Chinese Multinationals Companies

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Chinese MNCs1

Research Aims and Objectives1

Aim1

Objectives1

Research Questions1

CHAPTER 2: LITERATURE REVIEW3

The Role of Multinational Corporations in Globalization3

Chinese Management Problems3

Overview of China's Economic Development4

CHAPTER 3: METHODOLOGY5

Design and Methodology5

Qualitative and Quantitative Research Method5

Selection of participants5

Literature Search5

Keywords Used6

REFERENCES7

CHAPTER 1: INTRODUCTION

Chinese MNCs

In an effort to change its image and no longer be known exclusively as a low-cost and source of cheap labor, China attempted to expand its role in the global market and increase its brand equity as a nation. Chinese MNCs preferred to explore developing markets because they have advantages such as more advanced technological acumen, better business management skills, and easier access to capital over their counterparts in these countries (Ravishankar, 2009, 80). In a 2009 survey with Chinese companies involved in international business with outward investment intentions, conducted by the Asia Pacific Foundation of Canada and China Council for the Promotion of International Trade, indicated that overseas investment was still in an infancy stage (Luo, 2001, 99). Cultural differences across different countries have posed new challenges to multiple aspects of multinational companies. Marquardt and Horvath (2001) identified the five typical challenges that multinational teams have: (1) managing cultural diversity, differences, and conflicts; (2) handling geographic distances, dispersion, and despair; (3) dealing with coordination and control issues; (4) maintaining communication richness; and (5) developing and maintaining team. Furthermore, cultural differences affect employee ethical behaviors and the extent to which an organization's decisions are influenced by ethical concerns. The major business challenge for these Chinese companies was product quality and safety. Twenty-seven percent of respondent companies in the study said customers' worries about product quality and safety is either important or extremely important in challenging their outward investments (Chaurasia, 2008, 35). Other challenges the companies cited include capital financing and inadequate knowledge of the legal and market risks in new markets.

Research Aims and Objectives

Aim

The purpose of this research study is to find out how Chinese style of managing international business differs from Western Management styles and to find that what are the differentiating reasons of global success of Chinese Companies.

Objectives

Following will be the research objectives:

To find out the management style by Chinese managers;

To find out how Chinese Management style is different from Western Management style;

To find out the reasons of the global success if Chinese businesses.

Research Questions

The research study will aim at answering the following questions:

What are the management styles of Chinese Managers in Chinese multinational companies?

Chinese style of managing international business differs from Western Management styles?

What are some specific reasons that are the basis of success of Chinese businesses, globally?

CHAPTER 2: LITERATURE REVIEW

The Role of Multinational Corporations in Globalization

The global market has existed since the formation of cross-country trade routes from centuries past. Some of the most marked historic forms of globalized business include the ancient Silk Roads of Asia in second century B.C. and the discovered trade routes to the Indies and Americas by Christopher Columbus and Vasco de Gama in fifteenth century A.D (Ravishankar, 2009, ...