The Research On Enterprise Culture Integration In M&A

Enterprise culture has become a type of significant strategic resource later on person, money, matter, and information during a company growth . Enterprise culture, one of key factors for a company to succeed and gain competitive advantage is becoming more necessary and urgent in increasingly intensified competition. To some extent, a business competitive potential depends on whether it attaches importance to culture. In the present, businesses are going on Mergers& Acquisition, however, the performances are not satisfied. Neglect to culture integration or culture integration failure is strongly contributing to low performance in M&A. So researching culture integration in M&A plays a significant role in enhancing enterprise performance, achieving competitive edge, and eventually bringing out enterprise growth.Firstly, the thesis introduces the concept and characteristics of business culture. The author devises a questionnaire and makes non-random sample survey about 215 employees from 13 businesses on the basis of the research achievements both here and abroad on enterprise culture variable, the methods and models of culture integration, and some practical situations in our businesses. The author also makes statistical analysis on sample businesses and sample staff, then the author elaborates the research ideas and methods.The theoretical analysis is made on M&A culture integration in the second chapter, including implication of M&A, the notion and roles of culture integration, the concept and makeup of enterprise culture variable such as structural, emotional, and political variable plus the theories related to culture integration.The third chapter first discusses present condition of M&A culture integration in our enterprises on the basis of importance of business culture variable and the survey results on integration method and mode. The part also analyzes Alpha value, media, variation of the major culture variables and variable components, in addition to the correlation between variable and sub variable. Second, the part makes comparative analysis on culture variable in different industry, scale and business nature. It explores the chief methods on culture integration and the sequence: the substance-leveled, system-leveled, then spirit-leveled integration based on the frequency, and the main mode at the moment: assimilation integration. Moreover, the part discusses the existing major problems of enterprise culture integration in M&A including neglect tospirit-leveled integration, substituting merged business culture with merging business culture, lacking innovation in culture integration mechanism, separating M&A from integration, and ignoring employee participation during integration.The fourth part makes analysis of reason for problem.the features of culture itself; internal reason, and external environment of business are contributions to the present culture integration.Based on the above-mentioned present conditions and causes the fifth part puts forward such solutions as stressing culture evaluation pre-M&A, seeking key culture variables, instituting culture integration from all directions, selecting the mode of culture integration reasonably, establishing rules, reinforcing communications along employees, perfecting personnel integration, launching cross-culture training, trying hard to initiate learning atmosphere, cultivating atmosphere of excellent enterprise culture, and implementing continuously basic principle in practice.Finally, the author also makes a case analysis on Zhonglian's culture integration and put forward tactical suggestions on perfecting the company's culture integration based on the stated theory and practice.