Cultural Integration Strategy Of BY Company After Merger And Acquisition

With the progress of science and technology and the acceleration of social rhythm,the market competition is becoming more and fiercer,and one of the significant consequences of competition is merger and acquisition.Successful mergers and acquisitions can not only expand the scale of production and increase market share of enterprises,but also make new enterprises get a qualitative improvement and bring new vitality to the rapid development of enterprises.However,70% of the enterprises in the world fail to achieve the expected business value after M&A,and 70% of the failure results from the integration process after M&A.Mergers and acquisitions often only care about financial data and profitability level,but ignore the integration process after mergers and acquisitions,especially the most important and intangible assets of enterprises-corporate culture integration.Although corporate culture integration is not a sufficient condition for successful mergers and acquisitions,ineffective integration will inevitably lead to the failure of mergers and acquisitions,so urge the relevant enterprises.Business will predict in advance the compatibility of the original corporate culture and the existing corporate culture M&A strategy after M&A,and take pertinent measures in order to improve the efficiency of integration and better realize the integration of both sides of M&A.This paper uses case study method to analyze the merger and acquisition activities of BY company and GWA Company,and combines corporate culture theory to analyze the integration of corporate culture after merger and acquisition.It is found that although it has experienced full due diligence,risk analysis and integration of the plan process,in the actual integration process,due to the integration of corporate culture.Inadequate,resulting in a low-risk,high-yielding strong alliance,but in a very short period of time there have been a variety of management,personnel and other issues,and then performance decline,the outcome of gambling failure.Firstly,this paper introduces the theoretical basis of M&A,clarifies the types and motivations of M&A,and summarizes the issues of cultural integration after M&A.In the case part,through introducing the background and motivation of enterprises of both sides of M&A,combining with the characteristics of corporate culture,it analyses the process of corporate strategic integration.Through investigating the process of cultural integration aftermerger and acquisition of enterprises,it is concluded that there are some conflicts in the initial stage of BY company's cultural integration,such as management mode,ideology,organizational communication,compliance publicity,etc.In order to improve the performance of strategic integration of merger and acquisition of companies,the following five aspects should be improved: improving management system,strengthening cultural construction,continuously monitor corporate culture and attaching importance to informal organizations.The countermeasures and suggestions are put forward from different angles.It is hoped that the research results of this paper can provide a series of countermeasures and suggestions for the strategic integration of BY company after M&A,and also provide some guidance and reference value for the cultural integration of other enterprises after M&A.