Study On The Transnational Management Strategy Of China Hotel Group

Economic globalization is the objective trend of the economic development in theworld today, featured by the free flow and optimized allocation of capital, technology,information and service in the global context, making the economic interdependenceand interaction between various countries ever stronger, and has brought about newdriving forces and opportunities for the economic development of all countries in theworld. Multinational company is the most active one in the process of economicglobalization. Governments recognized that it should be absolutely necessary in theglobalization race to developing multinationals. The Chinese government put forwardthe strategy of "going out" which is an important measure of China’s activeparticipation in the economic globalization. At the same time, steps are taking tosupport Chinese multinational companies. Some Chinese leading enterprises begin toset up branches in foreign countries.Through deeper reform and opening up and greater investment, our hospitalityindustry has advanced by leaps and bounds. At the same time, the market environmentand the consumption climate gradually improved. The time has matured for operatingbranches crosses national boundaries. Some Chinese hotel chaines have maked upstrategies of international development, and operated a few trial branches. We shouldcultivate and support superior domestic brands and improve the internationalcompetitiveness of Chinese hospital industry.The paper uses the methods integrating theoretical analysis with empiricalanalysis, qualitative analysis with quantitative analysis, and horizontal study withlongitudinal study.There are six chapters.Through analysing the international environment, global competition, domesticgovernment policy, and present state of Chinese hospitality industry, Chapter one givesa demonstration of the importance of developing hotel multinationals. At the same time,it has been expatiated on the basic train of thought, current significance, theoreticalinnovation, deficiencies, framework, and method of this paper in the chapter.Chapter two provides the theoretical foundation of the full paper. It overviews theresearch on the international competition theories, the multinational theories, and themultinational hotel management theories. Then, it defines the notions of hotel, hotel group and multional business.Chapter three studies the efficient causes of hotel multinationals. First of all, itsummarizes the four main reasones of industry multinationals——obtaining resources,developing new market, improving investment efficiency, and doing transnationalmerger and acquisition. Then, it focuses on hotel multinationals, analysises the threemain reasones——following the outbound tourists, developing new hotel market, andusing comparative advantages. Finally, it demonstrates that there are two mainreasones of Chinese hotel multinationals, which should be rapid increasing ofoutbound tourists and hotel chaines strength. Otherwise, government policies, hotelcharacteristics, and international market, also promotes the developing of Chinesehotel multinationals.Chapter four studies the multinational hotel’s location. A three steps model isbuilded which include roughly sifting, deeply sifting, and making choice. Accordingthis model, construct a index system for destination evaluation. Based on the dataimpersonality of China, Seven indexes are fixed which are the number of tourists frommother country to host country, the number of foreign tourists to host country, the hostcountry’s incoming of foreign exchange from international tourism, the per-capita GDPof host country, the amount of outward FDI stock from mother country to host country,the amount of outward FDI flow from mother country to host country, and theaccomplished business revenue through contracted projects and labor contracts frommother country to host country. Finally, study seventeen coutries as Chinese hotel’smultinational destination, which are Thailand, Singapore, Malaysia, Philippines, Korea,Australia, New Zealand, Japan, Viet Nam, Kampuchea, Turkey, Egypt, Germany, India,South Africa, Croatia, and Hungary. During data collection, data standardizedtransaction, determing index weighting coeffient, and comprehensive assessment, it isconcluded that Korea and Japan are most suitable destination for Chinese hotelmultinationals, following with Singapore, Germany, Australia, Thailand, Vienam andMalaysia. Rest countries are not suitable for Chinese hotel multinationals in present. Itis valuable in Chinese hotel multinationals choosing destination to operatemultinatianal branches.Chapter five studies the market-entering route. There are six different way intocross-board market, that are Greenfield investment, cross-board merger&acquisition,lease operating, manage contract, franchise agreement, and marketing consortia. It isallow complete flexibility in choosing route depending on how hotel multinationals playing with hotel country. Drawing on experience from other country’s hotelmultinationals, Chinese ones should set the advantage against the disadvantage of ownand balance the pros and cons of the situation, then choose the most suitable route.This Chapter also raises some specific problems facing to Chinese hotel multinationals,and discussed how to solve them.Chater six concludes the paper. Multinational operation is necessary for Chinesehotel groupes. There are two main reasones of Chinese hotel multinationals, whichshould be rapid increasing of outbound tourists and hotel chaines strength. Inseventeen sample countries, Korea and Japan are the most suitable destination forChinese hotel multinationals, following with Singapore, Germany, Australia, Thailand,Vienam and Malaysia. Chinese hotel group could do deeply sift amoung them. Thenchoose2or3countries and analysis comprehensively. Finally fix the most suitabledestination country of own. There are six different way into cross-board market. It isallow complete flexibility in choosing them. Chinese hotel multinationals should setthe advantage against the disadvantage of own and balance the pros and cons of thesituation, then choose the most suitable route.