Electronic Motors’capacity expanding strategy via Merge & Acquisition—taking T company as a study example

• Main Authors: KUAN-CHENG HO, 何寬正
• Other Authors: Sy-Ming Guu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/81238581453636927440

碩士 === 元智大學 === 管理研究所 === 96 === Merge & Acquisition activity of USA continues to enjoy high growth over past 6 years and hit the peak in 2007. BENQ in 2005 merged Siemens cell phone department which ranking fourth in this industry. But BENQ announced failure in Sept. 2006.This mergence worth NT35 Billions taught Taiwan enterprises a great lesson. Though the M&A successful rate is less than 50% and it also takes time to generate synergy. But the successor (business operators) or the academy still put more resource to study M&A cases and want to find out the successful strategy. M&A is already one of the fast ways for international companies which purses high growth. Due to strong demand from emerging markets especially in China , USA’s power plant replacement, and material resource shortage , these strong demand for electronic motors keeps demand-supply unbalance; in order to penetrate bigger market share and meet client’s strong demand. The world’s big players take different measures to expand their capacity. T company in the World Factory - China- expands its capacity by both merging local company and investing by itself. These two ways have different outcomes. This study takes T company as a case study example via personally depth interview and adopt Porter’s 5 factors model to study its industry competitiveness. There are two important conclusions: First, foreign company investing by itself is more successful than merging local company Second, Taiwanese staff must involve in functional operation to make sure system to work stably. I present two suggestions for business operation in China to deal with quick acquisition and establish functional team to enhance successful hit rate. In my study , I find out that qualified talent and software are two successful factors of M&A. In order to avoid make mistake, recruiting professional experts to attend due-diligent practice is essential , especially for intangible asset (intellectual property) review. However, China is getting to become a law-abiding and open economy country.