A Study on the Transformation Strategy for the Privatization of Government-owned Enterprises : taking Taiyen Biotech Co., Ltd as an example
|關鍵字:||國營事業;民營化;轉型策略;臺鹽公司;Government-owned Enterprise;Privatization;Transform Strategy;Taiyen Biotech Co., Ltd.|
In Taiwan, Taiyen Biotech Co., Ltd. (Taiyen), former name is Taiwan Salt Industrial Corporation, is one of successfully privatized government-owned enterprises in recent years. Taiyen has been privatized in 2003, and its stocks have also listed and traded in Taiwan Stock Exchange at the same year. After Taiyen has been privatized, the government share is still possessed about 40% of its stocks; thus, the government still held Taiyen’s operating right, and dispatched Taiyen’s chairman In order to respond with the opening of the salt products market after privatization, during the period from 1995 to 2002, Taiyen has conducted a succession of diversified investments to avoid the operating risk for simplex products; in addition, this composite and diversified strategy has implemented to 2002. However, after completed the privatization, Taiyen has no longer conducted some irrelevant diversified investments, and changed to implement the strategy of “core industry” for further operation. Moreover, after Taiyen has been privatized, the “Regulation of Salt Policy” has also been abolished and that caused the loss of the protective umbrella for it; however, the loss has brought impact on Taiyen, but once Taiyen has created the historical high peak of its revenue. As a result, it has declined after made development; thus, its transformation strategy is really worth to be discussed then. This study is attempted to make use of the difference between these 2 phases of transformation periods before and after Taiyen’s privatization in order to explore the difference in its operation performances. This study is adopted these following methods to conduct the research, such as the comparison between the strategy of these 2 phases, the analysis test of financial performance, and the evaluation of the stock market. The research results have showed that since the original tradition of being a good government-owned enterprise, there’s no significant difference of its financial structure and liquidity between these aforesaid phases; however, the operating competence in the 2nd phase is better than the first phase’s, and the ROA EBITD has better profitability. In the financial reports of Taiyen 2003~2005, they have disclosed that Taiyen is a privatized enterprise with growing revenue and better profitability. However, this result has showed a deviation in these aforesaid researches and Taiyen’s revenue has declined in 2005 to the profit that made in 1995; in addition, there’s a significant relationship between these 2 conditions. The 2008 annual revenue of Taiyen has declined to the amount it made in 1995; in addition, these transformation experiences after privation, including the channel, brand, R&D strategy, innovation idea, differential product and core enterprise, were used as the strategic operation that have successfully made up the lost revenue after abolished the “Regulation of Salt Policy”. Since the original size of salt products market is not a large one in Taiwan; therefore, Taiyen has been underwent a difficult path of transformation However, it has adopted successful strategy to overcome these difficulties, and, in the future, Taiyen needs to prepare good and sound strategies in order to respond with these continuous innovation and transformation. Key words: Government-owned Enterprise, Privatization, Transform Strategy, Taiyen Biotech Co., Ltd.
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