The Classifications adn Suggestions of Taiwanese Corporate Ventrue Capital Management
Graduation Date
2009
Document Type
Master's Thesis
Document Form
Degree Name
Master of Arts
Program Name
School of Business and Leadership | Management
Abstract
Taiwan’s economic structure is mainly composed of middle and small sized enterprises. Being influenced by traditional Chinese values, many Taiwanese tend to start an enterprise by themselves. The objective of an enterprise is sustainable operation. To achieve this goal, an enterprise must keep growing. Therefore it must keep strengthening its core business and resources. Drucker (1986) said,” An enterprise has two basic functions. One is marketing, and the other is innovation. The other is all about cost. Only marketing and innovation can create value. ” Therefore maintaining the motivation of innovation is an important issue for company executives. There are many ways to make enterprises grow. Two of the most important factors are innovation and entrepreneurship. Only by continuous innovation can a company attract more consumers and find new niche markets.
Using corporate venture capital is one development strategy for pursuing growth, by using an enterprises’ resources or capital to start a new business. A corporation that starts a new business within its structure is one kind of corporate venturing. There are three main directions that this approach can take: vertical development, single brand copy and multiple brands expansion. Starting a new business not only can help an enterprise develop, but it can also bring many strategic aspects such like opening up new markets, developing new products, increasing the company’s innovation ability, maintaining entrepreneurship and so on.
Corporate venture capital can be divide into two categories, internal and external investment. External investment is to invest in a start-up outside the company by taking a stake in the company. The most famous case is Intel Capital. Intel worried that CPU development had long term limitations. Therefore, the company aggressively searched for other applications and strategically invested in start-up companies in related industries. Internal investment refers to the procedures that the company encourages innovation within the company and further pushes internal venturing. Take 3M an an example. The company has never abandoned research and development. It also attaches importance to talent recruitment and cultivation. When an employee develops new products, technology or even new operation models, 3M helps them establish a start-up within 3M in order not to harm the originality and independence of the process.