Research On The Integration And Optimization Of Midea Merger And Acquisition Of KUKA From The Perspective Of Global Value Chain

The ministry of commerce of China released the statistical bulletin of China's outward foreign direct Investment in 2018 in September 2019.According to the data,our country's foreign direct investment reached 143.04 billion dollar,making it the second largest foreign investor in the world.In more than 80% of the countries and regions in the world,Chinese companies' direct investment accounts for 28% of the total capital invested,of which the total amount of M&A in the manufacturing industry ranks first.However,in the GVC,Chinese enterprises have long been locked in low value-added links,at the bottom of the “smile curve”,and still lack technological innovation capabilities and independent brands.Since 2015,in order to strengthen the continuous upgrading of products and technologies,our country has successively promulgated policies conducive to the development of manufacturing.In the context of Chinese companies going overseas for M&A,due to problems during the M&A integration period,they are facing a serious problem of high M&A failure rates.Therefore,this article selects Midea acquisition of KUKA as a case.Based on the perspective of the GVC,it explores what problems exist in the later integration process of cross-border M&A,and proposes effective integration and optimization strategies for these significant problems.The relevant international business-related theories are applied in practice,and provide a reference for Chinese companies to successfully carry out cross-border M&A and later integration optimization.This paper uses the literature research method to review the related research on this issue by domestic and foreign scholars,and uses the case analysis method to collect relevant statistical data on the problem,comprehensively refers to relevant materials,and finally determines the framework of this paper.This article first introduces the case of Midea acquisition of KUKA in detail,then analyzes the motivation of the merger from the perspective of the GVC,and then combines the relevant data of Midea's financial performance before and after the merger to summarize the merger Successful experience and significant problems in integration.Finally,a targeted integration optimization strategy is proposed for the significantproblems in integration.Through analysis,it is found that there are three problems in culture,human resources,and technology in this M&A.Therefore,this article proposes detailed integration and optimization measures from five aspects: Cultural,human resources,technology,procurement and logistics.After the acquisition of KUKA,the group achieved the goal of maximizing revenue as much as possible.In terms of short-term effects,Midea's value chain M&A have all been relatively successful.This is reflected in the substantial increase in the operating income and net profit of Midea.Overseas revenue has increased by about 77% over the same period of the previous year.Midea's integration of various links in the value chain has reduced the possible integration risks,which is conducive to the development of M&A synergies.Based on the above-mentioned related theoretical analysis and case studies,this article believes that: First,because companies will be affected by local culture,cultural conflicts between companies in different countries are inevitable,and material,spiritual,institutional cultural conflicts are particularly important.Therefore,it is very important for enterprises to attach importance to cultural integration when integrating M&A.Secondly,the information makes the flow of talents between enterprises more and more frequent.Therefore,enterprises can only maintain their core competitiveness by paying attention to high-end technical talents.Taking Midea as an example,the competitive salary treatment provided to employees during the M&A integration process is only one aspect.In order for the company's employees to work actively,it is not unreasonable to use equity and other forms to motivate employees.It is important to integrate the growth of employees with the company's long-term goals,the reorganized organization be reborn.Finally,Midea's value chain M&A will achieve an increase in its global value chain status.With KUKA,on the one hand,Midea has improved the production and operation efficiency of the original industry,on the other hand,it has obtained the intelligent technology required by the future industry development.The development of high-end intelligence is conducive to the research and development of Midea service robots and improves the level of Midea technology research and development,Increasing Midea's R&D resources in the GVC.Therefore,Midea's M&A will greatly improve its research and developmentcapabilities and brand marketing capabilities,which will help improve its position in the GVC.