Study On The Cross Cultural Integration In M&A Of Joyson Electrics&Preh GmbH

In the early stage of reform and opening up,the main way of attracting foreign capital in the domestic market is mainly to attract foreign capital,and then to realize the learning and exchange of foreign technology and experience through the establishment of joint ventures.However,our self-conceived "advanced technology" is the obsolete technology scorned by foreign companies.Domestic enterprises can only accept it passively and lose the initiative to choose.Even if we know that it is worthless,we cannot escape the fate of the survival of the fittest in the market.In recent years,China’s market economy has entered a stage of rapid development,and domestic enterprises are developing rapidly.When enterprises have the demand for mergers and acquisitions,they will take the initiative to attack foreign markets and seek the target of mergers and acquisitions.This change from passive to active means not only the rapid growth of Chinese enterprises,but also the gradual entry into international market competition.In recent years,M&A transactions of transnational corporations are increasing day by day,but they are far from the expectations.The reason lies in the problem of cultural integration.Cultural integration is a particularly important part of cross-border M&A,and also an important factor affecting its success.As we all know,there are different cultural differences among different enterprises.Especially for multinational enterprises,they need to focus on the background culture of each other’s enterprises and their own culture.Only by comprehensively controlling the two cultures,finding out their differences,and predicting the possible problems in the negotiation process,can they reduce the negative impact of cultural conflicts.Then we can find the right way to deal with it and achieve M&A smoothly.On the basis of combing the existing theoretical basis of cross-border M&A culture and combining with real-life business cases,this paper finds out the important focus of cultural integration in the process of cross-border M&A.Among them,the theoretical part involves the overall background and significance of the research,and briefly outlines the concept of corporate culture,as well as the differences in cross-border M&A culture.With the German company Price as the focus of the case,in-depth and shallow reveals how to solve the conflict of cultural differences.