Topic > International business environment: the case of Haier...

1. IntroductionNowadays with the development of technology, especially after the appearance of the Internet, communications between people become more convenient and frequent. As their relationships become closer and closer, globalization has become the trend of the age. Faced with such a good opportunity to expand the market, acquire more profits and resources, several international companies began to emerge. “International businesses usually mean companies that do business between two or more countries” (John D. Daniels, 2013). They now constitute a large and growing part of global business. To succeed in the fierce global competition, international companies need to make many changes actively to cope with different conditions. Changes in corporate governance, internal organization and foreign entry strategy constitute three main parts. However, no matter how many changes have been made, the involvement of the culture and institutions of the country from which they started still exists. And the culture and institutions of the host country also have implications on the choice of foreign entry strategy. To demonstrate this, the article uses the famous international company Haier as an example to analyze the implications of the culture and institutions of the home country, China, and the host country, America. Haier was founded in 1984. Over the past 30 years, it has transformed from a small refrigerator manufacturer into a world-renowned enterprise that has over 15,100 different products exported to more than one hundred countries. Thanks to its entrepreneurial and innovative spirit, Haier has become the world's number one home appliance brand. In 2013, its global revenues and profits even reached RMB 180.3 billion (USD 29.5 billion) and RMB 10.8 billion (... middle of paper ... it must be considered that, although as an international company Haier's company, corporate governance and internal organization have made changes to adapt to the changing international business environment, are still to some extent influenced by Chinese culture and institutions, and its choice of foreign entry strategies takes into account the culture and institutions of America The culture and institutions of the international companies' home country still have implications on corporate governance and internal organization. And the culture and institutions of the host country have implications on its entry strategy conclusion can be used for all other Chinese companies, but the implication levels depend on their specific conditions will be different because there are many other aspects to consider such as company size, financial strength, marketing objectives, customers, products and services