Study On Cultural Integration After The Merger & Acquisition Of Private Enterprises With State-owned Enterprises

With the reformation of economic system in China proceeding, the attitude of the government to private economy has turned from "acceptation", "comprehension" into "supporting", and private economy has made great progress; meanwhile, as the reformation of business system of state-owned enterprises has been accelerating, the government puts forward such policies as "building large scale enterprises or group". Therefore, a lot of private enterprises that are powerful in funds anticipate in the reformation of state-owned enterprises, and especially merger and acquire, and reorganize medium or small scale state-owned enterprises. Because of cultural difference between these two kinds of enterprises, great difficulty has emerged after the mergers & acquisitions.Based on the present situation of corporate culture of state-owned and private firms, this article tries to find out the possible conflicts after the mergers & acquisitions in such fields as "corporate values", "management style", "business notions", "business mode", and "corporate image and traditions". And this analysis prepares for the applying model of cultural integration afterwards.The author puts forward that several important reasons why not many private enterprises can succeed in the cultural integration after mergers & acquisitions are as following: first, the entrepreneurs of private enterprises is short of relevant knowledge of cultural integration; second, the acquirers ignore communication with employees as the new culture comes in, and so on. Thus, after giving some measures to save the possible failure in cultural integration, the author puts forward the applying model of the mergers & acquisitions of private firms with state-owned enterprises. The guiding principle of the model is private enterprises should look into their own corporate culture, combine the advantages of their culture and that of state-owned enterprises, throw away the contents of the cultures that do not fit the time and development of enterprises, and study the corporate culture of some successful firms of the time. Thus, this process of cultural integration should be a process based on cultural rebuilding, and corporate culture should be efficient measure of corporate management.