Research On The Multinational Management Strategy For CRRC Changchun Railway Vehicles Co.,Ltd.

It is the birth of Railway Rolling Stocks that had changed,significantly,the way of people's daily life and the methods of people getting around.Since 1804,the industry of Railway Rolling stock had got continuous developing and the technology of it kept updating for more than 200 years.CRRC Changchun Railway Vehicles Co.,Ltd.(Hereinafter ‘CRRC Changchun'),was built in 1954,after got 66 years' development,it had become one of the most famous base,domestically,for its R&D,manufacturing,maintenance ability.Here,the right place,was the birthplace of Chinese subways and EMUs.With the great-leap forward development of this industry,CRRC Changchun's products had moved into standardized phase,which made its products had huge comparative advantages and competitiveness,while the overseas market has continuously increasing demand and potential profit.Till now,in the aspects of overseas business,CRRC Changchun's product had been shipped to more than 20 countries and zones,including the United States,Australia,and et cetera,with full experience of international project management,CRRC Changchun had built subsidiaries in the U.S.,Australia and other countries according to the Contract signed.However,the politics environment in the world had become more and more complex,trade protectionism got waked,the requirements and clauses of domestic contribution grew higher as the trade barrier bigger,at the same time local after-sales service and maintenance base was required.Thus it is very important for CRRC Changchun to speed up the organization internationalized and get the arrangement of multinational management strategy completed.With the One Belt One Road Strategyputting forward by government of China,made it has significant meaning to conduct a research on CRRC Changchun multinational management strategy,as well as CRRC Changchun itself,to achieve the long-term target it had set up.At strategy analysis phase,the model PEST was applied to analyze the external macro environment,such as politics,economy,social culture,science and technology standard which CRRC Changchun faced recently.Furthermore,the theory of product life cycle and product life cycle,Porter's model Five-Force were used to analyze the industrial environment of the company.Enterprise resources and abilities should also be concluded when consider the internal environment of CRRC Changchun.Based on the information as mentioned above,it was able to get summarized from the situation of internal advantages and disadvantages,external opportunities and threats,that Diversification Type was adopted by CRRC Changchun according to the theory of SWOT analysis.At strategy selected phase,the corresponding target of multinational management strategy was formulated according to the modern theory of headquarters-subsidiary relationship theory after considered the actual situation of CRRC Changchun,as a result the cost-driven strategy is chosen as basic competitive one.At the strategy implementation phase,based on all the analysis above: the multinational management system between parent company and overseas subsidiary will be built,one market-driven and budget-consider-first multinational management model will be used,resources will be integrated based on multinational management sight,business model changed by the demand of clients.In terms of safeguard measures,suggestions are proposed that a replicated information platform will be built,adaptability will be improved regarding with technology innovations and client demands,international human resources suggested to be use for CRRC Changchun multinational system.As a conclusion,based on the analysis of the external macro environment,industrial environment and internal management environment of CRRC Changchun,the direction of multinational strategy,the overall multinational management strategy,and the basic competitive strategy,according with the actual situation of CRRC Changchun,are studied and put forward.And on this basis,relevant recommendations for the follow-up implementation of the strategy and guaranteed measures are proposed,which provide the reference for CRRC Changchun Higher-quality sustainable development and provide ideas for further replying to the call of One Belt One Road Strategy of Chinese Government.