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By Jin Zhang

This e-book examines the function of company constitution, together with the position of company headquarters, within the luck of huge businesses in China.

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Additional info for Catch-up and competitiveness in China : the case of large firms in the oil industry

Sample text

Being a ‘boss’, the headquarters unifies the ‘aggressive, highly individual, and very independent divisional top executives into one team’ (Drucker, 1946: 52), thereby achieving the synergy of a unified company. HEADQUARTERS IN THE TRANS-NATIONAL CORPORATION Recent research on the function of the headquarters in trans-national corporations reveals that the headquarters’ power of control remains as Function of corporate headquarters 15 important as before despite the fact that the mechanism of control becomes more sensitive and co-ordination oriented (Bartlett, 1986).

Part of the reason for this, I think, can be traced to the influence on economic analysis of the so-called ‘theory of the firm’, which has tended to confine the theoretical approach to the firm within the frame of reference provided by the traditional categories of monopoly and competition and by the problems of price and output determination. In consequence, this part of economic theory has attained a high state of refinement, but, . . , it does not provide suitable tools for the analysis of the growth and, in particular, of the innovating activities of firms treated as administrative organizations free to produce any kind of product they find profitable.

1 The multidivisional structure. Source: adapted from Chandler, 1962. Division product or region Functional department Functional department 12 Function of corporate headquarters devise the policy framework for the lower managers. Each division is responsible for a major product line or carries out activities in a geographical region. The divisional managers co-ordinate and administrate the functional departments in areas such as manufacturing, marketing, purchasing, research, and finance. Each of the functional departments, in turn, supervises the field units.

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