Analysis Of Yibai Pharmaceutical's Continuous Mergers And Acquisitions And Its Performance From A Strategic Perspective

In recent years,the competition in China's pharmaceutical industry is fierce.No matter new product R & D or marketing,pharmaceutical enterprises need to invest a lot of resources,and their profitability is greatly affected.In order to better integrate resources and increase market power,many pharmaceutical enterprises take the way of M & A to integrate strategic resources and enhance market competitiveness.This phenomenon is particularly prevalent after 2013,and some pharmaceutical companies have made several successive acquisitions in several years.Even so,in terms of global strength,in 2019,only two Chinese pharmaceutical companies entered the "top50 global pharmaceutical companies".From the perspective of the development of enterprises after M & A,through the strategic behavior of continuous M & A,some pharmaceutical enterprises not only fail to achieve the strategic objectives of integrating resources and giving full play to synergy effect,but even fall into business crisis due to continuous M & A.Although the academic circles have discussed the continuous merger and acquisition behavior of pharmaceutical enterprises,there is no systematic theory.Therefore,it is of theoretical and practical significance to study the motivation,process and performance of continuous M & A of pharmaceutical enterprises from a strategic perspective.On the basis of literature review,this paper expounds the influence mechanism of the overall path and specific path on the performance of continuous M & A,and draws the conclusion that the continuous M & A behavior influences the performance from the operation coordination,management coordination and financial coordination.Guizhou Yibai Pharmaceutical Co.,Ltd.(hereinafter referred to as Yibai pharmaceutical)as the first listed non-public pharmaceutical enterprise in Guizhou Province,has a long history.In recent years,it has formulated the strategy of "big tumor" and carried out continuous M & A.This paper analyzes the internal and external environment of Yibai pharmaceutical through SWOT and pest,taking the case of the continuous M & A events implemented by Yibai pharmaceutical from2014 to 2017,in order to find out the impact of Yibai pharmaceutical's environment on its continuous M & A.This paper summarizes the motivation of Yibai pharmaceutical's continuous M & A,which includes diversification,synergy,marketpower and transaction cost reduction.This paper analyzes the reasons why Yibai pharmaceutical chose the target of M & A,which mainly considers the factors of region,customer distribution,exclusive drugs and so on.The managers of Yibai pharmaceutical have overconfidence during the period of M & A.finally,this paper analyzes the performance of Yibai pharmaceutical in four dimensions of finance,customer,internal process,growth and innovation through the balanced scorecard,uses the fuzzy comprehensive evaluation method to analyze the performance of Yibai pharmaceutical,and finds out the problems in the continuous M & A of Yibai pharmaceutical.The research shows that Yibai pharmaceutical has achieved the strategic goal to a certain extent through continuous M & A,the performance of single indicator of balanced scorecard is different,and the fuzzy comprehensive evaluation result is medium.Among them,the managers have overconfidence in the continuous M & A,the individual financial dimension indicators after the continuous M & A are poor,and the management coordination and financial coordination have not occurred.Yibai pharmaceutical's M & A objectives are scattered.Although it can avoid competition,it can't complement each other's resources.Its brand effect is limited and resource integration is difficult.After the merger and acquisition,the financial expenses have not been reduced and the capital structure has not been improved.Combined with the problems in the continuous M & A of Yibai pharmaceutical,this paper suggests that Yibai pharmaceutical should ensure the rationality of pricing in the continuous M & A,integrate after the M & A,improve the industrial chain,give full play to the advantages brought by tumor products,drive the development of other related businesses,and then improve the profit space.