The Strategic Trends and Factors of Swedish Manufacturing Companies Establishing in People's Republic of China

Abstract: The purpose of this thesis is to investigate implementation strategies of SwedishManufacturing Companies when establishing in People’s Republic of China, with the objective to determine what strategy that is the most commonly adapted. Strategy is an important approach, which companies apply when deciding what direction a company should take, in terms of financial, structural and operational. This study takes a deeper look into the different strategy approaches related to business expansions and establishment in PRC. By evaluating the intentions of a business expansion in People’s Republic of China, the different strategy approaches are influenced by the choice of strategy.The background is based on previous research and existing theories related to strategy. The theoretical framework of the thesis has its foundation in Porter’s theory of competitive strategy. It has been reshaped by Shi & Gregory (1998), Bartlett and Ghoshol (1998), Miltenberg (2005) and Luthans and Doh (2008). To strengthen the matrixes by Luthan and Doh and Miltenberg to Porter’s theory, a model has been developed and explained to connect the different frameworks to the primary data. In order to fulfill the purpose of this study a cross-sectional design is used. A deductive research approach is followed, and applying questionnaires in order to collect the empirical data necessary to answer the research questions uses a quantitative method. The questionnaires were distributed to a selected sample consisting of 39 Swedish Manufacturing companies that are established in PRC, consisting of a population of 99 Swedish Manufacturing companies in People’s Republic of China. The overall results showed a very scattered placement of the companies within the strategy matrix. Nevertheless, the result indicated that the majority of Swedish Manufacturing companies establishing in the People’s Republic of China choose a Transnational Strategy in a global context. Note that the results should only be used as supportive data and not as a valid source of final information.