Research On The International Business Strategy Of Wanzhou International

Benefiting from both the enacting and implementation of a series of transnational operation facilitating policies and the "Road and Belt" strategy in recent years,more and more competent enterprises in China have started their overseas investment,which made China second largest investor in 2016.While China's overseas investment is mainly concentrated in manufacturing,information science and technology,computer services,.most of world overseas investment in food processing sector come from western companies and many well-known brands,such as Nestle,Pepsi,DQ,enjoy great prestige in the world.In contrast,the internationalization for food processing in China started relatively late and,consequently,sufferred from weak competition.At present,there are actually few brands that can truly be recognized and enjoy high popularity in the global market.This paper takes WH Group,a leading enterprise in the meat processing industry,as the research object to explore its basis for the internationalization,to analyse the internal and external environment faced by its internationalization,and to put forward strategic measures for further internationalization.The predecessor of WH Group was Shineway Group.After more than 20 years of development and accumulation,technological innovation and research and development,and determined reform and stable operation,conditions have been laid and advantages have been established for the company to carry out international operations.As a most sucessful case,the company once acquired Smithfield,the largest pork food producer in the United States,and has stepped out of Asia to become the world's largest meat processing company,ranking first in the world in all three core business areas.In the past five years,WH Group has achieved fruitful results even in the unstable international market.The scale of the company has been continuously expanded through successive international acquisitions and coordinated development of production and operation in China,the United States and Europe has been achieved through the worldwide integration of resources.Therefor,the Studying on WH Group's international process of its business,especially its internationalization strategy,is valuable both for the further developement of its own and the international development of other like companies.Based on relevant theories of enterprise internationalization,especially the theory of corporate internationalization strategy,this paper analyzes and reviews the internationalization process of WH Group,and analyzes its motivation of the internationalization theoretically and historically,giving the basic reasons for the company to adopt an international strategy.This article also adopts the normative method to analyze WH Group's implementation of international business strategy,and using SWOT method from different dimensions to identify the various aspects of environment that the enterprise faces in its global business operation from macro,meso and micro level,which serves as an index of strategic choices of the company's internationalization and the specific strategies that should be adopted.The research shows that WH Group should adopt a growth-oriented and diversified international business strategy,and maintain its investment diversification while expanding business to control market risks.Based on this,combined with the recognition to the environment and problems faced by the company in its current internationalization,this paper believes that in the future's international development the company needs to focus on establishing as full industrial chain as possible to ensure food safety,reducing domestic production costs to enhance export competitiveness,innovating marketing methods to increase brand recognition,establishing a sophisticated risk prevention system to avoid business risks.