M&A itself is a strategic action to seek long-term development, but the new enterprise formed after M&A is not just a simple amplification or superposition of the original two enterprises. Below I share the knowledge of strategic integration of enterprise functions, and welcome everyone to read and browse.
(A) the integration of corporate mission and objectives
First of all, it should be pointed out that the mission and goals of each enterprise are different. The mission of an enterprise refers to determining the business that the enterprise will engage in, while the goal of the enterprise refers to the long-term results that the enterprise will achieve in order to realize its mission in a certain period of time in the future. Secondly, before the M&A transaction, the corporate mission and objectives of both parties were different, even if they were engaged in the same field of business, they were different. When the M&A transaction is completed, enterprises with different missions and goals will be reorganized into one enterprise. If the missions and goals of the two enterprises are not integrated, the employees of the two enterprises will develop in different directions, and the employees of the enterprises will not be able to get together, which will hinder the good development of the new enterprise. Therefore, in the process of strategic integration after M&A, it is very important to integrate the mission and objectives of the enterprise.
For example, Philip Morris, a famous tobacco producer, saw that the tobacco market would gradually shrink, and decisively acquired Miller Beer Company, and then acquired General Food Company which produced Maxwell coffee, and made corresponding strategic integration, which shifted the overall strategy of the company, and the company gradually transitioned from the tobacco industry to the non-staple food industry, which made the company develop rapidly.
(B) the overall strategic integration of enterprises
The overall strategy of an enterprise (that is, the company strategy) is a long-term plan made by the enterprise to adapt to the changes in the future environment, which mainly solves the problems of the business scope, direction and development path of the enterprise. After M&A, its internal conditions no longer match the external environment, so it is necessary to integrate the overall strategy of the enterprise to balance its internal and external conditions. In short, it is the adjustment, integration and reconstruction of the overall strategy after the merger of M&A enterprises and target enterprises.
(C) business strategy integration
The integration of business strategy is very important to the success of M&A transaction. In order to make the post-M&A enterprise achieve ideal results, the main merged enterprise must make use of its own special experience and advantages to make up for the weaknesses of the merged enterprise, absorb the strengths of the target enterprise, and combine its own strengths and weaknesses to bring the business development of the target enterprise into the overall development of the main merged enterprise to achieve good synergy. After the merger, the environment faced by both parties has changed, so it is necessary to integrate the business strategies of both parties after the merger to avoid mutual exclusion, so as to improve the competitive position of enterprises in the market. The environmental conditions faced by new enterprises have changed. In order to maintain the normal production and operation activities after M&A, it is necessary to integrate the relationship between internal and external environment to improve the competitive advantage of enterprises in specific industries or markets, and also to prevent friction and conflict caused by the mismatch between M&A enterprises and target enterprises' business strategies. Otherwise, M&A enterprises will not only consume valuable internal resources due to friction and conflict, but also lose opportunities for further development. Therefore, it is very necessary to integrate and manage the business strategy of enterprises.
(D) Strategic integration of enterprise functions
Functional strategy serves the overall strategy and business strategy of the enterprise, so it must be coordinated with the overall strategy and business strategy of the enterprise. Functional strategy is a strategy that must be implemented, implemented and supported by company strategy and business strategy in the corresponding functional management field within the enterprise. The key point is to improve the utilization rate of various resources of the enterprise and maximize the utilization rate of enterprise resources. Enterprise function strategy can be generally divided into marketing strategy, human resources strategy, financial strategy, production strategy, marketing strategy and so on.
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