M & A Strategy. P Preliminary

With the economical globalization and substantial structure modulation at capital market in the scope of the world, Mergers and acquisitions (M&A) continue to be the most effective way of dominant growth strategy for enterprises to acquire long term competitive advance.Many failed M&A cases demonstrate that neglect of environment, wrong strategy positioning as well as decision-making, and integration management is the major cause.Different with traditional M&A research aiming at capitalization acquirement, this paper is based on the research of solid state lighting business of P Company, uses typical environmental-oriented strategy and field competitive advance strategy as fundamental. Integrated value chain, competitive advantage, core resource and capability analysis into M&A strategy structure.The M&A procedure is only the way but not strategic key initiative, then real M&A is to recognize core capability as well as can create value for Enterprises. This paper defines synergy effects as the source of interactions between strategic M&A and the core capabilities of Enterprises. Establishes the strategic M&A model for P company based on core capabilities acquiring, enhance and re-engineering. In addition, defines that M&A is the implement of synergy effects as a value added on process and creation.Afterward, this paper proposes an integrated architecture as a solution for strategic M&A, it provides both the way of evaluating the potential values through acquisition to make appropriate choice, measure of feasibility to implement value added-on integration and pattern of continuous improving such feasibility. Based on the value proposition and strategic options model of P Company, it's possible to recognize the source of core capabilities and the way of implementing. The design of integration pattern for P Company is to solve the problem of organization and culture match between different enterprises, align strategy selection with execution field, shaping the management process of implementing core capabilities for existing enterprises.