A Case Study of Corporation Division on Asustek Computer Company

• Main Authors: Hung,Shu-Ling, 洪淑苓
• Other Authors: Kao,Ming-Sung
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/80774961513977555804

碩士 === 輔仁大學 === 金融與國際企業學系金融碩士班 === 101 === The High-tech industry in Taiwan has been well-known for its Original Equipment Manufacturing (OEM) around the world. However, due to the competitions from the market and pressures from the OEM customers, the companies are facing declines in their gross profits.During the process as the information and electronics industry managing the OEM business, they would also develop their strength to open up their OBM business by the experience gained. For companies which relies on the OEM business as their source of revenue, the path to develop OBM business could sometimes bring concerns to their OEM customers and even cause The information and electronics industry in Taiwan are therefore facing the demand to divide the OBM and OEM businesses. This study takes a single case as its research method. By examine the Asustek Computer Inc. through Economic Value Added Theory, as Asustek Computer Inc. takes the same Equity Crave-Outs strategy as Acer in 2007, the study discusses the difference in their beneficial results after the spin-off. Asustek Computer Inc. had encountered its first capital reduction in 2009 since founded. Through the analysis of the entire market and the issues occurred after the Crave-Outs, the study infers the motivation of spin-off Asustek Computer Inc. had taken afterward. Furthermore, the study examines how Pegatron, the subsidiary company of Asus, losses its advantage in vertical-integration and the shift in its performance. This study generalize the motivation and consideration of the division by Asustek Computer Inc. as (1) Strategy-Focused (2) Resource Management (3) Financial Consideration. The division of Asus OBM and OEM was carried out in two phases: (1) the division was completed in January, 1st, 2008.The OBM business stays in Asustek Computer and OEM business was 100% share-holding as subsidiary company by Asustek Computer.(2) The spin-offs was further completed in June, 24th, 2010, as Asustek Computer had capital reduced by 85% and acquired 25% of share-holding of Pegatron. Pegatron had applied its IPO and listed on the same day as Asustek Computer. The Economic Value Added after the spin-offs are:(1) Great increase in the economic value for Asustek Computer, as the OBM developing parent company (2) Less Increase in the economic value for Pegatron, as the OEM developing subsidiary company.