The Diversification Strategy and Organizational Designation of Business Group：A Case Study of Tatung Group

• Main Authors: Feng-Chi Hsu, 徐楓淇
• Other Authors: Chun-Ju Wang
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/rm2x6w

碩士 === 銘傳大學 === 國際企業學系碩士在職專班 === 97 === In today’s aggressive environment, businesses are more competitive than ever before. Enterprises are finding ways to increase higher profit margins by trying different ways to diversify the risks. In order to increase the competitive edge and continue for survival; the businesses must acquire multi-level types of actions and implicate different strategies such as company mergers or buyouts to facilitate maximum efficiency. Furthermore, these actions will result in changes to be made, changes within the infrastructures of the companies such as operation, management, accounting, human resources, and many others, all have to be altered due to these tactical movements. In essence, our research study method uses a matter of case study pertaining to 10 companies’ top executives in a manner of interviewing and surveying them to comprehend the process and its impact to a better understanding. The case study has shown results to the followings: 1)If the subsidiary business is newly formed and has not yet stabilized; thus the parent company will provide more support and be more involve in gaining control on their operation activities. On the other hand, if the subsidiary business has operated for a certain duration and had matured; then headquarter will focus more on the results instead of the process. 2)Among all the diversified new businesses created by the parent enterprise, the parent company will engage and correspond more closely to the subsidiary business that has more common grounds with each other versus the ones that has less common interests. The parent enterprise will monitor operation more immensely because of its correlation with the subsidiary business. 3)Percentage of shares, depending on the shares or holdings by the parent company, involvement level shall vary with the subsidiary business. The less shares or holdings that the parent enterprise possesses, the less participation will take place. 4)Despite of all the differences in companies and industries, the functionality on the system of evaluation remains basically the same. However, due to the dissimilarities in contents, each enterprise’s objective will be different and will be adjusted accordingly.