Research On Post-merger Integration Model Based On Core Competences

With the increasing development of economic globalization, mergers and acquisitions is the way that modern enterprises advance competitive power. However, the rate of acquisition failure is very high which mainly exposes following problem such as the poor strategic vision, culture difference, management standard of opposite lag and post-merger integration. PMI directly influence the performance of M&A and enterprise strategy implementation. This paper references enterprise core competence theory research which use to research the problem of M&A, in the view of PMI and realization form.The research of post-merger integration is based crossover study which is based on the theory of core competence and M&A. Corporate core competence theory is theoretical basis which describe the sustainable competitive competences of enterprises. PMI theory is to describe the mode and means form which a company would gain core competences. This paper tries to use the theory of core competence research in to post merger integration management and concludes enterprises core competence integration model.The core competences essentially accumulate unique knowledge during a long-term. This knowledge is the enterprise exclusive resources which load on personnel, equipment, information and organization. The core competences of the enterprise are inherent capability which is accumulated, activated and used during enterprise developing. According to the characteristics of core competence, this paper intends to divide basic function integrated into system integration and technical integration. Be based on the research on the core competence theory, this article would make the process into three steps, such as the core competences of protection, transfer and diffusion, and expansion and upgrading. It makes different enterprise’s resource, knowledge, skill and idea flow, circulate, fuse and upgrade.Based on the above theory analysis, this paper constructs the post-merger integration model based on core power. As a result of perfection degree of enterprise in system level and technical level, the external performance of core competence is divided into basic state, middle state and maturation state. According to the different level of the principal and object enterprises’ core competences and target corresponding relations, this paper argues that the enterprises inclined to obtain core competence in the basal state, to build or strengthen in middle state, and to expand or upgrade in maturation state.This paper would divide the integration model into protection model, symbiosis model and control model which based on the perspective lord company. Finally, in the integration of core competence perspective, selecting Jiangsu Shagang Group Integration after the merger case analysis its integration process and effect, summed up experience and summed up the integration problems.