The Impact of Investment Structureto the Decision-making Process of Diversification – a Case Study

• Main Authors: Jia-Zhen Hsieh, 謝家禎
• Other Authors: 葉疏
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/2bw3px

碩士 === 國立臺灣大學 === 會計與管理決策組 === 102 === For most of Taiwan companies, either traditional or Hi-tech sectors, are facing the two-end challenges: the cost down pressure from the rivls in emerging companies, and the innovation and business model shift from the competitors in the US and Europe. Revenue and profit are saturated and probably decreased for Taiwan companies. It is natural for companies to adapt “organic growth” policy. However, organic growth takes time, and can’t catch up with the rapidly changing world. This has made lots of the companies not able to “cross the chasm.” Diversificaition provides the companies with the opportunities to grow, to diversify and to minimize the risks. However, it brings challenges as well. Few of the existing experiences and resources can be leveraged to the diversified investment. The companies have to find out the way to build up the investment structure, performance evaluation mechanism to improve the decision-making. In this thesis, we observe the decision process in the diversification of a company, as well as that of its rival at the same time. We conclude the decision-making tendancy from the aspects of managers, organization process flow, resource allocation and industry environment. Also we infer the impact to decision-making resulting from the type of venture business. In this study, we declare a decision-making model of diversification and suggest a “CV + VC” model for diversification business. With this model, the company can ensure the new businss to have enough resources as well as to be screened by effective performance-review to prevent the company from escalating commitment.