Entry Strategies for Mnes in China: the Case of Danone and Dhl

3495 Words Jan 6th, 2015 14 Pages
Entry Strategies for MNEs in China: The Case of Danone and DHL

International Business
Winter 2014/2015

Table of contents 1. Introduction 3 1.1. FDIs and Entry in China 3 1.2. Research Contribution 3 1.3. Research Method 3 2. Literature review 4 2.1. FDIs 4 2.2. Macro Environment 5 2.3. Timing of entry 6 3. Discussion 6 3.1. Introduction of Cases 6 3.2. Motives of Entering China 7 3.3. Joint Venture in China 8 4. Conclusion 9 4.1. Implications 9 4.2. Limitations 9 4.3. Research Outlook 9 5. References 9

1. Introduction 2.1. FDIs and Entry in China
How should MNEs enter China? MNEs are usually presented with multiple entry choices, namely export, licensing agreements,
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Since the research by Meyer et al. (2009) was done using only four emerging markets it might be possible that it does not necessarily cover other emerging markets and behaviors of MNEs operating in them. I will test this by analyzing Danone and DHL and will also show how and with which motivation they conducted FDIs in China. 2.3. Research Method
To prove whether the research by Meyer et al. (2009) is correct, I will conduct a case study based on Danone and DHL as MNEs operating in China and analyze their decisions and influences by environment, that lead to the specific mode of FDI they chose to enter that market and compare it with the Resources, Institutions and Market Failure model from Meyer et al. (2009) to test whether MNEs in China decide different or according to the model. I will also analyze their timing of entry, as well as their motives behind doing FDIs. 2. Literature review 3.4. FDIs
FDIs can be categorized in three subcategories of entry mode: greenfield, merger and acquisition and joint venture and were first described as such by Kogut and Singh (1988). The main difference between joint venture, greenfield and M&A lies is the ownership. (Tse et al, 1997), which is why M&A and greenfield FDIs are considered wholly owned subsidiaries, where in a joint venture the MNE is partnered with another

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