There Are Three Ways To Deal With Mergers And Acquisitions.

< p > < strong > operation culture difference < /strong > < /p >

< p > corporate culture seems intangible, but sometimes different corporate cultures are often the main culprits of future business failures.

In the past, mergers and acquisitions were mostly in the form of "big fish eating small fish", and small businesses were absorbed in large enterprises.

However, in recent years, there has been a phenomenon of "two strong unions" or even "snake swallow elephants" in mergers and acquisitions, and cultural integration is particularly important.

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In this year's large-scale mergers and acquisitions, there are many domestic enterprises leading foreign enterprises. Whether they are independent of each other or whether one side is willing to compromise on the other side needs to be tested by the two sides according to their own circumstances. P

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< p > in Wangfujing department store's acquisition of spring department stores, < a href= "http://www.91se91.com/news/index_c.asp" > Wangfujing < /a > department store is authentic state owned department store, while spring department stores belong to wholly foreign-owned enterprises.

Lai Yang, Secretary General of Beijing Institute of business economics, believes that although Wangfujing department stores can help improve the performance of spring department stores, spring department stores can also provide rich brand resources and management experience to Wangfujing department stores, but the two party management team should remain relatively independent in operation and integrate cautiously.

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Shen Zhengyuan, a researcher in circulation industry of CIC, said that when analyzing Huarun and Tesco, a reasonable system can avoid cultural conflicts and make the two different interests of the joint venture be unified.

The reason why Tesco is working with Huarun is to see China's familiarity and control over the Chinese market.

I think the culture of the joint venture company may be more inclined to the Huarun department, which is conducive to the stability and growth of the company.

According to Zhang Jiapeng, executive director of RET Rui Yi De, it is more viable for the two companies to share their advantages selectively.

"The usual practice is that enterprises are not eager to make strong management, but actively seek the consensus and differences between the two sides in this process.

The exchange of consensus will enable the two sides to have a sense of identity, and then we can explore which side of the differences can be retained and trade-offs.

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< p > except for cultural background, Zhang Jiapeng believes that the merged enterprises will also face different operational modes.

"Spring Department stores are high-end, Wangfujing stores are dominated by popular brands, and the two are different in the operation mode and the original strategy. How to produce synergy in integration is also a problem that enterprises need to solve."

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< p > < strong > employee placement < /strong > < /p >

< p > in the second day when it announced that it was going to be bought by Wumart, a href= "http://www.91se91.com/news/index_c.asp" > bee bee lotus < /a >, there was an employee disturbance.

Due to uncertainty about future prospects, employees chose to shut down shop in order to ask for settlement.

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< p > compared with the M & a tide in the mid and late 90s of last century, the M & A of enterprises is more rational.

At the same time, with the continuous maturity of the market environment and the gradual improvement of enterprise mechanism, this has greatly improved the success rate of merger and acquisition.

However, Yao Liming, director of the research center of China commercial business research center, said that not all mergers and acquisitions can bring benefits to enterprises.

"Personnel arrangement is the primary problem to be solved after the integration of enterprises, and how to change the management personnel position and the whereabouts of ordinary employees needs to be solved."

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< p > for this reason, a retail expert who did not want to be named said that personnel placement is the most important problem faced by enterprises after mergers and acquisitions, and personnel disputes after mergers and acquisitions are common.

"The retail industry is a labor-intensive industry, and now there is still labor shortage.

Generally speaking, the grassroots employees will be retained after the merger, but there will be some adjustment in the middle and senior level, and the situation of layoffs or demotion of the acquired enterprises will not be ruled out. "

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< p > Zhang Jiapeng said that both department stores and supermarkets belong to industries with more employment. Therefore, there are differences between different cultural entities in mergers and acquisitions.

"A large number of employees can be classified from one culture to another, and there will be different patterns of management and thinking, which will easily lead to conflicts."

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< p > "under conflict should not be too strong."

Yao Liming believes that if a large number of employees in the acquirer can not accept the corporate culture of the acquirer, the final result will not be very good for the employees and enterprises once the total layoffs are adopted.

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< p > < strong > supply chain integration < /strong > < /p >

< p > > a href= "http://www.91se91.com/news/index_c.asp" > horizontal merger < /a > is an effective means of rapid expansion of enterprises, but the decision of merger and acquisition is the integration of internal supply chain.

In the view of the industry, the enterprises after horizontal mergers and acquisitions must integrate the internal supply chain in order to avoid the original supply chain's own affairs and lay the foundation for the integration of the external supply chain.

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< p > according to the existing statistics, in the existing cases, the success rate of China's acquisition of foreign capital is less than 50%.

The success rate of M & A is not high. The main reason for the failure is the integration management after merger and acquisition.

From the perspective of business needs, the supply chain has the highest requirement for coordination and integration depth. It requires highly coordinated departments and branches.

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The integration of supply chain is bound to cause conflicts. < p >

The Huarun Department has bought many regional supermarkets. After purchase, it needs to purchase unified. Regional enterprises often have local suppliers. Once unified procurement, the cooperative relationship with local suppliers will be broken, and the sales will be affected.

It is understood that Huarun Wanjia is very strong, its provisions to the supplier account for 60 days, but the regional retailers account for 40-45 days, for suppliers, the shorter the account, Huarun's style sometimes makes suppliers unhappy.

After mergers and acquisitions, many of the powers of the original regional enterprises are being collected. It is difficult for the operators and local partners to finalize matters in time.

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< p > Hu Chuncai, general manager of Shangyi consulting, Shanghai, believes that after negotiation, the two parties can produce better trading conditions for suppliers.

"Generally speaking, we should seek common ground while reserving differences, and carry out unified negotiations on national commodities and suppliers, so as to achieve a relatively low procurement cost.

Regional commodities that do not have the conditions to promote conditions in other areas may be authorized to undertake local procurement, which is also an important means of localized operation. "

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