Research On The Quality System Integration Strategy Of A Company's Mergers And Acquisitions

Since China decided to start the reform and opening-up policies,especially when we entered the new millennium,the China medical industry has gone through a repaid growth.But it is observed that there are also a lot of issues need to be addressed along the way.With the impact of the influence factors from both internal and external environment,it is urgent for the industry to integrate the resources and solve the issues,so the enterprise acquisition and merge is becoming more and more popular.Meanwhile,the federal regulations have special requirements for medical devices,the CFDA has published the Order No.650,and it has strengthened the requirements for the product registration,manufacturing authorization as well as post market surveillance.The Order No.650 has been effective since 1th of June 2014.The order has clarified the requirements and enforced the surveillance for all product life cycle as registration,filing,manufacturing,operation.The experts in the industry has pointed out that the delivery of this new order will speed up the integration of the companies,and the companies that are not qualified against the new regulation will be eliminated.The company A also conducted several merging projects,in the past years;it has merged the company of C and B medical company.The company A also developed the integration strategy including the quality management system integration,as the quality system is the foundation for the medical companies to comply with the regulations.The integration of the quality system is considerate as a must during the acquisition of the medial companies.The companies have to develop a solid plan to perform the quality system integration and guarantee the proper execution.Also as widely known,the operation of the medical companies requires a high efficient and compliant quality system.In general,the quality system integration plays a very important part in the enterprise acquisition.Based on the statement above,it has both significant theoretical and practical value to analysis the current status of the enterprise acquisition and how to develop the strategy of the quality system integration.This article has analyzed the background and current status of the company acquisition in China,raised and studied the critical issues that the company A is facing also concluded that acquisition and merge is the inexorable trend in the medical industry.This article also reviewed the relevant theory of acquisition and integration,explained the current situation of the acquisition,and how to conduct the assessment of the quality system to identify the risks in order to develop the quality system integration strategy.The article also further analysis the supporting factors to guarantee the successful quality system integration.In this article,the existing company acquisition examples have been used to support the statement,for example,the business cases from company A and other companies.Through the analysis of the examples,the article discussed in details on how to avoid the negative impacts during the integration and how to perform the gap assessment of the current quality system so as to complete the integration step by step,which will guarantee the compliant to the regulation and minimize the impact on the business.This article focuses on the study of the quality system integration in the company A.I have had meaningful discussions with the experts in the medical industry and the higher quality management team in the company during the writing of this paper.They did support the writing of this paper and believe the contents discussed in this article can provide the support to the companies which either in the process of the integration or has the intent,which will help them to successfully complete their integration on the quality systems.