In January 2011, China-based Joyson Automotive Group (Joyson) acquired Preh GmbH (Preh), a German manufacturer of high-end automotive components. While Joyson had lower capabilities in areas such as management and engineering, it was able to ensure a successful acquisition of the more competent firm Preh after years of careful planning and relationship building. Joyson had grown over 14 years to become a US$10 billion manufacturing company by continuously acquiring more capable firms. The acquisition of Preh would make the two companies powerful players in the global automotive parts supply market and promised to provide Preh with financial resources and access to the lucrative Chinese automotive market, but only if the Chinese and German companies could be integrated successfully. How could Joyson’s management team ensure a successful integration of a firm with superior management, soft skills, and technical capabilities?
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