留学生代写thesis部分内容参考

发布时间：2017-01-05 08:21

中国和印度已经成为世界经济中的主要参与者。例如，中国和印度近年来已经带领所有世界经济体 GDP 增长率超过 9%。。由于这种快速增长，中国和印度目前是购买力平价指数 第 3 和第 5 最大的经济体。一些预测表明，，到 2020 年，中国和印度将超过日本国内生产总值的购买力平价指数，到2050 年中国将是世界经济主导，其次是美国和印度 。

中国和印度这种显著的经济复苏和未来的希望已经成为进入到这些市场的很多公司能生存和成功的关键。

400 of the Fortune 500 firms now operate in China (Fishman, 2005) while 220 of the top 500 operate in India (India Brand Equity Foundation, 2005). In 2005, China alone attracted about $1 billion per week in foreign direct investment. While firms in the earlier years primarily rushed into these countries for reasons such as acquiring resources, securing key supplies, accessing low-cost factors, and diversifying sources of supply (Vernon, Wells & Rangan, 1996) the rising incomes of the local populace is now resulting in market-seeking behavior.

The current study attempts to analyze the success and failure of firms entering the major emerging markets of China and India. It addresses the following research questions: What factors drive the success of entry into China and India? Is entry into China more or less successful than that into India? How do entry timing, mode, and size and country openness, risk affect success?

2. 进入成功的驱动力：——The Drivers of Entry Success:

Researchers have not yet developed a single coherent theory of the drivers of success or failure of entry in emerging markets. This section reviews the prior literature on international market entry to identify the drivers of success or failure to market entry. The interdisciplinary literature spans marketing, strategy, and international business (Root & Ahmed, 1979, Dunning, 1988, Zhao, Luo & Suh, 2004).

By using the terms firm to describe the entrant, host nation to describe China or India, home nation to describe the firm's country of origin and foreign nation to describe any other country that may be involved.

The factors that affect the success or failure of market entry can be grouped as follows:

Firm's (Entrants)-level factors such as the mode of entry.
Country-level factors of the host nation and home nation, such as country risk, and country openness.
Discussing how these factors might affect success or failure.

2.1 Modes of Entry:

The mode of entry is a fundamental decision a firm makes when it enters a new market because the choice of entry automatically constrains the marketing and production strategy of the firm. The mode of entry also affects how a firm faces the challenges of entering a new country and deploying new skills to successfully market its product (Gillespie, Jeannet and Hennessy, 2007). In an exhaustive survey of the different modes of market entry, Root (1994) identified 15 different forms of market entry. Following Root categorize them into the following five main classes, listed in order of increasing control:

Export - a firm's sales of goods/services produced in the home market and sold in the host nation through an entity in the host nation.

License and Franchise - A formal permission or right offered to a firm or agent located in a host nation to use a home firm's proprietary technology or other knowledge resources in return for payment.

Alliance - Agreement and collaboration between a firm in the home market with a firm located in a host nation to share activities in the host nation.

Joint Venture - Shared ownership of an entity located in a host nation by two partners-one located in the home nation and the other located in the host nation.

Wholly Owned Subsidiary - Complete ownership of an entity located in a host nation by a firm located in the home nation to manufacture or perform value addition or sell goods/services in the host nation.

A firm can choose any of the above entry modes or some combination of them to enter a host nation. The key attribute that distinguishes the different modes of entry is the degree of control it gives a firm over its key marketing resources (Anderson and Gatignon, 1986). At one end of the spectrum is export of goods, which has the lowest degree of control. Licenses, franchises, and various forms of joint venture provide progressively increasing degree of control for the firm till we reach the other end of the spectrum with highest control: ownership based entries such as wholly owned subsidiaries.

Two opposing theories suggest alternate outcomes for as control increases: the resource based view and the transactions cost view. The resource based view holds that as the degree of control increases, the firm's chances of success increases because the firm is able to deploy key resources essential to success (Isobe, Makino & Montgomery 2000; Gatignon & Anderson 1988). These resources could be intangible properties such as brand equity and marketing knowledge (Arnold, 2004) or tangible properties such as a patent or a process blueprint. Control over such properties allows a firm freedom to deploy resources flexibly thus enhancing its chances of success. In the context of emerging markets control provides two key benefits. First, it safeguards key resources from leakage, such as patent theft. Second, it allows internal operational control essential to a firm's success in emerging markets (Luo, 2001). In addition a firm could control key complementary resources such as access to local distribution channels which can be important to its success in any country.

In contrast, the transaction cost view holds that transaction costs increase with increasing control of the mode of entry. Control and commitment are inextricably linked factors in mode of entry (Luo, 2001). High control in entry strategies entails high commitment. Transaction cost theory suggests that the higher the resource commitment and desired control of an entry mode, the higher the cost. Wholly owned subsidiaries and joint ventures are high-cost entry modes because of the level of resource commitment needed to set up operations (Pan & Chi, 1999). These higher costs imply higher levels of investments needed to break-even and make a profit.

2.2 Country Risk:

According to Erb, Harvey & Viskanta (1995) define country risk as uncertainty about the environment which has three sources: political, financial, and economic. Political risk is the risk that laws and regulations in the host nation are changed adversely against a foreign firm. These could be of a regulatory nature such as the imposition of tariffs or political in nature such as unrest caused by pressure groups (Spar, 1997). At its severest, political risks may cause confiscation of assets without adequate compensation (Hawkins, Mintz & Provissiero 1976).

Financial and economic risks manifest themselves in several ways. They could take the form of: a) recessions or market downturns, b) currency crises or c) sudden bursts of inflation. Most of these factors arise from imbalances in the underlying economic fundamentals of the host nation such as a balance of payment crisis. Recessions result from business cycles inherent in any economy (Lucas, 1987). The origins of currency crises could be a progressively deteriorating trade imbalance (e.g., India in the late 1980s) or loss of faith by the international financial system on the nation's ability to meet its international debt obligations (e.g., Argentina in 2001). Whatever the source of the problem, a fall in the currency rate leads to a fall in revenues and profits (Shapiro, 1985). Differential inflationary pressures between the home and host nation could also pose a risk. Inflation directly affects the price-demand structure of a firm. It can also affect the firm indirectly through its adverse affects on exchange rates (Erb, Harvey & Viskanta 1995, Frankel & Mussa 1980).

Country risk can reduce entry success in emerging markets in two ways. First, it can cause firms to suddenly lose money precipitating a financial crisis. Consider P&G in Russia. P&G's "optimistic projections of Russia were shattered on a single day in the summer of 1998" (Dyer, Dalzell & Olegario, 2004. pp 336). The sudden devaluation of the ruble on 17th August 1998 triggered a deep financial crisis as the annual projected dollar revenues shrank to half-far below P&G's ability to service debts. A more serious problem was the uncertainty over how long the crisis would last. Second, high country risk and past experiences of risk can lead firms to underinvested or delay investments resulting in lower success over time. Unilever was cautious and delayed entry into China "especially in view of the past difficult experiences with the Soviet Union" (Jones 2005, pp 160) - another high risk country.

2.3 Openness:

The term openness refers to the lack of regulatory and other obstacles to entry of foreign firms. Openness could either increase or decrease entry success.
On the one hand, openness could increase success for three reasons. First, it stimulates demand by increasing the variety of products offered for sale in the market. Second, it increases competition on quality and thus improves the level of quality supplied. Third, as the economy opens up, competition increases efficiency and lowers prices, resulting in further increases in demand. Consider the Indian automotive industry. Until the early 1980s, the protected local market was dominated by two highly inefficient players: Hindustan Motors (HM) and Premier Auto Limited (PAL), which offered just 2 basic car models, priced at around $20,000. The government allowed Suzuki to set up a joint venture in 1983. This increased the number car models in the Indian market to 3 and the quality of all cars on the market, including those from HM and PAL, improved dramatically. In 1992, the remaining barriers for foreign firms were lifted. Since then, 30 car models have been sold in India. Prices in all segments have steadily declined by 8 to 10 percent a year and the industry tripled in size. The liberalization of the Indian telecom industry with the resulting boom in sales of cell-phones is another example of how openness spurred growth in demand (Ramaswamy & Namakumari, 2004). Evidence from China also shows that "growth acceleration has been associated with the opening of markets" (Naughton, 2007. pp 7)

3. 希望将生产线外包到中国的西部公司所面临的挑战 （困难）——Challenges (Difficulties) faced by a Western company that wishes to outsource production to China:

China is considered the factory of the world; China accounted for 13.2% of all the manufacturing in the world and is set to overtake USA as the number one destination for manufacturing (Sam Biddle, 2008). China offers access to low cost raw materials and cheap labor, which is attractive to western manufacturing companies (Joseph Johnson & Gerard J. Tellis). Outsourcing to china by western companies can be either through contract manufacturers or wholly owned subsidiaries (Fredrik Arnell & Sally Wei) of parent western firms. Western companies face various challenges to outsource their production to China. The World Bank publishes an annual report on countries favorable for doing business and China ranks poorly at 83 among over 160 countries listed.

3.1 Political Challenges:

China has been under the communist party rule for many decades. The communist party exercises absolute power over legislations and economic & cultural institutions. Unlike western economies where the government promotes transparency for doing business; in China rules and regulations are not so transparent or absolute. Large manufacturing businesses can come under various regulations and bureaucracies; China promotes a form of social network called guanxiwang, where guanxi (Karen Marie Vasli & Marie Skogholt Hansen.) is the relationship between the individual and the entities of the network. Due to lack of transparency and corruption the guanxiwang or the social network with people from the communist party can help western businesses avoid red tape and bureaucracy.

Unlike in the west, where building relationships has less importance due to the strict laws and a culture that supports contractual obligations, in China, one relies on one's guanxiwang, Without guanxi a westerner entering China is like entering an abyss, which is also exemplified by the famous Chinese saying "turning at the temple door without a pigs head" (Harold Chee). Understanding guanxi is a challenging process for a westerner and building a guanxiwang is often a time consuming process, so it is prudent for a western company to recruit the right people with the appropriate guanxiwang to overcome these challenges.

3.2 Legal Challenges:

Strict laws and patents in economies of the west protect domestic and foreign businesses, whereas in China, the legal system is loosely defined, giving rise to various loopholes in the law. China's accession to the WTO has brought with it the inclusion of international business laws and patent rights amendments, but even today it is common to see technology being stolen either by the employees of the outsourced firm in China or by a Chinese competitor in the country (JHH Weiler, 2007)

3.3 Cultural Challenges:

China has evidenced thousands of years of history, culture and traditions. The way Chinese people behave today is the result of its historical transformations, which is very different from the transformations witnessed by western societies. Hence the modern day Chinese culture is very different from the cultures of the west. The cultural aspects of the Chinese are immensely reflected in the business world, for example, A CEO in the western world is normally looked upon as a consensus builder or as an individual who debates and discusses strategies with their employees and then executes the strategy, whereas in China the leader is looked upon as the sole decider and executor of strategies. There is a strict hierarchy in the Chinese business culture, which is very different from the business culture of some of the west countries (K Jayaraman, 2009).

4. 中国的国际管理︰ 跨文化问题——International Management in China: Cross Cultural Issues

The greatest challenge to international business today is how to manage business operations across cultural boundaries. This is especially true in the case of China, which has attracted a massive amount of foreign investment and international trade recently. This new study examines three main themes:* the partnership of management through joint ventures* the human resource aspects of management* the management of communication, co-operation and negotiation The crucialissue of trustworthiness, the different managerial practices in China and the West, the importance of being well-prepared and understanding Chinese negotiations are major contemporary issues identified. It concludes that future cross-cultural management in China will not be much easier than today, since essential elements of Chinese culture will most probably prevail and also shape Chinese organizational behaviour in the future. (Jan Selmer)

5. 所涉问题——Implications

This research has some important implications for entry into emerging markets.

First, firms should not only consider the growth of emerging markets but also the success rates of prior entrants. In the case of the two giants under study, China seems to have a much higher success rate that India.

Second, the progressive opening of the economies of China and India does not mean that firms should wait to enter when entry gets easier. Easier entry applies to all firms, increasing competition. As China and India liberalize and deregulate even further, the increased competition will reduce success. Our data suggests earlier entrants do enjoy greater success. Thus, firms that enter later should be prepared for stiffer competition and probably lower success.

6. 建议——Recommendations:

To avoid certain risks in China try to adapt the following things:

Setup steps:

Have a long term view and focus on total costs
Make sure your demands are clear to your Chinese partners
Get to know the Chinese ways and culture: be patient
Invest step-by-step.

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