A Dynamics Study for the Impact of the Taiwan Enterprise Migration on the Business Growth- Case Study of the Automotive Electronics of Company A

• Main Authors: Lin, Li-Chu, 林麗菊
• Other Authors: Tseng, YaTsai
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/4ga5xm

碩士 === 東海大學 === 企業管理學系高階企業經營碩士在職專班 === 102 === Some of the Taiwan enterprises in China might have been planning to remove the factory again when the wage level (labor cost) is getting increasing locally, or unless to study how to reduce the production cost but keep the gross margin as expected there which is also the main purpose of this case study. The Automotive Electronics Business Group of the case company A had a loss at early several years since the production lines were migrated to China, besides some factors of external environment, hereby study how the enterprise internal operations impact on the business growth. The methodology of this case study is by System Dynamics that can help to solve the dynamic complex problems, with the casual diagram for this qualitative research, to analyze the impact of the operations (including the factory migration, material purchasing and preparation, production capacity, price competitiveness) on the business growth for the Taiwanese automotive electronics manufacturers in China. The results are as below : 1. When customer demand increases, the necessity of production capacity expansion would impact on the following material preparation, revenue, gross margin, and the new projects' award hit rate. 2. The new projects' award hit rate would impact on the supplier's production allocation and material price for this case company A; The supplier would also impact on the price competitiveness, on time delivery rate, and the new projects' award hit rate for this case company A indirectly. 3. In order to prevent the getting higher risk of the idle inventory cost and go ahead with the same material preparation control policy without change once the customer demand increases that would impact on the gross margin ironically. Per the findings as the above, to avoid falling into the limits to business growth, it should be made early enough on the investment in order to improve the enterprise capability and catch up with the coming business growth. To foresee on the investment and make it before the business growth that would be ready to get much more business growth. If the enterprise can not realize the important of the investment until the new business or the order demand been dropping down, even the production capacity has been expanded a little afterwards, but the situation might be not retrieved as a result.