International business is much more complicated than domestic business because countries differ in many ways. Countries have different political systems economic systems. Cultural practices can vary dramatically from country to country, as the education and skill level of the population, and countries are at different stages of economic development. Moreover, development of multinational strategies involves consideration of threats, opportunities, key success factors, and strategy options and issues that do not appear when the analysis is restricted to operations within a single country. In particular, the evaluation of a market must take into account the political and economic risks associated with individual countries. Thus the external analysis becomes much more demanding. South Africa's trade and industrial policy has moved away from a highly protected, inward-looking economy towards an internationally competitive system that is able to capitalize on its comparative advantages. Enhancement of the competitiveness of industries on the domestic and international markets has consequently become a prime focus of the country's industrial policy. International trade in textiles and clothing is conducted on an immense scale. Textile and clothing producers were responsible for 9.3 per cent of world exports of manufacturers in 2001. Barriers to entry for new firms and exporters are low, and consequently the degree of international competition is intense. Competitive advantage is very difficult to sustain for long periods of time. Newcomers speedily challenge successful exporters of basic products, and they must redirect their activities towards the production of higher value-added textiles and clothing in order to survive and prosper. As a world's fifth largest trading power, China economy expands promptly through their expert skills on technology, management, and labour-intensive products. Today, China represents between 5 to 10% of global output, their export market will continue to grow rapidly, and not only for their labour intensive products, but also for the higher technology goods and services that are an increasing proportion of China's output as it climbs up the production ladder. Textile industry represents a main role towards China's economy. However, due to the fast-moving pace of globalisation, it has increased the maturity on the product-life cycle of the industry. Multi-national organizations from China have a choice to extend their global reach, due to the government export incentive programme, the maturity companies can diversify their firms to emerging market in order to exploit their technological advantages and invest internationally . If firm's primary goal is to maximize their shareholder's value, then they and probably the economy are better off if they invest where they can earn the best return. As they do so, change in the global macro-environment further confounds the choices inherent in building a strategic organization. Some understanding of the organization's external and internal environment always drives strategy, as an international organizational better choice. In the most general sense, the long-run monetary benefits of doing business in South Africa are a function of the size of the textile and clothing market, the present wealth (purchasing power) of consumers in the market, and the likely future wealth of consumers. Also the Chinese's multi national companies can have the opportunity to gain export market in USA, Canada, Europe and other trade countries in South Africa. In order to achieve economic growth and competitiveness in South Africa, it is recommend that the several issues cutting across the textile industrial sector need to be addressed through knowledge transfer, training, investment and management. Develop innovative technologies to strengthen the competitiveness. / Thesis (MBA)-University of Natal, Durban, 2002.

Chinese presence in Africa has been rapidly increasing in the past few years and has been speculated to be mainly due to China seeking Africa’s political alliance and access to Africa’s natural resources and growing consumer markets. The growing presence of Chinese organisations in Africa, however, has not been without its challenges. In particular, Chinese multinational corporations (MNCs) in search of consumer markets in Africa have been cited as facing human resource (HR) challenges which may affect their organisational performance. In this regard, literature on human resource management has already established the important role of organisational culture, HR practices and organisational commitment in enabling organisations to achieve superior organisational performance. Given the fact that there is currently little research knowledge of Chinese presence in Africa at the organisational level, this research aimed to contribute empirical knowledge to the growing body of research in this area. Specifically, the main purpose of this research was to examine how the organisational culture of a Chinese MNC’s South African subsidiary has shaped the nature of its high commitment work system (HCWS) and to assess the consequences thereof on organisational commitment. In alignment with the phenomenological paradigm, the research applied a descriptive and explanatory case study methodology in order to generate rich, qualitative data which was required for in-depth descriptions and to uncover the underlying interactions of the researched phenomena at the subsidiary. The selected case for the research was, therefore, a Chinese MNC operating in the personal computer (PC) industry, which had expanded its operations to South Africa in order to reach Africa’s growing consumer markets. In particular, the South African subsidiary served as a PC sales and distribution organisation for the Chinese MNC. There were about 40 employees at the subsidiary who were all South African employees. Semi-structured, in-depth interviews were conducted with twelve employees from different job functions and across different job levels. Data collection was guided by the theoretical frameworks by Cameron and Freeman (1991) for organisational culture and Xiao and Bjorkman (2006) for the HCWS and organisational commitment. The data collected from interviews was then analysed through a qualitative, content analysis process. The findings of the research thus pointed to the market culture as the dominant organisational culture type at the South African subsidiary of the Chinese MNC; characteristics of the adhocracy and clan cultures were also discovered. The externally oriented market culture was found to be the most relevant for the high performance and market leadership aspirations of the subsidiary. The market culture also appears to be the most appropriate organisational culture that would enable the subsidiary to deal with the competitive nature of the PC industry. Furthermore, it was found that certain cultural values emphasised by the Confucian and Ubuntu value systems could have had a part to play in the formation of the subsidiary’s organisational culture. The market culture was also found to have had the greatest influence in shaping the primarily performance oriented HCWS practices. Of the investigated HR practices at the subsidiary, all were found to be consistent with HCWS practices, with the exception of ownership practices and the performance appraisal system. Finally, although there were generally high levels of organisational commitment reported at the subsidiary, other job and organisational context factors besides the HCWS practices were found to be the major contributors to those feelings of organisational commitment. By investigating the organisational culture, HCWS and organisational commitment of a Chinese MNC in South Africa, this research has added to the body of knowledge concerning the growing presence of Chinese organisations in Africa. Based on the empirical findings of this study, several recommendations have been made in an attempt to assist the Chinese MNC manage the organisational commitment of its South African employees towards superior organisational performance.