Home Categories political economy Case Study (Volume 5): Difficulties in Overseas Mergers and Acquisitions of Chinese Enterprises

Chapter 5 The success or failure of talent internationalization and company internationalization

As China's globalization is getting more and more involved, the topic of internationalization of talents is just the beginning, and there will definitely be more points worth highlighting in the future.And here, I have to mention two absurd things about the dislocation of talents in the internationalization of Chinese companies that I have seen and known. First, the new president of an energy company listed in Singapore is sent from the mainland, and his style of work is rather strange.To give an example, the president needs two and a half translators, whether it is foreign language mail or documents, three procedures are required before and after.First, a Singaporean translated a version, then the Chinese had to proofread the translated manuscript, and finally a middle-level cadre had to check the final version again.Such cadres, stationed overseas will only increase the twists and turns, whether they are far from the trend of internationalization, and feel like turning back the wheel of history!

Another example is also ironic.Let’s say that a certain Chinese company has established a branch in the United States, and the R&D of the factory is gradually advancing. Initially, it feels good, but soon problems are exposed.One day, the staff of the American company had an idea and planned to develop a new product. The person in charge excitedly made a long-distance call to the mainland headquarters for instructions.The supervisor in charge was overjoyed when he heard it, and he said yes again and again, and asked the other party to send a report to the headquarters quickly.On this side, the American company seized the time to write a report that day and immediately emailed it to the headquarters.But in the blink of an eye, more than a month later, there was no feedback from the headquarters, and as a result, the competitor's product was already on the market.The people in the American company finally couldn't help asking the headquarters. The head of the headquarters sighed repeatedly and said, I am still waiting for your express report every day for approval, why it has been so long.It turns out that the logic of the managers at the headquarters is that without the company's red-headed documents, it cannot be included in the agenda, and such a serious matter as developing new products cannot be approved without going through this process.This way of communication has seen the harm brought about by the fundamental difference between corporate culture and administrative habits.

Take a look at today's international business environment. Multinational companies have already gone paperless, while mainland companies are still using immature methods to promote and expand.The quality and bad habits of management personnel have brought about a huge waste of time and opportunities, unable to communicate effectively, and the information is not smooth, which also makes it difficult to establish a culture of trust.Under the influence of such outdated corporate habits, how can their internationalization be efficient and fruitful? Today's internationalization is obviously not only the acquisition of overseas company assets and brands, but also the merger and absorption of outstanding international decision-making talents. After paying a heavy price for overseas business, some companies have obviously realized A truly internationalized management team is the key to the success or failure of internationalization.As the old saying goes, "All the important officials of the imperial court who are in charge of foreign affairs are mostly famous scholars who know the customs of foreign countries, understand barbarian languages, and travel overseas for many years." This kind of familiarity and understanding of customs and language, according to today's commercial society In terms of universal rules, in a nutshell, the internationalization of an enterprise must require a group of leaders with truly international vision and judgment.

Recently, a Fortune 500 company launched an advertisement in the Mainland saying, "Use the way and know the way." This is exactly the realm that Chinese companies need to pursue when they travel overseas in the future.If the internationalization of Chinese companies wants to achieve universal value success, it is no longer enough to build a few factories abroad and sell their products abroad, but to have a group of world-class marketing experts and train dozens of people who can actually command A strong player in business warfare. Chinese companies going overseas do not lack capital, nor lack research and innovation talents, but what they lack are senior talents at the decision-making and management levels.The management decision-makers of most Chinese companies that bravely go overseas do not have international experience, or even lack the ability to learn international experience.

Sometimes, these companies will also appropriately provide higher salaries than those in the mainland, and invite some "returnees".However, as seen in reality, most of this group of people lack the experience of senior positions in mainstream companies, and are basically middle- and low-level employees in the large company system. Overlord?I'm pretty pessimistic. Frankly speaking, most of the decision-making levels of enterprises that are currently internationalizing and initially internationalizing have been repeatedly proven to be difficult to cope with the three-dimensional competition of internationalization from multiple angles and levels. Therefore, whether decision-making talents at this level can be internationalized , will be a key point of whether the current batch of enterprises can achieve more internationalization.

Obviously, the internationalization of talents determines the success or failure of the internationalization of Chinese companies.To find an effective solution to the problems encountered by Chinese companies in their internationalization, they should act in accordance with market-oriented rules, and gradually realize the localization of management talents, market localization, and game rules.
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