The Analysis Of The M&A Strategy Of New-hope Group

Many enterprises have the defects of blindness and experientialism, which result in failure in the tide of diversification and M&A. From 2002 to 2003, a series of M&A and rapid expansion in dairying business haven't led New-hope group to their objective. This article aims at analyzing the strategic and managerial problems by researching the M&A strategy and summing up the experiences in M&A and expansion, and find out a way for them in dairying business developing.Because of succeeding in fodder business, New-hope group has begun to diversify rapidly in recent years. In 2001 New-hope group came into dairying business by chance, and found the high profit in it, so they set out the M&A strategy and merged no less than ten local dairying enterpr ises in a short period. However, they have to end the M&A strategy that hasn't reached their aim.After analyzing the New-hope group's internal and external forces at that time, we know that they had some resources and capabilities to enter into the dairying business. Due to some managerial problems and lacking of talents, experience and technology in the dairying industry, they run a b i g r i sk of M&A i n cruel compet i t i ve market. Whether they could succeed in the M&A depends on if they could merge well, consolidate well and develop well.To some extent, New-hope group went w i th the t i de of da i ry i ng bus i ness merging and won some profit, but their M&A strategy has turned into failure. On the strategic management, the M&A strategy was not only unscientific and unreasonable, but also it was not carried out well,Therefore, the consol idation was weak. On the brand strategy, the M&A plan wasn't implemented and the brand strategy was unreasonable, and there were too many local brands, so i t was difficult to set up a national brand. From the foods marketing, they didn't attach great importance to the important foods marketing, which produced bad effect in M&A . In a word, the direct reason in the dairying M&A strategy is self-confident blindness, making a decision hastily, bad management and lacking in some resources.As one of the classical culture, the peasant ideology have affected New-hope group's managerial decision and execution, human resource management and enterprise culture, which is the origin of their failure.New-hope group should get rid of the peasant i deology and experiential ism; and deal with the diversification carefully; and take the strategy of centralized consolidation in the dairying business; and centralize the connective resources in dairying business, then develop a national famous brand based on the human resource expansion.