Keywords: diamond theory, innovation, kite theory, management reform, business transformation, salt company, biotech business, biotechnology, Taiwan, salt making, business strategy, sales channels, privatisation
The transformation of a traditional salt company into a biotech business through innovations and reforms: a case study of Taiyen
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.