Research On Cultural Conflict After The Transnational Corporation Acquired Middle-Small Size State-owned Enterprises

From 1990s, Along with the fifth wave, the merger and acquisition of the whole world come to an unprecedented climax. Meanwhile, as a part of the policy to managing the state-owned enterprise better, China started to "seize the big ones and free the small ones". Thus, a large number of state-owned enterprises had been pushed into market.This made it possible for the transnational enterprise to seeking their- own opportunity in the market.The targets of this kind of M&A were to use advantage of the existing power of production and the skillful workers with low cost. Also, they can enter and exploit China market as quick as possible via the existing selling network.The M&A bring new knowledge to the company and enhance the competitive power. Meanwhile, it also appears many problems. The cultural conflict is the most important one that need to be concerned about.The cultural conflict and integration is a critical factor to the success of the M&A and it is even more important to the transnational M&A since the culture difference.The model of CBF was put forward by Charles Gancel, Irene Rodgers, Marc Raynaud, who are the experts on company M&A, in their book named Successful Mergers, Acquisitions and Strategic Alliances—How to Bridge Corporate Cultures. This book provides a proven approach to understanding, analyzing, and acting on cultural differences in today's increasingly global M&A marketplace. It also explains how to address the operational differences between organizations with divergent cultures and helps readers to bridge corporate cultures.This paper studied the case of KW Corporation, which acquired a state-owned company-HT. Based on the CBF model, we tried to find out the rules in this kind of M&A in China, which can help managers to address the problems of cultural conflict.