Research On The Challenges And Countermeasures Faced By Geely In Implementing The Strategy Of Independent Decision-making Power

It is a very important question for multinational companies whether to grant subsidiaries independent decision-making power in the course of overseas mergers and acquisitions.For Chinese companies with little experience in overseas mergers and acquisitions,it is particularly critical to control which strategies overseas subsidiaries implement.Unreasonable control strategy may bring about failure of M&A activities.When Chinese companies go abroad and conduct cross-border mergers and acquisitions,they will also face the issue of whether to implement the strategy of giving subsidiaries independent decision-making power.On the basis of sorting out the domestic and foreign literature on independent decision-making power,this article selects Geely's acquisition of Volvo as a classic case for research,aiming to analyze the problems existing in the implementation of Chinese enterprises' decision-making strategies for overseas subsidiaries.First,on the basis of literature research,this article introduces the main content of Geely Volvo company introduction,M&A process and M&A agreement involving independent decision-making power.Based on resource-based theory,resource dependence theory and corporate social responsibility theory,Geely implements independent decision-making power The motivation of the strategy is analyzed,and the external environment and internal conditions of Geely's autonomous decision-making strategy are analyzed using PEST analysis and Porter's five-force model,followed by SWOT analysis of Geely's autonomous decision-making strategy.Secondly,based on Geely's market performance analysis and financial index analysis of the implementation of autonomous decision-making strategy,it raises the problems in the process of implementing autonomous decision-making power.Next,it elaborated the“triple contradiction” and its performance between the independent decision-making power and “resource integration between parent and subsidiary companies”,“strengthening parent-subsidiary dependency relationship” and “unification of parent and subsidiary company performance evaluation standards”.Finally,put forward countermeasures to solve the “triple contradiction”.Based on the above research,this paper believes that while the parent company is considering implementing the strategy of granting independent decision-making power to its subsidiaries,it can use PEST analysis and other strategic analysis tools toanalyze the external environment and internal conditions of Geely's independent decision-making strategy,based on SWOT The analysis method comprehensively considers the advantages,disadvantages,opportunities and challenges of the implementation of independent decision-making strategy.After the parent company that is in a weak position in terms of technological capital implements the strategy of independent decision-making power,appropriate management measures should be taken to promote the integration of key resources,including technological capital,between the parent and subsidiary companies.Strengthen the dependency relationship between parent and subsidiaries in various aspects such as R&D investment of subsidiaries,unify the performance evaluation standards between parent and subsidiaries,realize reasonable management and control of subsidiaries,and then achieve the goal of controlling critical resources.