Taiwan is just a small spot on the map.

But now that every ninth person in the world wears shoes "Made in Taiwan," every fortieth person holds an umbrella "Made in Taiwan," and "Made in Taiwan" bicycles, tennis rackets, and electric fans have filled the international market, entering people's daily lives, the name "Taiwan" has become familiar the world over.

Admittedly, Taiwan's big name in the bargain basements of the world may soon be replaced by those of Malaysia, Indonesia, or even the Chinese mainland; nevertheless, its reputation couldn't be better with Hewlett-Packard, Ford Motor Company, Philips, Japan Air Lines, and other multinational corporations. The reason: the Taiwan branches of these companies have become the "model performers" of their entire organizations.

Hewlett-Packard Taiwan for instance, has won the multinational corporation's "best performance award" from among sixteen overseas branches for the past four years straight.

Ford's Lio Ho Motor Company has earned three consecutive championships for production quality among all of Ford's international subsidiaries.

The Hotel Royal Taipei is the only one of Japan Air Line's 16-hotel Nikko chain to have been selected as a member of the Grand Collection of Hotels, based in New York.

And Jan Bergvelt, the president of Philips Taiwan, cites his company's success in manufacturing products in competition with the Japanese as establishing it as a leader in quality performance worldwide.

Being number one means more support from the home office. Ford has asked Lio Ho Motors to manufacture its top-of-the-line compacts for exports to Canada; Hewlett-Packard picked Taiwan over Japan, South Korea, and Singapore to establish an "Asian Personal Computer Operational Center"; and Philips plans by the end of the 1980's to turn its Taiwan company into its manufacturing and sales center for all of Asia, with annual operations reaching nearly US$1 billion.

Besides increasing investment, home headquarters hope that sister branches will emulate their successful siblings. JAL's Nikko Hotels, for example, has instructed its personnel involved in opening new hotels in Hong Kong, San Francisco, and Chicago to fly to Taiwan and carefully study operations at the Hotel Royal Taipei.

The "number ones" that Taiwan has earned in exporting shoes, umbrellas, sewing machines, and twenty-some other products in the past have been due largely to the island's low labor costs and accomplished production techniques. So what are the Taiwan branches of multinational corporations relying on to take the lead among their sister companies in advanced industrialized countries in the high-technology and service industries of today?

"The most important thing is, we've been lucky!" exclaims Don S. Wakairo, general manager of the Hotel Royal Taipei. His remark may sound facetious, but Wakairo explains that his elegantly appointed, 203-room hotel was always intended for foreign businessmen rather than tourists. "And with Taiwan's strong economic performance over the past few years," he says, "our occupancy rate has been very high."

Taiwan's economic prosperity has given its citizens increased purchasing power, another attraction for overseas businesses. Nevertheless, Ford nearly pulled out of Lio Ho last year because domestic sales were low and production was only half of capacity. However, a morning's visit to the factory by the Ford president convinced him that the company had two major assets-well-educated, highly trained employees, and a high degree of work enthusiasm-and he quickly scrapped the disinvestment plan.

In addition to diligent and well-trained workers, Taiwan's "brain power" is another factor happily cited by overseas businessmen. Over 45 percent of Taiwan's college students major in science or technology, which means local colleges turn out some 20,000 technically trained graduates a year. Japan and South Korea are similar in this respect, but "they have one big problem," as J. Y. Lo, executive vice president of Philips Taiwan, indicates. "They're too conservative, and most of their top people won't work for a foreign company."

While Taiwan's multinational branches are similar in their success, they differ in management styles. Hewlett-Packard, for example, takes the American approach, stressing flexibility, creativity, and respect for the individual. Whereas the Hotel Royal Taipei practices the Japanese method, emphasizing discipline, respect for one's work, and quality of service.

Besides following the style of the home company, adopting the best of local management techniques is also an enlightened approach. Lio Ho Motors says that, even though it is 70 percent U.S.-owned, it combines Western work values of efficiency and organization, Japanese quality control, and Chinese humanistic philosophy (caring for its workers, for instance, and involving them in decision-making).

Philips has been even more unsparing of effort to adapt to local conditions. Having cultivated local talent for many years, Philips Taiwan, with the sole exceptions of its president and a vice president, now has a management consisting entirely of native Chinese. "This is a big advantage," J. Y. Lo explains, "because what Orientals say and what they think are not always the same. So a manager must not only hear what they say but 'feel' what they're thinking."

Fostering and developing talent is perhaps the greatest feature shared in common by these outstanding multinationals. All four offer their employees various training and advanced study programs. Employee training costs at Hewlett-Packard, for example, reach nearly US$300,000 a year, not including staff training personnel.

Without protracted investment, a company won't have outstanding employees. Likewise, without long-term plans, a multinational branch company is like a flower in a vase, pretty to begin with but soon to wilt. Those overseas companies that were attracted to Taiwan in the 1970's by its low labor costs have nearly all pulled out.

But Philips Taiwan is like a firmly rooted tulip. Bergvelt believes that a major factor in his branch's success has been its constant adapting to local economic conditions. He plans to manufacture products of even higher added value in the future, making even greater use of Taiwan's "high-quality, low-cost" technical talent.

In addition to long-range plans, an overseas business should strive to benefit the local society, Wen Ko, president of Hewlett-Packard Taiwan, believes. His company has donated a gas chromatograph and three artificial intelligence work stations to National Taiwan University and made other contributions to local organizations.

"Doing these things is very meaningful," Wen Ko says. "Your employees will trust you and feel you're here to stay, your clients will trust you, and the government will support you. How can you lose?"

[Picture Caption]

Lio Ho Motor Co. has been number one in product quality among Ford subsidiaries for three straight years.

A diligent and well-trained work force is one of Lio Ho's major assets. (photo by Chung Yung-ho)

A Chinese New Year's greeting next to a circuit diagram illustrates one way Philips Taiwan fits in with the local environment.

At Philips Taiwan, Dutchman Jan Bergvelt is a "minority group" employee.

Taiwan's outstanding, low-cost "brain power" is a major factor in attracting overseas companies to the island. Here workers at Philips examine a PCB diagram.

Besides a good location and good decoration, excellent service has made the Hotel Royal Taipei international-class in quality. (photo by Chung Yung-ho)

Don Wakairo, general manager of the Hotel Royal Taipei, runs a tight ship.

In view of Taiwan's economic potential, the Hotel Royal Taipei has focused on serving a business clientele from the first.

Hewlett-Packard built an impressive office building to confirm confidence in its long-term commitment to Taiwan.

General Manager Wen Ko (r.) accepts another "best performance award" for Hewlett-Packard Taiwan.

Hewlett-Packard Taiwan allows its employees flexible work hours. (photo by Chung Yung-ho)

Lio Ho Motor Co. has been number one in product quality among Ford subsidiaries for three straight years.

A diligent and well-trained work force is one of Lio Ho's major assets. （photo by Chung Yung-ho）

Lio Ho Motor Co. has been number one in product quality among Ford subsidiaries for three straight years.

At Philips Taiwan, Dutchman Jan Bergvelt is a "minority group" employee.

Taiwan's outstanding, low-cost "brain power" is a major factor in attracting overseas companies to the island. Here workers at Philips examine a PCB diagram.

Besides a good location and good decoration, excellent service has made the Hotel Royal Taipei international-class in quality. （photo by Chung Yung-ho）

Don Wakairo, general manager of the Hotel Royal Taipei, runs a tight ship.

In view of Taiwan's economic potential, the Hotel Royal Taipei has focused on serving a business clientele from the first.

Hewlett-Packard built an impressive office building to confirm confidence in its long-term commitment to Taiwan.

General Manager Wen Ko （r.） accepts another "best performance award" for Hewlett-Packard Taiwan.

Hewlett-Packard Taiwan allows its employees flexible work hours. （photo by Chung Yung-ho）