Acer Computer Technology

Topics: Asset, Revenue, Stock Pages: 15 (3282 words) Published: April 11, 2011
I. Introduction
Acer is a Taiwanese computer technology and electronics corporation. It manufactures desktops and laptop PCs, personal digital, servers, storage devices, displays, smart phones, and peripherals. Since the company was considered to be of low value of manufacturing company, from the early 2000s Acer has streamlined its operations, spinning off its manufacturing operations. In addition, Acer has implemented a new channel business model and shifted itself to a pure brand company that markets and distributes its products (Wikipedia, 2011).

In 1976, Acer was founded by Stan Shih, his wife Carolyn Yeh, and a group of five others as Multitech. In 1987, the company was renamed Acer. From 1994 to 1995, Acer advanced from fourteenth to ninth among the world's largest computer manufactures. In 1996, Acer expanded into consumer electronics, introducing many new videodisc players, video telephones, and other devices to global markets. In 1998, Acer was reorganized into five groups: Acer International Service Group, Acer Sertek Service Group, Acer Semiconductor Group, Acer Information Products Group, and Acer Peripherals Group. However, corporate restructuring did not succeed and stock price weas falling. Thus, the former CEO, Shih restructured again. The restructuring brought about in two primary units: brand name sales and contract manufacturing. It also caused Acer breaking off several of its smaller operations, including semiconductor design, consumer electronics, and liquid-crystal displays. In October of 2009, Acer passed Dell as the world's number two PC makers. In 2010, Acer ranks number one worldwide in notebook shipments (2011). II. Qualitative Analysis

1. Mission Statement
Acer’s mission statement is sustainable development. Acer believed the sustainable development has been regarded as the biggest challenge to business in the 21th century. The development of the company is not only to make profit, but also to contribute to the world. They will provide more eco-friendly and innovative product in the future. 2. Strategic Assessment

Its strategy is to move quickly, keep costs low, and to keep close ties with retailers. This strategy is with certainty of selling products online together. Thus, Acer could from a local vendor into the world's active role. Moreover, it made Acer turn their focus to choice for the consumer cost savings (Mitchell 1996). 3. Technology Management

"Fast food" business model is inspired by McDonald's Corp. For Acer, the low-tech parts of a computer such as the casings, the keyboards, the disk drives are buns and pickles, made in Taiwan and sent by ship to the assembly plants around the world. The beef is like the motherboard, and the part inside the computer holds the processors and memory chips. Motherboards, which do not account for a large portion of the computers' weight, are shipped by air from Taiwan. The central processors and hard drives are treated like cheese and are purchased near assembly sites. Throughout this approach, Acer delivers more "fresh" PCs in the worldwide than other competitors (1996).

Another technology management approach is the “client-server” management. This approach allows Acer's business unit and other Acer affiliated business not only act independently but also coordinates each one's effort to obtain maximum benefits from full-use of Acer's international resources (1996 ).

The last technology management approach is localization. Acer’s internationalization is based on the cooperation with local companies. Acer implemented the localized management and shared the profit with the local partners. Throughout the local partners, Acer and local partners promote the new brand and explore the new markets (1996). 4. Human Resource Management

Acer's corporate culture is "human nature is essentially good; customer is the top priority, putting knowledge to work for the company, and be pragmatic and accountable." (2010).
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