Study On Organization Structure Of HL Company China Group

Since China’s reform and opening up30years, preferential foreign policy has attracteda large number of foreign enterprises to invest in China. Since the late1980s, foreignautomobile manufacturers and auto parts manufacturers had started to invest and buildfactories in China. With the development of the domestic auto industry, foreign-fundedenterprises continue to expand the size of the company, formed its own characteristics in themanagement model. With the development of China’s economy and the ever increasingdemand of the automotive market, the competition heats up between the various carmanufacturers. Regarding costs and national policies, compared to foreign-fundedenterprises to the pressure of competition with domestic counterparts is quite large. How todevelop a long-term development strategy, and to establish an effective organizationalstructure and management system to ensure the implementation of the strategy, to maintainthe stable development in China, are those issues that many foreign-funded enterprises arefacing. Company HL is a multinational German enterprise, incl. R&D, production and salesof automotive lighting and automotive electronic parts. In1992Company HL built the firstlights production line in China by cooperation with one domestic lighting factory. In1996,Company HL built two automotive lighting joint venture factories in China, and havecontinued to establish factories and production bases by following the subsequentdevelopment later, became China Group company. Till January2013, company HL ChinaGroup, has established nine independent accounting of the productions and R&D centers, amanagement headquarter company. Company HL China Group adjusted these investmentsand strategic deployment in China, not only based on the needs of their own development,but also to adapt to changes in the development of China’s auto market. Although not everyadjustment is a proper and reasonable, but every time changes are based on certain strategicsteps to adjust, and are related to the adjustment of the organization. This paper studies thecompany HL China Group’s development process, in accordance with the development ofthe automotive industry, and based on their development strategies to adjust the setup andmanagement of its organizational structure. The correlation theory literatures of organization,organization’s development, relationship between organizational structure and strategy,relationship between the changing of organizational structure and development of enterprise has been sorted out, summed up and collated in the first, it is laying the groundwork forresearch later. Then investigate the company HL in the course of development in China, theorganizational structure establishing and adjustment in China. Combined with thedevelopment of China’s automobile industry and the lights industry, conducted in-depthanalysis of the company HL in the organizational structure setting up and managing,summed up the characteristics of its organizational structure, and analysis the main problemof its organizational structure and management. Finally, based on the characteristics andmain problems of the organizational structure of company HL in China combined with thecompany’s development strategy in China; provide the optimization suggestions oforganizational structure for company HL in China.