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1
The World Market PlaceWorking with Foreign Companies
Taiwan Experience
Presented by Mei Chuan CHUANG
Republic of China (Taiwan)
IAWP Annual Educational Conference
International Panel
2
Outline A Brief Introduction to Taiwan Why Foreign Companies come in
Taiwan Impacts and Responses
3
A Brief Introduction to Taiwan The 17th largest economy in the
world The 14th largest exporter The 16th largest importer The third largest holder of foreign
exchange reserves, with over US$180 billion
World Competitiveness
4
World Competitiveness
#13 in 2008 (IMD World Competitiveness Yearbook)
#6 in 2008(Business Environment Risk Intelligence-BERI Profit Opportunity Recommendation)
#1 in 2007(World Economic Forum-WEF State of Cluster Development)
5
Why Foreign Companies Come in Taiwan
Geographical Advantages Various Worldwide Leading
Products Made by Taiwan Abundant Capacity for Innovation
and R&D Growth Full Functioning of the Industrial
Clustering Effect Highly Educated Human Resource
6
Geographical Advantages
7
Various Worldwide Leading Products Made by Taiwan
Worldwide Market Share WW No. 1 WW No. 2
Motherboard (System & Pure MB) 99.0%
Cable Modem 93.0%
Server (System & Pure MB) 87.5%
Notebook PC 87.5%
WLAN NIC 87.0%
VoIP Router 84.0%
DSL CPE 81.0%
Motherboard ( Pure MB) 75.6%
LCD Monitor 73.4%
VoIP TA 73.0%
PDA 71.5%
IP Phone 55.0%
CDT Monitor 52.1%
Large Size LCD Panel 42.8%
WLAN AP 42.0%
DSC 43.8%
ODD 39.2%
Server (System) 34.9%
Source: MIC/III, January 2007
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Abundant Capacity for Innovation and R&D Growth
(2) R&D Growth(2) R&D Growth
190.52 197.63 204.97
224.43240.82
260.85
280.98
2.522.422.33
2.2
1.98 1.972.08
0
50
100
150
200
250
300
350
400
1999 2000 2001 2002 2003 2004 2005
NT$ billion
0
0.5
1
1.5
2
2.5
3
%
R&D Expenditure R&D Expenditure as a Percentage of GDP
3,693
4,667
5,371 5,431 5,298
5,938
5,118
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Case
1999 2000 2001 2002 2003 2004 2005
U.S. Patents Granted
(1) U.S. Patents Granted(1) U.S. Patents Granted
9
Full Functioning of the Industrial Clustering Effect
Hsinchu Science Park Electronics and
Information Software Optoelectronics
Kaohsiung Petrochemicals Steel Electronics
Yunlin Technology Industrial Park
Textiles Optoelectronics
Nankang Software Park Software Knowledge Industries
Southern Science Park Optoelectronics Machinery Foodstuffs Biotechnology Environmental
Protection
Central Science Park Optoelectronics Precision Machinery Nanometer Materials Aerospace
10
Highly Educated Human Resource
advantage is the second most important factor Population of 15 Years and Over by Educational Attainment Literacy Rate: 97.63%(99.4% vs. 95.85%) Illiteracy Rate: 2.37%
According to a survey 63% for high quality human resources Geographical advantage
11
Impacts
Talents competition-most office workers want job with foreign company More than nine out of 10 white-collar workers in
Taiwan would like to work for a foreign enterprise
High salary, good benefits, and broad opportunities" are main reasons.
61% for believe they will have a better future, 58% for good benefits, and 51% for high wages
12
Impacts New KASo
Language ability Knowledge Multicultural Sensitive…
New managerial concept and framework Performance-based system Working style
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Competence-based HRP(cont.)
Armstrong (2001)-a competence-based integrated HRP
Performancemanagement
Recruitment& selection
Competenceframework
HRD
Reward Management
14
The Company’s Core Competence
Management developed eight core competencies: Management developed eight core competencies:
Customer OrientationCustomer Orientation
TeamworkTeamwork
InitiativeInitiative
ResponsibleResponsible
Result OrientationResult Orientation
Cost Control & ManagementCost Control & Management
Industry knowledgeIndustry knowledge
English Ability. English Ability.
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Employees’ Competence Gap
Customer Orientation
Teamwork
Initiative
English
Result Orient
Cost Control
Industry Knowledge
Responsibility
Communication
HRM Practices
Labor Laws
Org. Planning
Reqired Level
Actual Level
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Responses Attracting investment by establishing a free and
open investment system, and by providing a good environment for corporate operations. Providing key statistics, infrastructure, major
business expenses, and related laws and regulations Introducing incentive program Delivering intensive training program focus on
language and related knowledge and skills International Trade Program
17
International Trade Program
Supplying an even balance of English language and trade courses
Full-time, six-month program is available to those who have or are receiving their bachelors
18
THANK YOU
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