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The World Market PlaceWorking with Foreign Companies

Taiwan Experience

Presented by Mei Chuan CHUANG

Republic of China (Taiwan) 

IAWP Annual Educational Conference

International Panel

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Outline A Brief Introduction to Taiwan Why Foreign Companies come in

Taiwan Impacts and Responses

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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

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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)

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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

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Geographical Advantages

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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

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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

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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

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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

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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

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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

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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

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THANK YOU