The M&A Case Study Of Cross-culture And Management Integration:Lenovo And IBM Personal Computer Division

With social structure and technology rapidly changing, business globalization and business internationalization has been regarded as a worldwide trend. On the background of global economy. Chinese enterprises have already been changed from domestic to global markets. That’s to say, it’s necessary and inevitable to exploit the international markets and M&A is the one of best popular choice in the international process of enterprises’strategies of decision-making and common management. Thereby, the research on the cross-cultural conflict management has been an important problem in study and practice.Based on management theories of cross-cultural conflicts and the general pattern in joint ventures, from the perspective of cultural differences, this thesis tries to analyze the patterns and causes of cross-cultural conflicts in a joint venture in order to identify the impact (negative impact in particular) of those conflicts in its development. With the acquisition time as a research clue and related theories as justification, this thesis studies Lenovo’s acquisition of IBM’s Personal Computer Division. From their development history and culture characteristics, culture differences are found regarding their culture background, management style, compensation, benefits and so on.Through the research of M&A motivation, process and cross culture management, it included that M&A is one of the fast effective ways for internationalization, and the base on the rapid development for establishing common values of corporate culture after the M&A. and the important way for company’s culture integration to build the respect and communication environment. It is hoped that this case of a public company’s acquisition would be valuable for the government, investors and company owners in their decision making. Given the operation performance, this research thinks the acquisition in question is successful.