The Case Study on Key Success Factor of Company’s Mergers and Acquisitions

• Main Authors: Kun-Ku Chen, 陳昆谷
• Other Authors: Wen-Dwo Yang
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/36046533858648033072

碩士 === 國立臺灣科技大學 === 管理研究所 === 96 === The growth strategy of company is to adopt the internal growth strategy, and the company should apply the fast growth strategy to fit the business extra-environment competition. Recently, Many companies have gained the opportunities to apply the external growth Mergers & Acquisitions strategy. Therefore, the Mergers & Acquisitions business deal is more active in the world wild. For overcoming the change and competition of the environment, the company applied the Mergers & Acquisitions strategy is to proceed the organization adjustment and to expand their business scale, reducing cost, raising the global core competence according to resource-base. By the way, the percentage of failure Mergers and Acquisitions deal is between 50% and 70% based on the research in past years. That is more important issue to evaluate the company’s Mergers & Acquisitions strategy and their key successful factor. For example, the TFT-LCD industry in Taiwan will face the competition from Sharp Company in Japan and Samsung, LPL in Korea. The Taiwanese companies include AUO, Chi-Mei, HWA, HannStar, QDI and Foxconn all are small economic scale and same business model. Their business scale is smaller than the company of Korea. Therefore, M&A is one of the best strategies to get the external growth for Taiwanese companies in the current. This research studies the probable advantages and probable problems using M&A as competitive strategy, by through case study, such as collected official materials, elementary materials and the second materials. The following are the main purposes of this research: (1). Based on the industry analysis to study the M&A growth history, M&A strategy, M&A integration and key successful factors of the case company-AUO. (2). Difficulties and challenges and their solutions what the case company may face after M&A activity. (3). To set up the M&A successful suggestions in regards with the TFT-LCD industry in Taiwan. Based on competitive strategy and key successful factors of view, this research sums up the following conclusions: (1). This case has made positive contribution on 「increased market power」, especially for NB market. (2). On「overcoming entry barriers」of this case, (a) Have made positive contribution in economic scale of the market. (b) Have made little positive contribution in difference of the products technology. (c) Have made positive contribution in product market price competition. (3). There are no contribution on 「cost of new product development and increased speed to market」due to the QDI company technology is license from Sharp company in Japan. (4). There are little contribution on 「lower risk compared to developing new products」,This case focus on production scale and increase the new product and customer. (5). On 「increased diversification」of this case, There are position contribution in diversification of product line after M&A active due to the case company have business scale, resource , the solid technology of TFT-LCD and relation industry. (6). On 「reshaping firm’s competitive scope」of this case, (a) Have position result in products due to increase the NB product line. (b) On technology, there is little contribution after the technical patent of QDI has made value added. (c) In price, has made economics of transaction cost advantage due to the economic scale after M&A active. (d) On independency of market, this case has made positive contribution in Japan market. (7). The successful M&A gained from the consistent of M&A process. The same, the failure M&A factors result from the all M&A process. This study creates five key successful factors of M&A evaluation based on the M&A process. To go forward the observation the status and result of the case company M&A issue. Finally, to conduct the five key successful factors of the case company’s M&A active. For example (a) The company leader have enterprise vision and industry analysis ability. (b) The perfect of enterprise M&A strategy plan. (c) To manage the probability of M&A integration. (d) To manage the M&A risk analysis. (e) To manage the integration after M&A active.