M&A Integration Model Of JC Group

The design of integration model is a key component of the design of merging and acquisition (M&A) strategy. It determines the direction and scale of the integration and is a key factor to the integration results. Thus, it is essential to realize the value of M&A.Our research is carried out in the context of ongoing extensive merging and integrating activities in pharmacy industry. JC Group is a typical corporation that leverages M&A to promote their core competency in that industry. This thesis explores the way to select integrating models that fit in the strategy, organization and integrating capabilities of the corporations, by studying multiple M&A integration cases in the history of JC Group. We hope that the methodology and approaches demonstrated in our research will help JC Group, as well as other pharmacy enterprises that are in or after M&A process.Case study method, comparative analysis method and inductive reasoning method are used in the thesis. Focus on the design process of integration models, we mainly discuss the influencing factors of selecting integration models.In our viewpoint, the integration model should focus on the enterprise competence, and depends on its goal and some other factors such as strategic dependency, organization's independency and integration capability. Strategic dependence relies on the complementation of the advantage of both sides in industry direction, capital, abilities and operating flow; Organization's independence should consider not only management system, enterprise culture, difference between employees of both sides, but also the limitations of the laws and policies. Finally, the estimation of integration capability should take into account of experience, capacity, and cost of the integration, as well as the transfer difficulties of the competitive advantages.The main contributions and creative ideas of this thesis are listed as follows.Firstly, it is the first system research about integration model of pharmacy enterprise. Secondly, it verifies and supplements current theory of M&A integration mode with real cases. Thirdly, integration ability is put forward to be the important factor for choosing the integration model. Fourthly, qualitative analysis to strategic dependence, organization's independence and integration ability is provided for self-appraisal of M&A, which makes integration model theory more suitable in practice.