From success to failure~why some good enterprises fail

• Main Authors: Chia-hui Lee, 李家慧
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/05436643196432303892

碩士 === 國立中山大學 === 企業管理學系研究所 === 92 === In the process of economic developments in Taiwan, small and medium enterprises are always the main stable force and have made remarkable contributions. Based on this fact, The National Award of Small and Medium Enterprises was set up for upgrading and rewarding outstanding small and medium enterprises. To apply for the award firms need to pass substantially high qualifications. Therefore, if an enterprise won the award, they were recognized as successful. However, according to recent newspapers and magazines, some winners are now facing restructuring, the failure of the public offerings, or even bankruptcy. What happened to these enterprises that used to be good at the beginning? Why can’t they sustain original advantages and remain successful? The subject of this research focuses on “main reasons for business failure” and picks up the winners of the National Award of Small and Medium Enterprises for examples. Hopefully through the research, we can conclude the main reason for business failure. By gathering and analyzing the second informations, we have eight findings： Finding 1、The “business cycle” is often an important reason for the business failure. Small and medium businesses are most easily affected by the variation of outside environment. Finding 2、The deviating personality of the managers determines whether the enterprise enjoys excellent operations or collapses in a twinkling. Finding 3、Most enterprises make use of "the backdoor listing"," the cross holdings" to steer high financial leverage and to collect a great deal of short-term capital which leads to financial crisis. Finding 4、The operation of the corporation is not efficient, neglecting the real market demand, as a result being eliminated in the competition. Finding 5、The most common feature of the corporations going down in the 70’s is high quoted loans among IPO companies. Their debt ratio overweighs, and the core business occurs severe loss in business. Finding 6、The strong stockholder combines the outside power to create soaring stock price. In the end it leads to misfortune. Finding 7、If managers don''t know how to handle their assets suitably, the more they have, the easier they squander. Finding 8、The development of the industry faces the bottleneck and knows not where to go.