An Investigation of the Elements of Successful Corporation Reorganization from the Perspective of Stakeholders and Social Network

• Main Authors: Shih-Hung Chien, 簡詩宏
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/58988139874641680413

博士 === 國立雲林科技大學 === 企業管理博士班 === 99 === ABSTRACT Turnaround and crisis management proposed by scholars in the past could be used for informal and private negotiation mechanism to solute the financial crisis. However, companies that suffer emergencies and critical impact and face bankruptcy were mainly focused in this research since their situations were so serious that no private negotiations were possible and they were required to file a reorganization petition to the court under the Laws of Corporation-chapter 11. How do they respond to such circumstances in order to get the support from the stakeholders and obtain necessary resources or support to prevent from bankruptcy? The reorganization case of Tong Lung Metal Industry Co., Ltd. was studied in this research and immersion/crystallization analysis of a qualitative research was adopted to examine critical decisions and the elements of success for this reorganized corporation. As the support from the stakeholders is a prerequisite for successful reorganization, the stakeholder theory will be focused in the study to investigate how to analyze and manage the stakeholders and what business ethics the decision makers should follow to obtain the support from the stakeholders. Furthermore, top managers of reorganized corporation should be capable and trustworthy since the reorganization process takes time and interests of the stakeholders conflict. Consequently, the characteristics of top managers of reorganization in the case under study will be further explored. According to the research, the elements of successful reorganization of Tong Lung Metal Co. are: 1. the top managers of reorganization were characterized with an expanding consensus team, in which members had various specialties, different social networks and were strongly connected to each other and there were one to two key man consolidating other members; 2. good management of the stakeholders by making an in-depth understanding of their demands, utilizing significant decisions to transform the types of the stakeholders, reducing conflicts, eliminating obstacles and improving willingness for cooperation; 3. ethical approaches to get the support from the stakeholders, including fair ethics and solicitude ethics. The conclusions above reveal that strong of competitive and good luck was the general opinion of the successful reorganization of Tong Lung Metal Co.; nevertheless, the real elements for a successful reorganization are diverse, deep and difficult to understand. No wonder peoples used to name it as a “black box”. Based on research analysis and inference, three models are found: 1. the formation and interaction features of the top managers of reorganization can be divided into four types by two variables; i.e., heterogeneity vs. homogeneity and strength vs. weakness of connection among the team members; an expanding and consensus team is suggested to be the most favorable to a successful reorganization; 2. the analysis and management model for stakeholders is controlled by barriers to reorganization promotion and interest conflicts among stakeholders of different types; critical decisions can be divided into four categories and management approaches to each category are proposed; 3. for the model of ethical analysis of stakeholders, two variables of “to be encouraged” and “to be avoided” should be considered by the top managers of reorganization towards stockholders and other stakeholders; there are four types of corporation obligations and it is suggested to the top managers of reorganization should fulfill non-trust obligations to other stakeholders and prevent inefficient management. It is believed that the conclusions and suggestions presented in this research can supplement the shortcomings of turnaround and crisis management and be used as a reference for future researchers and proprietors of enterprise.