Rancia

On June 28th, Henan Xinfei Electric Appliances, Household Appliances and refrigeration appliances Co., Ltd. 100% equity clinched a deal, with a transaction price of 455 million yuan. Part of the land, real estate and buildings under the name of Xinfei Electric began to be auctioned on July 5.

Once comparable to Haier's new flying refrigerator, it has been dusty ever since.

Ten years of glory, a fall.

Xinfei's predecessor was the military factory-Xinxiang Radio Equipment Factory. When the founder Bingyin Liu took over as the director of this small factory on 1983, the company had accumulated losses of more than 700,000 yuan. After taking office, Bingyin Liu took aim at refrigerators popular in big cities. 1986, Bingyin Liu introduced the Italian Philips refrigerator production line and began to produce the "Xinxiang Philips" refrigerator, thus the Xinfei brand was born.

Two years later, by 1988, the sales revenue, profits and taxes, labor productivity of all employees and per capita profits and taxes of Xinfei refrigerators ranked first in Xinxiang.

1May, 990, Bingyin Liu also smashed 400 refrigerators with quality problems, and the quality consciousness began to sprout and grow in the hearts of Xinfei people, and Xinfei also began its ten-year glory.

1996 or so, Xinfei reached its peak. That year, Xinfei began to implement wage reform, and the wages of most workers rose to 1, 000 to 1, 400 yuan. At that time, the average monthly income of Xinxiang City was only three or four hundred yuan.

Foreign capital took over and a new flight storm began.

According to public information, in 1994, the government led the introduction of Singapore Hong Leong and Xinfei Group to form Xinfei Electric Appliances, of which Xinfei Group held 49%, Singapore Hong Leong Electric Appliances Pte Ltd. held 45% and Singapore Yuxin Electric Appliances Co., Ltd. held 6%, and Xinfei Group still held the right to speak.

In 2005, when the state-owned enterprises were restructured, Xinxiang Municipal Government transferred 39% of its state-owned shares to Singapore Honglong, and earlier acquired 6% of the shares of Xinfei Electric Co., Ltd., and Singapore Honglong became the major shareholder of Xinfei Electric, holding 90% of the shares, and became a new political figure of Xinfei Electric.

According to insiders, Bingyin Liu, the founder of Xinfei at that time, was very opposed to the reorganization, but it ended in vain. Although Bingyin Liu still has the right to operate Xinfei Electric Appliances, his tight shareholding structure makes him more and more constrained in his business strategy. According to media reports, Bingyin Liu once said that he thought two rare development opportunities were abandoned because of the opposition of the board of directors.

The decline of the new flight market began from 20 12. In this year, the sales volume of Xinfei refrigerators decreased by 37% year-on-year, and the market share began to decline year after year, falling out of the top ten in 20 14. This year, the symbol of Xinfei Electric has also changed from an eagle to a colorful bird. The external changes reveal the internal deep-seated contradictions. In May of that year, Xinfei Electric stopped production on a large scale, involving most of the production lines of three production bases in Xinxiang. 2 million new flying refrigerators 1 factory closed and merged with the second production department.

It would have been good for foreign investors to move in. Why did it become Waterloo?

Cultural dilemma is the real reason for the decline of Xinfei.

Founded in 1963, Singapore Hong Leong Group is the largest real estate and hotel investment developer and benchmark enterprise in Singapore, and also a global multinational enterprise group integrating real estate, banking and financial services, hotels and other comprehensive categories. According to public information, Hong Leong has no experience in the home appliance industry. Some commentators believe that the purpose of Honglong's acquisition of Xinfei is to sell Xinfei Electric Appliances and gain investment income, which is not a serious operation. In fact, during the period of Hong Leong's control, there were a lot of news about the sale of Xinfei Electric Appliances, but it was abandoned because of the high asking price.

After becoming a foreign company, the first thing employees feel is frequent personnel changes.

Bingyin Liu died of stomach cancer in Guangzhou in 2000. A year later, Li Gen, the general manager of Xinfei Electric Appliances, who was regarded as Bingyin Liu's successor, was replaced, and Zhang Donggui from Singapore took over Xinfei Electric Appliances. After that, Hong Leong Group parachuted more than 400 senior executives, and the middle and senior levels of Xinfei Electric changed greatly. After Zhang Donggui suddenly resigned, Xinfei began another round of personnel changes.

Frequent changes in middle and high levels bring about constant adjustment of strategies and changes in management methods, and employees' thoughts fluctuate greatly, so cohesion is out of the question.

In addition, during the operation of Hong Leong, there has always been a contradiction between the Chinese side and the management. According to the data, since the reform of state-owned enterprises in 2006, there has been no salary increase during 12. The treatment of employees lags far behind that of neighboring enterprises.

The management mode, business philosophy, market strategy and strategic direction brought by the management after the takeover conflict with the culture that has been formed by Xinfei, which brings great discomfort to employees and forms an insurmountable cultural dilemma.

Merger and acquisition has become an important means of rapid expansion of enterprises. However, many studies show that the success rate of M&A in China is quite low from the long-term operating performance after M&A. According to statistics, the success rate of M&A is less than 20%, and statistics show that it is around 50%. After the new flight changes hands, corresponding cultural changes are needed to mobilize the enthusiasm of employees and let the new culture help the new strategy. Unfortunately, the management didn't realize the importance of corporate culture. The decline of Xinfei is essentially the failure of cultural change.

The cultural dilemma after the merger of Xinfei is mainly manifested in the following aspects:

First of all, two aspects of M&A have incompatible organizational culture, which is reflected in the differences in values, management style and business philosophy. At the same time, the lack of effective communication and coordination in the process of M&A and integration can not solve the conflict of organizational culture, which makes it difficult to effectively integrate the organizational cultures of both sides. In serious cases, there was a large-scale employee strike.

Second, there is a lack of effective integration scheme design and implementation after the merger, and improper management and control during the integration process.

Thirdly, before and after M&A, we paid too much attention to short-term financial interests, and did not fully consider and make use of "human factors", such as effective leadership and senior promotion, to gain employees' commitment to the organization, investment in professionals, and effective communication.

Haier is a successful example.

Haier Group has successively acquired dozens of enterprises in China. In the process of acquiring these enterprises, Haier attaches great importance to the role of corporate culture integration. The first step is always to "clone" Haier's culture and management model, so that Haier's corporate culture can take root, and the acquired enterprises can understand, adapt and consciously think and act according to Haier's corporate culture and management model, and truly integrate with Haier Group. For example, when the former Qingdao Hongxing Electric Appliance Factory merged, Haier only sent three managers of corporate culture centers, but only three managers were sent by introducing Haier's culture and management model. For this large enterprise with a debt ratio as high as 144% and an insolvency of 654.38+33 million yuan,13,500 employees before the merger in July 1995.

Numerous facts show that corporate culture plays an important role in the development of enterprises. The success of corporate culture change in enterprise merger and acquisition is directly related to the success or failure of merger and acquisition and affects the further development of enterprises.

Kontha? )\