Acer Case Study

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Acer, Inc: Taiwan’s Ramping Dragon- CASE ANALYSIS

1. Based on the information presented in the case, what type(s) of strategy (i.e., international, multinational, global, or transnational) would you say is used by Acer? Be sure to explain the reasons for your selection. (You will need to refer to Ch. 3 for details on these types strategies.)

According to our studies, and based on the information from the case, I would conclude that Acer used a Transnational Strategy. Based on the definition of the textbook, transnational companies have a more complex organization structure. Going more in depth with the concept, Transnationals, as Acer, have investments in foreign markets, with a central corporate facility. When it comes to decision-making, research and development, and marketing strategies, the responsibility is passed to each local business unit, located in each individual market. Acer’s corporate office in Taiwan, only serves to give support to each market, in case needed.

Acer’s decision to target smaller markets has contributed enormously to the company’s success. Based on the text, Acer’s decision was rational. By decentralizing command, Acer has able to improve its profit margin and reduce its operational costs. Each market, no matter how small it was, was contributing the company’s success, without neglecting the size of the business unit where it was located. 2. Do you think Leonard Liu’s resignation was beneficial for Acer? Why or why not?

Absolutely. Before Leonard Liu became the CEO, Acer was a successfully growing company. One of his many mistakes was to never gain the support of key managers and other employees who could have acted as intermediaries with the employees and at least soften dealt by his moves. The changes he made were not supported by the chairman of the company, failing also with his relationship with other…...

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