Demonstration Analysis Of Corporation Performance In The Vertical Integration

With the economy and information continuously globalize, the integration of the company come to the new boom and become main topic in the world's economic activity. For the demand to develop more quickly and go into new market, the company trend to implement strategy integration. It is become one important way for foreign investment. Obviously, the target of modern corporations M&A changed from get the traditional scale economics advantage to get the new technique, human resource and the competitive advantage in the world wide.In China, the market economic develop so rapidly and become more attractive. Investment and M&A become more popular. Especially, after China becomes a member of WTO, this trend gets more strengthened. The policy that government quits out from most competitive industry and protects private equity stimulates the M&A occurred more and more. At the same time, Chinese companies also have the impulsion to acquire foreign company to make them globalize and compete in the world economical stage.The acquisition normally composed by three phases: strategy selection phase, merger & acquire phase and integration phase. The integration phase is the most important and difficult period because it will decide the whole acquisition result. The culture integration is the key issue in this phase; most of failure case is due to culture conflict.The article describes and analysis all the procedure that the Bluescope steel group acquires the Butler group's whole business in the world. This is a complex case since the integration refers to country, culture and industry issues. As a typical sample, Butler (Shanghai) Co. Ltd, will be research that why and how their performance would be influence by the integration. The purpose for this research would like to find the win-win solution.In the first charter, the environment and background of the acquisition is described. The frame and the basic thinking are also established here. Charter two introduces main theory especially emphasis on motivation and different type of acquisition. Then charter three introduces the theory about vertical integration related to the actual case. Charter four continuously describes the procedure and result about two big groups incorporate. The downstream company's performance is the critical clew. The analysis model based on Game theory will be release in charter five. It will be helpful to explain why the performance look quite difference. In charter six, the new flow charter and theory will be concluded base on all the theory and practice analysis.The motivation and performance of acquisition will be developed with the social and times. The integration should be flexible to adapt to different place, culture and value. The shorter period of integration, the more value will be got for the company's strategy and actual performance. The research of corporation behavior during the integration is very valuable and useful.