Title: The transformation of a traditional salt company into a biotech business through innovations and reforms: a case study of Taiyen
Authors: Pao-Ching Cheng, Chi-Hsiang Chen, Ming-ji James Lin
Addresses: Department of Business Administration, National Central University, Tao Yuan County 32001, Taiwan, R.O.C. ' Department of Business Administration, National Central University, Tao Yuan County 32001, Taiwan, R.O.C. ' Department of Business Administration, National Central University, Tao Yuan County 32001, Taiwan, R.O.C.
Abstract: Taiyen Biotech Company (TBC) is an enterprise responsible for salt making and supply in Taiwan protected by the government under monopoly. However, its privatisation plan in 2003 posed great threat to its existence. A new business strategy is based on a Diamond Theory of innovation and reform, as well as a Kite Theory that emphasises the importance of sales channel was adapted to implement the new business strategy. The main purpose of this article is to show the importance of setting up a right strategy when a public enterprise face the reform to be a private one and how to carry out the strategy properly to make the reformed company with loss turn out to be profitable. By the example of TBC, it is shown that the successful reform of a state-owned company depends on a well-defined strategy made up of series of activities.
Keywords: diamond theory; innovation; kite theory; management reform; business transformation; salt company; biotech business; biotechnology; Taiwan; salt making; business strategy; sales channels; privatisation.
International Journal of Technology Management, 2008 Vol.43 No.1/2/3, pp.107 - 122
Published online: 11 Jul 2008 *Full-text access for editors Access for subscribers Purchase this article Comment on this article