China as a developing country, she changes a lot especially in the recent years. China had changed planning economic into market economy. After the reform of China policy, China’s gross domestic product growth rapidly. These kinds of situation bring about good opportunities for foreign investment to invest in China.
Howton Ltd, is interested to take over a Chinese telecommunication company, New wonders in Shanghai, and Howton Ltd was interested in increasing its market share. Before the take over, to understand the local situation and Human Resource situation in China is very important. In term of the requirement of the Chief Executive Officer of Howton Ltd, Mr. Richard Wilson, we reported some researches and give some recommendations to Mr. Richard Wilson.
The purpose of study of this report were as followings:
To provide necessary information for Howton Ltd take over the local telecommunication company. Analysis the Chinese local situation for the Human Resource Department, help them to know the opportunities and threat in China. Recommend some suggestion for Howton Ltd to cope with the local situation in China, also give some recommendation for reform New Wonders’s Human Resource System.
The scope of our research included all the east city of China; the emphasis of our research is Shanghai. During in the research we use interview, research on the ground, questionnaire, also get some professional report from the Internet.
External Environmental Scanning
a) Economic and Technological changes
China as a developing country, she changes a lot especially in economic and technological. A major economical shift is from manufacturing industry and agriculture industry to service industries and telecommunication. China had changed planning economic into market economy, with the economic reform from later eighties.
After reform the economical policy, China’s gross domestic product (GDP) growth faster than other countries. In the nine months to September of this year, China’s gross domestic product was 6.72 trillion yuan (S$1.5 trillion), growth of 7.6 percent on the same period in 2000. A top economical official predict: “China’s gross domestic product will maintain its 7 percent growing speed despite the global economic slowdown”.
China's entry to the WTO has created a favorable environment for China especially for Shanghai to expand its reform and opening-up drive, and participate in economic globalization. WTO bring a lot of opportunities for foreign investors to enter China’s market, also it will increase international competition. China looks set to receive at least 40 billion dollars in foreign investment next year after entering the World Trade Organization according to an authoritative survey.
Economic development cannot do without the espousal of technological. Technological improvements cause the economic advance increasingly.
The most important technological change is the application of the computer. A new object born in 1946 that named computer. People don’t know its usefulness at first but the computer is really changes our life deeply nowadays. Depending on the support of computer people can use company to calculate to collect data and also to deal with the data. Computerization improved the productivity and efficiency, saving time and money.
Another typical technological change is the application of the Internet which along with the computerization. With the help of the Internet people can contact with the person around the world. Nowadays, human social has been into the information period. There are ten millions people use Internet, according to a relevant survey, Internet covered 2.5 hundreds of countries or areas, there are 170 million users during in the world, 8.9 million users in China, at the end of 1999.
Along with the computerization and usage of Internet, many company built up their own Internal Area...
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