Skip to content
Product cover

The Challenge for Multinational Corporations in China: Think Local, Act Global

July 1, 2007 | Prof. Seung Ho Park psam@ceibs.edu, Prof. Wilfried R. Vanhonacker Wilfried_Vanhonacker@Skolkovo.ru | Strategy
The place of multinational corporations in China has rapidly changed since the 1970s. No longer expected to bring cash and management expertise to China, the authors argue that MNCs have taken on a new role as teachers and role models. However, recent high-profile mistakes including a McDonald's Corp. (of Oak Brook, Illinois) ad that over 80% of Chinese surveyed found offensive, show that MNCs are not entirely up to this task. They illustrate the consequences of this inability to cope and suggest eight strategies for improving MNC's success in China: Think local-act global, don't apply double standards, don't bend the rules, avoid making "symbolic" acquisitions, avoid employing aggressive tactics over intellectual property rights, guard against management insensitivity, don't "strip mine" profits and don't use China as a lab. The authors then go on to show how these strategies can be executed to increase MNC's profits and standing in China.
Purchase Options

Educator and Student Discounts Available. Learn more »

  BENCHMARKS  
Loading Time: Base Classes  0.0008
My Controller Construct  0.0003
Build Nav  0.0008
Controller Execution Time ( Products / Route )  0.1417
Total Execution Time  0.1426
  GET DATA  
No GET data exists
  MEMORY USAGE  
1.5568 MB
  POST DATA  
No POST data exists
  URI STRING  
store/the-challenge-for-multinational-corporations-in-china-think-local-act-global
  CLASS/METHOD  
products/route
  DATABASE:  MITSLOAN_DEV   QUERIES: 68  (Hide)
0.0064  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0005  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0059  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0066  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0012  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0017  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0007  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0015  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0031  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0007  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0010  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0094  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0005  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0008  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0014  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  'cb54a3899341f44e10d4b304e18596a2'
ORDER BY `created_at` DESC 
0.0002  

SELECT SQL_CALC_FOUND_ROWS cat_id
FROM (`product_categories`)
WHERE `status_id` =  'A'
AND `url_friendly` =  'the-challenge-for-multinational-corporations-in-china-think-local-act-global'
AND `parent_id` =  1 
0.0056  

SELECT c.parent_id, c.format_id
                    FROM products AS p, products AS c
                    WHERE p.prod_id = c.parent_id AND
                        c.avail_id IN ('A','B','D') AND
                        c.type_id = 'V' AND
                        (
                            c.sku = 'the-challenge-for-multinational-corporations-in-china-think-local-act-global' OR
                            if(c.format_id = 'Certificate', '', p.url_friendly) = 'the-challenge-for-multinational-corporations-in-china-think-local-act-global'
                        )
                    LIMIT 1 
0.0002  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  1181 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '1181' 
0.0003  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '1181'
ORDER BY `sort` ASC 
0.0001  

SELECT `cat_id`
FROM (`product_categories__products`)
WHERE `prod_id` =  '1181' 
0.0001  

SELECT *
FROM (`product_flags__products`)
WHERE `prod_id` =  '1181' 
0.0001  

SELECT `sku`
FROM (`products__xsell`)
WHERE `prod_id` =  '1181'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0627  

SELECT `products`.`parent_id`
FROM (`transaction_lines`)
JOIN `products` ON `products`.`sku` = `transaction_lines`.`sku`
JOIN `product_categories__products` ON `products`.`parent_id` = `product_categories__products`.`prod_id`
WHERE `products`.`avail_id` =  'A'
AND TO_DAYS(transaction_lines.updated_at) < (TO_DAYS(NOW()) - 90)
AND `product_categories__products`.`cat_id` IN ('249') 
GROUP BY `products`.`parent_id`
ORDER BY COUNT(*) DESC
LIMIT 6 
0.0003  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '361' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '361' 
0.0002  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '361'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '3961' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '3961' 
0.0002  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '3961'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '35' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '35' 
0.0002  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '35'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '179' 
0.0001  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '179' 
0.0002  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '179'
ORDER BY `sort` ASC 
0.0002  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '489' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '489' 
0.0002  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '489'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '2465' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '2465' 
0.0003  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '2465'
ORDER BY `sort` ASC 
0.0003  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '1181'
AND `kind` =  'image_600x600'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0002  

SELECT *
FROM (`media`)
WHERE `media`.`media_id` =  '576' 
0.0001  

SELECT *
FROM (`mime_types`)
WHERE `mime_types`.`extension` =  'jpg' 
0.0001  

SELECT *
FROM (`media_metadata`)
WHERE `media_id` =  '576' 
0.0003  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '1181'
AND `kind` =  'gallery_image'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0004  

SELECT *
FROM (`products`)
WHERE `avail_id` IN ('A', 'B', 'C', 'H') 
AND `parent_id` =  '1181'
AND `type_id` =  'V'
ORDER BY IF(position = 0, 1, 0) ASC , `position`, `title` 
0.0001  

SELECT `c`.`format_id`, `c`.`price`, `c`.`sale_price`
FROM (`products` AS c)
WHERE `c`.`prod_id` =  '1182'
LIMIT 1 
0.0005  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '1182'
AND `kind` =  'thumbnail'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0002  

SELECT `product_categories__products`.`cat_id`
FROM (`product_categories__products`)
JOIN `product_categories` ON `product_categories__products`.`cat_id` = `product_categories`.`cat_id`
WHERE `product_categories__products`.`prod_id` =  '1181'
AND `product_categories`.`parent_id` =  1
AND `product_categories__products`.`cat_id` NOT IN (1, 261)  
0.0008  

SELECT `cat_id` AS id, `parent_id` AS parent, `status_id`, `name`, `description`, `url_friendly`, `page_title`, `meta_keywords`, `meta_description`, `position`, `updated_at`
FROM (`product_categories`)
WHERE `cat_id` != 1
ORDER BY `parent_id`, IF(position = 0, 1, 0) ASC , `position`, `name` 
0.0004  

SELECT *
FROM (`product_categories`)
WHERE `status_id` =  'A'
AND `parent_id` =  1
AND `cat_id` NOT IN (1, 261) 
ORDER BY `name` 
0.0003  

SELECT *
FROM (`site_settings`)
WHERE `option_key` =  'announcement' 
  HTTP HEADERS  (Show)
  SESSION DATA  (Show)
  CONFIG VARIABLES  (Show)