Performance Evaluation Of Suning Electric Appliances Merger And Acquisition Of Red Child Based On Improved Balanced Scorecard

In recent years,with the rapid development of the Internet,the retail industry has to face the transformation.At present,retail enterprises are mainly through the integration of online and offline channels,retail experiential consumption and the use of network platform to build the way of sales and other paths to implement strategic adjustment,and finally achieve a win-win business model online and offline.This article selects the Su Ning electric appliance to acquire the red child this case,this merger is the strategic merger,although the red child compares the Su Ning,the asset proportion is small,does not belong to "big eat big" M & A,but what Su Ning values is the red child mature on-line resources,Management team and the diversification of business categories.Based on the strategy of "superelectricalization" of Su Ning,the expansion of category is the focus of the development of Su Ning electronic commerce.Through the acquisition of Red Child,with the help of Red Childundefineds brand,team,supply chain,category operation experience,to enhance their core competitiveness,in the vertical category that has not yet entered or needs to be cultivated to achieve rapid entry and scale development,Effectively realize the strategic transformation of Su Ning.In this paper,the balanced Scorecard is used to evaluate the performance of M & A,but the case studied in this paper is strategic M & A,which emphasizes the market expansion and coordination,and weakens the financial effect to some extent.Therefore,based on the balanced scorecard theory and the synergistic effect of M & A activities,this paper improves the dimension index of the original balanced scorecard,and establishes the evaluation model of the improved balanced scorecard.Make it become more suitable for M & A performance evaluation model.The main idea is based on the relevant theory,analyzed the development trend of each index of four synergetic dimensions before and after Suning merger and acquisition for 7 years(2010-2016),the conclusion is: the development trend of each index is different,Some of the indicators have a positive effect on the company,some have a negative effect on the company,and some of the effects on the enterprise are not obvious.This makes it impossible to obtain a clear M & A effect by analyzing the development trend of each indicator only through the chart situation.Based on this situation,in order to obtain a definite and clear result of M & A,this paper firstly uses the Analytic hierarchy process to determine the weight of each dimension index.Then the fuzzy analysis method is used to score the performance of the merger and acquisition of Suning Electric Appliances in order to get the results of the merger and acquisition after quantification.Through calculation,it is concluded that the results of the mergers and acquisitions of Red Children by Suning Electric Appliance are at the level of "good".It shows that the strategic M & A has brought some positive influence to Suning.