The Evolution Of Strategies: Multinational Subsidiaries Operating In China

Abstract

This is a study of the evolution of strategies of large multinational (MNC) firms doing business in China. Using the TOWS approach (Weirich, 1982) we classified the strategic posture of MNC subsidiaries in China into four discrete frames based on a survey of large firms. The results of our study applying the TOWS approach have allowed us to expose the trend of strategic evolution. We find that the primary investment motivation of MNS in China has changed from “low labor cost” to “exploiting Chinese market”. We report the motivations, actions, and aspirations of the managers of largest multinational subsidiaries operating there.