Study On The Cultural Conflict In The Transnational Acquisition Of Geely Group

At the background of the boosting adjustment of the international industrial structure and the economic resurgence, transnational merger and acquisition has become the focus of the international economics of the world and the main force to drive the economic globalization, during which the Chinese enterprises start international merger and acquisition as well. However, the enterprises encounter various difficulties in the operation and even fail after the merger and acquisition. To explore the reasons of the failure, the insiders have not reached a consensus. According to the research results of McKinsey and some other authoritative research institutes, the conflict and the integration of culture caused by the cultural differences is one of the key factors which determines the success or failure of the transnational merger and acquisition. This paper takes the recent important merger case of the automobile industry-Geely Group purchased Volvo Group as the background to study the cultural conflict after the acquisition and it could offer some help for Geely's future transnational operation.The first part introduces the background of the study, the significances, the literatures and the content of the paper; the second part briefly presents the case of the Geely's acquisition; the third part is the key of the paper, which analyses the cultural conflict after the acquisition, Geely's culture, Volvo's culture and their differences; the forth part is also the crucial part of the paper, which analyses the conflict and makes a proposal to solve the problem; and the last part is the conclusion of the paper.