The Strategy Of Shandong Chenming Paper Holdings Limimted M&G Yanbian Shixian Papermaking Co.,Ltd.

Along with the continuously increase of the Chinese economy, the Chinese economy is transferring from the enterprise compete stage to the industry competition stage, the enterprise m&g strategy aiming to integrating industry is count for much.Seeing the m&g effect all over the world and china , probability is about 50%. How to improve the enterprise value is a problem to solve. This text through the research of strategy that Shandong chenming paper holdings limited merge Yanbian Shixian Bailu papermaking co. , Ltd, analyze the course 一. Industry analysis of the newspaperThis chapter mainly analyze the newspaper industry through development trend , industry policy and markets compete three aspects. Papemaking industry is a very important and strategic sector in the world economy system 。 In thousands paper products, the newspaper is very important and special , it' s yield, quantity and the technique level symbolize one flourishing degree of the country papermaking industry, it' s position in the papermaking industry is equal to the car in the automobile industry .In china the newspaper consumption is the 4. 7% of the paper consumption , only is 40 % of the average level in the world; average consumption is only about 1. 55 kg in china, but that is 6. 3 kg in the world. There are huge space in development of Chinese newspaer industry。 According to the estimate, several years of future newspaper consumption willmaintain the increase of 8-10%s .Currently, domestic newspaper concetration ration is lower, market competion is ver huge, the price of prodution is more lower , so it is necessary to solve overmuch capacity and produtiono Pulp, paper and cartons that match the scale standard be included in the industry, product and technique catalogues of the national point encouragement.Zl. M&a strategy of Shandong chenming paper holdings limited The basis studies show:The profits is positive related with the concentration ration and the bulwark to enter the product market, a market structure of higher concentration ratio can acquire the higher profit margin, the horizontal merger causes the market concentration, and make profit margin inside the industry raise. Bese on the industry endgame thoery , all industry integration along the same path0 Without the superior or biggest company scale, for the sake of the existence, the company must keep on the growth.Natural increase is not the road of success, one company want succeed on the competing , merge is inevitablyo According to the concentration ratio of the newspaper industry, that industry has already arrive the scale stage from the beginning stage, now just be placed in large-scale merge period.The integration of newspaper is certain development trendoThis text make use of porter' five force model and SWOT analysis to analyze the inside and outside environment of Shandong Cheiming, think that company shoulds adopt the horizontal m&a strategy with low cost, through merging competetion in the different area , enhancethe current value chain;Raise the production scale, carry out economy of scale;Strengthen the market share, acquire the market influence, promote company development. Main m&a stategy is integrate industry quickly, establish better brand and enhance core competitive force,, H .Management and financial analysises of Yanbian Shixian Bailu Papermaking .,LtdThis chapter analyze the management circumstance and financial status of Yanbian Shixian in detail.As Yanbian Shixian having established 170 thousands ton newpaper item, it' production is increaisn , but because of severity competition, price is lower than past yearso Because of the extension of the company production scale, the economic of scale is come to being, the unit cost is reduced. As production output don' t reach economic scale, but financial expenses and management expenses increase large range, it' s income to net asset ratio declinedo The company certainly exist liquidity risk and the risk of repaying debt of long period.The Yanbian Shixian has abundant industry experience, and have the international advance newspaper production line ,it has the huge potential.As Yanbian Shixian is changed from a state-owned enterprise which have established sixty years,it take on heavy historic and social burden, this need to be accorded enough oH9. Synergy analysisSynergy mainly come from four aspects of the following: cos^ income^ market force and intangible asset .As Shandong Chenming mergeYanbian Shixian, it' s scale increase, so it can buy cheapermaterial based on huge volume buy,and reduced R&D cost through sharing production technique and experience. The main synergy: increment of the market force, reducility of the purchasing cost and the production cost and development cost ,improve the ability of develop and pass the share retail outlet exaltation sale income and lower the sale cost.3In Integration strategyIntegration result is successful key of m&a, Shandong Chenming and Yanbian Shixian can carry on the integration at following severalses: Purchase, production operates the process, Sale, Organize culture.A. Conclusion1. Successful m&a must have one right business strategy.lt is necessary to estimate industry development trend rightly, and analyze strength , weakness, opportunity and challenge , take the capacity of company management and financeo2. Only have the strategy oneself is not enough, it is also and can' t create the value for the investor. It should be done that analyze synergy rationally. Don' t be optimism of your analysis. Excessively optimism is a main reason of m&a failure,,3. Though many person approval that the mess strategic means and the high paid price is usually reason that results in merger failure, but the mess integration design and carry out is really the third reason of the failure. Two decision must to do on integration stage: 1 > which field need to be integrated ; 2 , Which method about...