Mncs In China Localization Strategy

Just as Multinational Companies is one kind of company organization forms crossing the boundaries between nations. The production and management action took by these companies are also non-boundary. Not only can this management pattern help multinational company group to adapt to international division of labor and achieve the economy of scale, but also they have an effect on eluding tariff barrier and widen the market through the technology advantage, economy scale advantage, capital advantage and management cost advantage of their own. But at the same time, the heterogeneity, which caused by differences of region or culture cannot be overcome only by economy of scale. Now localization has been assorted to the globalization strategies in multinational companies. They try to satisfy the demand of china market at the same time keeping their own production personality in pace with globalization. This seemed to be a paradox problem in management, but it brought a new challenge to the multinational company in the areas of enterprise culture, research and development, production, human resource, promotion management and so on.Nowadays, most of Global 500 Companies have come in to China. It's early and difficult to say the result of localization competition. But as we all know, the problem of localization is not only very important to multinational companies, but also have large effect on the development of them. In this thesis, I try to give a detail explanation to the localization problem in multinational companies through some data, information and classic theories. By this means, I hope to bring a completely argumentation about the affect of localization strategy and the measures we should take in future. The whole thesis is composed of three parts: I start with an all-sized description of the localization strategy, and then in the second part I try to argue the problems in the area of research and development, human resource, promotion management and enterprise culture. On the base of these analyze, I try to give someconclusions and measures in the last part.