Analysis of Chunlan Multinational Operation

4> Taking control is the prerequisite of Chunlan's cooperation with outsiders. Taking control helps Chunlan to attain its own strategic goal and maximize benefits. Taking control capability is reflected by share percentage, technology and marketing capacity, brand and management experience and capital ownership. When Chunlan negotiated the cooperation with a Korean company on refrigerator production, the Korean Company insisted to have share control, arguing that their company is world famous multinational company. Chunlan insisted on its territory with strong capital capacity and brand product advantage. Both parties finally reached the agreement that each party would have 50% share and manage the company in turn with a 4-year term, and that each party should accept the condition that the word "Chunlan" should be on company name and products brand. Chunlan achieved another high-level capital expansion. Taking control is the prerequisite in Chunlan's cooperation with others. Chunlan cannot establish its world image without the Chunlan brand. …