Corporation M&A Research On Improving The Core Competence

M&A of enterprises, as an enterprise behavior in the surrounding of the market economy, has come through one hundred years in west developed capitalistic countries. With economy globe coming nearly, west countries raise a new extensive M&A again. Twenty years' M&A practices argue that, M&A of enterprises has got rid of many macro and micro-economics problems. At the time of enterprises changing in nature, M&A of enterprises will get more and more important for us. Through property right transformation, M&A can reorganize the state corporation strategically, accelerate capital factors fluxion rationally, even point out an effective approach for enterprise grow.M&A is the very complicate business activities. The conceptions are more and more ripe with the deepness of the economic activities. At the end of 19 century and the early stage 20 century, when the first wave of mergers emerged, John Moody put forward the prime conception of the mergers. With the development of economic, the area of M&A was widened, and the theoretical system was increasingly enriched and developed as well. Prahalad & Hamel published the paper named the core competence of the corporation in 1990, in which they presented the concept of the core competence of the corporation formally. The core competence of the corporation rose rapidly and became the mainstream of the corporation strategy theory since the concept was presented.However, our country realize a little about its disciplinarian and theory due to put M&A of enterprises into practice recently, result in our corporations are short of academic basis at present. At the same time, west theory are out of dates and doesn't match with our base, that embarrass M&A of enterprises in our country. This paper reviews the corporation core theory, present the corporation M&A behavior, necessity and aim, also emphasizes that enterprise should take attention to strengthen the core competence. The third part in this paper makes use of game model in the choice of foreign investment mode to explain the necessity of corporation M&A. The fourth part in this paper emphases on analyzing related successful cases of corporation M&A, and presents the opinion that the developing corporation core competence is the ultimate goal of corporation M&A.