Decentralized multinational enterprises

1. From the perspective of Internet development, decentralization is the form of social relationship and content generation formed in the process of Internet development, and is a new network content proction process relative to "centralization"
compared with the early Internet (WEB 1.0) era, today's Internet (Web 2.0) content is no longer proced by professional websites or specific groups of people, but is the result of the joint participation and equal power of all Internet users. Anyone can express their views or create original content on the Internet to proce information together
with the diversification of network service forms, the decentralized network model becomes more and more clear and possible. After the rise of Web2.0, the services provided by Wikipedia, Flickr, blogger and other network service providers are decentralized. Any participant can submit content, and Internet users can create or contribute content together
since then, with the emergence of more simple and easy-to-use decentralized network services, the characteristics of Web2.0 have become more and more obvious. For example, the birth of services more suitable for ordinary Internet users, such as twitter and Facebook, has made it easier and more diversified to proce or contribute content to the Internet, thus enhancing the enthusiasm of Internet users to participate in the contribution and recing the threshold of procing content. Eventually, every netizen becomes a tiny and independent information provider, making the Internet more flat and content proction more diversified
from the perspective of astronomy, decentralization refers to the fact that the universe has no center, that is, a boundless mass without a central point.

2. When an enterprise does not implement decentralization, all the interests of the enterprise will be firmly held in the hands of indivials or shareholders. When the enterprise implements decentralization, all the participants in the enterprise are shareholders and beneficiaries. In the international business circle, consumers, operators and procers are beneficiaries.

3. Multinational enterprises [international enterprises]
1. In a broad sense, multinational enterprises [international enterprises] refer to all enterprises engaged in international trade and proction and operation activities
2. In a narrow sense, international enterprise refers to a multinational enterprise whose international operation level has developed to an advanced or mature stage. It is an enterprise that owns or controls proction and service facilities in two or more countries, and operates internationally under the unified decision-making system of the parent company

what is a multinational company? What is the meaning of transnational corporation? Under the condition of deepening international division of labor, transnational corporations rely on their abundant capital, technology, organization and management. Through foreign direct investment, they set up subsidiaries and branches overseas, form an international network of research, proction and integration, and engage in transnational business activities under the control of their parent company. According to their own global strategic objectives, the headquarters of multinational corporations carry out reasonable division of labor and organize proction and marketing reports on a global scale, while all subsidiaries and branches around the world engage in proction and operation around the global strategic objectives. The decision-making of multinational corporations is based on the realization of global strategic objectives and the maximization of global interests<

in order to achieve the global strategic objectives, multinational companies implement global integration operation, and have absolute control over the proction arrangement, investment activities, capital transfer, personnel management and other major activities of subsidiaries and branches all over the world. They make unified arrangements according to the principle of maximizing global interests. The powerful management system and control means of transnational corporations are the necessary organizational guarantee to realize the global integration operation. The great progress of modern communication technology and modern transportation provide the necessary material basis for the global integration operation of transnational corporations. Multinational companies adopt the management mode of combining centralization and decentralization and global strategy to engage in proction and operation activities in the international scope

while implementing the global integrated operation, multinational companies will also adopt flexible and diversified operation strategies according to the international political and economic situation, the specific situation of the host country, its policies and regulations for multinational companies, its own strength and its position in the competition, so as to better meet the actual situation of the host country and obtain good operation benefits, It is also concive to establishing a harmonious relationship with the host government. In terms of organizational structure, multinational companies often change their original centralized management and decentralize the power originally concentrated in the headquarters to their subsidiaries and branches.

4.

First of all, the definitions of the four strategies are different

1. Globalization strategy: refers to the strategic plan of some multinational enterprises trying to monopolize the world economic market, which is to sell standardized procts and services to the world market, and carry out proction and operation activities in more favorable countries, thus forming an experience curve and economies of scale, so as to obtain high profits

2. Internationalization strategy: refers to the development strategy of enterprise procts and services outside the local market, which is to transfer the differentiated procts developed in the home country to the overseas market, so as to create value

Multinational strategy: also known as multi-national strategy, is to provide procts and services that can better meet the needs of the local market according to the different markets of different countries, in order to meet the market demand of the host country

4. Transnational strategy: it is a strategy for enterprises to develop in other countries. In the case of fierce global competition, we should form cost-effectiveness and location efficiency based on experience, transfer the special competitiveness of enterprises, and pay attention to the needs of the local market

Secondly, the stage performance of several strategies is different.

1. Globalization stage: it is the mature performance of the development of international enterprises, enterprises are completely separated from the dependence on the market and capital, and the competition between enterprises is also separated from the price factor, thus leading to the technical factor and service factor. Therefore, the core value of the enterprise is reflected in high-end technology and human resources

the most remarkable performance of global enterprises is the integrated system, and the representative of this kind of enterprises is today's Microsoft

Internationalization stage: it is a new form completely separated from regionalization. The source of profits of enterprises no longer depends entirely on the gap between the average working hours of the society. The consumption pattern of commodity exporting places is also changed. Enterprises attach great importance to technological advantages, and the market has changed from a restrictive relationship with enterprises to a controlling relationship, That is to say, consumers have a kind of psychology of flocking to the commodities exported by procers

the most obvious performance of enterprises in this stage is monopoly. This typical enterprise is Ford Motor Company in the United States in the early 20th century

(3) multinational stage: the influence of local advantages is graally declining, replaced by the binding force of monetary capital, and the enterprise headquarters has strengthened its control over the market. Meanwhile, the main operator of the market is the comprador or agent of the enterprise, and the enterprise grabs profits through the restriction of market consumption, which is mainly manifested in the fact that the export commodities have the technological gap, And can use abundant capital to control, make raw material export and labor export extremely cheap

This kind of enterprise form was formed in the British East India Company in the 18th century

4. Transnational stage: using local advantages to export procts, its transnational purpose is mainly to strive for the destination market, which is mainly manifested as market orientation. The existence of the market is the core of all business activities of the enterprise. This kind of enterprise form first appeared in the Netherlands East India Company in the 15th century

Finally, the advantages and disadvantages of these strategies are different.

1. Globalization:

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advantages: experience curve effect and location economic effect can be obtained

Disadvantages: poor response of local market

2. Internationalization:

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advantages: export unique competitiveness to foreign countries

Disadvantages: poor response of local market; It is difficult to obtain the effect of location economy and experience curve

Advantages: according to the specific needs, adjust the proct structure and marketing means to improve the local market response

Disadvantages: it is difficult to obtain the effect of location economy and experience curve; It is difficult to export unique competitiveness to foreign countries

4. Transnational: advantages: experience curve effect and location economic effect can be obtained; Improve local market response; Gain the benefits of global learning

disadvantages: it is difficult to implement e to organizational problems

5.

1. Classified by business project)

resource development MNCs, processing and manufacturing MNCs, and service providing MNCs

2. Classified by business structure

horizontal MNCs, vertical MNCs and mixed MNCs

3. According to the decision-making behavior, the National Center Company, the multi center company and the global center company are classified

the advantage of the management system is that under the premise of maintaining the company's global business objectives, each subsidiary has a certain degree of autonomy within a limited range, which is concive to mobilizing the operation initiative and enthusiasm of the subsidiary

In the process of the rapid development of multinational corporations, the host countries graally cultivate their national consciousness while accepting foreign investment. After years of accumulation and development, the management system of most multinational corporations has changed from centralization and nationality centered to multi centered

The complexity of business will bring adverse effects to enterprise management, so multinational companies with competitive advantages do not blindly expand business to different instries, but tend to carry out international diversified business activities around strengthening the competitive advantages of core business or procts

6. Abstract: at present, with the rapid development of economic globalization, the transnational operation of Chinese enterprises has made some progress, but there are still some problems, such as unclear purpose, weak policy guidance and coordination, low level of R & D and lack of technical advantages. Therefore, China's enterprises should adjust their countermeasures to carry out transnational operation. They should have clear transnational operation objectives, avoid vicious competition among enterprises, develop their strengths and avoid their weaknesses step by step, build core procts, and strengthen the protection of intellectual property rights
as mankind enters the new century, the tide of economic globalization is rolling in, which makes more and more countries integrate into the world economic system. If we realized the first take-off of our national economy by "inviting in" in the 1980s and 1990s, thus narrowing the distance between China and western developed countries, we should now realize the goal of global resource sharing by "going out" on this basis, so as to share the economic benefits brought by economic globalization, Because transnational operation will bring benefits that domestic operation can't give to Chinese enterprises<

transnational operation is an extension of domestic operation, which belongs to the scope of enterprise operation. It refers to a kind of market behavior that the market operators cross the geographical boundaries of their home countries in order to expand their survival and development space and engage in overseas business. It is an advanced form of enterprise internationalization. In other words, transnational operation refers to a series of business activities in which an enterprise takes the international market as the stage, consciously participates in international division of labor and international economic activities from the perspective of global strategy, establishes branches and subsidiaries overseas, and makes extensive use of international resources to engage in overseas investment, proction and sales, Its purpose is to obtain transnational business benefits through the rational allocation of global resources, that is, to seek the largest possible market share and high profits in the world, so as to maximize economic benefits< As of the end of June 2002, 6758 non-financial business institutions have been set up with overseas investment in China, with a total agreed investment of US $13.2 billion and Chinese investment of nearly US $10 billion; A total of 105.3 billion US dollars of foreign contracted projects have been signed, with a turnover of 75.2 billion US dollars; The total amount of foreign labor cooperation contracts signed is 28.1 billion US dollars, the completed turnover is 22 billion US dollars, and the total number of labor dispatched is more than 2.6 million. Overseas resources cooperation projects such as oil and gas, mineral resources, forestry, fishery, etc. are operating well, and economic benefits are graally emerging. China's enterprises have also started and made some progress in setting up R & D centers abroad and carrying out agricultural cooperation

although these wholly-owned, holding or joint-stock enterprises established by state-owned, collective or private enterprises are developing rapidly, the current overall situation is not satisfactory. According to the survey, one third of overseas Chinese enterprises are developing well and making profits; One third of them are in maintenance stage; Another 1 / 3 of them fell into loss or closed down. This situation is not only related to the external factors such as the short time for Chinese enterprises to go abroad and the lack of experience in coping with international market competition, but also related to the insufficient guiding role of the government and the improper use of enterprises' own strategies, which should be paid attention to and solved by all parties< The purpose of "going out" is not clear

the "going out" strategy is a kind of enterprise behavior advocated and encouraged by the government, but the main body of "going out" is the enterprise, and the situation of the enterprise itself is the key to determine the "should not go" and "how to go". There are many influential enterprises among the more than 6000 "going out" enterprises in China, but there are not many successful cases of "going out". One of the main reasons is that for many enterprises, when "going out" becomes a national strategy, it is not only an unavoidable external pressure, but also makes some enterprises lack the necessary understanding of their own competitive advantages, It is believed that "going out" is bound to be vast and boundless. Therefore, many enterprises lack clear and specific development goals and plans, long-term strategic thinking and scientific management system when they "go out". They often lack demonstration in investment projects, environmental analysis, location selection, partner selection, formulation and implementation of business strategies, and have a single business mode, We should not proceed from the actual situation of the enterprise to develop strengths and avoid weaknesses. Under the premise of lack of investigation of overseas environment, blind investment, lack of practical talents to meet the needs of the local market, incomplete marketization of operation and management, and still in a semi government state, these enterprises are bound to be difficult to succeed. As relevant experts have pointed out, "going out" can not rely solely on enthusiasm. The magic weapon for enterprises to gain a foothold in the international market is their core competitiveness. Zhang Xiang, former Vice Minister of the Ministry of foreign trade and economic cooperation, once pointed out that "going out" enterprises must have their own core procts and core technologies in order to have a foothold in international competition. In view of the current strength of China's enterprises, many experts suggest that enterprises should think twice when they "go out". It won't last long to rely on a cavity of blood. Enterprises must decide whether they "should go out" according to their own situation< So far, there is no overall strategy and instry planning for overseas investment in China, and there is no clear instrial policy and instry orientation. Due to the lack of unified guidance and coordination for overseas investment, various departments, regions and enterprises act on their own, and foreign investment is arbitrary, resulting in repeated overseas investment and vicious competition, affecting the overall efficiency of China's overseas investment

the development of Chinese motorcycles in Vietnam is a typical case. Before Chinese motorcycles entered the Vietnamese market in 1999, Vietnamese basically used bicycles as their main means of transportation. So far, bicycles have basically become motorcycles. According to statistics at the end of 2000, every seven Vietnamese owned a motorcycle, while in Hanoi, the capital, every three people owned one. The number of Chinese motorcycle enterprises in Vietnam has also increased from four in October 1999 to more than 70 in 2001. In 1999, Japanese Honda had 80% market share. In less than two years, Chinese enterprises replaced Japan to occupy 80% of the Vietnamese market. However, this does not mean that the transnational operation strategy of Chinese motorcycle enterprises is successful. On the contrary, it does not mean that the transnational operation strategy of Chinese motorcycle enterprises is successful, The current situation has evolved into vicious competition among domestic enterprises, and the hot sale has dramatically turned into mping after the middle of 2000. The price of a 100cc motorcycle dropped from $600 at the beginning of 2000 to $270 at the end of 2000. In just half a year, the number of Chinese motorcycles in Vietnam has increased sharply. The price of Chinese motorcycles in April and October has been greatly adjusted, with a drop of about $70 each time. By the end of 2000, the price of $270 was close to the cost price, and the high profit period lasted less than a year. Now, although it has occupied most of the market share, the profit margin is getting lower and lower. It is the vicious competition among Chinese motorcycle enterprises that leads to today's dilemma. In Vietnam market, Japanese enterprises can sit at the negotiating table and discuss the same price strategy. So far, the profit of Japanese Motorcycles in Vietnam market has been maintained at a stable level. The reason lies in the disorder of the steps of "going out" of enterprises in our country, and the lack of overall planning of the government, resulting in vicious competition of domestic enterprises. Many enterprises in our country have generally experienced such a stage in transnational operation: rush to - a short boom - price war - in trouble

price war is the main means for Chinese enterprises to compete. It seems that price is the only way to win, whether with foreign enterprises or with domestic enterprises. At present, the increasing number of anti-mping investigations against Chinese enterprises in many countries also shows that the means of competition of Chinese enterprises are single. Originally, a good function of transnational operation is to avoid anti-mping. As a result, e to the improper business strategy of Chinese enterprises, as long as one enterprise goes to open up a certain market, other enterprises always rush on, If the vicious domestic competition is extended to foreign countries, it will not only damage the image of Chinese enterprises, but also lose the market again. If it continues, it will be difficult for Chinese enterprises to gain a foothold in the international market< In addition to the vicious competition among domestic enterprises, there is also a major reason for the loss of the Vietnamese market by Chinese motorcycle enterprises, that is, Vietnam has issued a document No. 92. At the time of vicious competition among Chinese enterprises, the Vietnamese government lost no time in promulgating the measures for the management of localization and automation rate of Vietnamese motorcycles. That is to say, the Vietnamese government began to support domestic enterprises. This is undoubtedly worse for Chinese enterprises, because after entering the Vietnamese market, Chinese enterprises cooperated with Vietnamese one after another in order to compete for the market, The technology and even the drawings are provided to the Vietnamese for free. As a result, within a few years, the Vietnamese have mastered the proction technology of motorcycles and will soon be able to realize the localization of motorcycle proction. Of course, the Vietnamese government has to support its domestic enterprises

in contrast, China has cooperated with Japanese motorcycle enterprises for many years. Japanese enterprises, not to mention the core technology, also want Chinese enterprises to buy simple parts. Another reason for the failure of Chinese motorcycle enterprises in Vietnam is that they do not pay attention to the protection of technology. Other instries and enterprises also have similar problems< The R & D level of enterprises is low, and they lack technical advantages.

although the output of instrial procts of Chinese enterprises is large, the price is low, and many procts have certain price advantages and can occupy a lot of market share, the price performance ratio of many instrial procts in China is at a disadvantage internationally, which is directly related to the low R & D level of Chinese enterprises. Therefore, at present, most of China's foreign investment enterprises are trade processing type, and most of their procts enter the low-end market“ The enterprises that "go out" must have their own core procts and core technologies in order to have a foothold in the international competition< The main body of transnational operation is the enterprise, not the government. Therefore, when domestic enterprises explore the international market on a large scale, the first thing they should consider is why they want to go to the world? Why open up the international market? Is it to increase the sales of existing procts, or to be close to the consumers in developed countries, so as to lead the new world trend in proct development? Is it to set up a bridgehead in the forefront of foreign science and technology to attract top-notch talents, or to optimize the proction layout in the global scope to obtain the comprehensive advantages of the system? Is it to optimize the supplier structure and rece the procurement cost, or to enter the backyard of competitors and control their domestic market? Obviously, different strategic objectives will require different transnational business strategies< Once the goal of internationalization is determined, we should consider which region and which country's market to start with. Enterprises are engaged in transnational operations,

7.

Benefits of Multinational Enterprises: first, accelerate the process of world economic integration

Second, promote the emergence of internationalization

Third, promote the development of international trade

Fourthly, promote the development of international capital flow

The development of transnational corporations has greatly promoted the foreign trade of developed countries after the World War II. These functions are reflected in the fact that the procts of developed countries can be proced and sold in the host country through foreign direct investment, thus bypassing trade barriers and improving the competitiveness of their procts

from the perspective of raw materials and energy, it reces the dependence of developed countries on developing countries; It also makes the procts of developed countries enter and use the foreign trade channels of the host country more smoothly, and it is easy to obtain business intelligence information

Extended information:

as a company with more branches at home and abroad and engaged in global proction and operation activities, multinational companies are different from domestic enterprises in some aspects. These differences are as follows:

1. The strategic goal of multinational companies is to be international market-oriented and to maximize global profits, while domestic enterprises are domestic market-oriented

Multinational companies control foreign enterprises by holding shares, while domestic enterprises control their less foreign economic activities by contract

The foreign-related activities of domestic enterprises do not involve the establishment of economic entities in foreign countries. The relationship between domestic and foreign economic activities is loose and has great contingency. Their foreign-related economic activities often terminate immediately after the completion of the transaction and no longer participate in the subsequent reproction process

However, multinational companies are engaged in capital, commodity, talent, technology, management and information trading activities in all fields of the world, and such "package" activities must be in line with the overall strategic objectives of the company and under the control of the parent company, and their subsidiaries also participate in the local reproction process like foreign enterprises

8. Because of the small market on the island, enterprises in Taiwan have a strong tendency to internationalize. Some enterprises, such as Hon Hai, quanta computer, BenQ and Baocheng, have been growing rapidly thanks to the economic development of the mainland

at this time, e to the development of new instries and catching up with the wave of global IT instry development, a number of Chinese multinational companies in IT instry were born, such as Lenovo, Huawei, Trend Micro, ut Starcom, youpai, Hon Hai Precision instries, BenQ and so on. In the technology intensive pharmaceutical instry, new Chinese multinational companies have emerged, such as Watson pharmaceutical and Wanquan technology

the new growth mode also provides assistance for the development of Chinese multinational companies. In the late 20th century, the growth of Chinese in the form of mergers and acquisitions has emerged one after another, including mergers and acquisitions of small and medium-sized enterprises in Europe and the United States. In the 21st century, Chinese multinational companies began to appear frequently to speed up their growth by merging European and American large enterprises. For example, TCL Group (2.60,0.00,0.00%) merged Thomson TV in 2003, Lenovo Group merged IBM-PC in 2004, BenQ merged Siemens mobile phone in 2005, Hutchison Whampoa merged marionnand and merchant, the largest cosmetics chain stores in France and Britain in 2005<

according to public information, the United Nations has issued "the world's largest 100 multinational companies" every year since 1990. Hutchison Whampoa Ltd. of Hong Kong, China entered the world's top 100 multinational companies for the first time in 1999, ranking 48th. In 2004, CITIC Group, the third Chinese multinational company, was ranked 94th

as a result, Chinese multinational companies began to enter the world-class ranks<

the Chinese MNCs without home country are emerging

at this time, the Chinese MNCs also have a new corporate form, among which the MNCs without home country is one of them

over the past 100 years, multinational companies have developed from the most basic (single) home country multinational companies to al home country multinational companies, such as Unilever and shell; Later, it proced multinational companies with multiple home countries, such as IKEA and Schlumberger; The wave of economic globalization has spawned non home multinational companies, the typical representatives of which are Mittal Steel and trend technology. This trend of "de homecoming" is a kind of progress

Trend Micro was founded in 1988 in Los Angeles, USA by Zhang Mingzheng and others. It started with anti-virus software and is currently the world's first company in the field of network anti-virus software and services. The company's financial headquarters are in Tokyo, Japan. Its global marketing headquarters are in Silicon Valley, USA. its R & D centers are in Taipei and Nanjing, China. Its global customer service center is in Manila, Philippines. Its administrative headquarters are in Ireland. In 1998, the company was listed on the Tokyo Stock Exchange of Japan, but Japanese shareholders only accounted for 25% of the shares. There are many shareholders in the United States, China and Europe, and the shares are very scattered. Trend's top decision-making body is made up of 13 executives from six countries. Obviously, trend technology is a multinational company without a home country

all kinds of signs show that more and more Chinese multinational companies have begun the journey of non home country multinational companies

What are the prospects for the new growth stage of Chinese multinational companies? We can make a prediction: by 2010, the number of Chinese multinationals will reach 70% in the list of the 50 largest multinational companies in the world and the largest number of transnational corporations in China, and the number of Chinese mainland multinationals will be around 10. In the list of the world's top 100 multinational companies, China's (cross-strait and three places) multinational companies will reach five. At that time, Chinese multinational companies will complete 10 billion US dollars of M & A projects; Chinese multinational companies will occupy a first-class position in the global telecommunications instry.

9. You can take a look at McDonald's and KFC