food items. One in Sheikhupura near Lahore and other in

Kabirwala near Multan

Mobilink

Overview

Pakistan Mobile Communications Limited, better known as Mobilink GSM, is

a telecommunication service provider in Pakistan. Mobilink offers exclusively designed

tariff plans that cater to the communication needs of a diverse group of people, from

individuals to businessmen to corporate and multinationals. Mobilink started operations

in 1994 as the first GSM cellular Mobile service in Pakistan by MOTOROLA Inc.,

[citation needed] later it was sold to Orascom, an Egypt-based multi-national

company.Mobilink has 31.75 million customers by March 2008. Mobilink's Head office

is located in Mobilink House, 1 A Kohistan Road, F-8 Markaz Islamabad.

Mobilink has become the market leader both in terms of growth as well as having the

largest customer subscriber base in Pakistan - a base of over 31 million and growing. We

pride ourselves on being the first cellular service provider to operate on a 100% digital

GSM technology in Pakistan that also provides state-of-the-art communication solutions

to its customers.

Brands of Mobilink

Indigo (Postpaid)

JAZZ (Prepaid)

Mobilink PCO

WIMAX (Internet Service Provider)

Operations of Mobilink

Mobilink offer both postpaid (Indigo) and prepaid (JAZZ) solutions to their customers.

Both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind

in the Pakistan cellular industry.

In addition to providing advanced voice communication services that makes the lives of

millions that much easy, they also offer a host of value-added-services to their prized

customers. At the same time, Mobilink places high importance to its coverage, which is

why we cover you in 10,000+ cities and towns nationwide as well as over 130 countries

on international roaming service. In other words, they speak your language, everywhere.

With a soft launch on 1st July 2008, Mobilink is now the second WIMAX internet

service provider in Pakistan. Currently providing services only in Karachi. They started

offering DSL broadband through a wholly owned subsidiary, Link.Net

KFC

Overview

Today, KFC is the world’s largest and most well known chicken restaurant chain, with

more than 10,000 locations worldwide, in 78 countries. KFC and its franchises employ

more than 20,000 people worldwide.KFC serves more than 4.5 billion of chicken

annually, to approximately 7 million customers a day, world

Born and raised in Henryville, Indiana, Sanders passed through several professions in his

lifetime.[5] Sanders first served his fried chicken in 1930 in the midst of the Great

Depression at a gas station he owned in North Corbin, Kentucky. The dining area was

named "Sanders Court & Café" and was so successful that in 1936 Kentucky Governor

Ruby Laffoon granted Sanders the title of honorary Kentucky Colonel in recognition of

his contribution to the state's cuisine. The following year Sanders expanded his restaurant

to 142 seats, and added a motel he bought across the street

KFC in Pakistan

KFC came to Pakistan in 1996 with the first branch opening in Karachi and later in

Lahore. The Franchisee was a Pakistani owned and operated, Dubai-based company the

Cupola Group, which owns licenses and its own restaurant throughout Pakistan and the

middle-east. South Region including Karachi and Hyderabad (interior Sindh).North

Region including Lahore, Rawalpindi and Islamabad (Punjab).They have a total of 44

outlets working in Pakistan. 1 outlet is in Islamabad, 2 in Rawalpindi,21 in Karachi, 11 in

Lahore and other in others city of Pakistan like Faisalabad, Hyderabad, Gujranwala,

Sialkot, Multan, Peshawar and Jhelum.KFC say that for the last seven years they stand as

the market leader in the fast food category and our strength lies in the mass appeal of our

products and great service

PRODUCTS OF KFC

Chicken Meals

Sandwich Meals

Family Deals

Operations of KFC

They have a total of 44 outlets working in Pakistan. 1 outlet is in Islamabad, 2 in

Rawalpindi,21 in Karachi, 11 in Lahore and other in others city of Pakistan like

Faisalabad, Hyderabad, Gujranwala, Sialkot, Multan, Peshawar and Jhelum.KFC say that

for the last seven years they stand as the market leader in the fast food category and our

strength lies in the mass appeal of our products and great service.

PEPSI COLA INTERNATIONAL

Company’s History

Pepsi Cola International is world renowned soft drinks brand. It is a very well organized

multinational company, which operates in almost all over the world. They produce, one

of best carbonated drinks in the world. Pepsi is a symbol of hygiene, quality and service,

all over the world. Pepsi is producing Cola for more than 100 years, and it has dominated

the world market for a long time. Its head office is in New York. Pepsi-Cola is a

carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores,

restaurants and from vending machines. The drink was first made in the 1890s by

pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on

June 16, 1903. There have been many Pepsi variants produced over the years since 1903,

including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue,

Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil),

Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico,

Pepsi One, Pepsi Ice Cucumber and Pepsi White in Japn

PEPSI IN PAKISTAN

The market in Pakistan is surely dominated by Pepsi. It has proved itself to be the No.1

soft drink in Pakistan. Now a days Pepsi is recognized as Pakistanis National drink. In

1971, first plant of Pepsi was constructed in Multan, and from their after Pepsi is going

higher and higher.

PEPSI OPERATIONS IN PAKISTAN

Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand.

Cokes basic strength is its brand name. But Pepsi with its aggressive marketing planning

and quick diversification in creating and promoting new ideas and product packaging, is

successfully maintaining is No.1 position in Pakistan. In coming future Pepsi is also

planning to enter into the field of fruit drinks. For this it has test marketed its mango juice

in Karachi for the first time.

PRODUCTS

Traditionally there are three categories of beverages all over the world. These are:

1. Cola

2. Lemon and Lime, Diet etc.

3. Flavored.

PRODUCT LINE

At the initial stage Pepsi introduced single product i.e. Pepsi Cola in 250 ml (Standard

size). Right now Pepsi is producing these three categories:

1. Pepsi Cola

2. Lemon & lime (as Teem & 7up)

3. Mirinda Cream (in Karachi)

4. Mountain Dew(just in)

Siemens

Overview

Siemens is Europe's largest engineering conglomerate and the largest electronics

company in the world.Siemens’ international headquarters is located in Berlin and

Munich, Germany. The company is a conglomerate of three main business sectors:

Industry, Energy and Healthcare with a total of 15 Divisions.

Siemens Pakistan

For 85 years, Siemens has been active in Pakistan, where it holds leading positions in the

three application fields: Energy and Environmental Care, Industry & Public

Infrastructures and Healthcare. The Siemens IT Solutions and Services Group functions

across all three fields. Siemens is the country’s No. 1 supplier of high-voltage grid

stations, switchgear products and systems, power distribution and power transformers,

and network consultancy. The company has also built a new 220kV Power Transformer

factory, and is poised to meet the demand in this sector nationally and in the region. In

fiscal 2007 (October 1, 2006 – September 30, 2007), sales to customers in Pakistan

amounted to EUR 230 million. New orders totaled EUR 280 million. With a workforce of

1,400 employees, Siemens is one of the most important employers in the country and the

largest employer of engineering graduates in the country. Directly and indirectly Siemens

provides employment to more than 4000 persons across the country.

Operations in Pakistan:-

I n d u s t r y S e c t o r

Siemens Pakistan maintained its leadership position

in Industry Sector by winning the orders for Electro Mechanical

Refurbishment, Underground External Electrification and Street Light

System of DHA (Defense Housing Authority) Phase V (Lahore) and order

from WAPDA (Water and Power Development Authority) for

Electrification of New City - Mangla and flawless completion of

Electrical, Mechanical and civil works (Train III) at ENI Pakistan.

E n e r g y S e c t o r

Siemens Pakistan received an order for 500kV Rewat

substation located near Islamabad. In addition an order for switchboards

was secured from the Ministry of Energy and Water (MEW), Afghanistan

which is a big milestone. Work on the first state-of-the-art KESC (Karachi

Electric Supply Corporation) Load Dispatch Centre project is being

executed and it will be completed in 2009.Siemens Pakistan success in the

steam turbines continued with selling of a 47 MW state of the art Steam

turbine SST-600 for an IPP (Independent Power Producer) which is

expected to reach its commercial operation by 2010. In April 2008, DHA

Cogen Ltd, one of our most prestigious projects in the country, started its

commercial operations. This is a desalination plant that will provide

94MW power and 3 million gallons of potable water per day.

H e a l t h c a r e S e c t o r

Siemens Pakistan continued to establish itself as an innovation and

technology trendsetter in Pakistan by obtaining orders from Pakistan

Atomic Energy which procured 4 Linear accelerators and two OPEN

BORE Virtual Simulation CT scanners along with the latest integrated

oncology solution from Siemens to be installed at three of their thirteen

Medical centers in Pakistan. Atomic Energy Medical centers are ranked

among Pakistan's leading Cancer treatment and Nuclear Medicine centers,

where patients are diagnosed and treated at a minimal cost

Products

1:-CommunicationSystems

2:-PowerGeneration

3:-IndustrialAutomationandControl

3:-Lighting

4:-MedicalEquipment

5:-TransportationandAutomotive

6:-WaterTechnologies

7:-BuildingTechnologies

8:-HomeAppliances

9:-Fire Alarms

ICI

Overview:

ICI is the world’s largest manufacturer of the paints and industrial coatings. ICI paints are

headquartered in Berkshire, UK and operate 55 manufacturing sites in 25 countries. In

this sector its main strength are in

Decorative paints

Industrial paints

Refinish paints for vehicles.

ICI Pakistan

In 1965, ICI UK acquired a 50% interest in the paints company named as “Fullers Paints

Pakistan Ltd” situated at Ferozepur Road, Lahore. Its name was changed to Paintex

limited and it was converted into a public limited company in 1973. the capacity of the

plant was upgraded and enhanced in 1981 and since then the business has proceeded

progressively to consolidate the market share in the major segments of decorative paints.

Industrial and automotive paints market.

Operations of ICI

ICI paints business Pakistan has become an undisputed leader in the decorative motor and

refinish segments of Pakistan’s paint market. With production of 14milion liters, ICI

Pakistan touches the lives of painters, architects, paints retailers and home owners with

color throughout the country. ICI’s Dulux, Glidden, Maxilite and paintex brands have

become as much a part of painter’s vocabulary as color choice, quality, variety and

durability are the criteria for the selection of the paints by the end-users.

ICI Paints

Pharmaceuticals & Animals Health

Agrochemicals And Seeds

ICI Polyester Staple Fiber

ICI Soda Ash

Pure Terephthelic Acid

Products:

Dulux Weather Shield (Acrylic Based). (Decorative)

Dulux water repellent (D)

Dulux matt enamel, (D)

Dulux Gloss (Industrial)

Dulux Pentalite (D)

Dulux Pentalite Natural Whites (D)

Paintex plus Emulsion. (D)

Glidden Higloss (I)

Glidden Ultrahide (D)

Glidden Ultratex (D)

Maxilite (D)

Dulux Pearl Glo Matt Finish Enamel (I)

Dulux once (D)

Dulux Super Gloss Enamel (I)

Dulux Aluminum Paint Dual Pack (I)

Dulux Synthetic Clear Varnish

Polyester Fibers

Semi Dull PSF

Single Component Dyeing

Super White

Extra High Tenacity

Low Pill

Micro fibre

TOYOTA INTERNATIONAL

Overview

Toyota Motor Corporation (Toyota Jidōsha Kabushiki-gaisha), or Toyota is a Japanese

multinational corporation. The company was founded in 1937 by Kiichiro Toyoda as a

spin-off from his father's company Toyota Industries to create automobiles. It created,

first as a department of Toyota Industries, its first product Type an engine in 1934 and its

first passenger car in 1936. It is headquartered in Toyota, Aichi, Japan.

 

Toyota together with its half owned subsidiary Daihatsu had the top sales for the first

quarter of 2007 selling 2.35 million vehicles. Toyota plans to produce 9.4 million

vehicles in 2007.

Product:

COROLLA XLI

COROLLA GLI

ALTIS MANUAL 1.8 PETROL

ALTIS AUTOMATIC 1.8 PETROL

COROLLA 2.OD

SALOON 2.OD

PARADO

LAND CRUISER

Camry

Toyota in Pakistan

The company was incorporated in Pakistan as a public limited company in December

1989 and started commercial production in May 1993. To best serve its customers Toyota

Motors has established a network of twenty-seven dealers in Pakistan, fully equipped to

meet customer needs in sales, service and spare parts. Toyota vehicles are marketed

through dealership network.

Karachi

Quetta

Larkana

Lahore

Faisalabad

Sargodha

Multan

Sailkot

Rawalpindi

Islamabad

Peshawar

D.I.khan

Mardan

Operations in Pakistan

The most leading company,

The most successful company.

The most popular company.

Providing the best durability & smooth drive.

Toyota’s motto is Delighting customers.

Wide range of products which no one can compete.

More spacious than others.

More dashing & attractive.

Economical & provide greater mileage.

Greater market share than other companies.

Easily availability of spare parts.

Best in driving on damage roads.

Highly customer’s satisfaction ratio comparatively to others.

Standard Chartered Bank

With global headquarters at London, Standard Chartered is clearly the world's leading

emerging markets bank with assets of over $90 billion, employing 30,000 people in over

500 offices in more than 50 countries primarily in the Asia Pacific Region, South Asia,

the Middle East, Africa and the Americas. It derives its name after two banks - Standard

Bank of British South Africa and the Chartered Bank of India, Australia and China - that

merged in 1969. The Chartered Bank was founded in 1853 following the grant of a Royal

Charter from Queen Victoria, and opened its first overseas branch ever in Calcutta, as it

was then known.

HISTORY IN PAKISTAN

Standard Chartered Grindlays Bank is the oldest and largest foreign bank in Pakistan.

Standard Chartered Grindlays is one of the few banks in Pakistan that offers a complete

range of investment banking services.

It enjoys a unique position in the financial sector of Pakistan. The Bank opened its first

branch in 1884 in Karachi. Today the Bank operates 15 branches and staff strength of

approximately 500. The 15 branch network includes 7 in Karachi, 3 in Lahore, 1 each in

Rawalpindi, Islamabad, Peshawar, Quetta and Sialkot.

SERVICES

The product range consists of:

Working capital finance

Term finance

ATM service

VISA

Trade finance and correspondent banking services along with fund transfer

facilities and electronic banking through link products.

OPERATIONS

Standard Chartered has been in Pakistan since 1863 and is one of the longest operating

foreign banks. There are 6 branches that offer full banking services in corporate,

institutional and consumer banking and custody services. Adopting a pro-active

approach, it offers a flexible and comprehensive range of financial services, in particular

transactional banking products. It has invested in our branches to ensure that our business

is supported by high-tech operations using State-of-the-art technology. It has dedicated

Customer Service Centers with solution-oriented cash product specialists to provide our

customers with cost-effective solutions. Electronic delivery system has been put in place

to give customers maximum control of their transactions. Pakistan's currency is the

Rupee(SWIFTcode:PKR).

In Pakistan, Standard Chartered is the largest foreign bank and the only one with a

presence in every province. Customers of the Bank can enjoy access to a wide network of

21 branches and over 120 ATMs across Pakistan.

The merger of Grindlays with Standard Chartered Bank create the premier international

bank in Pakistan and put us in a position to deliver significant benefits in terms of

network, products and customer service

Standard Chartered Grindlays Bank is one of the first foreign banks to have introduced 24

hours, 7 days a week ATM service in Karachi back in 1991. ATM cards give round the

clock access to a customer's Bank account enabling them to withdraw and deposit cash at

their own convenience. The Bank has the largest ATM network amongst the foreign

banks with 9 ATMs, four in Karachi, two in Lahore and one each in Islamabad,

Rawalpindi and Peshawar. Standard Chartered Grindlays VISA is a globally accepted

credit card welcomed at locations displaying the Visa logo. The Card can be used at over

14 million establishments in 160 countries around the globe and over 10,000 outlets in

Pakistan.

THE COST AND BENEFITS OF MNCS

THE BENEFITS OF MULTINATIONALS

Availability of quality goods and services in the host country:

In some cases, production in a host country may be primarily aimed at the export market.

However, in other cases, the inward investment might have been made to gain access to

the host country market to circumvent trade barriers. In the case of many Japanese car

manufacturers the investment made into UK production has enabled them to get a

foothold in the EU and to avoid tariff barriers.

Skills, production techniques and improvements in the quality of human

capital:

It can be argued that MNCs bring with them new ideas and new techniques that can help

to improve the quality of production and help boost the quality of human capital in the

host country. Many will not only look to employ local labor but also provide them with

training and new skills to help them improve productivity and efficiency.

Tax Revenues:

For the host country, there is a likelihood that the MNC will have to be subject to the tax

regime in that country. As a result, many MNCs pay large sums in taxes to the host

government. In less developed countries the problem might be that there is a large

amount of corruption and bad governance and as a result MNCs might not contribute the

tax revenue they could and even if they do it might not find its way through to the

government itself.

Improvements in Infrastructure:

In addition to the investment in a country in production or distribution facilities, a

company might also invest in additional infrastructure facilities like road, rail, port and

communications facilities. This can provide benefits for the whole country.

Employment Effects:

Another beneficial effect of the MNCS is that they bring employment opportunities to the

host country that would otherwise not be created. Direct effect arise when a foreign MNC

employs a number of host country citizens

Balance of Payment:

A country’s balance of payment keeps the track of both its payments and receipts from

the other countries. The balance of payment effect is an important consideration for the

host country. When a MNC establish a foreign subsidiary the capital account of the host

country benefits from the initial capital flow

Competition and economic growth:

Efficient functioning of markets depends on adequate level of competition between the

producers. When a new enterprise is established, the number of players in the market and

consumer’s choice increases. In turn this can increase the level of competition in a

national market, thereby driving down the market prices and increasing the economic

growth. Increased competition tends to stimulate capital investments by firms in plant

and equipment, research and development as the struggle to gain a competitive edge over

the rivals.

Learning of skills:

Benefits arise when a local enterprise learns valuable skills from the MNCS by its

exposure in the market. A firm can learn about specific superior management techniques,

superior products and process techniques

Foreign policy:

The establishment of MNCs helps in creating the relationship with different countries in

the world. Thus helps in enhancing the foreign relations

The Costs of Multinationals

The costs can be summarized in the points below - for the most part, the costs are closely

linked to the benefits but it will depend on the extent of the benefits that might arise as a

result of the activity of the MNC.

De-merit goods:

Some companies might be producing goods that are not beneficial. Examples might

include tobacco products and baby milk - mentioned earlier.

Repatriation of profits:

Profits might go back to the headquarters of the MNC rather than staying in the host

country - the benefits, therefore, might not be as great.

National sovereignty:

The host governments worry that the establishments of MNCS is accompanied by some

loss of economic independence. The concern is that the key decisions that can effect the

country’s economy are made by the foreign parent that has no real commitment to the

host country and over which the host country has no real control

The source of domination:

The MNCS enjoys the benefit of domination. They politically control the economy of the

host country

Infant Industries:

The newly established suffers a lot due the arrival of the multinational companies. The

don’t get the enough time to developed and fully establish. Before the flourish the

conditions becomes so worst due to MNCs that they wiped out.

Knowledge and Skills Transfer:

The multinational companies usually hire the skilled, trained and professional employees

already working in the domestic companies. So the knowledge and skills transfers from

these domestic companies to the multinational companies subsidiaries.

Cultural Effects:

Sometimes the multinational companies effect the values, norms and traditions of the

host country very badly as they bring with them their own culture and try that the host

country’s national adopt these values. Through different marketing strategies they try to

sell luxurious products to the people. Some people who don’t have enough money to

fulfill their basic needs as a result they adopt different illegal ways for acquiring these

products which is very bad for the society.

Findings:

1. New and sunk companies of Pakistan facing problems due to MNCs. As new

companies are struggling for growth and development. While sunken companies

are in danger, it is difficult for them to survive. In these conditions if MNCs come

in these industries then domestic countries will finished.

2. Due to MNCs society face environmental problems. As they pollute our

environment. For example different factories of Multan, Lahore, and Karachi

pollute water and air. Telecommunication companies have adjusted their tower in

urban areas. Their ultra void is harmful for human health. These things are very

harmful for our society.

3. Unethical issues:-

MNCs are involved in many unethical issues like follows

i. Illegal products:-

Some products are not good for our society like wine, ham burger and pizza,

low quality products. It is unethical to sell these products in Pakistan.

ii. Cultural Differences:

Pakistan is Muslim country and Islam has specific values, traditions. these

companies are effecting these values with the help of their products and

marketing. They are forcing our youngsters to go against our own traditions.

iii. Child Labors:

MNCs are hiring Childs labors. As they are cheaply available in Pakistan

which is unethical. They are playing with their lives.

4. MNCs are developed organizations in their fields. Domestic industries are facing

problems due to MNCs. Domestic industries are producing their product in higher

cost so they have to charge high price but due to high competition with they are

unable to charge high price and they go to end

5. No doubt consumers are taking benefit from MNCs as they get

Quality

New Technology

Variety

at low cost.

6. MNCs are very important source of getting foreign exchange which is useful for

Pakistan.

7. MNCs are improving our relations with other countries with which they belong.

People and Government of other countries are coming closer to Pakistan due to

MNCs.

8. MNCs have created lot of jobs in Pakistan. Which very good for our country as

due to it poverty decrease and people become prosper.

9. One bad practice of MNCs is repatriation of profit. According to it they sent their

profit to their home country while they are using resources if home country which

bad practice.

10. MNCs help society with different ways as in Pakistan when earthquake come

MNCs help a lot effected people .Many companies are working in Pakistan for

poverty reduction, to spread education,Health.Examples are Unilever ,siemens

and P&G.

Recommendations:

1. MNCs should invest in different sectors of Pakistan especially in those sectors

which are weak. As in Pakistan most investment comes in banking but other

sectors are completely neglected like power.

2. Government should make strict policies to control environmental problems and

unethical issues. And ensure their implementation to MNCs which are working in

Pakistan.

3. MNCs should be forced to follow all rules and regulations which they are

following in their home country.

4. The quality of their products should be of same standard like other big countries.

As if they are making products for Pakistan must have same quality as they are

producing for UK.

5. Repatriation of profit should be stopped because they are using resources of host

country and this profit should be invested in that country.

6. They should develop, train compensate and provide reasonable salaries to human

resources of local employees.