Research On Cultural Conformity Strategies Of HS Corporation's M&A

Mergers and acquisitions(M&A)is a major trend in the world economic development.It is also a strategic choice for enterprises to become bigger and stronger.According to statistics,in the global scope,the success rate of mergers and acquisitions is only 47%.In those failure cases,more than 80%of the reasons lie in the failure of cultural integration.Thus,cultural integration is one of the most difficult tasks for mergers and acquisitions.HS company as a listed company listed since May 7,1993,had experienced the two major mergers and acquisitions in 1998 and 2002 with the purpose of helping it to walk out of predicament.However,the two mergers and acquisitions finally ended in failure.It seemed that the failure of the two M&A was due to the dispute over stock ownership,but the real reason was the failure of cultural integration.This paper chose HS company as a target.First,it introduced the basic situation of HS company through reviewing the history of its past two mergers and acquisitions,and systematically analyzed the causes of cultural conflicts as well as the consequences of cultural conflict.Second,it analyzed the internal and external contexts for the third cultural integration and clearly positioned the strategy of this integration.Considering the two merger and acquisition parties having business in different regions and industries and having strong different cultural backgrounds,this paper put forward a suitable cultural integration mode which was called "separation" mode and the basic principles in the implementation of cultural integration strategy.Third,this paper introduced several possible effective measures for successfully achieving ideal effect,such as the design of the overall implementation scheme for the company's image recognition,optimization of the company's vision implementation process,creating a learning organization,as well as the establishment of executive culture from the headquarters,control details,subsidiaries,enhancement of executive cohesion.Through the analysis of HS company's first two merger and acquisition processes,the author was able to design a set of reasonable solutions for HS company's third merger and acquisition.This paper can provide reference for enhancing the competitive advantage through mergers and acquisitions,promoting shareholder coordination,and deepening mutually beneficial win-win cooperation.Moreover,it can also provide clear ideas and suggestions for companies to solve the contradictions and conflicts which often encountered in the merger process.Therefore,this paper has theoretical and practical significance in a certain extent.