MC110402949 Anbreen Gulzar

INTERNATIONAL MARKETING (MKT630) ASSIGNMENT NO 01 (NON!GRA"E") O#ENING "ATE$ 0% NO&' 2013 "(E "ATE$ 12 NO&' 2013 MARKS$ 20 TO#IC$ Gl)bal*za+*)n,Gl)bal -ar.e+/la0e Learn*n1 Ob2e0+*3e4$ Students will be able to: Find out the importance of globalization or global marketplace. Enhance the knowledge regarding MNCs working in akistan. Learn*n1 Ou+0)-e4$ Students will better understand the importance of globalization. !t will realize students about the effect of MNCs on akistan. !t will enable students to get more awareness about Metro cash and carr". 5MNC64 *-/a0+ )n E0)n)-7' G))8 )r 9a8:; A9STRACT #lobalization has picked up the pace recentl"$ a de%elopment has significant impact on international businesses. &herefore$ there is a fundamental shift in trading and business functions. 'apid mobilit" of resources among economies has not onl" resulted in stronger ties between these countries but has also amplified the cross border transactions that lead to economic liberalization and globalization. !n recent time$ tremendous increase in global transactions has attracted multinational corporations to start their operations. &he growth of sales$ minimizing competiti%e risks and di%ersification are the ob(ecti%es behind the businesses engage in international transactions. Multinational corporations

deli%er products and ser%ices in more than one countr". MNCs ha%e head)uartered in one countr" *home countr"+ and pro%ide ser%ices in man" different countries *host countries+. MNCs ha%e the abilit" to shape the trend$ attitude and preferences. MNCs not onl" ha%e impact on national econom" but on worlds econom" as a whole and pla"s %ital role in making international relations and strengthen o%erall image. ,age

T<E CASE MNCs are considered as a sign of prosperit" for the countr"$ these corporations not onl" pro%ide products and ser%ices but offer emplo"ment as well. !n akistan$ MNCs are operating in almost e%er" sector including: telecom$ electronics$ food$ be%erages$ automobiles and banking etc. Metro cash and carr" is multinational corporation started its operations in akistan in .//0 and toda" it has 1 wholesale centers in ma(or cities of akistan. Metro amalgamated with 2abib group in ./3.$ the local business partner and the ob(ecti%e of the Metro cash and carr" is to deli%er %alue to its customers and ser%e indi%idual customers$ professional customers such as restaurants$ hotels 4 caterers and econom" as a whole. !t offers one stop solution for its customers and offer large and comprehensi%e product range in food and nonfoodproducts under one umbrella. 5eside this$ the )ualit" of the products is high at reasonable prices and has abilit" to attract customers. &he" are pro%iding ser%ices to people as well as snatching mone" from akistan and affect local businesses. &hough Metro cash and carr" are making progress b" leaps and bounds but due to current economic instabilit" of countr"$ go%ernment instabilit"$ entrance of competitors in the same industr"$ terrorism attacks and recession can affect the Metro cash and carr" to e6pand its operations in akistan.

=(ESTIONS 1! "ue +) +>e 0urren+ 40enar*) )? #a.*4+an' 4>)ul8 Me+r) 0a4> an8 0arr7 0)n+*nue *+4 )/era+*)n4 *n #a.*4+an: #r)3*8e 2u4+*?*0a+*)n4 (Mar.4 10) An4@er$ 7es in akistan Metro Cash and carr" should continue its operations. ! (ustif" this statement b" following its benefits. 8e can pa" in cash$ debit card or credit card when pick up the goods. &here is a ma(or price benefit at ME&'9:2abib Cash 4 Carr" akistan$ as we eliminate distribution costs b" bu"ing directl" form manufacturers$ farmers and other producers. Sourcing large )uantities also pro%ides us a price benefit that we are able to pass on to our customers. Customers ha%e the con%enience of getting all their supplies under one roof. ME&'9 takes the initiati%e to train producers on international )ualit" standards. &hrough maintaining a cold chain and stringent )ualit" checks$ its )ualit" department ensures that get )ualit" products at all times. 8ith ME&'9 deli%er" solution customers can recei%e goods at their doorstep. No deals$ on discounts. Customers can en(o" lowest possible prices and promotional offers from time to time. !t pro%ides carrier opportunities to "oung people. !t works under internationall" transferable concepts. !t strengthens the local suppliers.

 !t is best for professionals who can bu" all necessities at one place and can sa%e time. ;ualit" assurance and modern storage techni)ues ensure a%ailabilit" of products on demand.

2! A>a+ -ea4ure-en+4 4>)ul8 be +a.en b7 #a.*4+an* 1)3ern-en+ *n )r8er +) a++ra0+ MNC64 *n #a.*4+an: (Mar.4 10) An4@er$ 9%erseas in%estors and MNCs in akistan are looking forward and are e6panding their business in akistan because the" ha%e established themsel%es significantl" and gained health" e6perience to work in the present step up$ along with market d"namics. &hough F<! inflows are limited but MNCs are rein%esting their earnings in multiple sectors to e6plore the potential of akistani markets. &he Foreign <irect !n%estment *F<!+ is considered to increase if the go%ernment of akistan will impro%es the perception of the countr"$ which is far worse than it actuall" seems. #reat impro%ement is re)uired in terms of political stabilit"$ go%ernance$ law and order and pro%ision of utilities. 9!CC! members should support the go%ernment towards image building and de%elopment of the countr" as well to attract MNCs in akistan. 9!CC! members should present comprehensi%e recommendations along with their business enhancement plans and put it forward to the go%ernment for its support in future. &his will not be limited to F<! onl"$ i will also suggest to the go%ernment to impro%e the o%erall business en%ironment of the countr" along with the social well:being of the citizens.

 <e%eloped economies are reco%ering with %er" slow pace. =lthough this will also reflect in de%eloping economies of =sia$ there is a paradigm shift of business acti%ities to =sia from Europe$ which has attained a saturation point and has started e6ploring a%enues in under:ser%ed and un:ser%ed markets like South =sia. &his is high time for the go%ernment to cash in on the trends of the global econom" and make akistans en%ironment attracti%e for foreign in%estors with curbing the weaknesses in the present s"stem. akistan could be a platform for foreign companies if the go%ernment takes serious steps to control securit" and assure in%estors of the safet" of their li%es and propert" with concrete measures. !n%estors will mo%e to !ndia$ China and 5angladesh as alternati%e markets and akistan will lose the golden chance to attract huge foreign in%estment transfer of technolog" and ad%anced practices in businesses.> 9!CC! is happ" to engage with the go%ernment in dialogue to bridge the communication gap between two important stakeholders. &he present go%ernment has started showing its seriousness and has held a number of meaningful talks with foreign businessmen. &his is a good omen for de%elopment and in line approach$ which is to discuss issues of mutual interest and suggest remedial measures collecti%el". Energ" crisis is the biggest challenge to multinational companies in akistan because there is an acute shortage of utilities such as gas and electricit"$ which has taken a toll on production and output. #o%ernment should resol%e the issue of circular:debt on priorit" basis in order to end the energ" crisis and open the doors for new in%estors in power sector. &he ta6 burden should not be shifted more on the e6isting ta6pa"ers in terms of new ta6es like flood surcharge$ and the ta6 net should be widened with addition of new ta6pa"ers in the countr".

akistan$ the ambassador maintained. &he %isit of such huge akistani businessmen will impro%e bilateral relation and trade. &here is a huge market and a lot of potential in akistan. akistan new go%ernment has taken a number of initiati%es$ which will boost akistan econom" in the long run and ha%e a positi%e impact on econom".