Case Study On Integration Of Corporate Culture After The Merger Between Winteam Pharmaceuticals And Tongjitang Pharmaceuticals

In the wake of Globalization, more and more enterprises choose mergers and acquisitionsto acquire high rise on company and most of them failed. Statistics shows that70%mergerswere not success in a long run. The factors caused failure are a lot and the most important oneis culture integration.Winteam Pharmaceutical is a big modern Pharmaceutical company listed on the mainboard of the Hongkong Stock Exchange, which was held by China Pharmaceutical group-thebiggest of China. Winteam Pharmaceutical merged Guizhou Tong Jitang at the year of2013,and then stared culture integration. The first phase finished at October,2013. During theprocess of culture integration,Based on the practical experiences and related theories of company culture and cultureintegration inside and outside China, this paper studied the process of culture integration afterthe merger between Winteam Pharmaceutical and Tong Jitang in the way of documentanalysis and case study. In a conclusion, there are five factors caused the success of cultureintegration: learned and evaluated both parties culture before the merger, made specific planand mode of culture integration, fast-reacted from high-level management, established acomplete communication system, and continually deliver positive value. Nowadays,Mergers and acquisitions of enterprises become more and more frequent in China,especially in the pharmaceutical industry. This paper wishes to provide a reference case andsome success experiences of cultural integration in the process of mergers for them infuture.