Cultural Integration In Mergers And Acquisitions

In recent years, along with the development of economic globalization and China's entrance in WTO, China is actively involved into the world economy, even if the Chinese corporations operating in domestic market have to face the drastic competitions inevitably. To gain competitive advantage by enhancing competencies, many corporations are getting bigger and stronger by many methods. Because merger and acquisition (M&A) are cost-lower and expand rapidly, an amount of corporations select this method and the waves of M&A become higher and higher. At the same time, many successes of M&A fade like a flash in the pan as a result of the failure of integration, especially the culture integration.Firstly, this thesis summarizes the academic achievement in the area of M&A and corporate culture both in and outside China by literature analysis, and gives an introduction to Cultural Transformation Tools (CTT) of Richard·Barrett. Secondly, it analyzes the cultural difference and the reason why cultural conflicts occur by case analysis, and conduct a discussion on how to select the appropriate cultural integration models. Then, the detailed design of cultural integration processes and methods have been put forward. This thesis also bring forward an innovative viewpoint, which is the acquiring corporation should evaluate and improve the culture of itself by the chance of M&A if necessary. At the end of this thesis, the case of cultural integration of HP acquiring Compaq have been selected and analyzed elaborately. The analysis focuses on the process of cultural evaluation, and summarizes the experience of this success, so provides rich knowledge in theory and practice for the future cultural integration in M&A.