Merger And Acquisition Activity Based On The Core Competence Theory

In the situation of global economics, M&A action is more and more sequent.Specially, during the information and economic age and in the more speedy rhythm,whoever could occupy the strategic situation at first, could get the excess profit. In thesituation many companies had adopted the M&A, but all M&A action are not getsuccess. To enhance the core competence quickly through the collection of resource,cash, technology, the company should take attention to conformity managementbefore, during the M&A process, specially after the M&A. if only the company payattention to conformity management after the M&A, it could confront the drasticcompetition easily from abroad.The paper summarizes the characters from the first to the fifth M&A climax, specially the fifth M&A of background, characters and development trend from the 20th. Grasping the characters could further direct the M&A strategy properly, that is the strategic M&A. The strategic M&A is the M&A at the base of strengthening the core competition. From the practice, we grasp the character of M&A and interpret the cause and result from the theory. We interpret the M&A action from the economic financial angle and management angle.The core competition theory was developed from the 20th century, it directed the development of companies. The paper inducts the theory in order to direct the practices. We think the aim of M&A of company is based on nurture and enhance the core competition. The flow the M&A is based on the nurture of core competition process. According to the flow, the paper discourse upon the identify, exploitation, nurture and enhance the core competition. We emphasis on the enhance of core competition, that is the conformity management process. Through the example and the dates, the paper summarizes four typical questions, that is the emphasis questions of conformity management. So the paper emphasis on the conformity management at base of core competition including the culture, management system, organize, manpower resources managements. In the paper we choose typical example and analysis, give some feasible measures. Finally we use two methods to estimate the success or failure of M&A. one of two methods is on the base of stock prices, the other is account index or the inside company index. The success or failure is whether or not increasing the company worth or the maximum of the stockholders.