State-owned enterprises "going out" strategy of development thinking

And the impact of China's economic integration into the breadth and depth of the global economy is constantly expanding, the report of the Seventeenth Party Congress began to "internationalize" the key words to define the Strategy of Chinese enterprises to go out the layout. We feel this strongly to encourage Chinese enterprises to go out and cultivate a high level of multinational corporations, on the importance of China's national Strategy. Chinese enterprises to go international development is the inevitable choice to deal with economic globalization is the inevitable result of the development of enterprises. Currently, the world of socialized production network has been formed, the traditional natural resources, product-based division of labor has been broken, some industries become increasingly saturated domestic market, the price weakness led to fewer and fewer market opportunities, and corporate capital accumulation, technology, and products need to be updated, larger market size. multinationals in the world's prominent role in economic activity is increasingly clear, "the domestic market internationalization, international competition, domestic" of the new competitive landscape has been formed. globalization requires companies into an international enterprise. This trend is irreversible, but also unavoidable. or multinational corporations came over us, or we face the multinational companies.


First, the "going out" Strategy proposed and theoretical motivation

In 2000, the "going out" to be officially identified as the central Strategy of opening up a new era .2001, "<fifth Plan>> to" go out "and foreign trade, foreign investment as a" fifth "open the three pillars of economic development In 2002, Congress report pointed out that to "adhere to 'bring' and 'going out' the combination comprehensively improve the level of opening up," .2007, the party's congress report is clear said: "Support enterprises in the development, production and sales, international operations, accelerating the development of China's multinational companies and international brands." According to Harcourt (Kotter's study, two factors determine why companies choose international operations . (1 is forced by the potential factors: the market price or government-controlled weak reasons, fewer and fewer opportunities for the domestic market. (2 pull factor: This means foreign to the growing demand for enterprise products large. As for the international operations of enterprises are often the reasons are many, their motivation is diversification. The most important than in the global resource integration to reduce costs, has a real competitive edge.


Second, Chinese enterprises "going out" Strategy to face the reality of risk

1. Strategy is not clear. Many Chinese companies to expand overseas without the formation of a clear strategic focus, a number of investment decisions with a strong opportunistic, strategic objectives of international development from the point of view, many Chinese enterprises for the purpose of a brand honor, reputation, rather than sustainable development. brand management is a complex, scientific process, need to use rigorous methods and pragmatic spirit to shape the brand.

2. The management system behind. In recent years, lower cost of overseas investment, significant investment loss events have occurred, the management system behind it is a direct response. If the strategic plan fundamentally determines the general direction of internationalization of Chinese enterprises management system in a wider range of operational level about the success or failure of enterprise internationalization.

3. Not pay enough attention to cultural differences. Chinese enterprises to establish international development strategy in the process of facing another huge challenge is the culture can not and financial risks. This includes the different cultural and multinational companies, large cross-regional cultural differences. on post-merger integration process of foreign enterprises will never be just a small part of the leadership involved can be completed, must need a lot of operations from headquarters to the active participation of the staff level to be successful, companies must face the difficult break through cultural barriers challenges.

4. Personnel issues. Personnel problem may be faced by the domestic enterprises to the world the biggest obstacle. Complexity of international operations, and general managers of domestic enterprises lack the financial and legal experience, but lack of expertise in this area, are often too dependent on foreign banks, lawyers and some foreign agencies, which affects not only the right of Chinese enterprises, timely, scientific decision-making, sometimes cheated because of the contract defects and other reasons. At present, both state-owned enterprises or private enterprises, many foreign managers Most only have foreign language expertise or administrative services in a foreign country have any work experience, but the lack of international trade, investment, finance and other aspects of professional knowledge and skills, in fact very difficult to effectively implement the international business strategy, and even cause the enterprise business increased risk. Links Links to Research Papers Download http://www.hi138.com Third, the "going out" strategy of Rational Thinking

1. Develop a clear strategic objectives. In the large-scale domestic enterprises to explore international market, should first calm down and think about why you want to go to the world? Why should explore the international market? Different strategic objectives will require different strategies of transnational business. Goals not clear, business strategy is inevitable chaos.

2. To find ways to achieve goals. Once the decision to "go out", we must decide which areas of the world, the state of the market started. Are full bloom, a diversified strategy to test the market, and explore the experience and then intensify storm, or select a target market, then go all out, concentration of forces to fight a battle of annihilation?
3. Select the appropriate approach to implement the strategic objectives. Identified the target market, the need to select the appropriate mode of entry. If it is to open up foreign sales market, you need to decide whether brokers should be used, or export directly to foreign customers, is played own brand, or do first OEM? export-way occupied by the target market, or a way to cross-border investment in local production? into the way of advantages and disadvantages, must be based on the company's strategic goals and industry characteristics of specific conditions.

Of course, due to the complexity of multinational operations, in the "From Homeland to the world" the initial stage of the business is often difficult to compare the above problems a thorough analysis. The second best way is to select companies have a better understanding of foreign markets, with relatively flexible mode of entry to the attitude of learning, as a tentative exploration, and positive experience to enterprises, government agencies and Research institutions consult, in practice, gain experience and build international business team, establish and improve organizational and systems Then gradually formed strategy.

Only when Chinese companies to a global perspective to examine and organize their own enterprises, can have a real competitive edge. However, such a global perspective and worldwide business operations and organizational needs is adequate "knowledge "reserves, including advanced concepts, management level, high-quality talent and good management. In the journey towards global competition, Chinese companies just started.

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