European Electric Company Case

With the formation and development of the economic globalisation, China economy, the main part of the world, is being concentrated and focused more and more. Being as the medium of the world economy, many Transnational Corporations (TNC) entered gradually into China market recently, with rooting, developing and booming. Some of them are successful, but some are failed.The case is locating one European TNC - European United Electrical Company in China. Based on the writer's working experiences in this company, to describe and analyse the problems that the company is facing in the market development. These problems are common to many foreign companies. For some TNCs from Europe and America Especially, although they have much success in other countries around the world, they will face many new questions when they enter into China market with the big different characters. How to make the strategy and action plan meeting the Chinese actual condition is one important issue for the company decision-makers.The article is divided into two parts, which the first part is the CASE body and the second is the analysis and instruction.In part one, the detailed description about the company's internal condition and external environment is said and some kinds of problems facing at present are listed under the company internal re-organisation and negative situation in Chinese market share. Part two raises the questions for the students. To increase them the knowledge and understanding for TNC's running and management, promote them the abilities in analysis and solution to the actual troubles when they would meet in their future work. Furthermore, some technical background information such as TNC's general strategies and motivation in China are provided.