By Jean-Paul Larcon
This publication examines the increase of chinese language businesses in foreign markets over the last twenty years of swift growth of the chinese language financial system. The fruit of a collaboration among major company faculties, HEC Paris and the varsity of Economics and administration of Tsinghua college, it presents a accomplished assessment of the techniques of chinese language multinationals when it comes to foreign advertising and branding, M&As and foreign joint ventures, administration of know-how, association and human source administration, and so forth.
The techniques of a number of famous businesses are defined intimately, together with Baosteel, chook, Haier, Hisense, Huawei applied sciences, Lenovo, Nuchtech, Petrochina, TCL, Tsingtao Brewery, Wahaha, Wanxiang, and so on.
Contents: company concepts of chinese language Multinationals (Z-M Jin); China's pass international coverage (Z-X Li); China's Outward overseas Direct funding (Z-X Li); The Internationalization technique of chinese language Multinationals (R-P Kang); overseas advertising suggestions of chinese language Multinationals: The adventure of chook, Haier, and TCL (Z-H Hu & G Wang); Technology-Based pageant and chinese language Multinationals (J-P Larçon & G Barré); Innovation and information move in chinese language Multinationals (D-H Li); company tradition and association of chinese language Multinationals (Y-H Wang); chinese language Multinationals and worldwide price Chains Lenovo (F Duhamel); Alliances, Joint-Ventures and chinese language Multinationals (P Dussauge).
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Companies have more decision-making power, but in many cases corporate leaders are still nominated by the government. Another problem is that the careers of these leaders are not tied to the performance of the enterprises. Naturally, they tend to ignore changes in the business environment and long-term growth issues. — strategy can be confused with planning. Some business leaders have a long-term view and commitment, but they can also be rather ambivalent towards corporate strategy. They still equate strategy to the rigid long-term plans elaborated by the state, even if the environment or the policies are changing.
This chapter describes these strategies based on HEC–Tsinghua SEM Research Project on Chinese Multinationals (2005–2008) and in-depth investigation and interviews with top management of leading mainland corporations. 1. Strategy and the Chinese Economy The word “strategy” in China refers traditionally to the conduct of warfare. Business strategy is a relatively young discipline in the country which has been influenced by contributions of western scholars such as Chester Barnard’s Functions of the Executive or Igor Ansoff’s Corporate Strategy.
Its listed subsidiary, Baoshan Iron & Steel Co. Ltd. ), has been able to acquire the assets of its parent company, generating enough resources to implement the market reforms without external support. Thus, Baosteel has opened a new path for SOE structural reforms and is a good example of a successful integration strategy by a Chinese company. The company has not only protected independent operations but also avoided being acquired by foreign multinationals. In the framework of Chinese SOE reform, China has seen a wave of creation of groups of enterprises, which is in fact a regrouping of Small or Medium-sized Enterprises (SMEs), bundled together by the local governments.