2. Basic
Information
CEO Mr. J T Wang
Slogan “Empowering People”
Area served Worldwide
Founder(s) Stan Shih et al.
Founded 1976 as Multitech
It is now the third biggest player in the world following HP and
Dell
Net Income US$384million(2009)
Founded 1976 as Multitech
Revenue US $17.9 billion (2009)
3. •However, the company went through many hurdles and
adversities during its development
•The company was conceived by many as another
"Taiwanese PC cloner”
•The late 1990’s brought internal and external changes that
had a devastating effect on Acer
•Hiring of Leonard Liu
•Ever changing computer industry
•Sales rose from $530.9 million in 1988 to $977 million by
1990 but its profits dropped from $26.5 million to $3.6
million
4. Acer’s first change in course (late
1990’s)
Companies such as Dell built cheaper yet more
powerful PCs, Acer lost share in the U.S. market.
“21 and 21” strategy :
Creating decentralized 21 public listed companies each with
significant local ownership by 21st century. Insuring strong
entrepreneurial drive growing revenue and reducing cost.
Three innovative business organizational strategic
decisions were implemented :-
5. Client-server structure :
Each of the 21 Acer group would be a SBU or RBU. Each
business unit would treat other as partners through direct
exchange relationships not through central planning through
head quarters. Leading to:
1. Insuring the competitiveness of each entity.
2. Leveraging the collective strength of the closely knit
business network.
6. Fast food Business model :
Shih decided that all PC should be assembled close to the
customers, just like fast food so as to –
1. Minimize the risk exposure of technology.
2. Covering the risk regarding price sensitive key
components.
7. Second change in course (2001-2003)
Business environment changed. Acer needed to re-
invent itself.
1. Split the brand business from the OEM
business.
Why?
Computer companies hesitant to hire Acer to make their
computers.
Focusing on fewer products and fewer industrial
customers.
Selling services and technologies in Asia – a potentially
huge and lucrative market.
Following strategic decisions were taken:-
8. 4. Forward looking : Growth opportunities beyond the
personal computers.
3. Focus resources on profitable regions and product
lines.
2. Introduction of the first tablet PCs, which was a
smart idea considering that in many Asian countries,
including China, their written language does not
easily lend itself to use with a traditional keyboard.
9. Subsequently, Acer was restructured in 2001 into :
WISTRON : Dedicated to the design and manufacture of
PC’s and related IT products for OEM customers
ACER INC. : Focuses on selling and marketing of computing
and consumer electronic product of Acer brand
BENQ : Designing, manufacturing and marketing of
computing communication and consumer electronic
products
Collectively these three companies are now called PAN
ACER Group
10. Concept of decision making :
• It is a mental process resulting in the selection of a course
of action among several alternatives
• It is regarded as a continuous process integrated in the
interaction with the environment
• Every decision making process produces a final choice
• The output can be an action or an opinion of choice
11. Decision making at Acer
According to Shih at Acer :
“Everybody can be a little boss. From the beginning
decision making is empowered and decentralized. Even
the head of a small department can make major
decisions. THIS IS OUR WAY.”
12. 6 C’s of decision making
• Construct a clear picture of precisely what must be decided
a list of requirement that must be met• Compile
information on alternatives that meet the requirements• Collect
alternatives that meet the requirement• Compare
the “what might go wrong” factor with each alternative• Consider
to a decision and follow through with it• Commit
13. Strengths
• Global expansion and diversity
• Healthy financial status
SWOT analysis
Weaknesses
• Cultural differences between
its national and international
staff
• Low-cost, low end product
manufacturing image
• Low brand awareness
• Constant emphasis on R&D
• Wrong strategic decision
15. Inferences
•Proper global strategies and a sufficient consideration
of cultural differences are crucial for the survival of
multinational companies like Acer. To compete
globally is no easy thing.
Acer has shaped and continued to reshape its
business strategies and organizational operations to
cope up with the rapidly changing global business
environment and evolving internal organizational
dynamics.
16. •While Acer is going to gain a pretty strong foothold on
the computer market in the global market thanks to
Shih's vision, it is also planning to launch new products
such as TV, phones and office related equipments.
While Acer's major revenue is likely to be still
generated from PC selling. We believe that such new steps
will open even wider market for Acer to deliver on new
frontier in the new century.
