Culture Conflict In Mergers And Acquisitions And Integration

Over 100 years in the past, there occurred five relatively large scale mergers & acquisitions(M&A) throughout the world. The dynamic development of M&A makes itself an important way and means to a quicker growth of enterprises, the effective one of which is ,for the part of the dying enterprises in desperate environment, an authentic remedy while for the enterprises whose achievement has declined the reasonable one of which can help them reach a new high, and for the enterprises who are steadily developing, the successful cne of which can facilitate the enterprises without vitality to attain another outstanding achievement. Thus M&A has become a function of a corporation with each passing day, the trend of which has drawn much attention of the theoreticians.As a means to the quick expansion of market, M&A can urge enterprises to divide and reorganize and at the same time, enhance the strength and development of large-sized enterprises and multi-national corporations.In the world-wide upsurge of economic globalization,market globalization and capital securitization, M&A has been carried out like such a rising wind and scudding clouds that it has got involved aviation, finance, manufacturing and service industry in which some M&A regarding large sum of capital have taken place now and then ,even more frequently.In accordance with the international trend mentioned above, Chinese enterprises have to realize the integration of industry bigger,better and stronger by resorting to the means of M&A at the stage of the Chinese economoic pattern transformation, facing the extraordinarily arduous task of structure adjustment and the serious challenge from the transnational corporations abroad since China's entry into WTO. As a result, Chinese enterprises will witness an upsurge of M&A of large scale in the near future.For modern transcultural M&A ,it has become an important subject to make out the ways of integrating various cultures for they would inevitably encounter a variety of contradictions and conflicts in the process of M&A.Thus the discussion as to conflict and integration of corporate culture after M&A has laid an important objective basis for successful management of transcultural corporations.The thesis ,on the basis of the theories of M&A and corporate culture,reviews the history and development of M&A and the situation of transnational M&A of various countries,from the profound analysis of which it comes to the conclusion that integration plays a significant role in M&A.Furthermore, the thesis holds that in the process of M&A,enterprises should focus their attention particularly on culture integration which is a beneficial supplement of the traditional theories of M&A regarding integration of organization structure for the purpose of leading the ideology of corporate leaders to that of putting equal emphasis on the "hardware" problems—organization structure& technology and "software" problems—culture integration.Whether postmerger culture integration is successful or not is of direct significance to the result of M&A as well as affects the advancement and development of enterprises. Since culture integration is a complex process, the thesis points out the culture adaptation mode of inegration for postmerger enterprises along with quite a few suggestions concerning culture integration.At the same time, the thesis elaborates some problems as regards culture integration and strategies in reply in the process of M&A by citing full and accurate facts.As the problems Chinese enterprises face in the process of M&A are much more in number and more complicated than those abroad, it is necessary to lay emphasis on,during M&A,the utilization of culture integration, the success of which rests with the fact that Chinese enterprises make full use of their excellent traditions as well as abandon large numbers of bad corporate culture. As the result of being still in the initial phase of seeking M&A abroad ,Chinese enterprises need to accumulate a great deal of experiences regarding transnational M&A esp. those concerning culture integration, so the thesis sets forth some specific suggestions for Chinese enterprises so as to enhance them to develop into bigger and stronger internationally-oriented corporations.