Strategy Of Multinational Operations In China. HJ

Under the macroeconomic environment of integration and globalization, all industries are expanding their business internationally in a big way. Shipping industry is the pioneer of this expansion trend due to its intrinsic particularities. Because of powerful economy strength and huge potential, China market is becoming the target which multinational companies snatch. In this thesis, I study on the base of the theories of multi-national management and strategy management and try to answer the following questions: 1) Why does HJ expand its business in China? 2) Why can HJ make achievement in China? 3) What is HJ' s strategy in China? The conclusion of this paper would be the inspiration and suggestion for governments and authorities. As the administration organs, governments and authorities play important roles in national economy. They must regulate and lead foreign shipping firms in order to benefit economy development. Shipping carries more than 80% cargoes for external trade between China and other countries. Domestic marine firms have to face the challenges from international competitors and they can learn a lot from the successful strategies of opponents.This thesis consists of six chapters. The first chapter basic concepts and theories consists of two sections, one gives some general information about international shipping industry and theoretical concepts; another mainly summarizes the transnational corporations theory, strategy management theory and recent new academic development. The second part analyzes the macro-environment and industry environment where HJ runs business in China, including political, economic, cultural and technical factors. Chapter Three analyzes HJ' s intrinsic resources and abilities, including basic, transferable and innovative resources and abilities. Also this chapter analyzes the stakeholders, such as Chinese governments, clients and the enterprises in the same industry. Chapter Four points out HJ' s strategic choice on base of the analysis of Chapter Three. Chapter Five explains the implementation of HJ' s strategy from three aspects: organizational structure, corporate culture and functional management. The last part is the summary and suggestion, containing the conclusion of the thesis, the policy suggestion for governments and authorities, the advice for domestic marine corporation and the orientation of further research.The possible innovations of this thesis lie on as follows: 1) Bringing transnational corporation theories and strategic theories to shipping industry; 2) Studying and discussing the business patterns in China of international shipping firms in the first time; 3) Putting forward the new pattern "Agency" and enriching transnational theories. If the thesis analyzed the development history and transnational strategies of more international marine enterprises, the conclusion would have been more convincing. Due to space constraints, the paper does not make further research.