Analysis Of Chinese Enterprises M&A Strategy

After China’s accession to the WTO, multinational mergers and acquisitions hasbecome the most important way to achieve our business "going out" strategy. In orderto promote their economic development, while domestic enterprises better participatein the world economy to competition, governments began to relax a series of controlson the domestic economy, these changes make the market economy system beenfurther developed in the world, more and more countries begin to establish andimprove the market economic system, further deepening global investmentliberalization, the increasingly fierce competition in the global economy, which ishighly reflected in order to optimize the allocation of resources, reduce costs, improveefficiency, increase market share and enhance the core competitiveness ofmultinational M&A activity for the target. After the financial crisis, China’s domesticset off a wave of multinational M&A boom, hoping to help cross-border mergers andacquisitions of Chinese enterprises to obtain the required strategic resources,advanced technologies, markets and channels, etc., but look at the currentcross-border mergers and acquisitions of Chinese enterprises conducted, and most ofthe world’s transnational mergers and acquisitions, as its results are not optimistic,less and less successful cases, most M&A all ended in failure. Given thisphenomenon, this article hopes to objectively summarize the reasons summarizingtransnational mergers and acquisitions of Chinese enterprises in the problems andobstacles encounteringin cross-border mergers and acquisitions and a discriminatorthinking Solutions, Integration success factors in the paper of Li Feng Ltd company,including matching the company’s overall strategy and ability levels, three stagesof takingtargeted acquisitions, focusing on the acquisition of companies with each otherto improve, mergers and acquisitions around the core capabilities-Supply ChainManagement mergers and acquisitions, Especially in the third and fourth aspects,specifically including, learn from each other and enhance the overall companyacquisitions; focus on talent, develop their most valuable resource; mergers andacquisitions in the supply chain management, focusing on decentralized productiontrends, as well as the acquisition of100%wholly-owned supply chain management.The main research method is to adopta case study, the type of which is a singlecase study of case studies, the advantages of a single case study is the ability to carryout deep comprehensive analysis of the case, to fully exploit the informationcontained in the case, and the limitations of a single case of the compared with thecross-case analysis, the lack of comparative analysis between the cases, it willreduce to some extent the case study findings universality. Therefore, this factor isthesuccess of Li&Fung Group analysis of mergers and acquisitions, but also extendedto the general factors when applying the comparative analysis, cross-border mergersand acquisitions by Chinese companies other cases summed up the generalconclusion that in order to make up a single case study inadequate. Data collectionmethods in the case file analysis and observation-based, mainly from the relevantarchives and core academic journals, annual report data, CCTV interview executivesand cross-border M Series Video; case analysis process and preclude the use ofquantitative analysis qualitative analysis methods described viewpoint. This articlemultinational Li&Fung Group isselected cases with cross-border mergers andacquisitions typical, and less literature on cross-border mergers and acquisitionsresults of Li&Fung Group, the paper attempts to cross-border mergers andacquisitions analysis of Li&Fung Group, to analyze the cross-border M&Astrategy selection, and introduces the theory of two-merger, this is the innovation of the paper lies.