Study On Post-purchase Management Of Shanghai Memory Shape Alloy Company By Lepu Medical

With the rapid development of marketing economy, merger and acquisition(M&A) has become a significant strategy for many companies to expand theirbusiness and reform their organizations. Public company, by effective M&Aactivities, can use external resources to assist its growth and development whileadjusting business structural and layout to make it work more efficiently and in theend secure its own long and stable development. However, researches home andabroad indicate that many M&A activities do not achieve the result expected becauseof a failed post-management. By analyzing the methods used and results achieved bythe author himself during post-management and optimization of Shanghai Shape andMemory Alloy Co.,Ltd.(SHSMA) after being purchased by Lepu MedicalTechnology Beijing Co.,Ltd.(Lepu Medical),the article summarized the successfulexperience and in-sufficiency drawn from it, expecting to give a positive referencefor future post-management and optimization of M&A in medical device industry.Since its founding in1994till its purchase in2008, SHSMA had been beingrun as a traditional family enterprise, where paternalism overwhelmed companyrules and regulations, which resulted in a irregularity in production, R&D, HR andfinancial management and a primitive sales and marketing strategy. Aiming atproblems stated above, Lepu Medical conduct series of management activities onSHSMA, including sales&marketing strategy, HR, production, R&D, financialsystem management and corporate culture integration. For HR management, bysetting up buffering transition period, executing temporary co-existence salarysystem, the unsteady morale of the company was successfully stabilized. In addition,based upon post-guided hiring strategy, the post settlement of the company wasfurther optimized, which laid foundation for the institutionalization of the company.For production and R&D, by executing GMP strictly, the daily production isstandardized then the company gained firm control of the core technique ofproducing the occluder thus minimized the risk of the brain drain. For financialsystem, by constituting and improving modern financial regulations for the company,utilizing the prior control function of the financial department to supervise andadministrate the purchase and distribution department, thus revenue and expenditureare managed and used efficiently and potential corruption is minimized. Forcorporate culture integration, based upon Lepu Medical’s "humanized institution"corporate culture, SHSMA’s "rule-by-man" culture was optimized by "taking theessence to the dregs" process. After activities like team education, conversation andvisiting Lepu headquarter; the managing team and common employees of SHSMAall accept the new culture.