An Analysis Of The Effectiveness Of Geely Group 's Strategic Transformation Through Cross - Border M & A

With the increasingly fierce market competition and fast-changing market, companies must plan for the future strategy and direction in advance to remain invincible in the fierce market competition. Therefore, the importance of the strategic management for enterprises is increasingly prominent.Based on the sort of strategic management and transformation theory, we discuss the theory of corporate strategic transformation through Cross-border M & A by case studies of Geely Group. The case mainly analysis of strategic significance of the Acquisition to achieve the Group’s brand strategy objectives, technological innovation strategy objectives and international strategic objectives. Taking Geely Group’s acquisition of Volvo Car Corporation for example, the paper focuses on the strategic management of Geely Group and strategic transformation through Cross-border M & A, and mainly tests the realization level of the M & A expected strategic goals. This research provides reference experience for Chinese enterprises to implement the "going out" strategy and participate in international competition in the future.In 2007, based on internal and external environment analysis, Geely Group timely proposed strategic transformation plan, and implemented many times cross-border mergers and acquisitions to take advantage of the international financial crisis. These acquisitions played a great role in promoting corporate strategic transformation. We found that it is a quick and effective way for Geely Group to implement strategic transformation by cross-border mergers and acquisitions. by case analysis of Geely acquisition of Volvo Cars, we found that it is significant for Geely Group in achieving the perfect brand architecture by the acquisition and improving international influence. However, the model of independent business management has limited the technology spillovers of Volvo. The overseas acquisition improves the visibility of Geely and achieves a substantial increase in exports. The sales of Volvo in China has achieved significant growth and became the largest single market. From the perspective of financial analysis, the acquisition of Volvo achieved profitability, but brought the financial pressure to Geely Holding in the short term.