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A Study On Corporation Merger And Acquisition Stratagem Based On Core Competence

Posted on:2006-04-08Degree:MasterType:Thesis
Country:ChinaCandidate:X P HuoFull Text:PDF
GTID:2166360155956968Subject:Business management
Abstract/Summary:PDF Full Text Request
In the present background of economic globalization, Chinese companies are facing dual competitive pressures from both inside and outside. In this condition, many companies use M&A as an effective method to expand quickly as M&A are common operations in corporate restructuring and effective ways for corporations to realize leaping development. However, materials show corporate M&A success rate keeps very low while they increase steadily in number. So, how to improve the success rate of M&A is becoming an important problem needed to study. This paper presents that strategy selection mistakes caused by which strategy is not competence-oriented are main causes for failure of corporate M&A. Corporate M&A should be performed with consideration of corporations' long-term development, based on their core competences and aimed at their improvement.According to the common principle of core competence's building and extending, the interrelationship on M&A and core competence is raised from a combination of core competence and M&A theories. That is, when buying company lacks core competence needed by development, M&A is used to transfer core competence from selling company to buying company to build up its core competence; when buying company has a core competence, the fundamental purpose of seeking profit maximization will spur, and it uses M&A to extend this core competence to selling company.Based on the theory, the paper analyzes M&A as the researching method of strategic management. The paper establishes a strategic analysis frame for corporate M&A on the base of core competences which shows the aim of M&A is to build and extend core competence; Resources, technology, marketing and culture are the points for choosing strategic pattern; Strategy implementing process is analyzed from three periods: M&A preparation, M&A integration and M&A consolidation. It...
Keywords/Search Tags:Corporate Merger&Acquisition, Core Competence, Merger&Acquisition Strategy
PDF Full Text Request
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