The Analysis of Settlement Financing Businesses Engaged by Securities Finance Enterprises--A Case Study on Company G

• Main Authors: Chen-Kuang, Chiang, 江貞寬
• Other Authors: Jyh-Horng, Lin 林志鴻
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/17052739396056023141

碩士 === 淡江大學 === 國際貿易學系國際企業學碩士在職專班 === 98 === The study attempts to explore how securities finance enterprises in Taiwan should respond to changes in its environment and develop a relevant competitive strategy, given the current development of settlement financing business, and examine whether such business helps to achieve the enterprises’ mission. The study aims to find out the important factors that form the competitive strategy of the example case through the strategic management framework proposed by Dr. Lin and Pao (2004) as study foundation, and the assessment of the company’s internal environment, industrial and macro environment. It also adopts the 7S model, 5F model as well as PESTEL three dimensions as the analysis framework. The study utilizes exploratory case study method using domestic and foreign literatures as well as primary and secondary data. The findings are summarized below： In the face of the trend toward merging of securities firms to become larger companies in the securities finance industry, there are increasingly less agents, resulting in diminishing traditional business. Thus, the introduction of new types of business is critical to the future development of business for securities finance enterprises. It provides the potential for innovative, diversified operations that fit in with future development trend. In terms of the characteristics of settlement financing business, it provides a convenient and diversified choice for investors holding valid securities; and a lesser operating risk for securities finance enterprises because the collateral is good, direct financing ensures investors’ credit quality, and there is no need for agency fee, making the business more profitable. However, business performance has been poor since its introduction. Thus, the Study examines Company G’s suitability in undertaking the business through the competitive strategy developed from the analysis of its internal and external environments. From a combined analysis of internal/external environments and overall environment based on the mission statement established by Company G, it is deduced that the competitive strategy of “risk-quality maximization” for undertaking settlement financing business is adequate for achieving Company G’s mission of “becoming the leading risk-quality brand amongst new securities finance enterprises”.