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Multinational Corporations In China Investment Strategies

Posted on:2003-06-04Degree:MasterType:Thesis
Country:ChinaCandidate:X Z YangFull Text:PDF
GTID:2206360062480418Subject:Business Administration
Abstract/Summary:PDF Full Text Request
With the tendency of the world economy globalization and the promotion of the Emerging markets (Ems), we noted that there are some new tendencies on multi-investment and operation of multi-corporations appeared. Ems becomes the new focus in the global operation strategy of multi-companies. The main points need to be well considered when a multi-corporation planning its step-in strategy for a Ems are, Time of entry, Market assessment, Product policy, partner policy and Product distribution. When we are facing an emerging market, above four traditional policies may need to be reviewed or revised. When those multi-corporations who have obtained some experiences in the Ems handle complicate, unstable but high profit opportunities, they all, somehow, revise the strategies that had been proved to be successful in the developed markets.The multi-investment strategies of multi-corporations based on the world economy globalization, global market, global corporation and the globalization of producing factors are the three landmark of the world economy globalization. Now, multi-corporations play a very important role in the world economy, and are leading the market industry structures of the world.All multi-corporations believe that following topics must be carefully paid attention when they knock the door of Chinese market: investment environment investigation; market potentiality and long-term development; partnering; and the management of human resource. On the other hand, these multi-corporations also face some obstructs when investing in Chinese market, such as uncompleted law system and undeveloped free market structure, government interference, and there are many industries still remain unopened to foreign investors. But with the schedule of China joining WTO, Chinese market will become more open step by step, this provide a wide and good challenge to multi-corporations to earn a brilliant future in Chinese market, and at same time, it will also distribute much more on the development of Chinese local economy. Under this background, most multi-corporations adjusted their investment strategy to China market. From the Macroscopic view, these adjustments include increasing investment amount, adjusting investment method (establishing holding sub-company and emerging), widening the investment fields and industries especially focus on high-tech industry and service industry such as finance service, insurance and tourist industry. Specifically speaking, there are four main policies of the new investment tendencies. The first one is to establish holding sub-company becomes the main stream of investment, more and more multi-corporations prefer to have its 100% owned holding company in China instead of making joint venture with local partners; The second one is localization policy; The third is product brand policy, how to build a easy-acceptable brand for Chinese consumers; The last one is to establish R&D (research and develop) center and operation center in China, China is not only a producing base but also is becoming R&D and regional management center of multi-corporations. We list three specific cases in this article to support above statement, Motorola's localization policy, Koda's industry emerging in China and Nestl's product brand promotion policy.At the end of this thesis, we provide some suggestions and guidance to Chinese enterprises. Firstly should affirm that multi-corporations' investment distribute much benefit to Chinese economy development. Then, we suggest Chinese government shall accelerate the processes of law system establishment, to build a good governmental environment that can connect with international rules. After that, we discuss how Chinese local enterprises to face the challenges from the foreign companies after China join WTO. Finally we suggest that Chinese local companies should be careful on overseas investment, do not make blind investment because they have no enough capitals, high-technologies and overseas investment experiences at current stage. Their cor...
Keywords/Search Tags:Multinational
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