Summary: | 碩士 === 國立交通大學 === 管理學院碩士在職專班科技管理組 === 98 === After reviewing the history (model) of economical development in Taiwan, we find that most of companies tend to form a conglomerate to cope with the drastic change in the environment of economies. It reflects “a big fish gets even bigger” as the description in Darwin's evolutionary theory. This paper is focus on the growth and development strategies of Walsin Lihwa Group, which is a business group that has controlled by a family with strong traditional Chinese characteristics. We have summarized the growing strategies of Walsin Lihwa Group into three main directions, which are “Family business spin-off strategy, Cross-border diversification strategy, and Investment in the mainland expansion strategy”.
We observe its history and the strategies of growing since 1966, the year it was founded, and infer the effectiveness of the growing strategies bases on trend analysis approach. We also explore the relationship and the correlation between its core business and the related strategic variables. As results, we found, 1) the operating performance of its family business reflects the profits of group's investment, it indicates the effectiveness of the strategy applied. 2) Without changing its operation strategy of the core business, Walsin Lihwa Group implements a cross-border diversification model that separate the risk of investment appropriately. In addition to that, the model also considers both the market trends and the investment timing, which shows its positive effectiveness on the profit earning. 3) Early investment in mainland China around 1992 is the strategy that pushes the growth and profit of Walsin Lihwa Group into a period high development. It also shows this strategy has a significant and positive effective on the group. We expect the next phase of the growth would express a closer correlation with the mainland's economic development trend.
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