Case Analysis Acer 
Case Analysis: Accer, Inc:”Taiwan’s Rampaging Dragon”
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?
Based on the information provided in the case the type of strategy that is used is transnational. According to the text transnational organizations includes the ability to be more innovated and to meet the global demands and national responsiveness. The definition of Transnational Industries is when companies respond effectively to all diverse and conflicting forces at the same time to manage efficiency, responsiveness and innovation. They have invested in foreign markets but didn’t neglect the smaller markets while working on global projects. They also provide R&D and marketing powers in different locations and allow management to make larger decisions.
When Acer first became established they focused on the smaller markets and started the company with Shih, his wife and three friends. They were used to the family owned business and gradually increased. Focusing on the smaller markets before expansion gave them the ability to learn and experience before reaching out to foreign markets.
2. Do you think Leonard Liu’s resignation was beneficial for Acer? Why or why not?
In my opinion, Leonard Liu resignation was extremely beneficial for Acer. He didn’t fit the criteria to run an organization as larger as Acer and felt a lot of pressure. Profit began to decline and his business plan wasn’t working for the company. When Shih brought Liu in he hoped that he would bring the IBM professional structure and system. Instead it brought on a large layoff in 1991, which caused thirty percent of the Taiwan, based employees to be terminated. His poor decisions and his lack of company culture began bringing down the company.
After Liu resigned Ronald Chawng took his place and Acer began to see improvement.
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?
Based on the information provided in the case the type of strategy that is used is transnational. According to the text transnational organizations includes the ability to be more innovated and to meet the global demands and national responsiveness. The definition of Transnational Industries is when companies respond effectively to all diverse and conflicting forces at the same time to manage efficiency, responsiveness and innovation. They have invested in foreign markets but didn’t neglect the smaller markets while working on global projects. They also provide R&D and marketing powers in different locations and allow management to make larger decisions.
When Acer first became established they focused on the smaller markets and started the company with Shih, his wife and three friends. They were used to the family owned business and gradually increased. Focusing on the smaller markets before expansion gave them the ability to learn and experience before reaching out to foreign markets.
2. Do you think Leonard Liu’s resignation was beneficial for Acer? Why or why not?
In my opinion, Leonard Liu resignation was extremely beneficial for Acer. He didn’t fit the criteria to run an organization as larger as Acer and felt a lot of pressure. Profit began to decline and his business plan wasn’t working for the company. When Shih brought Liu in he hoped that he would bring the IBM professional structure and system. Instead it brought on a large layoff in 1991, which caused thirty percent of the Taiwan, based employees to be terminated. His poor decisions and his lack of company culture began bringing down the company.
After Liu resigned Ronald Chawng took his place and Acer began to see improvement.