A Study On The Influential Factors In International Operation For The Chinese Enterprises

Along with the acceleration of global economic integration, there is a great change in the environment of international operation for enterprises. More and more Chinese enterprises go abroad and operate in the international market. Nevertheless Chinese companies face huge challenge. The failure rate of multinational business is beyond ten percent that ranks the first all over the international enterprises in the world in 2010 and nearly twenty percent of multinational companies were in loss. Aiming at the phenomenon, this paper focuses on the analysis that factors affecting the management of Chinese enterprises in the process of international operation. The SWOT analysis method was used to analyze the status of international operation, including current strengths, weaknesses, opportunities and challenges of our country enterprises. Besides, Farmer-Richman Model was also adopted to account for the relationship among the influential factors and influential factors or the enterprise management. On the basis of the analysis, the paper specified how the influential factors affect the international operation in combination with the typical case of Chinese overseas enterprises. This paper mainly analyzes from two angles. First, from the angle of international market environment factors, there are political, trade barriers, the marketing environment, legal environment and cultural environment. Second, from the angle of enterprises, they may encounter the human resources, technology, brand, marketing strategy and social responsibility. All of the above are indispensable factors, cultural environment, marketing environment, factors such as barriers to trade and human sources among them is the common factors. It will reduce operation barriers and greatly improve the success rate of internationalization if enterprises can handle with the culture, adapt to the local marketing environment, have a good response to the trade barriers and develop personnel training. Conversely, if enterprises ignore these factors, the development of the enterprise will be severely hampered and enterprises manage difficultly, even they may lose the international market. On this basis, this paper put forward some suggestions in allusion to the common factors encountered in internationalization based on the comparative study on the success and failure of international enterprises.