Research On Integration Management For Overseas Acquisitions Of Huayang Cable Group

As a developing country economy, China has been growing rapidly year by year, and Chinese enterprises become more integrated into the world economy. Especially after China's entry into WTO officially in 2001, overseas acquisitions gradually become an important way of foreign investment for Chinese enterprises, which also brings opportunities for them to accelerate the internationalization process. But overseas acquisitions are not so easy to execute. According to statistics, more than 50% of the Chinese enterprises'overseas acquisitions did not succeed, especially for the across-technology-oriented overseas acquisitions, the success rate is lower.Because the two sides are in different skill levels, and the depth and breadth in technical knowledge are also different, which results the inevitable technology gap between the two main bodies. Although both sides of the merger is same in the value chain, but the intensity of each value chain link is different. To the merged and acquisition (M&A) enterprises, the competitive advantage is not how fast to expand the market or create a new technology, but how the two sides can efficiently integrate together. The integration after the merge becomes the key link to success. Problems mainly exist in three different aspects:market, technology and organization aspect. Study on how the different parts integrate and the relationship between each other can help to provide an appropriate integration strategy for across-technology-oriented overseas acquisitions. This article aims to study the case of Huayang Cable Group Overseas Acquisitions, in order to put forward the integration strategy after the merge.After Huayang group merged the Siler Company of United States, it did not develop rapidly as expected. The main problem exists in the integration of market, technology and organization, which impacts on the product sales and technical renewal seriously, looking forward eagerly to a perfect integration strategy. This context analyzes detailed three successful integration cases of across-technology, sums up the experience of how the low technology merges and integrates the high technology. That is, on the basis of market remand, integrating the advanced technology and equipment, and gradually dispelling the organizational culture conflict. The conclusion gives great reference to Huayang group. According to the compatibility analysis of Huayang group's merging case, we can get that the merger body has great compatibility with target enterprise in market, technology and organization culture. With combining of the successful experience and Huayang group's realities, integration measures become clear. Only using the value chain to drive the market demand, with the market driving technology and equipments integrate, and promoting the organization integration progressively, can the favorable integration effect be achieved. Meanwhile, integrate security system cannot be ignored. Human resources, enterprise culture, financial, technical alliance and so on, as the key aspects to promote enterprise integrating perfectly, should be the important part of the security system.