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...A. Short description about multinational company:

A multinational corporation or worldwide enterprise [1] is a corporate organization that owns or controls production of goods or services in two or more countries other than their home country.[6] The two main characteristics of MNCs are their large size and the fact that their worldwide activities are centrally controlled by the parent companies.[3]

    Importing and exporting goods and services

    Making significant investments in a foreign country

    Buying and selling licenses in foreign markets

    Engaging in contract manufacturing   permitting a local manufacturer in a foreign country to produce their products

    Opening manufacturing facilities or assembly operations in foreign countries

The main characteristics of multinational companies are:

    In general, there is a national strength of large companies as the main body, in the way of foreign direct investment or acquire local enterprises, established subsidiaries or branches in many countries;

    It usually has a complete decision-making system and the highest decision-making center, each subsidiary or branch has its own decision-making body, according to their different features and operations to make decisions, but its decision must be subordinated to the highest decision-making center;

    MNCs seek markets in worldwide and rational production layout, professional fixed-point production, fixed-point sales products, in order to achieve maximum profit;

    Due to strong economic and technical strength, with fast information transmission, as well as funding for rapid cross-border transfers, the multinational has stronger competitiveness in the world;

    Many large multinational companies have varying degrees of monopoly in some area, due to economic and technical strength or production advantages.


According to my assignment paper I have taken WIPRO as an example multinational company.

Wipro Limited (Western India Palm Refined Oils Limited[4] or more recently, Western India Products Limited[5]) is an Indian Information Technology Services corporation headquartered in Bangalore, India.[6]

C. How the company became international:

The company was incorporated on 29 December 1945 in Amalner, Maharashtra by Mohamed Premji as 'Western India Vegetable Products Limited', later abbreviated to 'Wipro'. It was initially set up as a manufacturer of vegetable and refined oils in Amalner, Maharashtra, India under the trade names of Kisan, Sunflower, and Camel.

In 1966, after Mohamed Premji   s death, his son Azim Premji returned home from Stanford University and took over Wipro as its chairman at the age of 21. During the 1970s and 1980s, the company shifted its focus to new business opportunities in the IT and computing industry, which was at a nascent stage in India at the time. On 7 June 1977, the name of the company changed from Western India Vegetable Products Limited, to Wipro Products Limited.

The year 1980 marked the arrival of Wipro in the IT domain. In 1982, the name was changed from Wipro Products Limited to Wipro Limited. Meanwhile, Wipro continued to expand in the consumer products domain with the launch of "Ralak" a tulsi-based family soap and "Wipro Jasmine", a toilet soap. In 1988 Premji took a loan of 1 million dollar from Sonkar and Sons to set up the project. Later the entire loan amount was waived.

D. It   s Growth from inception to date:

1966   1992

In 1988, Wipro diversified its product line into heavy-duty industrial cylinders and mobile hydraulic cylinders. A joint venture company with the United States' General Electric in the name of Wipro GE Medical Systems Pvt. Ltd. was set up in 1989 for the manufacture, sales, and service of diagnostic and imaging products. Later, in 1991, tipping systems and Eaton hydraulic products were launched. The Wipro Fluid Power division, in 1992, developed expertise to offer standard hydraulic cylinders for construction equipment and truck tipping systems. The market saw the launch of the "Santoor" talcum powder and "Wipro Baby Soft" range of baby toiletries in 1990.

1994   2000

In 1995, Wipro set up an overseas design centre, Odyssey 21, for undertaking projects and product developments in advanced technologies for overseas clients. Wipro Infotech and Wipro Systems were amalgamated with Wipro in April that year. Five of Wipro's manufacturing and development facilities secured the ISO 9001 certification during 1994   95. In 1999, Wipro acquired Wipro Acer.

2001   present

In February 2002, Wipro became the first software technology and services company in India to be certified for ISO 14001 certification. Wipro also achieved ISO 9000 certification to become the first software company to get SEI People Capability Maturity Model (PCMM) Level 5 in 2002.[18][19] Wipro Consumer Care and Lighting Group entered the market of compact fluorescent lamps, with the launch of a range of CFL, under the brand name of Wipro Smartlite. As the company grew, a study revealed that Wipro was the fastest wealth creator for 5 years (1997   2002). The same year witnessed the launch of Wipro   s own laptops with Intel's Centrino mobile processor. Wipro also entered into an exclusive agreement with the owners of Chandrika for marketing of their soap in select states in India. It set up a wholly owned subsidiary company viz. Wipro Consumer Care Limited to manufacture consumer care and lighting products. In 2004 Wipro joined the billion dollar club. It also partnered with Intel for i-shiksha. The year 2006 saw Wipro acquire cMango Inc., a US-based technology infrastructure Consulting firmEnabler, and a Europe-based retail solutions provider. In 2007, Wipro signed a large deal with Lockheed Martin. It also entered into a definitive agreement to acquire Oki Techno Centre Singapore Pte Ltd (OTCS) and signed an R&D partnership contract with Nokia Siemens Networks in Germany.

In 2008 Wipro   s entered the clean energy business with Wipro Eco Energy. In April 2011, Wipro signed an agreement with Science Applications International Corporation (SAIC) for the acquisition of their global oil and gas information technology practice of the commercial business services business unit. In 2012 Wipro acquired Australian Trade Promotions Management firm Promax Applications Group (PAG) for $35 million. In 2012 Wipro employed more than 70,000 H-1B visa professional temporary workers in the United States.

In 2012 Wipro Ltd. announced the demerger of its consumer care, lighting, furniture, infrastructure Engineering (hydraulics and water and medical diagnostic business into a separate company to be named Wipro Enterprises Ltd. The merger became effective from 31 March 2013. The demerged companies together contributed about 10% of the revenues of Wipro Limited in previous financial year.

In 2014, Wipro signed a 10-year $1.2 billion contract with ATCO, a Canadian Energy & Utilities corporation based out of Calgary, Alberta. This was the largest deal in Wipro's history.

In October 2016, Wipro announced that it was buying Appirio, an Indianapolis-based cloud services company for $500 million.

E. Success stories of wipro as an MNC

a) MES implementation for an aluminum producer:

We designed and implemented an integrated environment that incorporated

solutions at three business system levels: real-time communications

infrastructure, control systems, and data historian at level 2 and MES at level 3

with integration to level 4 (SAP). This enabled a single repository of

contextualized business data for downtime, inventory, quality and production.

We helped the client improve profits due to efficiency and enabled production

Improvements by USD 0.5 million per month.

b) Implementation of SAP ERP and integration with mine operational systems for

one of the largest producers of zinc:

Strategic business change program spanning 13 months, comprising alignment

of the organization to 8 core process areas and implementation of SAP as a

business system with minimal customization across the enterprise. System

design factored future technology and business direction to enable remote mine

management, optimization and efficiency of operations through a unified

business platform.

c) Integrated operations for an underground miner in Chile:

We designed a new platform for working with a remote operations center to

manage multiple underground mine sites. The platform identified deficiencies

and provided a mathematical model to understand deviations from plan, causal

reasons and levers to achieve the plan using best practices in operational

intelligence and advanced analytical techniques.

d) Scaling operational efficiency for a global coal miner :

We engaged in a one-of-a-kind technology partnership with one of the largest

coal miners in the world to realize efficiency in operations. We set-up an

integrated system to track the location of mobile equipment such as dumpers,

shovels, etc. Our technology enabled them to report real-time location

information for equipment tracking and automatic dispatching and increased

the overall efficiency of operations.

e) Mining major implements SAP-certified Wipro Agile Mining (WAM) Platform to gain visibility over people and mobile fleet

We implemented a Cloud-based WAM platform wherein the client was billed on a

Monthly basis, with practically no upfront capital required for the

Implementation. In addition, implementation costs were further reduced due to

Pre-configured processes supported by offshore resources. The client has

signed a 6-year agreement with Wipro to implement and support WAM. Within

three months of going live, the project went cash flow positive and was declared

a success by the client.

F. Wipro Group of Companies in all over the world:

a) Western India Products Limited

Wipro Limited is a global company provider of comprehensive IT solutions and services, including Systems Integration, Consulting, Information Systems outsourcing, IT-enabled services, R&D services.

 Wipro entered into the technology business in 1981 and has over 140,000 employees and clients across 54 countries. IT revenues were at $7.1 billion for the year ended 31 March 2015, with a repeat business ratio of over 95%.

b) Wipro Consumer Care & Lighting

Wipro Consumer Care and Lighting (WCCLG), a business unit of Wipro Limited operates in the FMCG segment dealing in consumable commodities. Established in 1945, its first product was vegetable oil, later sold under the brand name "Sunflower Vanaspati". It sells personal care products, such as Wipro Baby Soft and Wipro Safewash, toilet soaps Santoor and Chandrika as well as Yardley. It sells lighting products, including Smartlite CFL, LED, and emergency lights.

Through product sales and acquisitions, Wipro Consumer Care and Lighting has grown steadily in the FMCG segment.

c) Wipro Infrastructure Engineering

Wipro Infrastructure Engineering is the hydraulics business division of Wipro Limited and has been in the business of manufacturing hydraulic cylinders, truck cylinders, and their components and solutions since 1976. This division delivers hydraulic cylinders to international OEMs and represents the Kawasaki, Sun Hydraulics and Teijin Seiki range of hydraulic products in India. It has entered into partnerships Kawasakiand aerospace giant EADS. In 2010 Wipro Infrastructure Engineering was the second largest independent manufacturer of hydraulic cylinders in the world.

d) Wipro GE Medical Systems

Wipro GE Medical Systems Limited is Wipro   s joint venture with GE Healthcare South Asia. It is engaged in the research and development of advanced solutions to cater to patient and customer needs in healthcare. This partnership, which began in 1990, today includes gadgets and equipment for diagnostics, healthcare IT solutions and services to help healthcare professionals combat cancer, heart disease, and other ailments. There is complete adherence to Six Sigma quality standards in all products.

G. Resources:


2 Pitelis, Christos; Roger Sugden (2000). The nature of the transnational firm. Routledge.  p. H72. ISBN 0-415-16787-6.


4 Doob, Christopher M. (2013). Social Inequality and Social Stratification in US Society. Pearson Education Inc





9 "Wipro Ltd. - Company Information". The New York Times. Retrieved 17 November 2013.


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