| In the backdrop of the raising of economic globalization and China's entry into the WTO, Chinese transnational enterprises become increasingly active. In 30 years of reform and opening up policy adopted by China, the foreign direct investment (FDI) inflows far exceeded FDI outflows. This situation benefits the country's economy in 1980s and 1990s, since the country was poor and insufficient in fund. The FDI helped the nation to conduct large-scale infrastructure construction, build up new foreign-funded enterprises, upgrade public facilities and improve people's living standards. Along with economic development, the surplus in FDI inflows would cause imbalance in international payments. In recent years, the frequency of trade frictions between China and the U.S., EU, Japan and other economies is increasing, the degree of the frictions intensified.In order to ease this tension and promote the development of Chinese economy, Chinese Central Government encouraged Chinese enterprises to "explore the international market and integrate with world economy". This move plays a vital important role in strategy settlement for Chinese companies. Transnational is a special organizational model beyond the national boundary and serves the overall interest of the company. Transnational business will be able to open up market space, optimize industrial structure, access to more economic resources, and make breakthrough in technology cooperation and protectionism barriers in trade. Fostering the international competitiveness of Chinese large transnational companies is our most urgent task. "Going out and getting integrated" is the inevitable choice for Chinese companies to be engaged in international competition. If we regard "going out" as the beginning of the internationalization of business, "getting integrated" would be the result of localization of the enterprises. The success of business localization symbolizes the competitiveness of Chinese companies has been promoted to a higher level. The frame of this paper is conducted as proposing questions, analyzing problems and solving the problems.The article started with the development bottlenecks and operational difficulties suffered by C Company, these cases were collected by the author. The topic of the paper, localization strategy of Chinese transnational enterprises, proposed.According to the growth model erected by Churchill and Lewis (Churchill NC and Lewis VL, 1983) on five stages of company's development from two dimensions, company scale and management factors. They described that the life cycle of company could be divided into five stages, namely, creation stage, survival stage, development stage, hop-off stage and mature stage. Based on this model theory, once the end of the survival stage (the 2nd stage), the company will enter the development stage (the 3rd stage) and looking for new growth points, many companies would take international route, the localized business operation appeared.The paper listed the localization practice of several transnational companies and analyzed the localization strategies and motivation of transnational corporations. According to the"之"shape growth curve proposed by Imamura, vice president of Boston Consulting Group (China), the development of business localization of a transnational company inevitable experiences three phases: marketing assessment, strategic investment and mighty dominant. These three phases, in accordance with different purposes, showing different operating features, and the degree of localization is a gradual process from low to high.The paper studied the localization case of FAW Group, Jilin C Investment Company (afterward abbreviated as"C Company") and summarized the main characteristics of investment and localization made by these companies. The problems encountered by transnational enterprises are listed for further study on macro and micro competitiveness of enterprises of Jilin Province.SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a project or in a business venture. The paper erected SWOT matrix based on the analysis of localization of Jilin companies. S and W are the internal factors, O and T are the external factors. Under the concept of competitive strategy, strategy should be a good combination between "can do" (ie, strengths and weaknesses of the organization) and "may do" (that is, opportunities and threats).The paper offered possible solution to various difficulties on localization. The suggestions have been made to C Company to set up localized business operating system in three categories, which are the localized resource investment, localized management and decision-making, localized contributions to the native society. Five advices were proposed: localized HR management should emphasize the enrollment of senior personnel, enhance international exchange and cooperation, promote the innovative ability cultivation, establish efficient organizational structure and set up suitable local business culture.In conclusion, the paper pointed out the essence of localization is the localized thinking. The localization should not stay only on surface; the real localization stands the most valuable nature of transnational enterprises. Enterprises in Jilin province should also clarify the purpose of foreign investment, with global vision, and analyze the international environment and investment environment before any localization practice. The transnational enterprises should make full play of their comparative advantages on technology and production capacity. |
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