Critical review of Jagersma and van Gorp(2003)"Still searching for the pot of gold: doing business in today's China" in Harvard Business Review.

Essay by orangeskyeeUniversity, Bachelor's April 2004

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The role of economic information and the process of globalization are two of the most important influences currently affecting the global economy. Western multinational companies aimed at organization framework and operation strategy to do new essential restructuring and development since 90s' of the 20th century. Probably, the restructuring and development refer to relevant areas. We can concentrate on the following four points:

i. Multinational combination increasingly becomes a leading manner for direct foreign investment of multinational companies.

"The strategic objectives of transnational mergence is to rapidly

expand corporations' scale, pursue scale economy, strengthen

corporations' competitive capacity, promote global operating

strategy, grasp the commanding point of international

industry, scramble advanced technology and build

corporations' whole competitive capacity",(Hongjiang, Li. 2002, p:2).

ii. With the development of technology revolution, the organization structure and management of multinational corporations also gradually becomes a network framework.

"The purpose of the new type of management is to develop

network's external economic efficiency, improve corporations'

capacity on resources adjustment, enhance the communication

and utilization of internal and external info...improve

corporations' innovative capacity and organization's operating

function", (Hongjiang, Li. 2002, p: 2).

iii. The international alliance has been developed in many multinational corporations.

"Its purpose focuses on fully utilization of external resources,

obtaining economy of scale and range, sharing risks, avoiding

and preventing excessive competition and improve

corporations' competitive capacity", (Hongjiang, Li. 2002, p: 3).

v. Multinational corporations have had internationalized business research via new


"The purpose is to utilize foreign technological resources and

decentralize risks, to more perfectly meet local market requirements,

to establish its own international research and development network

therefore to strengthen its monopoly advantages", (Hongjiang, Li. 2002, p: 3).

However, China had an economy reform in the early 1980s and opening policy was produced by Chinese host government (Shibai, Liu. 1998, p: 425).