M&A Oriented Corporate Culture Measurement Research

With the expansion of mergers and acquisitions, culture difference makes the integration of merger harder. Aiming at solving the problem of culture integration, this paper tests the features of corporate by measurement method, and wishes the pre-merger culture measurement will get the integration much more smooth.Corporate culture is the friction coefficient of merger integration, and also the main reason of failure merger. This paper starts from the connection between merger and corporate culture, and analyzes specific culture features that related with merger issue. Using case study method mainly, this thesis analyzed typical merger case and measured the corporate culture separately. By comparing each indicator of measurement questionnaire and the truth of company, the paper conclude the different culture feature of two parts of merger.In literature review, the paper studies the definition and characters of corporate culture, the culture influence on merger, and corporate culture classification and measurement theory. After summarizing corporate culture classification and measurement theory, this paper brings up the connotation of corporate culture. Based on study results of scholars, in terms of merger integration, this paper aims at finding the culture feature that influencing the merger performance. The thesis finds that there are four features that influencing the merger performance: leadership performance, stuff performance, teamwork spirit, strategy selection.These four features consist of the corporate culture framework, and there are several indicators in the framework. Leadership performance is composed of 1) attach importance to the merger issue, 2) experience and capability of merger, 3) communication, 4) personal fascination, 5) appropriate centralization of power. Stuff performance is composed of 1) the feeling in the merger integration, 2) trust of advanced management, 3) prediction of the new entity and 4) psychological bond of original company. Teamwork spirit is composed of 1) teamwork orientation and 2) stuff involvement in company decision making. Strategy selection is composed of whether will choose merger as method of company expansion.In the case study, the paper selected the merger issue between Shanghai Automobile Industry Company (SAIC) and SSANG YONG Motor Company (SYMC), and analyzed from the 4 features and 12 indicators. By comparison, the paper finds that there are so many differences between SAIC and SYMC. In the 12 indicators, mainly differences are leadership performance and stuff performance; it is people that make the merger integration harder. On the one hand, it is because of nation culture background, on the other hand, it is because inappropriate handle of merger integration. This paper wishes to provide the tool for culture measurement and test the main difference between the two parts, and reduces culture shock in merger integration.