A Study On Enterprise Expansion Strategy Of China In The Integration Of Global Economy

With the integration of the global economy,China has got the permission of entering WTO. Facing the powerful competition,the enterprises in China have to accept and take part in the intense market-competition. Our enterprises have the weaker competition than international corporations in general,so they cannot exist unless they improve their competitive power rapidly,hi the past few years,with Chinese government putting the "strategy of major enterprises and major groups" into effect,an expansion upsurge,which improves the competitive power of Chinese enterprises,is in the making. Based on the affirmation of the expansion of enterprises in theory and practice,this article emphasizes on study of several hot points in expansion,and corrects the theoretical misunderstanding on these problems. And the author also puts forward some reasonable countermeasures,with the examples of Haier and Galanz.The contents of this paper can be divided into six parts:Part onean introduction to information coming from practice and theories. This part analyzes the theories about economy of scale,transaction cost and range economics provide theoretical foundations for horizontal,vertical and multiple expansions.Part twosize expansion and economy of scale. This part re-recognizes economy of scale,the multi-plant enterprise arrives at economy of scale only when the following requirements are met.Part theredeep analysis of multiple expansion and choices of enterprise strategies. This part discusses the choices of strategies of enterprise expansion. Foar indexes are used here to study how to make a choice scientifically.Part fourtheoretical discussion of M&A (merge & acquisition) expansion,and research on operation. This part offers the measures on correct performance of M & A expansion.Part fivethe research of international expansion of Chinese enterprises. The comparative advantages of china.Finally,the article uses the model of expansion of Haier Croup and Galanz,discussing the rational recognition on enterprise expansion hi practice and answering the above questions. Haier's and Galanz's attitudes and methods will provide successful enlightenment for Chinese's enterprises,which are on the way of expansion.