Merger and Acquisition in China Coursework Example | Topics and Well Written Essays - 10000 words

Merger and Acquisition in mainland China - Coursework ExampleThis was undertaken in the form of a qualitative study as the author was obtaining subjective randomness relating to the failure of this merger/ achievement. This was undertaken in the form of primary research. The qualitative methods were withal chosen as the information obtained was used to develop themes and form conclusions on the reasons behind the collapse of the DANONE and Wahaha Group deal (Cooper and Schindler 2003, Creswell 2003, Hair et al 2003, Saunders et al 2003) that will be useful for find out the advantages and disadvantages of establishing mergers and acquisitions in the Chinese market. The primary research with the head of Wahaha demonstrated the lack of openness or the no willingness to discuss this issue in great detail. The benefits derived by China from its merger and acquisitions activity with developed nations include increased development and economic activity. The benefits also include the acqu isition of new technology, knowledge and skills, which would have differently taken significantly longer to achieve, and for a relatively lower price. However, the main disadvantages are that of the lack of knowledge of mergers and acquisitions as they are mainly driven by the developed world. Mergers and acquisitions do occur in China regularly, but this is different to such activities with companies that are not Chinese.Table of ContentsTable of Contents41.0 Introduction51.2 Significance of the study 101.3 interrogation objectives111.5 Research model 122.1 Mergers and Acquisitions and the Stock Market152.1.1 The merger and acquisition environment162.2 Cross Border Mergers and Acquisitions182.2.1 Cross Border problems faced by Chinese companies202.2.2 Countermeasures faced by Chinese companies22 2.4 Business Culture262.5 Introduction to Case Study273.0 Methodology284.0 Results334.1 Primary Research334.2 Secondary Research345.0 Discussion496.0 Conclusion566.1 Recommendations596.2 Limitations607.0 References611.0 IntroductionThe open door form _or_ system of government initiated by Deng Xiaoping in China in1992 with the intention to push forward Chinas economic progress brought in considerable wealth in the form of Foreign Direct Investments (FDI) (Galbraith, 2000). This policy enabled institutional miscellany (North 1990), which in turn created opportunities for investment into the Chinese economy. What was different about this policy was that it was a gradual change and not a sudden change as experienced in other developing countries, which led to bankruptcies and high costs (Campbell and Lindberg 1991). This policy also placed emphasis on contrary capital policy, the foreign exchange system, and it also offered promising conditions for foreign investors (Galbraith, 2000). This policy has since reaped dividends given that the main mode for FDI into the Chinese economy has been through foreign funded and joint venture companies. This has also reflected in figures which show that between 1990 and 1996, China managed to attract approximately $230 billion of foreign capital, with 20% of that amount coming from developing nations (Galbraith, 2000). However, the open door policy