Introduction Under the globalization trend, well-known enterprises are engaged in expanding themselves business in the world. More and more MNCs arise the global market.
Cross culture is the most common problems for them, how to manage MNCs is how to manage cross culture. Cross culture study is a study of foreign country??? s macroscopic and microcosmic situation, and in terms of study to make a appropriate strategy which contributes to enterprise develops well. In detail, macroscopic situation involved economic environment, political environment, legal environment, technology environment, social culture and natural environment. microcosmic situation involved supplier, rivals, entrants, buyers and substitutes. Macroscopic situationEconomic environment. Economic environment refers to an enterprise must face a new economic condition, character and relationship with others. For instance, China economy is a market economic mode, which is free trade and competition.
Especially China join WTO, the trade barriers reducing is good for importers, and stable economic environment ensure the fundamental condition for FDI. Political environment. FDI seems to pay more attention to political environment. Because if political environment is unstable, it means profits may be confiscated and serious loss; interfere management and join in the decision-making, freeze the assets in his country and so on.
A series of policies will influence long-term development. Legal environment. Legal system stands for local authority. What is legal and what is illegal is important for managers in MNCs, because if enterprise behavior reaches the edge of illegal without consciousness, the punishment is very serious that ban investment in the country. It means a opportunity is missing. Technology environment.
It is a serious problem in global market, Intellectual Property needs to be respected and protected. If the country is not care about the importance of Intellectual Property, your core competence is easy to copy. As we know, core competence is so important for every enterprise that check local technology environment is necessary. social culture and natural environment.
Culture is a symbol of country, which stands for local custom. It becomes a market orientation that products needs to accord with local tastes. And natural environment help us to learn about what resources we can use, one hand, if the country has abundant resources, than we need not to import, low cost, on the other hand, we can develop other product line.
Microcosmic situationsupplier. Every enterprise needs others to supply the part of product, so we needs to learn about various supplier, and find the best supplier to be the strategic partner. Rivals. You want to win the market share, you must be familiar with your rivals. We need to know what kinds of products are, what strategy is and all the thing about the rivals. Entrants.
An innovation is a deathblow for classical industry. We needs to seek the new situation of market, adapt to the trend to speed up new product. Buyers.
In the market, we needs to get the acknowledgement of buyers. Buyers are our god, identify buyers, and classified into three parts, one is life-time client, random client, and zero-value client. Base on its character to make different strategy.
Substitutes. There are so similar products covered the markets. In order to avoid becoming the substitutes, develop more product lines and innovation, and the most important to build brand effect. ConclusionCross culture research is important for every MNC.
Know the enemy, know yourself, and in every battle you will be victorious.
