Based On The Core Competencies Of Enterprise Merger Integration Model And Empirical Research

Merger and acquisition (M&A) can accelerate capital concentration, reduce time for training talents, exploring market, and developing new technology, expand enterprise' s business scale, and generate coordination effect in marketing, technology and management. Therefore, M&A has become a shortcut for enterprise to expand its business in short time. Many famous enterprises have developed and strengthened by way of M&A, so M&A has become an important means of corporation strategy development. That the two obvious characteristics of fifth globe M&A wave in 1990s, is horizontal M&A and relating M&A indicates the study of M&A based on core competence has high theoretical value and practical value. Moreover, Post merger integration (PMI) is the biggest risk sector of M&A and the most essential factor which influence the success or failure of M&A. Therefore, study on Post merger integration is not only perfect the M&A theory, but also guide the M&A practice. This paper will take the methods of disciplined testing and reality testing researching the process of M&A.Firstly, after having investigated the enterprise M&A theory and the core competence theory and analyzed the five specialty of core competence, this paper defines the core competence as three states: basic state, inferior state and mature state. Secondly, this paper sets up the post merger integration model which makes the enterprises knowing the process of M&A integration based on the core competence and analyzing the model in detail. Furthermore, the patterns choosing model of post merger integration according to three states of acquiring and acquired business is proposed in this paper. There are five integration modes: intruding, assimilation, creating, absorption, separation. Each mode need to carry through corresponding element (strategy, structure, finance, human resource, culture) integration. Finally, this paper testifies the model by analyzing the case of Greencool Corporation acquiring the Kelon Company.Major accomplishments of this paper are concluded in the following: First, the M&A strategy should implemented from the point of core competence. Second, the post merger integration model based on the core competence is established.Third, the patterns choosing model of post merger integration is proposed. At last, the method of project management should be introduced in the M&A process, and a PMI manager should be appointed in order to integrating after merger successfully.