Shanxi enterprises "going out" strategy, Problems and Solutions

Abstract: The rapid development of Economic globalization trend, accelerate the implementation of the "going out" strategy, both in Shanxi to further enhance the inherent requirements of opening up, but also a response to this trend Shanxi inevitable choice, but also improve their international competitiveness in Shanxi the only way. paper will be mainly in Shanxi "going out" strategy and related problems of countermeasures for one.

Keywords:: Shanxi enterprises "going out" strategy, problems and solutions

1 Shanxi enterprises "going out" strategy issues

1.1 Shanxi the problems of their own
1.1.1 The concept of the existence of errors Enterprises in Shanxi
The concept of a deviation of Shanxi business, some companies believe that transnational business has just started to engage in transnational operation time is short, with little experience, as long as the "go" to have a foothold in overseas, the result is very good. Some believe that developing country, China's overseas enterprises in Shanxi only small businesses, would be higher standards for the establishment of foreign invested enterprises, therefore, business strategy and policy, long-term stay in the small-scale Investment phase of the operation, often in small trading outside the established point, fail to scale operations.

1.1.2 Shanxi enterprise strength less than
Compared with domestic operations, Shanxi enterprises to develop overseas operations to pay additional costs, therefore required a stronger strength. Compared with Western multinationals, Shanxi enterprise strength weak, a small number of Investment projects, small-scale enterprises, SMEs in particular, highlight . As the end of 2000, the average size of foreign Investment projects in Shanxi just 100 million dollars. strength is limited, can not prevent companies from many aspects of "going out" to conduct international business. In addition, almost all enterprises in Shanxi are facing financial difficulties cross-border Investment . Shanxi many enterprises, especially small and medium enterprises in Shanxi financial strength is weak, the tax burden of serious debt, risk tolerance is low, coupled with the shortage of foreign exchange, financing channels, financing a single, even with very promising overseas professionals There also were unable to cross-technology business. transnational business enterprises due to limited financial resources of its overseas Investment and Research and development work, many of Shanxi smaller companies after the initial Investment after the free trial for large-scale comprehensive financial Investment.

1.1.3 Multinational Enterprises in Shanxi lack of talent management, management level is not high
Start a business abroad requires a large number of senior management personnel, technical personnel, finance and accounting professionals and legal professionals, these people can use language to deal with the business and disputes. These requirements, foreign enterprises in Shanxi quality and level of cadres there big gap. Some foreign workers often have interim management concept, the lack of international quality management personnel should have, mainly because many units will be expatriate staff working overseas-invested enterprises as a treatment, however, Shanxi Province A large number of foreign workers still do not quite understand the project of international trade, WTO rules and other aspects of knowledge is not familiar with the local social and legal environment does not meet the needs of international operations. According to foreign trade and Economic system in Shanxi Province and cultural level of foreign staff sent a survey in foreign companies engaged in the operation and management personnel, university or higher education accounted for only 33.7%, and accounted for 22.6% of secondary school the following. Shanxi overseas companies that operate smoothly is difficult to influence corporate management levels.

And Shanxi is often difficult to attract high-quality corporate personnel, and Shanxi enterprise in which the geography, cultural environment. A lot of high-quality personnel would like to Economically developed areas and some major cities to develop, such as: Beijing, Shanghai and other .

1.1.4 Enterprises in Shanxi transnational management system is incomplete
Overseas Investment and operation in Shanxi level is not high and do not have clear core competitive strengths and capabilities. In determining the enterprise's core competitive advantage of a number of important areas, such as cross-border aspects of the management system are many. Some confusion in the financial management of foreign enterprises, to the national security of assets and the preservation cause problems, this outstanding performance in: �� did not strictly enforce budget management, financial management system, �� is not strictly financial joint inspection, approval and other large system with money, �� not established audit inspection system, including the annual evaluation and overseas enterprises person in charge of Auditing and so on.

More seriously, Shanxi officials sent by foreign enterprises do not have a management policy, employees often appear in my name registered in the offshore business, rent, accounts, purchase of property, etc., leading to the property Huagongweisi Enterprises in Shanxi.

1.2 The problems the government level
1.2.1 lagging foreign Investment laws and policies, Shanxi enterprises "going out" the lack of legal protection
There is no specification of China's foreign Investment laws, not only led to a lack of foreign investment in overall investment planning and a clear direction, and lead to the relevant authorities is unclear, wrangling with each other, and low efficiency. Also, the existing department rules and policies for state-owned enterprises are often , no longer meet the current foreign investment diversification objective reality, transparency is not enough, it is difficult for all types of enterprises to develop foreign investment to provide effective legal protection. Therefore, Shanxi enterprises to "going out" strategy is difficult.

1.2.2 cumbersome approval procedures
Currently, Shanxi government regulations, Shanxi state-owned enterprises to invest in enterprises abroad and 100 million U.S. dollars to be approved at the provincial level, and approval of cross-border investment of private enterprises to go through multi-sector (at least the Ministry of Commerce, the State Economic and Trade Commission, foreign exchange management Bureau, the State Planning Commission, Ministry of Public Security, etc.), multi-level (local trial and report to the central approval), cumbersome procedures, long processing time, with buck-passing between departments, for approval of a project usually takes 4 to 6 months long to spend the last two years. In the fleeting business opportunities in international markets, this has seriously affected the timing of corporate cross-border investment.

1.2.3 inadequate policy support measures
Currently, supporting policies that have been promulgated, the capital of foreign invested enterprises, foreign exchange, export tax rebate so there are some incentives, but the intensity is still very inadequate. And some policy implementation has been slow. In addition, the existing support policies apply only to overseas processing and assembly, while the long-term development of China's Economic importance to investment in resource development, technology Research and development-type investment, market development-type investments are not in support of the range.

Finance, taxation, financial and foreign exchange policy support to small and imperfect. In addition to TISCO, too few other medium-sized enterprises, the province launched a number of foreign operations are mostly small and medium enterprises. The Shanxi government policy on small and medium enterprises and private enterprises in Shanxi "weak" depending on the care of large enterprises, small and medium enterprises and private enterprises to make direct investments in foreign competition in a disadvantageous position.

1.2.4 lack of information services, foreign investment information poor
Currently, Shanxi enterprises "going out" is the difficulties faced by poor information, little outside information sources, the foreign related laws, policies, know little about the investment environment, the relevant departments to check the Internet site to much useful information, the Research, advisory bodies are more dispersed, the effective integration of various information resources are not. At present, South Korea, Hong Kong, Japan, the United States and Singapore and other countries and regions have established in China specialized non-profit government agencies, for their overseas investment provide operational guidance and information consulting help, and service network in Shanxi overseas investment has not been established.

1.2.5 Financial support to fatigue, lack of funds foreign investment enterprises in Shanxi
(1) Shanxi overseas enterprises to obtain enough financial support. Shanxi overseas enterprises with low efficiency due to the long run, the basic development of its own funds do not have to rely on the strength of foreign direct investment. And China's financial system is still not complete, the capital markets are underdeveloped , the huge state-owned banking system is not fully with international standards, for a long period of time the huge non-performing assets will be plagued by problems. Therefore, Shanxi enterprises "going out" strategy process, the financial system is difficult to play an effective role .

(2) the control of international commercial financing, hindering the use of international capital markets Enterprises in Shanxi. If domestic investors to invest overseas international commercial loans, debt management are areas of China, needs the approval of the State Planning Commission. For domestic investors the use of international commercial loans to foreign investment restrictions, in fact, impeded the Shanxi business use of external capital markets, while the use of external capital markets, Shanxi companies can often be more effective financing conditions, to reduce costs and improve the international competitiveness of its large helpful.

(3) credit guarantee has become an obstacle to enterprises to develop a major factor in the international market. First, the domestic banks can not afford the proposed foreign investment in various economic and technical cooperation projects or other risk assessment, thus requiring the insured companies in the security line the same amount of cash deposited as collateral, not only increased the difficulty of the enterprise to develop new markets, while the loss of a "credit guarantee," meaning, then, though the bank according to the latest national policy of reducing the proportion of secured mortgages, but the processing time is too long, the procedures complicated, not only to increase business costs in Shanxi, Shanxi and seriously affected the international reputation and image of the enterprise, once again, local banks refused to issue the necessary overseas project contracting standby letters of credit. reposted elsewhere in the Research Papers Download http://www. hi138.com 2 Shanxi enterprises "going out" of the strategy

2.1 Shanxi countermeasures of their own
2.1.1 draw on international experience, established the strength of the enterprise group in Shanxi
Competition requirements overseas market Shanxi enterprises engaged in international direct investment has considerable economies of scale to reduce the degree of market competition, the formation of cooperative competition, and Shanxi in the market competition in the international practice, the performance of small-scale enterprises, there is excessive competition or disorderly competition. Therefore, in the international market, the Shanxi "going out" strategy of business organization is cultivating a number of economic strength, with international standards of large enterprises, as the main international marketing in order to take full advantage of international market the potential to provide economies of scale.

2.1.2 vigorously develop transnational business talent
Management is the eternal theme, Shanxi business is no exception. Since the overall management of Shanxi generally low level of business, the current must strengthen the internal management of overseas enterprises in Shanxi, and strengthen the survival and development of overseas enterprises, strengthen overseas enterprises in Shanxi viable investment projects Research, and to improve scientific decision-making levels, establish and improve the management rules and regulations of overseas companies. Nevertheless, these efforts need people to implement and complete. Therefore, competition among enterprises in real terms in the international talent competition. perhaps Overseas companies need a lot of complex high-quality personnel, asking them both to be proficient in foreign languages, familiar with international practices, the international market, but also have high management skills, strong public relations skills and adaptability, a strong pioneering spirit and dedication spirit. Therefore, on the one hand to take a variety of ways to find and train lines need to cross-border operating personnel, on the other hand have to strengthen in-service training for expatriates and improve their business knowledge, international business skills and foreign language proficiency so that they can adapt to the needs of international operations.

2.1.3 Shanxi to improve the enterprise's own management system, and pay attention to the management experience from abroad
Shanxi multinational corporations to overhaul its management structure and improve its management system as soon as possible. In addition, through the "going out" in overseas investment, especially in the developed countries to carry out investment cooperation, we should pay attention to learning advanced management experience of developed countries, applied it to domestic enterprises and foreign investment management, to enhance the competitiveness of enterprises.

2.1.4 with their own situation, comparative advantage
Shanxi enterprises "going out" strategy, in conjunction with its own actual situation. Segments. And the reasonable market position. The international market for mass consumption by the consumer shift to the individual, personalized needs of specialized products is increasing relatively large enterprises in Shanxi, Shanxi SMEs in the provision of specialized products has its own advantages. so. Shanxi choice in the market for SMEs to consider the individual market advantage.

Shanxi enterprise to gain a firm foothold in the international competition, in addition to the implementation of low-cost strategy, but also in the "specialized, sophisticated, gifted, special" direction, focusing on a particular, two aspects of the formation of specialization advantages gradually shift to the differentiation strategy to expand the international market.

2.2 Shanxi Shanxi government for enterprises "going out" strategy implemented by the measures
2.2.1 To improve the foreign investment laws, regulations and policy framework
Shanxi government to establish and improve China's legal system, foreign investment, and establishment of "Overseas Investment Act", changing the enterprises engaged in international operations Shanxi no legal basis for the situation. Sound foreign investment regulations and policies to improve transparency, will effectively encourage enterprises in Shanxi interest in overseas investment to protect their interests.

2.2.2 should relax the approval procedures
Shanxi government should relax the approval policies of private enterprises in the project examination and approval to reduce the links, simplify procedures, improve efficiency, reduce the time, but also strict conditions of approval to ensure that foreign investment projects, the quality and efficiency. This is not only to promote foreign investment enterprises according to law the diversification, but also to break the region, industry, ownership of the barriers, so that in Shanxi enterprise restructuring based on economic and rational, and then go overseas.

2.2.3 establish and improve the "going out" policy measures to promote and support
Shanxi government should be based on overall national development strategy and economic development requirements, foreign investment policy to encourage a variety of projects. In guiding enterprises in Shanxi good use of existing incentives at the same time, Shanxi Government should finance, taxation, financial credit, foreign exchange management policy, to create a more favorable environment and conditions for foreign investment. full use of the power of China in the WTO, strengthening of multilateral and bilateral trade negotiations to reduce and eliminate all trade and investment barriers abroad. In addition, the Government should be encouraged in Shanxi class has the strength of small and medium enterprises and private enterprises in Shanxi enabling policy and actively encourage them to implement the "go" to overseas for its new development opportunities and help them become bigger and stronger, and gradually form of transnational enterprises in Shanxi.

2.2.4 The strengthening of foreign investment information service system
Shanxi government should absorb advanced foreign experience in the areas outside the focus of investment, the investment focus areas of the Shanxi Government's overseas offices, Research the local market and information to the investment information service system in Shanxi by the Shanxi government guidance department of foreign enterprises investment in the region. in Shanxi's foreign investment should be an independent information consulting centers or research institute of foreign investment. The center specializes in collecting, distributing all kinds of information required for foreign investment, the foreign investment advisory services, including information on the investment of foreign investment financing system and the approval process, guide the development of investment plans and investment contracts, investment partners to help host the information on the investigation.

2.2.5 further improve the foreign investment in the financial service system
(1) strengthen the bank's services, building a sound financial services system for overseas investment. China several specialized banks in international financial markets have a higher reputation, have their support and cooperation of foreign enterprises in Shanxi possibility of financing can be greatly improved. banks should play a particularly large number of its overseas branches, the advantage of high international reputation in the market, multinational companies active in the establishment and development of Shanxi Province to create a favorable financial environment.

(2) To release control of the international commercial financing. In the domestic foreign exchange under the conditions of relatively limited resources, can not regulate a large number of foreign exchange funds from the development of domestic multinationals. So, in addition to a variety of ways as far as possible
In particular the development of non-cash input methods other than multinational companies in Shanxi, but also to endeavor to adopt the host country or international market financing and other financing solutions to the financial needs of multinational enterprises in Shanxi, which is the use of foreign resources, another effective method.

(3) To further improve the provision of multinational enterprises in Shanxi credit guarantee system. Therefore, we must vigorously strengthen the financial, insurance companies and other industries combined with the Shanxi and mutual integration. Shanxi meet the requirements of enterprises, the financial sector in particular, several professional the one hand, as far as possible for such banking companies in the direct and indirect financing from overseas to create favorable conditions. such as the provision of credit guarantees, standby letters of credit issued, financing guarantees. In addition, to establish a risk assessment system for foreign investment. banks should learn from developed successful experience of countries, using internationally accepted risk management philosophy, risk assessment system to establish overseas investment. to help "going out" analysis of risk enterprises in Shanxi Province, to guard against investment risk.

2.2.6 provide insurance for overseas investment
Shanxi enterprises to invest overseas to do business than the risk faced by large domestic. Face the risk of overseas investment, with the exception of Shanxi their own risk to take some preventive measures, the Shanxi government should do something. Learn from the experience of other countries, Shanxi to set up overseas investment insurance agencies, specializing in foreign-invested enterprises in Shanxi's political and economic types of insurance.

By this analysis, I believe that to a certain extent the development of enterprises in Shanxi, should actively adopt a "going out" strategy, in the rational allocation of resources worldwide, to gain economies of scale or risk diversification benefits arising. But still need to pay attention to multinational companies in Shanxi Many problems, such as foreign investment in its infancy, most of the Shanxi overseas enterprises are small, weak financial management and so on. Therefore, Shanxi enterprises must meet the requirements of the times selected international development strategy, Shanxi Government must also encourage multinational companies through the enactment of various laws regulations, to promote Shanxi enterprises "going out" while also "good to go" in order to improve the international competitiveness of enterprises in Shanxi. reposted elsewhere in the Research Papers Download http://www.hi138.com