Cross-cultural Integration After Mergers And Acquisitions

With the quick development of economic globalization, corporatemerger and acquisition has become an important way for an enterprise toenlarge its operation scale and increase its competitive strength. Enterpriseintegration is the key factor for a company to success in mergers andacquisition. Further more, the neglect to cross-cultural integration orcross-cultural integration failure is strongly contributing to low performancein M&A. So researching cross-cultural integration plays a significant role inenhancing Chinese enterprise M&A, achieving competitive edge.Firstly, the thesis introduces the concept and theories of M&A and thefunctions of corporate culture. And it analyses the characters of cross-culturalintegration on the theory of culture integration. Then the thesis demonstratesthree features of core abilities of cross culture on the basis of the CoreAbilities Model of culture. These are common key value, unique forcompetitor to imitate and being continuing. There are two key elements,which determined by the above three features, for the multinational companyto choose integration mode: the future development strategy and the strategicculture differences.The thesis then puts forward four basic modes of cross-culturalintegration and introduces the selective situations, the strengths and weak ofthe four modes. On the basis of the above, it analyses three cross-culturalintegration cases of three different kinds IT companies in China, puts forwardsome suggestions to Chinese enterprise and draws some conclusions.