Chunlan has developed from a deficit small company to an influential international group through 20 years' efforts. It has experienced intense competition in the market. It has structured an operation mechanism compatible with market laws. It has created an approach to development with its own characteristics, which is also compatible with the Chinese characteristics. The experience in Chunlan's multinational operation is enlightening for Chinese companies' globalization.
1> Design clear globalization strategy. Ever since the reform and opening policies, Chinese market has been merging into global market. It is more the case after China joined WTO. The pure domestic market no longer exists. There is only one global market. This requires managers to change the fixed operation concept and apply the sense of internationalization to designing and implementing global strategy goals. To enter the world market, Chinese companies should firstly have a sound study of global market, resource situation and major competitors.
They should also pay close attention to the world politics, economy and technology development, which is the basis for designing strategies. Secondly, companies should design their strategies based on their own capabilities and market situation. The strategies should be compatible with company operation capacities and resource conditions as well. Thirdly, companies should concentrate on global strategy, and strengthen management policies, organization structure and human resource constructions, etc. to implement the strategic goals. With the changing world market and indefinite outer environment, companies should start from their practical conditions to track dynamically their strategic goals and guarantee smooth implementation of the goals.
2>. Strengthen management mechanism of multinational operation. Multinational companies are highly organized large-scale companies. It requires strict management compatible with international regulations. Chinese companies should set up comprehensive inner control system to meet basic demands of multinational operation: (1) Companies should operate on the basis of...