A Study On M&A And Integration Of Flexible Packaging Company

Due to China's economic downturn in recent years,the low cost strategy of the soft packaging industry is becoming more and more difficult to sustain.Market competition in the industry is increasingly intense,at the same time,raw material prices and labor costs continue to rise,leading to higher costs for enterprise,so corporate profit space has been significantly reduced.Under the dual pressure of industrial upgrading,energy saving and environmental protection,many enterprises are struggling to develop,however,the supply of ordinary low-end products has been already oversupplied,and domestic enterprises are limited by research and the capability of development,which makes the output of high-tech additional products very low.So many middle-end and low-end soft packaging enterprises' business is facing difficulties,at last merged by large soft packaging enterprises.A soft packaging company purchases two soft packaging production enterprises,to expand the size and production capacity of enterprises,achieving the strategic objectives of the Group.With the analysis of this paper,I hope to form a case study of M&A integration with reference significance,which provides reference suggestions for M&A integration.Firstly,this paper uses the literature survey method to collect and sort out the theory of M&A integration at home and abroad,at the same time,understand the development and research direction of M&A integration at home and abroad,which provides a reference for the analysis and research of this paper.Then with the discussion as well as analysis about the construction of core competencies of M&A integration framework and M&A integration theoretical interpretation,theoretical support is provided for choosing M&A mode.The third part analyzes the situation of company A's resources and environment,and studies the company's core competence from the aspects of organization structure,sales ability,human resources,production capacity and production qualification.It also analyzes the external environment of the company in detail,such as the trend of economic development in China,the prospect,the policy environment and the trend of cost change of soft packaging industry.Combined with the resource analysis of the acquired company B and C,this paper applies SWOT analysis to judge the development strategy of company A,The necessity and feasibility of M&A integration are analyzed from the following aspects:group development strategy,large-scale economic effect,elimination of bottleneck of business process knot and so on.The fourth part describes the specific process of M&A integration.Firstly,according to the strategic dependence and organizational independence,we choose the absorption mode of M&A integration.Then the paper interprets the specific measures of the merger and acquisition integration from the following four aspects:organizational structure,sales and production capacity,human resources,corporate culture.Then according to the time target,profit target,sales target and quality target after the merger and acquisition,the analysis of the problems that still exist is made.The paper puts forward the corresponding improvement plan according to the theory in terms of the product direction selection,systematic management,quality management,efficiency improvement.From the point of view of the selection and implementation process of M&A integration scheme,this paper deeply studies the changes of core competence in the process of M&A integration,tracks the changing process of core competence in different stages of enterprise,and constructs the level framework of M&A integration from the dynamic angle of view,hoping to find a set of the best integration practice that is suitable for M&A through the research.