Although the wire and cable industry is only a supporting industry, it occupies 1/4 of the output value of China's electrical industry. It has a wide variety of products and a wide range of applications, involving power, construction, communications, manufacturing and other industries, and is closely related to all sectors of the national economy. Wires and cables are also known as the "arteries" and "nerves" of the national economy. They are indispensable basic equipment for transmitting electrical energy, transmitting information, and manufacturing various motors, instruments, and meters to realize electromagnetic energy conversion. basic products necessary in the society.

The wire and cable industry is the second largest industry in China after the automobile industry, and the product variety satisfaction rate and domestic market share both exceed 90%. Worldwide, China's total output value of wire and cable has surpassed that of the United States, becoming the world's largest wire and cable producer. With the rapid development of China's wire and cable industry, the number of new companies continues to rise, and the overall technical level of the industry has been greatly improved.

The continuous and rapid growth of China's economy has provided a huge market space for cable products. The strong temptation of the Chinese market has made the world focus on the Chinese market. In the short decades of reform and opening up, China's cable manufacturing industry has The huge production capacity formed has impressed the world. With the continuous expansion of the scale of China's electric power industry, data communication industry, urban rail transit industry, automobile industry, shipbuilding and other industries, the demand for wires and cables will also grow rapidly, and the wire and cable industry has huge development potential in the future.

In the process of promoting the multinational business strategy of wire and cable enterprises and implementing strategic management and control, the following principles should be followed: taking into account both domestic business and international business, seeking the connection between resources and industrial layout, consistent scale and efficiency, and matching ownership and control rights , the parent company and the subsidiary business are coordinated, and the organizational form of production is compatible with the organizational structure and management system of operation and management. To follow these principles, wire and cable companies should deal with the following relationships:

1. Correctly handle the relationship between domestic business and international business

It should be pointed out that the multinational operation of wire and cable enterprises is a requirement and objective result of the expansion of enterprise productivity, rather than a subjective and artificial intention. Not all wire and cable companies must engage in multinational operations. Due to the different scales and business nature of the companies, there are quite a few wire and cable companies that are only suitable for conducting business in the domestic market. Wire and cable companies with transnational operating conditions still need to correctly handle the relationship between domestic business and international business. The domestic market is the base camp for the survival and development of enterprises. Wire and cable enterprises can take advantage of the favorable conditions of weather, geography, and people to conduct business in China. However, the development of Chinese wire and cable enterprises must take some risks in these aspects. Focusing on the long-term, expand the regional scope of operation from the perspective of optimal allocation of production factors to improve market share and competitiveness.

2. Reasonable consideration of the relationship between industrial layout and resource allocation

Therefore, wire and cable companies should not only develop resources overseas, but also source materials overseas as much as possible to reduce raw material costs and some transportation costs. At the same time, wire and cable enterprises are manufacturing enterprises, and should reasonably consider the impact of natural resources and energy shortages on industrial layout, and deploy resource-intensive production links in overseas countries and regions with rich resources and low costs.

3. Correctly handle the relationship between scale expansion and efficiency improvement

Over the years, the scale of transnational operations of Chinese wire and cable companies has been attracting attention, and public opinion generally believes that due to their small scale, many companies have not produced the expected economic benefits. Therefore, for a period of time, the multinational operations of some Chinese wire and cable companies have gone to the other extreme, one-sided pursuit of scale expansion, ignoring economic benefits, and thus contrary to the original purpose of multinational operations. Therefore, wire and cable companies must correctly handle the relationship between scale and efficiency in the strategic planning and implementation of multinational operations, and expand their scale in order to obtain higher benefits.

4. Correctly handle the relationship between ownership and control

Wire and cable companies have acquired part or all of the ownership of overseas companies through foreign direct investment. The purpose is to gain control over overseas companies through ownership, so as to serve the parent company's overall development strategy and achieve maximum economic benefits. On the contrary, if a wire and cable enterprise acquires part or all of the ownership of an overseas enterprise, but fails to exercise control over the enterprise and does not make the ownership serve the overall strategy of the head office, then the transnational operation will lose its real meaning, and the enterprise will not be A truly multinational enterprise. Therefore, a wire and cable company that takes the global market as its strategic goal must obtain corresponding control rights no matter how much ownership it acquires in transnational operations.

5. Correctly handle the relationship between parent and subsidiary companies and overseas enterprises

The headquarters of a wire and cable company is the decision-making center for multinational operations, and the subsidiary is the profit production center of the parent company. The business of various overseas enterprises should echo each other, rather than internal competition. Under the system control of the parent company, each overseas enterprise conducts production and operation activities in order to complete the instructions of the headquarters.

6. The organizational form of production is compatible with the organizational structure and management system of operation and management

At different stages of transnational operation, wire and cable companies take different forms of production organization, or horizontal integration, or vertical integration. In order to adapt to this, the organizational structure and management system of the wire and cable enterprise management should echo the organizational form of production, so as to form a consistent, reasonable and efficient management and control system inside and outside.