Research On The Effect Of Yong'an Forestry Vertical Integration Strategy

Vertical integration strategy through mergers and acquisitions has always been an effective means for enterprises to achieve growth.Since the reform and opening up,many enterprises have realized that the vertical integration strategy can improve their production and operation efficiency,enhance their market competitiveness,save costs,strengthen their ability to resist external risks and quickly occupy the market.Whether at home or abroad,vertical integration has been the trend of the development of forest industry.Because forest product industry is a typical resource-dependent industry,in the vertical integration of forest industry,forest industry enterprises expect to obtain forest resources,forest enterprises can obtain higher added value of the industry.At the beginning of this century,the vertical integration of China's forestry industry had a substantial breakthrough,but compared with the developed forestry countries,the vertical integration of China's forestry industry is not good,so this paper selected yongan forestry as the case study object.Firstly,this paper briefly introduces the research background of this case.After combing and summarizing the research results of relevant scholars at home and abroad,the research content and research ideas of this paper are formed.Secondly,this paper introduces the relevant concepts of the enterprise growth strategy,the motivation of the enterprise to implement the vertical integration strategy and the measurement method of the vertical integration level.Then,the use of case analysis and comparative analysis of yongan forestry company profile,the process of vertical integration and strategic implementation of mergers and acquisitions senyuan furniture dynamics analysis is introduced,using the VAS value-added method to analysis the strategy implementation,the company's vertical integration level,and through the yongan forestry asset specificity level changes after the merger of VAS validated value increment method,shows that vertical integration after m&a senyuan furniture company level deepening in the form.In order to deeply study the implementation effect of the company's strategic behavior,this paper,based on the transaction cost theory and the enterprise boundary theory,analyzes the non-financial indicators and financial indicators after the implementation of yong 'an forestry strategy and deeply explores the causes of indicators,and draws a conclusion that the vertical integration strategy of yong 'anforestry is not effective.There are many problems in the aspects of market share,the control of strategic implementation time,the adjustment of staff structure after merger and acquisition,and the play of synergies.Finally,the research conclusions and results of this paper are integrated to provide some Suggestions for other enterprises of the same type who want to achieve vertical integration growth through mergers and acquisitions,so as to serve as a warning.