碩士 / 東吳大學 / EMBA高階經營碩士在職專班 / 101 / During 1980 to 1990, the rise of IT industry brought the Information Kingdom of Taiwan as many as the opportunities of foreign investment. Many overseas mergers and acquisitions, joint ventures and wholly owned subsidiaries have been established to close the customers to provide the best local service. However, due to desktop computer industry was replaced by the growth of notebook computer industry, its market was eroded and recessed. And also the rise of the world's factory of mainland China, there was no more cost advantage for Taiwan enterprises. It caused the parent company had the necessity to reevaluate the sustainability of their subsidiary which located in the mature markets, especially for the wholly-owned subsidiary.
Recently, owing to the financial crisis, many multinational companies have taken overseas layoff and divestment to maintain the sustainability of the parent company. The main purpose of this research is to study the case by examining the foreign direct divestment of two overseas subsidiaries in Europe, to understand the determinants, the types and the procedures of their divestment and their similarities and differences, in order to provide the reference of the foreign divestment for the multinational company which prepare or plan to do.
In summary, the final overseas divestment results for these two subsidiaries were all close the business, but their determinants and the types of divestment were not all the same. Their determinants may affect the choice of the type and the procedures; and the corporate positioning in the procedures they selected, will also affect the subsequent procedures in the planning and execution.
The determinants, types and procedures of two subsidiaries are described as below:
1. Divestment determinants
Compare to the case of the two subsidiaries, there are eleven divestment determinants for Austria (XV) to line with the literature, and there are ten for Germany (XM) to line with; A new one for Austria (XV), and two new ones for Germany (XM); Four for Austria (XV) does not comply with, and five for Germany (XM), but they either were overcome or chose to give up later. At last, Austria (XV) divestment determinant becomes sixteen, and Germany (XM) becomes seventeen. The most critical determinants of divestment for the two subsidiaries were the new items.
2. Divestment types
Both of two subsidiaries originally took retrenchment strategy by the type of voluntary liquidation. At last, Austria (XV) was forced to take involuntary liquidation divestment because of financial difficulties; Germany (XM) still remains voluntary liquidation divestment.
3. Divestment procedures
Although both Austria (XV) and the German (XM) took voluntary divestment at the beginning, but different company’s positioning they select in the divestment steps affected the scale of downsize and the schedule of liquidation, nevertheless, the procedures were similar. Even though, the types of the divestment were affected by the different determinants, till the end, the results were same to close the business.
The researcher recommends the companies to do the foreign divestment by sale like the literature of Zi, Dong Fang and Xu, Yan Mei (2006) had pointed out, but it is also a good way to do the self-liquidation divestment to find out what exactly the management problem overseas subsidiaries had. If the experiences can accumulated and transfer, it can help avoid mistakes in the future investment or divestment.
Multinational divestment is a sensitive issue, its determinant, behavior and the procedure with little information disclosure. Once the divestment completed, it is also difficult to find the persons to gather information and do the research. Through this case study, a foreign divestment model can be viewed and analyzed, includes the determinants, the types and the procedures. It helps provide the companies a reference who plan to do the foreign divestment before action; also an exit simulation for the companies before the investment plan to do.
Keywords: Foreign Direct Divestment, FDDI, Divestment, Overseas Subsidiary, Liquidation, Closure
| Identifer | oai:union.ndltd.org:TW/101SCU01457001 |
| Date | January 2013 |
| Creators | Tzeng, Jau-Yu, 曾昭瑜 |
| Contributors | Weng, Wang-Hui, 翁望回 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 116 |
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