M & A Research, Based On Core Competencies Of Enterprise

Enterprises today are facing increasing competitive pressures from the external environment, as world economy experiences faster globalization. Enterprises are seeking strategies for rapid expansion such that they could stabilize the domestic market, enter the international market, and maintain their survival and prosperity in the future global market. Since acquisition and merger is considered an effective expansion strategy which ultimately targets making the enterprises ready to win competitive advantage, emulate and lead the competing enterprises, enterprises should consider the necessity of acquisitions and mergers from the perspectives of construction, culture and enhancement of the enterprises' core competence.Based on an analysis of the causes of failures in acquisitions and mergers in China, this paper presents a line of reasoning for acquisitions and mergers based on core competence, researches the following issues: the relationship between an enterprise's core competence and acquisitions and mergers, the selection of the model of acquisitions and mergers based on core competence construction and culture, the integration management following the core-competence-based acquisitions and mergers, performance appraisal of core-competence-based acquisitions and mergers.This paper contains seven chapters. Chapter One is an introduction, which puts forward the question to be researched by this paper, analyzes the reasons of the acquisition and merger failures in China, introduces the acquisitions and mergers in China and other countries and the research methods by this paper.Chapter two introduces connotation of core competence of enterprises. It compares the connotation of resource, capability and competitiveness, reviews the different theories regarding the connotation of an enterprise's core competence, points out the nature and characteristics of an enterprise's core competence, and suggests the activation mechanisms and procedure of core competence.Chapter three puts forward the overall strategy regardingincore-competence-based acquisitions and mergers. It suggests a strategic model for core-competence-based acquisitions and mergers points out the conditions for the implementation of strategy for core-competence-based acquisitions and mergers, the identification of core competence in an enterprise itself, the selection of strategy for acquisitions and mergers and then proposes the overall framework governing core-competence-based acquisitions and mergersChapter four puts forwards the model of core-competence-based acquisitions and mergers. It suggests four detailed acquisition and merger models for construction and culture of enterprise core competence in management, in marketing capabilities, in learning and technological innovation and in corporate culture. An empirical analysis is also included.Chapter five describes the integration management following the core-competence-based acquisitions and mergers. The integration process after acquisitions and mergers is the key for its success, and some problems always happen during this process. The framework of a model for the integration management following the core-competence-based acquisitions and mergers concentrates on integration management of the strata of strategic asset elements, integration management of the strata of functional activities such as an enterprise's culture, managerial system, organizational principles and human resources.Chapter six introduction Performance appraisal of core-competence-based acquisitions and mergers. It suggests a model for performance appraisal of acquisitions and mergers, analyzes the model for performance appraisal of acquisitions and mergers from the angles of cost advantage, increase in market share, appreciation of intangible assets and enhancement of core competence.