An Empirical Study Of Low-cost Expansion Strategy For Enterprise

In order to strengthens own competition strength in the intense market economy competition, the majority enterprises choose the capital expansion. And the merger and acquisition is one extremely important way in the capital expansion, it can by the actual effect quick. invest few, the benefit high characteristic enables the enterprise to achieve ideal scale in a short time. Then it can increase their market share and benefit from the effect of economies of scale. The merger and acquisition is a good way that can enhance enterprise competitive power. It could expanse management scale, improve organizations and agencies, match the human resource well, promote the innovation of management system reasonably, and provide more quality products and service.The LAN Zhou Yellow River Ltd. (also refers to as the Yellow River group) to establish in 1985, after 20 years development, it has become a famous rural enterprise in Gan Su province. With the good surrounding of reform and open policy, the Yellow River group held the opportunity of assets reorganization. It led a style of going out one by the production management to the capital operation switcher, and expanded the scale rapidly.This article through comes the domestic and foreign merger and acquisition theory and the example according to this year, unifies the Yellow River group own production operating condition and the development condition, has analyzed the Yellow River group's after low cost expansion strategy capital operation, the financing arrangement, the merger and acquisition strategy as well as the merger and acquisition enterprise conformity question. And it obtained some constructive conclusion and the suggestion in this foundation.