A Study Of Enterprises Of Our Country Cultural Integration In Vulnerable M&A

Based on the related theories of vulnerable M&A and the business culture ofChinese enterprises, this paper discusses the current development situation andexperiences about vulnerable cross-border M&A. After deeply analyze, it concludedthat the cultural integration plays an indispensable role in the process of vulnerableM&A. This study considers that Chinese enterprise should attach much importance oncultural integration in cross-border M&A. Compared with the traditional theories ofM&A, cultural integration involves more deeply meanings since the traditionalintegration only based on the organization structures and technical conditions. Theultimate goal is to make the enterprise top managers not only concern about theoutside conditions, organization structure and technical integration, but also the insidecondition, cultural integration; and therefore stimulate the enterprise running on theright track rapidly.The success of cultural integration in vulnerable M&A directly affects theoutcome of M&A and the long-term vitality of the new enterprise. Culturalintegration is a relatively complex process. This paper summarizes several culturalintegration modes for the enterprise after M&A, and also offers some profoundsuggestions on the measures of cultural integration. At the same time, a number ofwell-known cases are enumerated to illustrate the problems and solutions of culturalintegration in the process of vulnerable M&A. Chinese enterprises are confrontedwith more intricate situations in vulnerable cross-border M&A. The key to success ofcultural integration lies in whether the Chinese enterprises could carry forward theiradvantages and cultures, and at the same time absorb the essence and discard dross offoreign enterprise culture.There are the huge cultural differences between Chinese enterprises andenterprises of developed Western countries, and our own culture is not recognized bythe other side. The contention of corporate strengths and weaknesses of both sidescaused by M&A activity, tend to exacerbate cultural conflict between the two. If wecan avoid the strong disadvantaged areas, to find the meeting point of the acquisitionof both cultures, there must be conducive to the smooth progress of the integrationwork. A result of this study was established based on the advantages of the newcorporate vision in the post-merger cultural integration model, that mergers andacquisitions both sides should first establish the unanimous approval of the neworganizational vision, and as a reference to re-examine mergers and acquisitions ofboth the corporate culture, and new businesses vision compatible is the dominantculture, whereas for the disadvantages of culture. On this basis, in accordance with theacquisition of the two sides in which the different status, different models of culturalintegration in order to achieve the desired effect of M&A activity. Abundant experiences and advanced theories of cultural integration incross-border M&A are important for Chinese enterprises since they are still in theprimary stage of cross-border M&A. And this paper offers suggestions for theinternational development of Chinese enterprises.