The Research, Based On Corporate Mergers And Acquisitions Of Core Competencies

In the present background of economic globalization, Chinese companies are facing dual competitive pressures from both inside and outside. In this condition, many companies use M&A as an effective method to expand quickly. Mergers and acquisitions 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 production, marketing, technology, capital and management. M&A, which is took as a efficient way to expand quickly the scale of enterprise when the enterprise is on a certain stage of development, breaks through the limit of gradual development based on self-accumulation and makes the rapid development of enterprise possible. Nevertheless, from the historical data of M&A in China, we found that successful M&A were not as many as we had expected. And even, many enterprises were put in a poor situation just because of M&A.This article concentrates on the research of mergers and acquisitions (M&A) between enterprises. Theoretically based on the core competence, the motives of M&A that took place in China are analyzed and compared with that of M&A in western countries, then makes a deep analysis of major causes of unsuccessful M&A in China. On this basis, it proposes to carry out M&A strategy from core competency perspective, and explains realistic meaning of study of core competency based M&A integration. Based on an analysis of the causes of failures in acquisitions and mergers in China, this paper presents a line of reasoning for acquisitions and mergers based on core competence, researches the following issues: the relationship between an enterprise' core competence and acquisitions and mergers, the selection of the model of acquisitions and mergers based on core competence construction and culture, the integration management following the core-competence-based acquisitions and mergers, performance appraisal of core-competence-based acquisitions and mergers.Since mergers and acquisitions is considered an effective expansion strategy which ultimately targets making the enterprises ready to win, competitive advantage, emulate and lead the competing enterprises, enterprises should consider the necessity of mergers and acquisitions from the perspectives of construction, culture and enhancement of the enterprises' core competence. In light of the theory discussed before, this thesis' innovative points proposes to carry out M&A from core competency perspective and use it as the guide of M&A practice.