The Lf Company Mergers And Acquisitions Management Integration

The 21st century will see further peaks in mergers and acquisitions (M&A) throughout the world. Corporate M&A has been an important means for an enterprise to enlarge its scale of operation and increase its competitive strength; however, studies done by various countries show that compared with the vast sums of money involved in M&A and the quantitative transaction cases, the success rate of M&A is not equally as high. It has been shown that neglecting management integration after the M&A process has completed is the most important reason for its failure.Managing integration after the M&A process mainly comprises of five aspects: Strategy integration, organizational and institutional integration, human resource integration, corporate culture integration, and financial integration. This article takes the case of LF Corporation's managing integration after its acquisition of the Special Product System of CL Cement Factory as the object of research and analysis. With its emphasis on organizational and institutional integration, human resource integration, and cultural integration, this article studies the problem of LF Corporation's management integration after its acquisition. Through the review and research of the corporation's integration process, and of the problems and conflicts brought by the integration, this article gives a systematic and thorough analysis of the problems and underlying reasons associated with this corporation's managing integration.For the human resource integration, according to the changes in psychology of staff and the following negative impact induced by M&A, this article analyzes the problems such as communication, manager appointment, compensation and motivation systems in LF Corporation, etc. For organizational and institutional integration, it mainly analyzes the problem of the flattened management structure in LF Corporation, such as the maladaptation of top managers, restrictions of basic management and the type of work, the centralization and tight controls which contradict with the flattened management structure. Finally, with respect to culture integration, it thoroughly analyzes management ideology and mode under the contradictive cultural mind of LF Corporation, the culture integration strategy of "abandon all" rather than "develop the useful and discard the useless", and the absence of a shared vision. In addition, it also analyzes the influence of the quality of...