Research On The Merger And Acquisition Performance Of Baosteel And Wisco,Ltd.

Corporate mergers and acquisitions are a means in the process of development and growth.Successful corporate mergers and acquisitions can not only bring strong competitiveness to enterprises,but also bring scale benefits to enterprises.With the acceleration of the current economic development,the competition between China’s steel industry is becoming greater and greater,and steel companies have also exposed development problems.In 2016,the country issued opinions on the implementation of excess steel production capacity,clearly stating that steel companies can enhance the competitiveness of steel companies through mergers and acquisitions and other means.In the context of the country’s capacity reduction,in February 2017,Baosteel Co.,Ltd.successfully completed the merger and absorption of Wuhan Iron and Steel Co.,Ltd.Based on this,this article draws on the idea of balanced scorecard to evaluate the integrated performance of the merged Baosteel Co.,Ltd.The research content of this article consists of six chapters: Chapter 1,Introduction,which mainly introduces the background of the research in this article,a review of domestic and foreign mergers and acquisitions related research methods and research content;Chapter 2,concept definition and basic theory,defines merger integration The related concepts of the article introduce the basic theory applied in the article;Chapter 3,based on the actual situation of Baosteel’s Wuhan Iron and Steel M&A,analyzes the merger and acquisition plan and the motivation of the merger;Chapter 4,the merger of Baosteel’s shares after the merger strategy.Through the analysis of the policy environment of the steel industry and the analysis of the strengths,weaknesses,opportunities and threats of Baosteel,the development strategy of the combined Baosteel has been clarified,including the company’s strategic position(overall strategy),cost reduction strategy,and diversified operating strategy.Product differentiation strategy,early service intervention strategy and technology leading strategy.The fourth chapter makes use of SWOT’s advantages and disadvantages,and the analysis of opportunities and threats to clarify the integration strategy of Baosteel’s share swap and absorption and merger of Wuhan Iron and Steel.The balanced scorecard is based on the company’s strategy to evaluate the performance of the merged and integrated Baosteel shares.Therefore,Chapter 4 is the premise of Chapter 5;The fifth chapter is the performance evaluation of Baosteel’s absorption and merger of WISCO.With the help of the balanced scorecard,the performance of Baosteel’s integration is evaluated from the four dimensions of the balanced scorecard: financial dimension,customer dimension,process dimension,and learning growth dimension.Chapter 6,research conclusions and prospects,summarizes the full-text research conclusions and case inspirations on the basis of Chapters 4 and 5.The innovation of this article has the following two points:1.A systematic analysis of the integration strategy adopted after Baosteel’s stock exchange and absorption and merger of Wuhan Iron and Steel Co.,Ltd.were adopted.Based on a systematic analysis of the advantages(S),disadvantages(W),opportunities(O),and threats(T)of the combined Baosteel Co.,Ltd.,the overall development strategy of Baosteel Co.,Ltd.is as follows: The transformation from a smart manufacturer to a comprehensive supplier of automotive materials.Specific business strategies include: early service intervention strategy,cost reduction strategy,product or service differentiation strategy,and technology leadership strategy.2.Drawing on the ideas of the balanced scorecard,evaluate the performance of the two years(2017~2018)after M&A from four dimensions.In this way,not only the integration effect of Baosteel can be evaluated from the perspective of financial performance,but also the integration effect can be evaluated more comprehensively in terms of customers,internal process integration and learning growth;more importantly,the idea of balanced scorecard can be used to Combining the company’s development strategy with performance management,emphasizing the need to strengthen the combination of financial management and strategic management in the information age,strengthening the combination of tangible and intangible assets,and then answering excellent customer relationships,product and service innovation,and business processes Economic and social benefits brought by the optimization of Baoxin Software and the platform application of Ouye Cloud Business.The social contribution value per share is used as an index to evaluate the comprehensive performance of Baosteel,not only taking into account the financial performance of Baosteel,but also taking into account the benefits of the company’s employees’ salaries,bankers and other fund providers,and shareholders of the company.Case Enlightenment: Performance evaluation is a difficult problem in enterprise management.Using the balanced scorecard to evaluate the company’s comprehensive performance,it must be compatible with the company’s overall development strategy and business strategy.Baosteel Co.,Ltd.must take early intervention services first.The effective implementation of the strategy or the technology-leading strategy is inseparable from the support of advanced information service platforms,such as Baoxin Software and Ouye Cloud Business Intelligent Trading Platform,which can not only better serve customers,but also simplify the production process of downstream enterprises to reduce Costs,and in establishing cross-regional market alliances,give full play to warehousing and distribution,financing,guarantee capabilities and distribution capabilities of distribution companies,organize steel mills,distribution companies and banks to implement joint procurement to achieve a tighter steel supply chain.Can expand the supply chain ecosystem and attract more and better customers.Steel companies in the same industry can learn from this model to better serve their strategic goals.For government departments,in the face of overcapacity in certain industries,government departments should formulate scientific legal policies to help enterprises overcome difficulties and effectively resolve the problem of overcapacity in a timely manner.Management will further promote the innovation and development of Chinese enterprises,help enterprises take the path of green and sustainable development,and further enhance their core competitiveness.More importantly,the application of balanced scorecards can combine the company ’s development strategy and performance management,emphasizing the need to strengthen the combination of financial management and strategic management in the information age,and the combination of tangible and intangible assets.It can answer the economic and social benefits brought by excellent customer relations,product and service innovation,business process optimization,the application of Baoxin software and Ouye cloud business platform.