Geely Essay

23423 Words Apr 15th, 2013 94 Pages
A Case Study of the Acquisition of Swedish Volvo by Chinese Geely

Author: Lieke Wang Supervisor: Thomas Danborg Master's Thesis in Business Administration, MBA programme February 2011

The acquisition of the famous Swedish Volvo by the unknown Chinese Geely has attracted a lot of attention in the world-wide medias, particularly in Sweden and China. It is the largest overseas acquisition ever by a Chinese company, which marks a beginning of a new era that the fastest growing China has become a superpower in the world economy. Because this acquisition is such a complex business where two involved companies are so much different, it is of high interest to make a case study of this in the business research area. The thesis
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In addition, it is necessary for Volvo and Geely quickly establish mutual trust and respect between two companies’ employees. Finally, the thesis also looked at the strategies Volvo and Geely have adopted so far, and it indicated that they are implementing a similar strategy except in two areas: how to position Volvo in China and how quickly Volvo should establish its production in China. It is believed that the road to a successful acquisition of Volvo by Geely is not smooth, rather it is a bumpy road where there are a lot of challenges ahead. In summary, the acquisition of Volvo by Geely does not sound very rational from the conventional wisdom, due to the huge big difference in brand, product specification, custom base, inter-culture and company culture, language, etc. However, the aspect of China does give a lot of hopes for the success of the acquisition. To realize these opportunities, it is important for the management team to develop a right strategy and effectively implement it.

I would like to devote this thesis to my family: my wife Xiufang, and my two wonderful boys Victor Lehan Wang and Kevin Ruihan Wang. It has been very intensive work during the past two and half years, when I spent most of the leisure time on the study of the MBA program. Without their

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