| In the new wave of economic globalization, competition in the world market has moved up to a new level. Cross-border management has become a necessary choice for corporate development. More and more Chinese enterprises are internationalizing their operation and participating in competition in the world market. Their investment overseas has become more and more important and played an important role in their integration into globalized operation. The Chinese Government has put forward the policy of "Moving outwards" at this right moment and encourages enterprises to transfer from solely exporters to investors in overseas market in order to promote foreign trade and its growth.Under these circumstances, the establishment and management of overseas enterprises, which is expected to become their new competitive advantages, has become an important strategic option for Chinese enterprises to respond to the economic globalization. And the management of overseas enterprises has become a key issue for Chinese enterprises moving into the world market. Comparing with management of Chinese local companies, the management of their overseas enterprises has its own characteristics and management localization is the core of this issue.A localized management has following meaning. During the early phase of its cross-border management, a Chinese enterprise should restructure its overseas enterprises according to international practice and local legal requirements so that its internal management and external operation are formalized and strengthen their competitiveness in the local market to ensure a long term and healthy development. Management localization reflects not only the extent and quality of the formalization of management over overseas enterprises, but also constitutes a process through which overseas enterprises could achieve formalization through reform and restructuring. Management localization is an international common practice and consistent with the global strategy of the headquarter company in principle, which is also an important method to achieve cross-border management strategy.Management localization belongs to corporate management and covers all aspects of overseas management. In brief, it covers four areas: management localization, operation localization, personnel localization and compensation package localization. There four aspects are closely connected. Operation localization is the start point of an enterprise growth. Management localization is the foundation and safeguard of its operation. Personnel localization is required by a localized operation and management and an important measure to achieve localization. These three localizations are the premises of the localization of compensation package.Operation localization means that overseas enterprises formulate their own development strategy and marketing strategy and operate accordingly by targeting the overseas market.Operation localization is a basic precondition for management localization. As a basic strategy, management localization will enable the application of all related management systems in an enterprise that has competitive advantages in the host country and that is able to withstand the relatively high cost of management during the initial phase. On the other hand, operation localization is a basic objective of management localization for an overseas enterprise. An overseas enterprise can operate and grow like a local company once it adopts management localization with the local market as its target. Management localization of overseas enterprises will also enable their parent companies to achieve their purpose of global management. 1. An overseas enterprise should compete and grow as a local company in the host country.2. An overseas enterprise should increase its localized advantage by benefiting from the globalization advantage of its parent company.3. The parent company should strengthen its globalization advantage building on the localized advantages of its overseas e... |
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