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Strategy On Haier Indian Trading Company Local Operation

Posted on:2011-08-13Degree:MasterType:Thesis
Country:ChinaCandidate:B E WuFull Text:PDF
GTID:2189330332464855Subject:Business Administration
Abstract/Summary:PDF Full Text Request
In recent decade, various industries in China have developed very fast, especially the household appliance industry which has become one of the most high-growth industries.The domestic market already can't satisfy the goals of various companies, so that they put their horizon abroad, coveting the huge overseas market. Therefore they slowly take steps outside and start exploring their gold panning path from overseas. Since Chinese household industry entering the year of 2000, the annual average increase of export was above 30%; although the export growth was low in a particular year, the increase rate was still all above 20%; In 2006, China reduced the tax rebate of household appliance from 17% to 13% in order to control export, which still could not prevent the major trend of rise. In 2008, though badly affected by the economic crisis, the export of Chinese home appliance still reach the amount of 36.222 billon U.S. dollars,13.78% growth compared to the same period of last year.Along with the international collaboration level among various industries becoming more and more higher, internationalization of home appliance company has become a necessary way for their development to be a worldwide famous company and for their brand to be known internationally.When first start operating internationally, the household appliance enterprises mainly try to enter and open the overseas market through the export of domestically produced products, however, this way faces increasing problems such as the continuing appreciation of RMB and the local trade protection, along with the growing difficulties. So, many companies have adopted such measures as acquisition,built of self-owned factory or a joint venture,Launch a local branch and many other ways to conduct local-based operation. And comes the consequent emergence of locally operational issues:the products are in urgent need in market whereas the material delivery from domestic takes a long time; local employees don't obey the management; the allocation of profit if the joint venture makes money and many other operational issues which inevitably become the primary subjects of the operating overseas companies.Each of the world independent 169 countries has its own characteristic. For example, in Brazil, the workers is employed to do a certain kind of job and you can't arrange him to do the cleaning as in domestic during his shutdown period; and America workers can listen to the walkman while operating on line. While in Pakistan or Bengal and other Muslim countries, everyday there should be extra time left for them to go to church and more time be left on Friday. The stores are closed on Sunday, so the workers can only ask for a leave during work time to do the purchase when the house needs some stuff, etc. So many different customs have made the local management more difficult. When originally involved in overseas operation and management, how many companies are amerced by the labor union, prosecuted by the government or faced the strike of employees, etc., From which the loss apart of money is the dignity and lessons against Chinese people.If there is a feasible method or strategy of choosing or implementing the overseas policies then many companies would avoid making detours and achieve their intended targets rapidly within the scheduled time, which is the meaning of this paper.In recent years, with the rapid development of economic globalization many of the world leading multinationals vigorously promote local operational strategy from the manufacture, product branding, human resources, marketing management, capital operation, technology research & development and other aspects, in order to make full use of local resources to accelerate the pace of market access and reduce the operational risk of multinationals and ultimately improve the international competitiveness and local sustaining developing ability of international companies to achieve the maximize interest of overseas investment.This article first analyze international trade, start with the analysis of the motive and the theoretical basis of localization, then research on the local operational strategy of worldwide leading companies and Haier from China to put up that currently the Chinese multinational enterprises should go on the way of localization. At the same time, the article scientifically builds up a strategy system for Chinese multinationals operate locally and put forward a series of solving strategies. This paper uses each model of Haier Company that operates in India as example and integrates its 8 overseas manufacturing bases as a basis, utilize the walking ways of local operation, the existing problems and the achieved results as a introduction, then commence discussing the issues that should be pay attention to in the process of overseas operation and management combined with its self-owned five functions:financial accounting, technology, manufacturing operations, marketing and human resources management, to prove that local operation can better make up the deficiency of capital, technology, talents and brand recognition.etc. For Chinese companies, to strengthen the competitiveness thus speed up the process of globalization of Chinese enterprises. The thesis mainly use the method of theory deduction combined with practice analysis and Macro-analysis combined with micro-analysis to make a demonstration and research of Chinese international companies'local operational strategy, then makes a suggestion on the measures that should be adopted and the problems that we should avoid and puts forward new ideas and methods for the companies and enterprises that are being or about to expand overseas.
Keywords/Search Tags:International investament, Multinational, Internationalization, Localization
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