Facing Challenges

1
Facing Challenges

• Chi Schive
• April 16, 2001
• Taipei

2
Changing Environment

• Globalization
  World trade has been expanding much faster
  than world production
• Weightless Production Technology
  The quickly developed IT technology has
  changed the way of manufacturing and doing
  business.

3
Merge An Industrial Reorganization

• Merge Waves of the U.S. Economy
• Merger in the Financial Sector

4
Merge History in the U.S.

• 1989-1910, Merge for Monopoly
  1. 15 of plants and employment involved. 2.
  U.S. Steel came from emerging 785
  plants--combination of combinations.
  3. Standard Oil acquired 20 of 25 refineries in
  the Cleveland area.

5
continued

• 1923-1931, Merger for Oligopoly
• The formation of GM
• 2,750 utility companies, 43 of total, were
  merged.
• 1960-70s, Merger for Growth
• The market boom encouraged inter-industry
  merger.
• 1980s and After, Merger for Growth,
  Diversification and Conglomeration
• Merge caused by deregulations

6
Merge in the U.S. Financial Market

• Riegle-Neal Interstate and Branching Efficiency
  Act of 1994
• Financial Services Competitiveness Act of 1995

7
Merge in the U.S. Financial Sector

• Chemical Bank and Manufacturers Hanover Trust
  Chemical Bank
• Bank of America and Security Pacific Bank of
  America
• Chemical Bank and Chase Manhattan Chase
  Manhattan
• Citi Corp. and Travelers Group Citi Corp.
• Bank of America and National Bank Bank of
  America

8
Performance After Merger

• About one-third of all mergers failed.
• Benefits of recent financial mergers are yet to
  be seen.
• Merger initiated from outsiders, such as banks,
  tends to be less satisfactory.
• Should merger for survival be given a different
  thoughts?

9
Knowledge, Innovations and Integration

• Innovation deals with problem solving.
• The capability of solving problem is related to
  the stock of knowledge held and the capability of
  using that knowledge.
• Knowledge comes from experience, the publicly
  available information and some uncodified
  characteristics and tacitness of innovators.

10
From Industry to Technology Paradigm

• The Boundary of Industry Turning Blur
• Technology Paradigm, An New Way of Thinking
  Industrial Development

11
Fifteen New Growing Area, Japan (1995)
12
Fifteen New Growing Area, Japan (1995)
13
Technology Paradigm

• Technology paradigm affected by three elements
  
  l. Certain needs to be fulfilled.
  2. Some scientific principles to
  be applied for that task.
  3.Certain supportive
  or material technology to be used.