The Analysis And Strategic Consideration On Transnational Mergers And Acquisition By Chinese Enterprises

As the development of economic globalization, China has got great improvement in comprehensive national power and this has laid a good foundation for the policy of "step out of the country and become international". In the latest years, the cross transnational mergence of domestic enterprises increased a lot. Chinese firms should catch this opportunity, enhance their strength quickly from it and compete with foreign firms in the international market. Thus the growth of cross nations mergence means very much to the growth of domestic economy.However, the cross nations mergence of domestic firms, compares to the developed countries, still stays in the starting session. There exists large gap on the firm scale and merge experience between domestic and foreign firms. We should instruct china's cross nations operation with matured multi-national mergence theories and learn a lesson from precedence cross nations mergence case of Chinese firms. The expansion and maturity of mergence theories offers solid theoretical basis to the development of the actual practice. This paper firstly process the relevant theories of mergence, then analysis the actuality of the cross nations mergence of domestic firms. Although the size of overseas mergence of domestic firms increasing along the way, there are many problems. The external environment,firm itself and the competing strategies all have lots of deficiencies. Then the paper gives out a series of recommendations which aimed at these deficiencies, using the value chain analytical method. The government should optimize the external environment,create favorable regulatory framework for firms' mergence. The independent activities of enterprise can be divided into essence activities and assistant activities. According to the different characteristics of every production activity, the operator can reduce the production cost, enhance the production value of each link so to improve the competitive edge. The competitive strategy after mergence is also vital. firms should keep its difference and build unique value chain so to strengthen its attraction to customers. This paper also treasures the integration after mergence. If the integration goes well, the new company can get advantages of both sides and create better benefit. in the end, the author analysis two typical cases of cross nations mergence of domestic firms. Their success and failure can use for reference to the firms which are intended to go out of the country.