Mnc Case Study
The reasons why Accenture can be considered as an MNC are –
• Management of Operations - Accenture has more than 305,000 employees with operations and offices in around 200 cities in 56 countries. There is coordinated management across all its location of operations. It offers wide range of services in management consulting, outsourcing and technology services. This satisfies the Bartlett et Goshal definition of MNC in organization theory. The active coordinated management of operations located in different countries is the key differentiating characteristic of an MNC. (Bartlett et Goshal, 2009).
• Control and Ownership – Accenture basically operates in three distinct geographic regions - the …show more content…
Due to existence of both local and HQ contacts.
Based on the above analysis, it can be concluded that Accenture does not have a single approach. It has both Geocentric and Regiocentric approach. The company overall is quite centralized, however the HQ decides on certain adaptations pertaining to different subsidiaries as per the local needs. Thus, the organization has an integrated global outlook with worldwide utilization of best resources.
3. Select ONE of the MNC’s subsidiaries in the country of your choice. According to you, what are the motivations of the MNC for setting up a subsidiary in this country?
Accenture operates in India as Accenture India Private Limited. It was established in 1991 in Mumbai, India. (Bloomberg Business Week, 2014)
• After economic reforms in India in 1991, great emphasis was placed on improving the information technology sector. There was an IT boom in India. Companies like Accenture, realized the opportunities lying in India and set up its subsidiary in India.
• The labor cost was really …show more content…
The taxes cover all expenditure programs like education, health, social protection payments, etc. There is also a “Pay As You Earn” System. In this system, taxes are calculated by the employer on each pay day, withheld, and paid over to revenue. (http://en.wikipedia.org/wiki/Taxation_in_the_Republic_of_Ireland#The_.27Pay_As_You_Earn.27_.28PAYE.29_system ). In India, employers contribute 4.75% and employees contribute 1.75% of an employee’s wages for the health insurance. (Indian Pakistan Trade Union, 2011). This can be compared to the tax employees in Ireland pay and therefore the Irish government covers their health and social security. This is indirectly the same, though the amount of covering is