Research On Performance Of Midea’s M&A Of KUKA Based On Balanced Score Card

The rapid development of science and technology has accelerated the arrival of the era of intelligence and at the same time brought about a series of changes in traditional industries.“Made in China 2025”is the strategic goal set by Premier Li keqiang for China’s pillar industry--manufacturing.Intelligent manufacturing,as one of the five major projects,should be the primary task for our traditional manufacturing industry to enter the stage of industrial revolution.In this industrial revolution,more and more enterprises choose to join the merger wave to complete their mission and goal of transformation.Midea as a typical large enterprise in home appliance manufacturing,in response to a national intelligent manufacturing strategy proposed the “wisdom of double”(intelligent manufacturing and intelligent household)of the strategic target,improve technical research and development ability and creation ability is the “wisdom of double” strategy,Midea Group chose Germany’s KUKA Group as the target,to use its brand and technology advantages for the new support power industry fusion.As a large-scale M&A activity on the transformation of home appliance manufacturing industry,this M&A is not only an opportunity but also a challenge for China’s home appliance manufacturing industry.The effect of this M&A is also the focus of other home appliance enterprises.In this context,the performance evaluation of M idea’s M&A of KUKA has practical research value.In summary,the innovation o f this paper mainly focuses on the research perspective and research methods.This paper takes the Balanced score card perspective as the main line and studies the performance of Midea’s M&A of KUKA.Firstly,the research background and significance are clarified to clarify the macro environment and writing purpose of the paper,the domestic and foreign literatures of relevant scholars are reviewed,and the M&A performance evaluation methods of experts and scholars are used for reference.Secondly,in terms of theoretical basis,the concepts of M&A and merger performance are defined respectively,and the Balanced score card theory and the synergy effect theory are elaborated to provide theoretical basis for the case study below.Thirdly,in the case study,t he background of both sides,the process and the motivation of the M&A are taken as the starting point of the study.Fourthly,going into the case study,the feasibility of the application of Balanced score card in the case of Midea is explained at first,and the applicability of the research method to the research object is clarified.After that,with the Balanced score card performance evaluation part four dimensions(financial,internal processes,customers,and four dimensions)to learn and grow throughout,select each dimension respectively corresponding to a representative indicators,analysis the change trend within the five years before and after M&A,combined with Analytic hierarchy process for the performance evaluation of the whole system by means of expert scoring,weights of the hierarchy on the hierarchy to determine the influence degree of various influence factors of M&A performance results,and then to the M&A in the first three years of average index as a reference,and corresponding index o f the two years after the M&A mean value for the actual value difference rate calculation,it is concluded that the corresponding scores,the weight of each factor is multiplied by the corresponding score and the sum is the whole M&A performance score.The n,according to the above scores,the M&A performance was evaluated and the reasons for the differences before and after the M&A were analyzed.Based on the synergy effect theory and the specific situation,the optimization suggestions for M&A performance were proposed.Finally,through the above research ideas and methods,this paper draws the following conclusions: Midea’s M&A of KUKA is a relatively successful case,but there are still shortcomings in the financial dimension and internal process dimension need to focus on.The establishment of M&A performance evaluation system is necessary for the realization of strategic objectives.This paper not only enriched the theoretical system of household appliance M&A performance evaluation method and provided new ideas for optimizing the performance of household appliance M&A,but also accelerated the process of Midea’s strategic transformation in practice and provided guidance for the M&A work of this industry.