Cross-border Mergers And Acquisitions Of Chinese Enterprises In Brand Integration

Cross-border Mergers and Acquisitions(CBM&A) has become the main way in FDI and one of major methods of carrying out global management strategy for international cooperations.With the further implementation of"going global"strategy in China, Chinese enterprises have made some CBM&A in recent years, in resulting of obtaining target enterprise owned intellectual property,overseas marketing channels and brand resources, and with low-cost advantage of chinese enterprises,they can participate global management and fully join international quickly.Therefore, studying current status of modern enterprises'CBM&A and integration, learning lessons from their experiences will have important roles and practical significance and direct Chinese enterprises to proceed global management, open overseas market, fully make use of both foreign and domestic resources and resource optimal allocation. So much research shows that, the result of CBM&A depents on the performance of mergers and integration. Since the 1990s,integration research on post-mergers and acquisitions has become hot point of mergers and acquisitions theory research both at home and abroad, and there have been a lot of research results. However,present research mainly focus on enterprise culture integration, human resource integration and finacial integration etc., with a little on brand integration. In the practice, it is often ignored how to integrate two brands effectively by enterprises, in the result that neighter mergered brand is made a full use nor self-owned brand unsatisfatorily. This paper believes that brand integration is the key step in the process of integration after the CBM&A, is the one of critical factors for the enterprise to realize its merger and acquisition target smoothly, which also affacts the transition of other advantaged resources, due to the rich connotation of the brand and so many other relevant aspects.Using the theory of CBM&A as the background, the paper analyze the brand integration of China's enterprises. Firstly, the paper defines that brand integration in CBM&A refers to how to manage and make use of mergered brands.Based on the summary of forward theroies on merger and acquisition and integration, combined theories with practice, the paper analyzes the motives, strategies and methods of brand integration for CBM&A, illustrates brand integration strategy should choose flexibly according to the differences between the two mergered enterprises by Hotelling Model, then to determine specific integration method based on the integration strategy. In accordance with current status of China's enterprises'CBM&A and analyzing the current status of brand integration, the thesis shows the China's enterprises'brand integration has been becoming difficult,resulting from the restriction of their own conditions and blind merger and acqusition. Finally,combining with several brand integration cases among China'enterprises, the thesis summarizes the problems of brand integration for CBM&A in China's enterprises, and put forward some suggestions in the basis of the research.