A Study Of BK Company Upgrades Through Thechonology M&A

There are some big State-owned enterprises and state-owned stock assets are builtunder the planned economy especially in the industry of Chemical, raw materialmanufacturing and extractive industry, they are called Traditional competitiveenterprises. They organized China’s industrial system and became the basis andsupporting which were giving huge contribution to the national economicdevelopment. With economic transition happened, these traditional competitiveenterprises should make full use of their advantages as well as the competitiveindustry advantages to develop new strategic emerging industries and to organizemodern industrial system through upgrading. For most of these traditional competitiveenterprises are manufacturing enterprises, the basis of the upgrading is technique.Under the pressure of the marketing competition and the fast develop speed ofenterprises, Technology acquisition is an important force to push the development ofthe enterprises upgrading. There are several ways to get technique such asindependent research or technology acquisitions and alliance.BK is such a traditional competitive enterprise which is built under plannedeconomy in the machinery manufacturing industry. During the long termsdevelopment, BK enterprise has transferring from planned economy into activelymarket economy. Through the technology acquisition and alliance, BK enterprise hasbecome the most advantaged company for designing heavy machine tools as well asmanufacturer. Through the way, BK enterprise has increased its technology level andwhole competence and become a successful icon. The thesis should show the path andmechanism through the analysis of BK enterprise upgrading and conclude into eachstep for traditional competitive enterprises. Hopefully it can give some references tothe other traditional competitive enterprises during the upgrading.The thesis is analyzing through the typical case studies and strategic position andaction evaluation matrix following the idea of how technology acquisition improvethe technology level, core competence and financial performance combined with BKitself to describe mainly for the upgrading which leaded by the Technology M&A.The thesis has concluded the reason why Technology M&A pushes the upgradingand propose the carefully issue to the BK enterprise as well as the decision path of technology acquisition and the way of the acquisition to the traditional competitiveenterprises, also it provides some important issues on merge integration.