Study On M&A And Integration Tactics In View Of Enterprises' Core Competence

M & A can bring about the shift of advantages for competing between enterprises, which will put the enterprises on rapid growth. It is seen from the past experience that about half of M & A have ended up in failure and only 30% have achieved joint effect. The reason why they had no desired result is that the integration was not in place. The combination of M & A with integration can result in the fusion of business resources and promotion of core competence. Hence integration is the key and also the most complicated link of M & A. Then how to raise success rate under the background of M & A in Chinese state-owned enterprises is becoming a research project in the face of us.This thesis, aiming at promoting the core competence of enterprises, makes a study of M & A and integration. Firstly the relationship between core competence and enterprises' M & A and integration is elaborated, basing on the theory of M & A and integration of enterprises. Secondly the present condition and existing problems of enterprises' M & A and integration in our country are discussed. And at the same time the risk and main factors (including human resources, corporate culture and finance and trade flow) affecting M & A and integration are also analyzed. Thirdly the corresponding integration tactics are provided according to the result of analysis: Tactics for human resources include personnel stabilizing, training and inspiring to resume their enthusiasm, inspire them and retain them; Tactics for corporate culture is to choose suitable integration model according to the differences including fusion, assimilation, introduction and isolation to achieve the adaptation of corporate culture; The integration of trade flow should highlight the crucial issues and value chain increase in view of the environmental changes, whereas the integration of finance flow centers on the maximum value of enterprises, select the financial integration model with the lowest cost so as to achieve the unity of financial system and financial goal.The study indicates that human resources, corporate culture and finance andtrade flow are the carrier of core competence of an enterprise. Whether the integrations of human resources, corporate culture and finance and trade flow are successful or not determines the promotion of the enterprises' core competence. In the course of M & A and integration, different integration tactics are to be taken in view of the environment that the factors are in to fuse the business resources and promote the core competence.