Cultural Integration Mode Selection Policy Of Chinese Enterprises In Multinational Merger

With the continuous development of the world economy level, many companies who have a certain economic strength began to expand the business objectives and scope to the world, but make a general survey of domestic and overseas investment cases, most do not achieve the desired effect, or even failure, ratio failed to reach 50%-70%. The study found by a large number of scholars, the failure mainly due to the unfavorable integration, mergers and acquisitions companies can’t produce a synergistic effect. Merger and integration includes five aspects: material integration, financial integration, technical integration, awareness integration and cultural integration. Cultural integration is "soft" integration in M&A, which is the key of the whole integration process, it is the most difficult part and it can’t be ignored. In the process of cultural integration, the mode selection of cultural integration is the main problem. The purpose of this paper is to analyze the factors which have an effect on culture integration in cross-border mergers, and do some advice on culture integration mode selection policy, the final design the overall process of cultural integration, hoping to provide a reference to the practice of cross-border mergers, and to improve the effectiveness of cultural integration, promoting the success of mergers and acquisitions.This paper explain the following aspects: 1. Summarizes four different modes applies to cultural integration: assimilation style, converged, independent and innovative; 2.Analysis the impact factors of cultural integration and the main characteristics of Chinese enterprises, on this basis, offer a proposal on cultural integration mode selection; 3. According to the various stages of cultural integration, produce flow chart of cultural integration.