The competitiveness of an enterprise is the capability of making more profits or producing more values from the assets than the competitor. It refers to the status quo, the strength and the potential of an enterprise. The development of globalization and IT technique intensifies the competition among the companies. With the entry into WTO of China, the openness of the market is further improved and the competition between China enterprises and TNCs is heated up. It is in the international market where China enterprises struggle for the space of survival. It means that the vital element to the enterprises is the global competitiveness.
However, I feel regret to find that the research on the global competitiveness of the enterprises just gets under way in China, far behind both the achievement in the Western and the economic reality of China. Therefore, applying the classic theories on competitiveness, I analyze the status of the global competitiveness of China enterprises and try to find out the methods for China enterprises to improve the global competitiveness. The structure of this paper is arranged as following:
Chapter one casts the light on the theories about competitiveness in the field, including the theories of Michael E. Porter, game theory and the theory of core competitiveness. The theories of Porter are stated in his three books "Competitive Strategy", "Competitive Advantage" and "The Competitive Advantage of Nations". The way of distinguishing, creating and keeping the competitiveness of an enterprise in the former two books is the direction of the manager in an enterprise. The point made in the last book of "Nation is the greatest advantage to the enterprises" is the advice to the government of China. Game theory is the popular theory based on the presupposition of dynamic and competition. It is emphasized by all the enterprises and took as reference in decision-making because it is very apt to the economic reality. The theory of core competitiveness is some a new one. It stresses on the core capability of technical creativity of an enterprise, reflecting the diversified tech times and information society. Furthermore, the index system of competitiveness used by IMD is introduced in the chapter one.
Chapter two analyzes the overall status of the global competitiveness of China enterprises. To obtain the whole data of the performance of China enterprises, I collected the results of rating on the competitiveness by kinds of institution, such as the Competitiveness Yearbook by IMD, the World Top 500 by Fortune, the World Top 1000 Banks by Banker, the Top 225 Contractors and Top 200 Design Firms by ENR, the Largest 50 TNCs from Developing Countries by UNCTD, and the Best-performed Small Companies by Forbes. These data are much valuable on the research of global competitiveness of China enterprises.
The only way for the enterprises to grow is to compete with other companies in the world market. So foreign direct investment will be inevitable for the enterprises to WP=5improve the global competitiveness. In the chapter three, the relationship between global competitiveness and foreign direct investment of enterprises is reviewed, and the relationship between the global competitiveness and the status of foreign direct investment of China enterprises is raveled. The China enterprises have some basis, strength and experience in foreign direct investment, together with a favorable domestic and international environment. However, they are still tyro in it and faced with some handicap and disadvantages.
Therefore, some advice and suggestions on how to improve the global competitiveness and make foreign direct investment are put forward. It is responsibility of both the government and the enterprises. On one hand, the government should make favorable policies, legislate properly and establish certain institute to set down the strategies and provide the insurance. On the other hand, the enterprises need to build up themselves with better management and be more active and prepared in the foreign direct inv