Mainfeatures
1.Generally,thereisalargecompanywithstrongnationalstrengthasthemainbody.Throughdirectforeigninvestmentoracquisitionoflocalenterprises,ithasestablishedsubsidiariesorbranchesinmanycountries.Companies;
2.Generally,thereisacompletedecision-makingsystemandthehighestdecision-makingcenter.Althougheachsubsidiaryorbranchhasitsowndecision-makingbody,itcanbebasedonitsownbusinessfieldanddifferentcharacteristics.Makedecision-makingactivities,butitsdecision-makingmustbesubordinatedtothehighestdecision-makingcenter;
3.Generally,theyarrangetheirownbusinessactivitiesfromtheglobalstrategy,seekmarketsandreasonableproductionlayoutaroundtheworld,anddesignatespecializedproduction,Fixed-pointsalesofproductsinordertomakethemostprofit;
4.Generally,duetothestrongeconomicandtechnicalstrength,rapidinformationtransmission,andtheadvantagesofrapidtransnationaltransferoffunds,theyareHavestrongcompetitiveness;
5.Manylargemultinationalcompanies,duetoeconomic,technologicalstrengthoradvantagesintheproductionofcertainproducts,orforcertainproducts,orincertainregions,Withvaryingdegreesofmonopoly.
Throughdirectinvestment,technologytransferandotheractivities,internationalcompaniesthatsetupbranchesabroadorjointlyownenterpriseswithlocalcapital.Alsocalledamultinationalcompany.
Operatingcharacteristics
Relatedpictures(7photos)
Asamultinationalcompanywithmanybranchesathomeandabroad,itisengagedinglobalproductionandoperationComparedwithdomesticenterprises,activecompanieshavesomedifferences.Thesedifferencesaremanifestedin:1.Thestrategicgoalofmultinationalcompaniesisorientedtotheinternationalmarket,aimingtomaximizeglobalprofits,whiledomesticcompaniesareorientedtothedomesticmarket.
2.Multinationalcompaniesexercisecontroloverforeigncompaniesthroughholdings,whiledomesticcompaniesexercisecontrolovertheirrelativelysmallforeign-relatedeconomicactivitiesmostlythroughcontracts.
3.Theforeign-relatedactivitiesofdomesticenterprisesdonotinvolvetheestablishmentofeconomicentitiesabroad.Therelationshipbetweendomesticandforeigneconomicactivitiesislooseandhasgreatercontingency.Theirforeign-relatedeconomicactivitiesareoftenterminatedimmediatelyafterthetransactioniscompleted.,Nolongerparticipateinthesubsequentreproductionprocess;whilemultinationalcompaniesarefullyengagedincapital,commodities,talents,technology,managementandinformationtransactionsinvariousfieldsaroundtheworld,andthis"package"ofactivitiesmustbeinlinewiththecompany'soverallstrategyThetargetisunderthecontroloftheparentcompany,anditssubsidiariesalsoparticipateinthelocalreproductionprocesslikeforeigncompanies.Therefore,multinationalcompaniesmustimplementhighlycentralizedandunifiedmanagementoftheirbranches.
Modeofoperation
1.Horizontalandhorizontaldiversifiedoperations.Suchcompaniesaremainlyengagedintheproductionandoperationofasingleproduct.Theparentcompanyandsubsidiarycompaniesrarelyhaveaspecializeddivisionoflabor,butthecompanytransfersalargeamountofintangibleassetssuchasproductiontechnology,salesskills,andtrademarkpatents.
2.Verticaldiversification.Suchcompaniescanbedividedintotwotypesaccordingtotheirbusinesscontent.Oneisthattheparentcompanyanditssubsidiariesproduceandoperateproductsindifferentindustries,butarerelatedtoeachother.Theyarecross-industrycompanies,mainlyinvolvedintheproductionandprocessingofrawmaterialsandprimaryproducts,suchasminingandplanting→refining→processingandmanufacturing→sales.Theotheristhattheparentcompanyanditssubsidiariesproduceandoperateproductsofdifferentprocessinglevelsortechnologicalstagesinthesameindustry,mainlyinvolvingindustrieswithahighlevelofspecializeddivisionoflaborsuchasautomobilesandelectronics.Forexample,theMobilOilCompanyintheUnitedStatesistheformerverticalmultinationalcompany.Itisengagedintheexplorationandexploitationofoilandnaturalgasonaglobalscale,transportingoilandnaturalgasbypipelines,tanksandvehicles,operatinglargeoilrefineries,andrefiningfromcrudeoil.Producefinalproducts,wholesaleandretailhundredsofpetroleum-derivedproducts.WorldGroup,AsiaPacificInternationalGroup,andChinaInternationalGroupareeventhepremiersuper-comprehensivegroupswithbusinessesallovertheworldandalmostinvolvedinallwalksoflife.ThePerros-CitroenAutomobileCompanyofFranceisthelatterverticalmultinationalcompany.Thecompanyimplementsspecializeddivisionoflabor.Its84subsidiariesandsalesorganizationsabroadareengagedinmolds,casting,engines,gears,andreducers.,Machining,assemblyandsales,etc.,toachieveverticalintegrationofproductionandoperation.
3.Mixeddiversifiedoperations.Suchcompaniesoperateavarietyofproducts.Theparentcompanyandsubsidiarycompaniesproducedifferentproductsandoperatedifferentbusinesses,andtheyarenotconnectedtoeachother,andthereisnoinevitableconnection.SuchasMitsubishiHeavyIndustriesofJapan.Itwasoriginallyashipbuildingcompany,andlaterchangedtoamixedanddiversifiedbusiness.Itsbusinessscopeincludes:automobiles,constructionmachinery,powergenerationsystemproducts,shipbuildingandsteelcomponents,chemicalindustry,generalmachinery,aircraftmanufacturing,etc.
Projecttype
1.Classifiedbybusinessproject
(1)Resourcedevelopmentmultinationalcompany.Resourcedevelopmentmultinationalcompaniesaimtoobtainvariousresourcesandrawmaterialsthatareinshortsupplyinthehomecountry,andforeigndirectinvestmentmainlyinvolvesfieldssuchasplantation,mining,petroleum,andrailways.Thistypeofcompanyisaformoftenadoptedintheearlyaccumulationofmultinationalcompanies.Duringtheoriginalcapitalaccumulationperiod,thefranchisecompaniesoftheoldcolonialcountriessuchasBritain,France,andtheNetherlands,inthe19thcentury,turnedtotheUnitedStates,Canada,Australia,andNewZealand,whichwereeconomicallybackwardandresource-richcountries.Directinvestmentismainlyconcentratedinplantation,miningandrailways.Resourcedevelopmentmultinationalcompaniesarestillconcentratedintheminingandoilextractionindustries,suchasthefamousExxon-MobilandRoyalDutchShell.
(2)Processingandmanufacturingmultinationalcompanies.Processingandmanufacturingmultinationalcompaniesaremainlyengagedinthemanufacturingofmachineryandequipmentandtheprocessingofintermediateproductsofspareparts,withthemainpurposeofconsolidatingandexpandingmarketshare.Thistypeofcompanyfocusesonproductionandprocessing,importingalargenumberofinputstoproducevariousconsumergoodsforthehostcountryornearbymarkets,orprocessingrawmaterialsbeforeexporting.Thistypeofcompanymainlyproducesandoperatesproductssuchasmetalproducts,steel,machineryandtransportationequipment.Withtheimprovementoflocalindustrialization,thecompany'soperationshavegraduallyenteredthecapitalgoodsdepartmentandtheintermediateproductdepartment.Processingandmanufacturingmultinationalcorporationsareanimportantcontemporarycorporateformandarewelcomedbymosthostcountries.Astheworld'slargestautomobilemanufacturingcompany,GeneralMotorsisatypicalrepresentativeofmanufacturingmultinationalcompanies.
(3)Service-providingmultinationalcompanies.Service-providingmultinationalcompaniesaremainlycompaniesthatprovideintangibleproductssuchastechnology,management,information,consulting,legalservices,andmarketingskillstotheinternationalmarket.Suchcompaniesincludemultinationalbanks,insurancecompanies,consultingcompanies,lawfirms,andcertifiedpublicaccountingfirms.Sincethe1980s,withtherapiddevelopmentoftheserviceindustry,theserviceindustryhasgraduallybecomethelargestindustrialsectortoday,andservice-providingmultinationalcompanieshavealsobecomeanimportantformofmultinationalcompanies.
2.Classifiedbybusinessstructure
(1)Horizontalmultinationalcompanies.Ahorizontalmultinationalcompanyreferstoacompanywhoseparentcompanyanditsbranchesareengagedintheproductionandoperationofthesameproduct.Withinthecompany,thedegreeofspecializationinproductionandoperationbetweentheparentcompanyanditsbranchesisverylow,andthemanufacturingprocesses,processesandproductsarebasicallythesame.Thistypeofmultinationalcompanyischaracterizedbythetransferofintangibleassetssuchasproductiontechnology,marketingknow-howandtrademarkpatentsbetweentheparentandsubsidiarycompanieswithinthecompany,whichisconducivetoenhancingtheirrespectivecompetitiveadvantagesandthecompany'soveralladvantages,reducingtransactioncosts,andformingastrongscale.economy.Horizontalmultinationalcompaniesarecharacterizedbyawidegeographicaldistributionarea.Theyestablishsubsidiariesandbranchesindifferentcountriesandregionstoproduceandselllocallytoovercomethetradebarriersofthehostcountryandconsolidateandexpandthemarket.
(2)Verticalmultinationalcompanies.Averticalmultinationalcompanyreferstoacompanythatimplementsverticalintegrationandprofessionaldivisionoflaborbetweenitsparentcompanyanditsbranches.Verticallyintegratedprofessionaldivisionoflaborhastwospecificforms:onereferstotheproductionandoperationofrelatedproductsindifferentindustriesbytheparentsubsidiary,suchastheexploration,development,refining,processing,manufacturingandmarketingofnaturalresources;thesecondreferstotheproductionoftheparentsubsidiaryAndoperateproductsofdifferentprocessingproceduresandprocessstagesinthesameindustry,suchasrelatedproductsintheautomotiveindustryandtheelectronicsindustrywithahighdegreeofspecialization.Verticalmultinationalcompaniesinternationalizesocialproductionactivitiesthathaveacohesiverelationship,andtheproductionandoperationactivitiesbetweenparentandsubsidiarycompanieshaveasignificantinput-outputrelationship.Thistypeofcompanyischaracterizedbyahighdegreeofspecializeddivisionoflaborandcollaborationinglobalproduction,andcloseinterlockingofvariousproductionandoperationlinks,whichfacilitatesthecompanytousetheadvantagesofeachsubsidiaryinaccordancewiththeglobalstrategy;andduetothespecializeddivisionoflabor,eachsubsidiaryisonlyresponsibleforproducingone.Oneorafewpartsandcomponentsareconducivetostandardization,large-scaleproduction,andeconomiesofscale.
(3)Hybridmultinationalcompanies.Ahybridmultinationalcompanyreferstoacompanywhoseparentcompanyanditsbranchesproduceandoperateproductsthatarenotrelatedtoeachother.Hybridmultinationalcorporationsaretheresultofdiversifiedoperationsofenterprisesworldwide.Theycombinevariousunrelatedproductsandrelatedindustries,strengthentheconcentrationofproductionandcapital,andhaveobviouseffectsofeconomiesofscale.Atthesametime,cross-industryDiversificationofrelatedproductscaneffectivelydiversifybusinessrisks.However,duetooperatingmultiplebusinesses,thecomplexityofthebusinesswillhaveanadverseimpactoncorporatemanagement.Therefore,multinationalcompanieswithcompetitiveadvantagesdonotblindlyexpandtheirbusinesstodifferentindustries,buttendtofocusonstrengtheningthecompetitiveadvantagesoftheircorebusinessorproducts.Internationaldiversifiedbusinessactivities.
3.Classificationbydecision-makingbehavior
(1)EthnocentricCorporations.Thedecision-makingphilosophyofanation-centriccompanyiscenteredonthenation,anditsdecision-makingbehaviormainlyreflectstheinterestsofthemothercountryandtheparentcompany.Thecompany'smanagementdecisionsarehighlyconcentratedontheparentcompany,andacentralizedmanagementsystemisadoptedforoverseassubsidiaries.Thismanagementsystememphasizestheconsistencyofthecompany'soverallgoals.Theadvantageisthatitcangivefullplaytothecentraladjustmentfunctionoftheparentcompanyanduseresourcesmoreoptimally,butthedisadvantageisthatitisnotconducivetotheautonomyandenthusiasmofthesubsidiary,andthehostcountryisoftennotwelcomeThismode.Intheearlystageofdevelopment,multinationalcompaniesgenerallyadoptthistraditionalmanagementsystem.
(2)PolycentricCorporations.Thedecision-makingphilosophyofdiversified-centriccompaniesisdiversifiedandpolycentric,andtheirdecision-makingbehaviorstendtoreflecttheinterestsofmanyhostcountriesandoverseassubsidiaries.Theparentcompanyallowssubsidiariestoindependentlydeterminebusinessobjectivesandlong-termdevelopmentstrategiesbasedonthespecificconditionsoftheirowncountries.Themanagementpowerofthecompanyisrelativelydispersed,andtheparentcompanyadoptsadecentralizedmanagementsystemforitssubsidiaries.Thismanagementsystememphasizestheflexibilityandadaptabilityofmanagement,whichisconducivetogivingfullplaytotheenthusiasmandsenseofresponsibilityofeachsubsidiary,andiswelcomedbythehostcountry.However,theshortcomingsofthismanagementsystemarethattheparentcompanyhasdifficultyinuniformlydeployingresources,andinadditiontoself-seekingdevelopment,eachsubsidiaryhascompletelylosttheopportunitytousethecompany'sinternalnetworkfordevelopment,whichisverylimited.Intheprocessofrapiddevelopmentofmultinationalcompanies,thehostcountryhasgraduallycultivatednationalconsciousnesswhileacceptingforeigninvestment.Afteryearsofaccumulationanddevelopment,themanagementsystemofmostmultinationalcompanieshaschangedfromcentralizedandethnic-centrictoamulti-centrictype.
(3)GeocentricCorporations.Aglobal-centriccompanyisneithercenteredontheparentcompanynorbranch,anditsdecision-makingphilosophyistomaximizethecompany'sglobalinterests.Correspondingly,thecompanyadoptsamanagementsystemthatcombinescentralizationanddecentralization.Thismanagementsystemhasabsorbedtheadvantagesofthetwomanagementsystemsofcentralizationanddecentralization.Themajordecision-makingpowerandmanagementpowerrelatedtotheoverallsituationareconcentratedinthemanagementagencyoftheparentcompany.However,overseassubsidiariescanmaketheirownspecificimplementationplans,allocateanduseresourceswithinthescopeoftheparentcompany'soverallbusinessstrategy,andhavegreateroperationalautonomy.Theadvantageofthismanagementsystemisthatunderthepremiseofmaintainingthecompany'sglobalbusinessobjectives,eachsubsidiaryhasacertaindegreeofautonomywithinalimitedrange,whichisconducivetomobilizingthesubsidiary'sbusinessinitiativeandenthusiasm.
Developmentofcompetition
Meansofcompetition
Ininternationaltrade,thetraditionalmeansofcompetitionispricecompetition.Thatistosay,byreducingproductioncosts,enterprisescancrackdownonandcrowdoutcompetitioninforeignmarketsatpriceslowerthanthoseofsimilarproductsintheinternationalmarketorotherenterprises,andexpandtheirsaleschannels.Nowadays,duetotheimprovementoflivingstandardsintheworld,especiallyindevelopedcountries,theincreaseintheproportionofconsumerdurablesexpenditureintotalexpenditure,andthecontinuousincreaseinpricesworldwideandthegeneralshorteningofproductlifecycles,pricecompetitionIthasbeendifficulttowinthemostcustomersformultinationalcompanies,insteadofnon-pricecompetition.Factshaveprovedthatnon-pricecompetitionisthemainmeansofcontemporarymultinationalcompaniestomonopolizeandcompeteforthemarket.Non-pricecompetitionreferstomethodssuchasimprovingproductqualityandperformance,increasingvarietyofcolors,improvingproductpackaginganddecorationandspecifications,improvingpre-salesandafter-salesservices,providingpreferentialpaymentterms,updatingtrademarks,strengtheningadvertisingandensuringtimelydelivery,etc.Toimprovethequality,credibilityandpopularityoftheproducts,inordertoenhancethecompetitivenessoftheproductsandexpandthesaleschannelsoftheproducts.Multinationalcompaniesmainlyimprovethenon-pricecompetitivenessofcommoditiesfromthefollowingaspects:
①Improveproductquality,surpasstechnicalbarrierstotrade;
②Strengthentechnicalservices,improveproductperformance,andextendservicelife;
③Providecredit;
④Accelerateproductupgrades,continuouslyintroducenewproducts,andupdatepatternsandvarieties;
⑤Continuouslydesignnovelanddiversepackagingdecorations,Payattentiontothe"individualization"ofpackaginganddecoration;
⑥Strengthenadvertisingandvigorouslyresearchandimproveadvertisingsalestechniques.
Multinationalcompanieshavediversifiedbusinessmethods
Comparedwithgeneraldomesticcompaniesorgeneralforeigncompanies,multinationalcompanieshavesignificantlymoreglobalproductionandmanagementmethods,includingimportandexport,licensingLicenses,technologytransfer,cooperativeoperations,managementcontractsandestablishmentofoverseassubsidiaries,etc.Amongthem,themainformofdevelopingandexpandingitsglobalbusinessistheestablishmentofsubsidiariesoverseas.
Focusontechnology
Sincethewar,theworld’snewtechnologies,newproductionprocesses,andnewproductshavebasicallybeeninthehandsofmultinationalcompanies.Oneofthefundamentalreasonswhyitisnotdecliningbutcontinuestogrowandgrow.Usuallymultinationalcompaniesinvestalotofmanpowerandmaterialresourcestodevelopnewtechnologiesandnewproducts.Forexample,inthemidtolate1980s,AT&T’sresearchanddevelopmentcenterhadanaverageannualresearchfundingofUS$1.9billionandemployed15,000scientificresearchers,ofwhich2,100receivedPhDdegrees,and4ofthemhadwon4NobelPrizes.Physicsaward.Anotherexampleisthewell-known3Mcompany.Inthesummerof1994,nearly400semi-assembledhardwareproductswerenewlylaunched.Itsnewproductsareendless.ThereasonisexplainedbythemarketingmanageroftheDIYproductdepartmentof3MCanada:Thecompany’sannualturnover7%ofthetotalisusedtodevelopnewproducts.Thebusinessobjectiveisthat30%oftheannualsalesrevenuemustcomefromnewproductsthathavenotbeenlaunched4yearsago.Thisshowstheadvancementofitsresearch.Multinationalcompaniesnotonlyfocusonthedevelopmentofnewtechnologies,butarealsoverygoodatobtaininghighprofitsthroughforeigntransferoftechnologyandimplementingcontroloverbranchesandsub-organizations.
InternationalTrade
1.Thedevelopmentofmultinationalcompanieshaspromotedthegrowthofinternationaltradeandtheworldeconomy
In1993,therewere37,000multinationalcompaniesintheworld.Itsoverseassubsidiariestotaled170,000.Since1982,multinationalcompanieshavegrownveryrapidly.Bytheendof1992,globaloverseasdirectinvestmenttotaledUS$2trillion,ofwhichone-thirdofthemwereinthehandsofthetop100largecompanies.In1992,thetotaloverseassalesofglobalmultinationalcompaniesreached5.5trillionU.S.dollars,1.5trillionU.S.dollarshigherthanthevalueofmerchandiseexports.Thisshowsthattheoverseasinvestmentsofmultinationalcompaniesplayagreaterroleintheworldeconomythannationaltrade.Infact,multinationalcompanieshavebecomethemostactiveandinfluentialforceincontemporaryinternationaleconomy,scienceandtechnology,andinternationaltrade.Andthispowerwillbestrengthenedwiththeoverallupwardtrendofinvestmentbymultinationalcompanies.
2.Theimpactofmultinationalcorporationsontheforeigntradeofdevelopedcountries
Thedevelopmentofmultinationalcorporationsgreatlypromotedtheforeigntradeofdevelopedcountriesafterthewar.Theseeffectsaremanifestedinenablingtheproductsofdevelopedcountriestobeproducedandsoldinthehostcountrybymeansofforeigndirectinvestment,therebybypassingtradebarriersandimprovingthecompetitivenessoftheirproducts;fromtheperspectiveofrawmaterialsandenergy,itisindeedreduced.Thedependenceofdevelopedcountriesondevelopingcountriesalsomakesiteasierfortheproductsofdevelopedcountriestoenterandusetheforeigntradechannelsofthehostcountryanditiseasytoobtainbusinessintelligenceinformation.
3.Theimpactofmultinationalcorporationsontheforeigntradeofdevelopingcountries
1.Theforeigndirectinvestmentandprivatecreditofmultinationalcorporationssupplementtheshortageofimportfundsindevelopingcountries.
2.Theinflowofcapitalfrommultinationalcorporationshasacceleratedthechangesinthestructureofforeigntradecommoditiesindevelopingcountries.Afterthewar,developingcountriesintroducedcapital,technology,andmanagementexperiencefromforeigncompaniestovigorouslydevelopexportprocessingindustries,whichenabledcertainindustrialsectorstoachievetechnologicalleaps,andpromotedchangesinthestructureofforeigntradecommoditiesandthedevelopmentofthenationaleconomy.
3.Thecapitalinflowofmultinationalcorporationshaspromotedtheformationanddevelopmentoftheindustrializationmodelofdevelopingcountriesandthecorrespondingtrademodel.Afterthewar,developingcountriesusedforeigninvestment,especiallyinvestmentbymultinationalcorporations,toimplementindustrializationmodelsandcorrespondingtrademodels,whichcanberoughlydividedintothreecategories:primaryproductexportindustrialization,importsubstitutionindustrialization,andindustrialfinishedproductexportsubstitutionindustrialization.Stages.Importsubstitutionindustrializationmeansthatacountryadoptsstrictimportrestrictionssuchastariffs,importquantityrestrictionsandforeignexchangecontrolstorestricttheimportofcertainimportantindustrialproducts,andsupportandprotectthecountry'spoliciesforthedevelopmentofrelevantindustrialsectors.Thepurposeofimplementingthispolicyistoreplaceimportedproductswithdomesticallyproducedindustrialproducts,soastoreducethecountry’sdependenceonforeignmarketsandpromotethedevelopmentofnationalindustries.Exportsubstitutionindustrializationreferstoacountrytakingvariousmeasurestopromotethedevelopmentofexport-orientedindustries,replacingtraditionalprimaryproductexportswiththeexportofindustrialmanufacturedandsemi-manufacturedproducts,andpromotingthediversificationanddevelopmentofexportproductstoincreaseforeignexchangeincome.,Andpromotetheestablishmentofanindustrialsystemandsustainedeconomicgrowth.
Four.Multinationalcorporationscontrolthetradeofmanyimportantmanufacturedproductsandrawmaterials
Multinationalcompaniescontrolthetradeofmanyimportantmanufacturedgoodsandrawmaterials.Morethan40%ofthetotalsalesofmultinationalcompaniesand49%offoreignsalesareconcentratedinthechemicalindustry,machinemanufacturing,electronicsindustry,andtransportationequipment.
V.Multinationalcompaniescontrolinternationaltechnologytrade
Inthefieldofworldtechnologydevelopmentandtechnologytrade,multinationalcompanies,especiallyfrom12developedcountriessuchastheUnitedStates,Japan,Germany,andtheUnitedKingdomMultinationalcompaniesplayapivotalrole.Multinationalcompaniesholdabout80%oftheworld’spatentrightsandbasicallymonopolizeinternationaltechnologytrade;indevelopedcountries,about90%ofproductiontechnologyand75%oftechnologytradearecontrolledbythe500largestmultinationalcompaniesinthesecountries.Manyexpertsandscholarsbelievethatmultinationalcompaniesarethemainsourceofcontemporarynewtechnologiesandthemainorganizersandpromotersoftechnologytrade.
Manipulationmethods
Westernmultinationalcompaniesmanipulatetechnologytransfermainlyinthefollowingthreeways:
1.Theparentcompanytransferstechnologytoforeignsubsidiaries.Underthistransfermethod,thekeytechnologyisstillcontrolledbytheparentcompany,andonlypartofthetechnologyistransferredtotheforeignsubsidiary.Inthisway,boththeparentcompany'smonopolyontechnologycanbemaintained,andthesalesoftechnologyandcraftsmanshiptoitssubsidiariescangainprofitsandincreaseprofits.
2.Thecompanytransferstechnologytoforeigncountriesthroughtechnologylicensingtrade.Technologylicensingtradeininternationaltradeismainlycomposedofthreeparts:oneisthetransferoftherighttousetechnologypatents;thesecondisthetransferofknow-how;thethirdisthepurchaseandsaleoftherighttousetrademarks.Multinationalcorporationscanusetechnologylicensingtradetohelpdirectlyenterthemarket.Marketsandsectorsinaccessibletoinvestment.
3.Thecompanytransferstechnologytojointventures.Multinationalcompaniesalsoprovidetechnologytransfertotheirforeignjointventures,sothattheycannotonlyobtaintechnologyroyaltyincome,butalsogetashareoftheprofitsofthejointventure,andevengetsomepreferentialtreatmentfromthehostcountry.Sometimes,ajointventureformedbyamultinationalcompanyandthehostcountryitselfacquiressharesatatechnologydiscount.
EmploymentStrategy
EmploymentStandards
ThomasPeters,awell-knownAmericanscholar,believesthattheonlyrealresourceofanenterpriseorbusinessispeople,andmanagementistofullydevelophumanresourcesTodoagoodjob.IntheUnitedStates,thevicepresidentofpersonnelofcorporatecompanieshasbecomeapivotalmemberofthedecision-makingteam,whichshowsthatcompaniesattachimportancetotalentandhumanresourcemanagement.
Talentcharacteristics
Inordertoselecttheavailabletalentssuitablefortheirowndevelopment,well-knownmultinationalcompaniesareoftenveryingeniousintheprocessoftalentrecruitmentanduse,andtheyrarelyrecruitoneafteranother,althoughtheformandcontentaredifferentUnique,buttheirselectioncriteriaandemploymentphilosophyareverysimilar.
Qualityofintegrity
Thisisabasicpointandstartingpointforfamousenterprisestoemploypeople,anditisalsotheprimaryprinciple.Whenawell-knowncompanyhiresemployees,"integrity"isthemostsought-afterthing.Iftheconductoftheapplicantdoesnotmeetthecompany'srequirements,nomatterhowhightheprofessionallevelandthestrongworkingability,thecompanywillnothire.ThefamousIKEAcompanyespeciallycannottoleratedeception.Iftheyfindthatemployeesaredeliberatelydeceivingthecompany,theywillbemercilesslysweptoutofthehouseandwillnotgivethemasecondchance.
Teamwork
Manywell-knowncompaniesrespectthemanagementphilosophyof"employeesarepartners"and"businessesarebigfamily".Theydonotinsistthatemployeeshavestrongpersonalabilities,buttheymusthaveteamspiritandobeytheinterestsoftheteam.Theyusecorporateculturetotightlytwistemployeesintoaropeandhugthemintoaball,whichhasbecomeasharpweaponinmarketcompetition.Whenrecruitingemployees,McDonald's,theworld'sfastfoodgiant,chooses"middle-agedtalents"withordinaryappearanceandaverageeducation.TheyhaveundergonecomprehensivetrainingandintegratedMcDonald'scorporateculture,sothattheywillsoonbecomeafirmpartofMcDonald's.
Passionforinnovation
Enterprisedevelopmentmusthaveaninnovativespirit.Theemploymentoffamousenterprisesnotonlydependsonwhetherheisqualifiedforthecurrentjob,butmoreimportantly,hemusthavethespiritofinnovation.Microsoftwouldrathertaketheriskoffailurebyappointingsomeonewhohasfailed,ratherthanhavingsomeonewhoiscautiousandhasnoachievements.ItispreciselybyvirtueofthisadventurousspiritandsenseofinnovationthatMicrosoftcanbecomethe"bigblue"inthecomputerindustry.
Developmentpotential
Famouscompaniesvaluediplomas,butnotonlydiplomas.Theyvalueyourfuturedevelopmentpotential.WhenPhilipsconductsbusinessevaluationsofemployees,inadditiontobusinessevaluations,italsoevaluatesthepotentialofemployees,andthenconductstargetedtrainingandselection,sothatemployeesfeelmoreenthusiasticandmotivatedatPhilips,greatlyimprovingworkefficiencyandpersonalabilityFurtherenhancementshavetrulyrealizedthesimultaneousdevelopmentofemployeesandthecompany.
Learningability
Manywell-knowncompaniesattachgreatimportancetocandidatesforgoodlearningabilityandastrongthirstforknowledge.Especiallywhenrecruitingfreshgraduates,companiesoftenfocusonlearningabilityandcuriosity.Manymultinationalcompaniessaythatcompaniesdonotcareaboutthegapbetweenfreshgraduatesandcompanyrequirementsbecausetheyareveryconfidentintheirtrainingsystem.Aslongastheyhaveastrongthirstforknowledgeandlearningability,theywillbeabletostandoutthroughsystematictraining.Therefore,thisisthereasonintheinterview.Twoassessmentsareverycritical.
Levelofintegration
Intherecruitmentprocess,companiesoftenconsiderwhetheremployeescanrecognizeandadapttothecompany’svaluesandcorporateculture,whichwilldeterminewhetheremployeescanservethecompanywell.service.Forexample,intherecruitmentprocess,SONYconsiderswhetheremployeescanadapttoJapaneseculture,especiallySony'scorporateculture,asakeyassessmentcontent.GeneralElectricCo.,Ltd.alsodependsonwhetherstudentslikeandagreewithGE'svaluesinrecruiting,thatis,"sticktointegrity,focusonperformance,anddesireforchange."
TalentReserve
Manylargecompaniesadvancetheworkofrecruitingtalentsbeforecollegegraduateschoosejobs,orevenearlier.Mostofthesecompanieshaveestablishedtheirowntalentpoolstoconductcomprehensiveanalysisoftheachievements,abilitiesandbehaviorsofnewtalentsforfutureuse.Thetalentpoolhasabsorbedthousandsoftalentsofalltypesfromallovertheworld.Forexample,Alcatel’stalentpoolholdsmorethan4,000people,includingleadersandpotentialsuccessors.
Thesecompaniesgenerallymakesuccessionplansforsomekeypositionsearly,soasnottotakeactionatthelastminuteandcauseunnecessarylosses.Forexample,theFrenchGasCompanywillconductacomprehensiveinspectionofits"strategicpositions"everyyearandahalf,andwilllineup6peopleassuccessors.
Thetalentstargetedbythetalentpool,especiallymanagementtalents,generallymusthavegoodbusiness,strongability,andrichexperience.Therefore,ifyouwanttobecometheregionalbusinessleadersandheadsofthetradedepartmentsofthesecompanies,professionaltalentsarenotenough,andyoumusthighlightyourrichexperienceandpersonalcharm.Theleaderofawell-knownBritishcompanysaid,"10yearsago,itwasveryimportanttohaveadiplomafromtheParisPolytechnicSchool,buttoday,thefirstthingistohavetalents."
Intermsofleaderselection,60%to90%ofleadershippositionsinmanylargecompaniesareheldbyinternallypromotedpersonnelandgraduallygetridoftheirdependenceonheadhuntingcompanies.Althoughcooperationwithsuchwell-knowndomesticheadhuntingservicecompaniesisamustformultinationalcompanies,thepersoninchargeofDRHstillsaid:"Mostofourleadingcadresareselectedfromourowntalentpool."Onlyalargenumberoflong-termstabletalentscanmaintaintherelationshipwithpartners.
Ascompaniescontinuetodevelop,merge,andacquire,companieswillalsoreadjusttheirorganizationalstructuresothattheirnewleaderscanadapttonewchallenges.Inaddition,thetalentpoolismercilessineliminatingunqualifiedtalents.Manypeopleloseoutinthecompetitionbecausethecompanysaystheyneedfreshblood.
Recruitmenttrends
AfterChina’saccessiontotheWTO,withtheeconomicdevelopmentandtheincreaseinnationalincome,thelaborcostsofmultinationalcompanieswillinevitablyrisesharply,plusmanydomesticcompaniesIthasalsobeguntoattachimportancetoprovidingemployeeswithhighsalariesandhighsalaries,andconductingregulartrainingforemployees.Facedwiththistrend,multinationalcompanieshavebeguntore-examinetheirownbusinessstrategies,thatis,shiftfromusingChina'scheaplaborforcetousingChina'slargenumberoftechnicalandmanagerialtalents,therebyrepositioningChinaasaresearchanddevelopmentbaseandmarketingcenter.
Inordertoadapttosuchastrategy,thefocusoftalentneedsinmultinationalcompanieswillbetransformedfromsimplemanufacturingworkerstoR&Dpersonnelandseniormanagementpersonnel.ThefirstresponseofmultinationalcompaniessuchasMicrosoftandNokiainthefaceofChina'saccessiontotheWTOistostrengthentheirR&DcapabilitiesinChinaandcompetefortechnicalandmanagerialtalents.Thesebigcompaniesgotoprestigiousuniversitiestograboutstandinggraduates,providefreeairticketstothecompanyforinspection,promisevarioustrainingopportunities,etc.,whicharethemanifestationofthisawareness.Atthesametime,theymaintainagoodcooperativerelationshipwithheadhuntingcompanies.TherearebetterheadhuntersinChina.Wait.
Thetalentlocalizationstrategyofmultinationalcompaniesnotonlyincludesthetrainingoftalentknowledgeandability,butalsoincludesthecultivationofemployees'senseofbelongingandloyaltytothecompany.Inadditiontoaskingmultinationalcompaniestoprovidegeneroussalaries,localemployeespaymoreattentiontothedevelopmentoftheirpersonalcareers,thatis,whethercompaniescanprovidethemwithastagetodisplaytheirtalents.Inviewofthis,manymultinationalcompaniesinChinahavebeguntosendinvitationstouniversitiesortraininginstitutionstohelpthemtrainseniortalentsandjointlyorganizeMBAclasses.Choosingheadhuntingcompaniesisalsomoreinclinedtochoosewell-knownmainlandChinaheadhunterslikeFiberhomeHeadhunters.Huntingservicecompany.Allthisshowsthatthementalityof"superioraboveall"employedbymultinationalcompaniesinthepasthasbecomemoreandmorepeaceful.
Scaleofdevelopment
Theincreasinginfluenceofmultinationalcorporationshasactuallyactedasthemaindrivingforceandpioneerofeconomicglobalization.Sincetheearly1990s,manymultinationalcompanieshaveshiftedfrommultinationaloperationstoglobaloperationsduringthe10years,andtheiroverseasassets,income,andemployeeshavegreatlyincreasedtheircross-borderindexes.From1994to2004,theoverseasassetsoftheworld's100largestmultinationalcompaniesincreasedfrom41.1%to53.4%,andfrom1995to2004,thetransnationalindexoftheworld's100largestmultinationalcompaniesincreasedfrom48.9%to56.8%.Moreandmoremultinationalcompanieshaveadjustedtheirpastmultinationaldevelopmentstrategiesintoglobaldevelopmentstrategies.Globaloperationshavebecomethenorminbusinessoperations.
Thedegreeofglobalizationofcross-networkcompanieshasreachedacertainheight.Forexample,overseasassets,overseasincomeandoverseasemployeesallexceed50%oftotalassets,totalincomeandtotalemployees.Infact,thesecompaniescanberegardedasglobalcompanies.Throughtheadjustmentofglobalstrategy,managementstructureandphilosophyandculture,globalcompanieshavesuccessfullyabsorbedglobalresources,therebygreatlyimprovingglobalcompetitivenessandprofitability.
Multinationalcompaniessetupmarketingservicesglobally.,Manufacturingandassembly,R&Danddesigncenters,formingaglobalindustrialchain.Intheprocessofmultinationalcompanies'globalallocationofresourcestoestablishaglobalindustrialchain,Chinahasbecomeanimportantnodeintheglobalindustrialchainofmultinationalcompanies.ManymanufacturingmultinationalcompaniesuseChinaastheirassemblyandprocessingbaseandtheirmainsalesmarket.SinceChina'sentryintotheWTO,moreandmoremultinationalcompanieshavealsoregardedChinaastheirR&Danddesigncenter.AccordingtotheMinistryofCommerce,multinationalcompanieshaveestablishedabout800R&DcentersinChina.
Bysettingupmarketingservices,manufacturingassemblyandR&Ddesigncentersaroundtheworld.Multinationalcompanieshaveestablishedtheirownglobalindustrialchain.Modernmarketcompetitionhasrisenfrompoint-to-pointcompetitionbetweensingleenterprisestocompetitionintheindustrialchain.
Onthestageofglobalization,multinationalcompanieshaveplayedtheroleofworldproductionorganizers,andtheyhavegrownrapidlywiththeprocessofglobalization.Thereareabout65,000parentcompaniesofglobalmultinationalcompanies,withatotalofabout850,000.Foreignbranches.In2001,theglobalsalesofmultinationalcompanieswereapproximatelyUS$19trillion,morethantwicethevalueof11globalsalesinthesameperiod.Theoutputvalueoftheworld's500largeenterpriseshasaccountedfor45%oftheworld'stotaloutputvalue,theirinternalandmutualtradehasaccountedfor60%oftheworld'stotaltrade,andtheirinvestmenthasaccountedfor90%oftheworld'scumulativedirectinvestment.
Thetransnationalmergerofenterprisesistheneedofoptimizingresourceallocationandindustrialstructureadjustment.Itistheneedofeconomiesofscale.Productionisorganizedglobally,andcompetitionisalsounfoldingaroundtheworld.Economicglobalizationhascreatedtheconditionsfortransnationalmergersofenterprises.Thewaveofglobalcorporatemergersthatbeganin1993hascontinuedtomaintainitsmomentum.TheUnitedNationsConferenceonTradeandDevelopmentreportsthatinthepast20years,theamountofmergersandacquisitionsbymultinationalcompanieshasgrownatarateof41%peryear.In2000,theglobaltotalM&AofmultinationalcompaniesexceededUS$1trillion,reachingUS$1.143trillion.Withthedevelopment,humiliation,anddevelopmentofthenationaleconomy,therewillbemoreandmoreenterprisemergersbetweendevelopingcountriesandbetweendevelopedanddevelopingcountries.Beforethe1980s,mergerswereoftenaimedatdestroyingcompetitors,andthemergedcompanywasoftensoldseparately.Sincethe1990s,mergershavemoretosaveoperatinganddevelopmentcosts.Obtainnewideas,newproducts,andnewtechnologies,achievebettermanagementandeconomicscale,andachievecomplementaryadvantagesbetweenenterprises,soastoimprovecompetitivenessandoccupyalargermarketshare.Obviously,thiskindofmergerisconducivetotheoptimalallocationofresources.Itisconducivetothecommondevelopmentofbothpartiestothemerger.Transnationalmergersandacquisitionsofenterpriseshavebrokenthebarriersofnation-statesandblurredtheeconomicboundariesofnation-states.Theeconomicinterdependenceofvariousnation-stateshasmadeiteasierandfastertohavemeinyouandyouinme.Onthebrightside,thisisconducivetothecommondevelopmentofallcountriesintheworldandspeedsupthemodernizationprocessofdevelopingcountries.Forexample,theGerman,French,Japanese,andAmericanautoindustrieshaveenteredtheChinesecarindustry,speedingupthemodernizationoftheChinesecarindustry.Onthebadside,theeconomicsovereigntyoftheannexedcountrywillbeinfringedinsomecases,suchaswhenakeysectorofthenationaleconomyofaTujia:telecommunications,railways,power,banking,insuranceandotherindustriesarecontrolledbyforeigncompanies.Inthefuture,itwillbedifficultforthiscountrytoensureitsownpoliticalindependenceduringextraordinarytimes.
Multinationalcompaniesimplementaglobalizedmanagementmethod,whichpromotestheglobalflowofcapital,technologyandadvancedmanagementmethods,anddrivestheadjustmentoftheindustrialstructureofrelativelybackwardcountriesandregions.Therebypromotingthesustainabledevelopmentoftheworldeconomy.However,multinationalcorporationsarenotcharitableorganizations.Theyareguidedbythepursuitofmaximumprofit.Theirfundsandtechnologycanonlyflowtotheregionswheretheycanbenefitmost.Withtheirstrongeconomicstrengthandbrand-nameproducts,theyaffecttheproductionandproductionofvariouscountries.Thelivesofthepeople.Multinationalcompaniesneedresources,cheaplaborandavastmarketindevelopingcountries,whiledevelopingcountriesneedstrongfunds,advancedtechnologyandmanagementexperiencefrommultinationalcompanies.Bycomplementingeachother,youcanachievethegoalsrequiredbyeach.However,thepoorindevelopmentaremoreconcernedaboutusingforeigncapitaltopromoteeconomicdevelopment.Thereisundoubtedlyacontradictionbetweenthetwo.Iftheydon'trespondproperly,multinationalcompanieswillhaveahugeimpactonthecountry'snationaleconomy.
Inthenewcentury,globalcorporatemergersandacquisitionsandrestructuringactivitieswillalsosetoffanewwave.
Inordertoenhancetheirownstrengthandglobalcompetitiveness,multinationalcompanieswillcontinuetoexpandtheirscalethroughmergersandacquisitions.Thetentaclesofbusinessactivitieshavefurtherexpandedtoallcornersoftheworldandvariousindustries.Companiesinsomeemergingcountriesaretryingtosurvive.
Chinese-stylemultinationalcorporations
M&AtobuildChinese-stylemultinationalcorporations:asavagelygrowingunbrandedgiant?
Notlongago,LenovoAcquiredCCE,thelargestlocalconsumerelectronicsmanufacturerinBrazil,for1billionyuan;Haier's3.6billionbidtoacquireFisher&Paykel,thelargesthomeappliancemanufacturerinNewZealand,isundergoingtwistsandturns;andHuaweihasannouncedthatitwilladd13billionyuanYuanexpandsinvestmentintheUK.Earlier,SanyHeavyIndustryacquiredtheconcretegiantPutzmeisterCompanyofGermany,andWandaswallowedtheAmericanAMCcinemachain.
"Chinaisalreadytheworld'ssecondlargesteconomy,butsofarthereisnoChinesebrandwithrealglobalinfluence."ThisistheemotionthatBaiduRobinLiexpressedataneconomicforumnotlongago.TheUS"Newsweek"alsodidacoverfeatureof"GiantWithoutBrand".Intheireyes,"Chinaistheworld'sfactory,butitstopcompaniesarestillamazinglyobscured."Obviously,Chinesecompaniesarestillthere.Inthestageofbarbaricgrowthandextensivemanagement,thereisnomultinationalbrandenterprisethatcanmatchthestatusoftheworld'ssecondlargesteconomy.Asaresult,thoseentrepreneurswhostoodattheforefrontofthetimesbegantheirsearch.Especiallyatatimewhenthedownwardpressureontheeconomyishuge,Chinesecompanieshavetofindnewgrowthdrivers.
Inthepasttwoyears,theupsurgeofoverseasmergersandacquisitionshasresumed,whichmeansthatthesecompanieshopetoadoptoverseasmergersandacquisitionstomaintainthenormalexpansionanddevelopmentofenterprisesintheperiodofChina'seconomiccontractioncycle.WhatisthepathofmergersandacquisitionstocreateChinese-stylemultinationalcompanies?WhatwillthecurrentwavebringtoChinesecompanies?
Comparedwiththedominanceofcentralenterprisesintheprevioustwoyears,thistime,privatecapitalhasbecomeThisisthenewforcefortheoverseasexpansionofChinesecapital.WhetheritisintheEuropeanhinterlandwherethesovereigndebtcrisisisraging,ortheUSmarketwheremonetarystimulusiscontinuouslylaunchedandeconomicrecoveryisweak,ortheemergingmarketcountriesthatarebiddingfarewelltothe"GoldenDecade"feast,Chineseprivateenterpriseshaveimplementedorareimplementingvariouslarge-scalemergersandacquisitions..Their"appetite"isnotsobig.
Itcanbesaidthatthemostdazzling"star"privateenterprisesinChina'seconomicfield,ataverydelicatemomentintheeconomicsituation,arethefirsttosetsailandtrytofindnewvaluedepressions.Goingoutatthistime,thevalueofoverseasassetsbroughtaboutbythecrisisisinthestageofunderestimation.Measuredfromtheperspectiveofcostandbenefitalone,itisindeedarareopportunityformergersandacquisitions.Coupledwiththecurrenttrendofhollowingoutandfoamingofthedomesticrealeconomy,privatecapitalwithabundantcashflowistakingadvantageofthetrend,atleastitisnotabigproblemtowinspreadprofits.
Butamoreimportantquestionthanspeculativeprofitsiswhetherthese"star"privateenterprisescanimprovetheiroverallcompetitivenesswhentheygoglobal?Whetheritistechnologicalinnovationorbrandbuilding,onlythesehardOnlywiththeimprovementofstrengthcantheultimategoalofoverseasmergersandacquisitionsbeachieved.Otherwise,just"makingmoney"foroverseasbargainingwillobviouslynotbethelevelofthinkingthattheseresponsibleChineseprivateenterprisesshouldhave.
Therealityinfrontofthemisthatcountlessresearchreportsonmergersandacquisitionsindicatethatabout50%-70%ofmergersandacquisitionshavefailed,eitherbecausetheexpectedsynergyeffectcannotberealizedandthetwoparties"divorce",Orthevalueofthemergedcompanyhasnotbeentrulyimproved.
Inthe20yearsofthemarketizationwave,Chinesecompanieshavelearnedtoactlogically,insteadof"brakingtheirheads"astheydidintheearlydays.However,intheprocessofoverseasintegration,experienceandskillsareverylacking,orItisduetopoormanagementorculturalbarriers,itisdifficulttoformsynergywiththeacquiredcompany,anditismoreextravaganttotalkaboutestablishingnewcompetitiveadvantages.Evenonthecontrary,someChinesecompaniesareaccustomedto"gettingoutofwater"inavarietyofnon-standardmarketenvironments.Oncetheyentertherealmarketeconomyenvironment,theyareunabletoadapt.Theycanonlybephotographedontheshoreand"deadofthirst"intheend.Theyareoftenbetteratsolvingproblemswith"Chinese-style"logic.Itshouldbesaidthatmergersandacquisitionscancertainlyprovidea"shortcut"forChinesecompaniestogoglobal.Atatimewhentheoveralldomesticindustrialenvironmentisdifficultandthegamebetweenpoliticsandbusinessisextremelycomplicated,itiswiseforthoseatthehelmofprivateenterprisestochoosethispath.However,theseentrepreneursmustunderstandthatwhenintegrationanddigestionarestilldifficulttodowell,overseasmergersandacquisitionsonlyprovideChinesecompaniesandentrepreneurswithopportunitiesforlearning,trialanderror,andmakingsome"smallmoney"bytheway.Forgingagreatmultinationalbrand,itisimpossibletorelyonmergersandacquisitions.
TheroadofoverseasmergersandacquisitionsforChinesecompanieshasjustbegun.Thereisalongwaytogo,andtheyarenotgoodatbrandoperationandmanagement.Howcantheybreakthroughandtrulycreateaworld-classbrand?Wisdomisneeded,andpersistenceisevenmoreneeded.
Otherfunctions
1:Cross-borderinvestmentleadstotheglobalizationofresourceallocation,makingworldproductionproceedinthemostreasonablelocationlayout.Theflowofcapitalguidestheflowoftechnology,theflowofmanagement,andthere-divisionofthemarket.
Two:Transnationalinvestmenthasledtotheglobalizationofmarketoperationmethods,andthecountriesinwhichinvestmentflowshaveadoptedmarketeconomyproductionandoperationmethods.
3:Thepowerfuleconomicbenefitsoftransnationalinvestmenthaveacceleratedtheeconomicopeningofunderdevelopedcountries,andtheyhavepromotedtheopeningofthesecountriesintotheworldeconomicsystemwiththeirhugeattraction.
Four:Multinationalcompanieshavegreatlypromotedthedevelopmentofinternationaltradeanddemandedthattradebeconductedinamorefreemanner.
5:Multinationalcorporationsaremicroscopicsubjectsineconomicglobalization.
6:Multinationalcorporationscollectivelyreflectthenewcontradictionsintheglobaleconomy.