THE OWNERSHIP CHOICE STRATEGIES

The ownership choice strategies of multinational corporations' (MNCs) operations in China



The ownership choice strategies of multinational corporations' (MNCs) operations in China

Introduction

Among the nations the concept of partnerships is very old, and that people, banded together to protect other people that tried to conquer or to achieve better living conditions from the standpoint of social and especially economic, that's how big wars have been completed in partnership between several nations, but in the business aspect of the companies are still in the learning stage and sometimes do not dare to carry out by the uncertainty of the result, and that to achieve the desired success requires a number of agreements duly discussed and based on respect and equity of the business. It is noteworthy that in business, can be seen embedded forms of knowledge that guide businesses, even though they often are archrivals in the same sector of the industry to form strategic alliances in business (Cutler, 2009, 15).

The globalization has expanded the worldwide trade, helped in a number of advances in the field of technology, and the increment in the total count of organizations that are operating on the global stage have gave rise to a spectacular change in the context, frequency, and means through which, from diverse backgrounds interact. This is one of the biggest issues in the global business these days, and calls for a lot of attention from the relevant authorities of the global business. This is a sort of problem that can have a particularly profound effect on the business, and a global business has to make sure that it manages the cross-cultural differences between its employees in a proper way to ensure smooth operations and profitability in the business (Caves, 2006, 50).

Discussion

Currently in China the strategic alliance is a factor in the business environment found in corporate settings with increasing frequency, caused by: Vertical disintegration in reducing the life cycles of the articles, the growth of capital investment needs The desire to increase competitiveness through organizational learning and reducing costs of research and development, among other reasons. Exist both partnerships in a vertical relationship as a center of a distribution channel, and partly strategic alliances are often horizontal and include research and development partnerships between companies that are nearly equal (Fuchus, 2007, 22).

For corporate managers is not easy to conceive of sharing views and accept strangers into your organization for decision-making, as this means ceding some control to which they are accustomed to exercising absolutely. In stable competitive environments, this allergy to lose control requires small sentences, not in a changing world of rapidly globalizing markets and industries, a world where consumer tastes converge, rapidly expanding technology, increased fixed costs and greater protectionism. Thus Caves suggest that competition and have the support of top management groups or those who take key decisions in the organization can facilitate or hinder an organization in the formulation or implementation of internationalization.

In this context of globalization alliances are necessary if you want to achieve the ...