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Facing Challenges. Chi Schive April 16, 2001 Taipei. Changing Environment. Globalization World trade has been expanding much faster than world production
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Facing Challenges Chi Schive April 16, 2001 Taipei
Changing Environment • Globalization World trade has been expanding much faster than world production • Weightless ProductionTechnology The quickly developed IT technology has changed the way of manufacturing and doing business.
Merge: An Industrial Reorganization • Merge Waves of the U.S. Economy • Merger in the Financial Sector
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.
continued • 1923-1931, Merger for Oligopoly The formation of GM 2,750 utility companies, 43% of total, were merged. • 1960-70’s, Merger for Growth The market boom encouraged inter-industry merger. • 1980’s and After, Merger for Growth, Diversification and Conglomeration Merge caused by deregulations
Merge in the U.S. Financial Market • Riegle-Neal Interstate and Branching Efficiency Act of 1994 • Financial Services Competitiveness Act of 1995
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
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?
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.
From Industry to Technology Paradigm • The Boundary of Industry Turning Blur • Technology Paradigm, An New Way of Thinking Industrial Development
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.