Case Analysis Of Cultural Integration For Enterprise Merge

With the increasingly fierce competition between enterprises,M&A naturally became an important way and effective method which can seek scale economy, decentralize operational risks, realize the strategic transformation for the enterprises. It's also the choice of Chinese enterprises reform. However, the things do not turn out as our wishes. Contrasting the M&A frenzy vividly, the successful cases of M&A are very few. Most enterprises haven't fulfilled expected value. Because taking the integration of tangible assets after M&A into account, many enterprises just pay attention to the strategy, business and financial factors before M&A, but not think highly of the integration of intangible assets especially cultural integration.Cultural integration is deeply studied in this paper, which also has a conclusion by the analysis of domestic and overseas enterprises. Four risk factors have been brought out in the process of M&A. They are information, finance, strategy and culture. Cultural risk is not only the most important risk factor for the M&A , but also easily ignored. Then, the paper stated the significance and function of cultural integration, which declared the successful cultural integration can ensure optimal distribution of resources, increase the business performance. Meanwhile, a long-term stable development of enterprises is based on successful cultural integration. Culture integration leads to poor performance if improper cultural integration is taken. Then the paper analyzes the causes of the failure which is rooted in cultural differences. Through the study of cultural differences, there are two main forms which are state-to-state ethnic cultural difference and cultural difference of the enterprise itself. And by the analysis of two cases, which are the Benq M&A Siemens and Citic M&A GF Securities, the text found some questions in the process of cultural integration. Finally based on M&A cultural integration, the text puts forward some general methods and strategies which include: First, Improve culture consciousness. Second, Build culture research team and Recognize cultural differences between enterprises. Third, Choose suitable mode of cultural integration for enterprise development. Fourth, Establish common values for M&A enterprises.