Ultural Integration Of Cross-border Mergers And Acquistions Strategy-ABB Mergers TNB Case Analysis

With the development of China, people’s lives have been dramatically changed bytransnational mergers and acquisitions of Chinese enterprises for cultural integration, thelate start and are still in constant exploration stage. And like all successful diversification,through mergers and acquisitions in order to successfully carry out diversification, requiresa common core of unity, there must be at least a common culture or cultural marriage.Cultural differences are the main reason for failure of cross-border M&A activity, and theimplementation of cultural integration is to ensure that the most important key to successof transnational mergers and acquisitions. Cultural differences not only bring culturalconflict, you can also create cultural values, making enterprise development,havingimportant significance.Cross-border mergers and acquisitions in the face of cultural differences usuallyinclude three levels:1.the most essential difference is the different countries andsocio-cultural backgrounds.2, different corporate culture, management style and othercountries and regions.3, individuals in different countries and regions, the concept ofculture is different. In this paper, ABB merger TNB as the starting point for the twocompanies are facing cultural environment and business environment research, analysisunder its now an open and competitive environment, how the corporate culture in thepost-merger integration, and promote business development, as well as how to accuratelydeploy the entire business development TNB to assist ABB in China’s sustainabledevelopment strategy.From the structure of the article point of view, first from the two companies merged inthe background analysis begins, roughly describing current two company’s existingbusiness environment, the basic situation, and then extended to mergers in the basic statusin China. Then, after the merger of ABB and TNB in China business development mode isselected by the two companies with different cultural backgrounds were five dimensions ofHofstede systematic and comprehensive analysis of the direction of cultural fusionresearch after merger. Although it does not belong to the five dimensions of corporate culture dimensions, but it can work intuitively reflect the behavior of different countriesand regions of employees. Focus from cross-border mergers and acquisitions and the needfor cultural integration of the key aspects of starting, ABB will be analyzed by what way toachieve successful integration of corporate culture, so that enterprises for furtherdevelopment. The paper further proposes to develop some ideas and M&A execution leveladjustment deployment, and further elaborated in different countries and culturalenterprises how to better cater to the enterprise global mergers and acquisitions under thenew economic development model.The main propose of the author is: base on the article research and analysis,combining with ABB working experience, get some inspiration and feelings, to ask foradvice from experts and industry insiders. Meanwhile, hopefully it can bring somereference for other those who explore this.