Case Study of the Risk Management of Taiwanese Multilevel Marketing Company in China

• Main Authors: Ching-Lin,Chou, 周景琳
• Other Authors: Jaw,Y.L.
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/92616800817016365359

碩士 === 國立臺灣大學 === 國際企業學研究所 === 87 === Multilevel-marketing industry eventually started in Mainland China since Avon invested in Guangzhou in November 1990. After then Sunrider, Mary Kay, Tupperware Amway, and some Taiwan companies such as Hsin-Ten, MDI, Chlitina entered the big potential market too. The China government has set a lot of restrictions on this wholly new industry, but they didn’t work out. The disorder of this new market was due to several reasons. One of the reasons was that the China government was not familiar with this capitalistic industry therefor the law and rules were not really appropriate. Besides, the quality of people who joined in direct selling was not good enough. There were many social problems caused by this new industry. On April.12.1998, the China government announced a statement, which forbid all kinds of multilevel-marketing activities in China and asked multilevel-marketing companies to transfer into store-type business. The purpose of this paper is to observe the firms’ behavior and strategy during this period and develop a whole risk management model. And the research objectives are as follows: (1) Discussing the multilevel-marketing background and risk in Mainland China; (2) Discussing the responding strategy of political risk; (3) Discussing the adjusting strategy; (4) Developing a risk management model. This study develops four groups of propositions through collecting secondary data and visiting some sampling corporations. They are (1) the influence of risk evaluating system on risk consciousness; (2) the key determining factors of entry strategy; (3) the key determining factors of risk responding strategy; (4) the key determining factors of adjusting strategy. Our study finds out that the Taiwanese multilevel-marketing companies that have investment in Mainland China still have to work on their risk evaluating and environmental scanning system. This study also shows that company strategy, growth speed, and enterprises have great influence on entry strategy and adjusting strategy.