In recent years, the concept of “business internationalization” has become not only increasingly hot in Italy, but the common view by the enterprisers and men of insight who strive for further development in post-crisis era. There are four main types of internationalization in all. Today, we put special attention to the case study where Italian production enterprises place their own production links directly into China.
The Italian parent company F (the pseudonym) appropriately chose the time entering the Chinese market and in the first six years – from 2005 to 2011 – it fully enjoyed the local government’s preferential policies like tax reduction & exemption, which undoubtedly was a flourishing agent for a start-up company. With continuous advance and growth for 12 years, now the company has developed into a world-class and well-established industry leader. The essence of this successful case lies in the fact that the Italian parent company has fully optimized the production chain of the enterprise group, – for the Chinese subsidiary is responsible for finished products and spare parts production accounting for more than 90% of the total, which effectively reduces the production costs, and more importantly, optimizes the enterprise group’s capital chain – and the company can not only obtain “financing” in the delivery phase, but also offer convenience to the trade side for payment delay in the collection phase. It can be said that the Chinese subsidiary has played a crucial role in the development and rise of the Italian parent company.
Of course, the growth of F’s subsidiary in China is not always smooth. The management and operation experience which is well applied in Italy needs to be adjusted timely to meet the local conditions and needs in China, especially in the context of huge national differences in two countries, like the gap between the legal systems, accounting standards and tax laws including administrative laws and regulations.
In June, CN Giada Verde was appointed to assist the Italian parent company F to perform accounting auditing, special auditing and site investigation at its wholly-owned Chinese subsidiary by organizing a team consisting of certified public accountants http://www.xigema.com/and lawyers from Italy and China. After the accomplishment of on-site due diligence and assessment, CN Giada Verde team made some constructive comments and suggestions not only on the performance of its internationalization strategy, but on the business model of the Chinese subsidiary as well, especially in terms of legal and international trade. The person in charge of the enterprise deeply agreed and highly praised the integrity of CN Giada Verde’s professionalism, foresight as well as the clear mind in exploiting the enterprise’s potentiality and drawing up new strategies.
In addition, CN Giada Verde also played an irreplaceable role in the smooth communication and exchange achieved in the field of accounting, legislation, Customs and international trade affairs between the Italian parent company and its Chinese subsidiary. Although the parent company and the subsidiary use English as official language, it is not the mother tongue for both of them. Thus, it’s inevitable to cause misunderstanding, puzzling and ineffective communication in collaboration at work. Thanks to possessing a team made up of professional consultants who are skilled in the use of Italian, English and Chinese languages and multi-national language professor translators, all technical problems and communication barrier were swept up in the case. These advantages seemed particularly prominent and important in this accounting and special auditing work in June.
In conclusion, besides sharing this successful business internationalization case between Italian and Chinese enterprises with the reader, CN Giada Verde sincerely wishes: more and more Italian and Chinese enterprises can effectively maximize their own advantages through our services like professional advice, strategy development, market research, meticulous planning and so on. No matter which type of international strategy your company selects to follow, it will successfully achieve marketing growth and cost control, reduce the risk of production and operation and ultimately obtain the maximum profit in the world economy stage! Giada Verde, green jade, a symbol of good luck and prosperity! Please feel free to contact us: info@giadaverde.it.
