Acer Essay

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Global Supply Chain Management ACER CASE STUDY SUMMARY: The Acer Group was one of the world’s largest PC and computer component manufacturers. Stan Shih, the founder and chairman of Acer group had a long-term vision to transform the group into a global high tech corporation, due to which Acer began to shift a sizeable portion of its attention and resources to the 3E market. To achieve this vision, their was a new decentralized organizational structure formed which delegated responsibility to management to involve employees in the decision making process. The manufacturing strategy of Acer was not only expanding the plants but also shifting the assembly units closer to the distribution center. This ‘fast food’ business model ensured reduced inventory, faster time to market and more responsive to changes in local market conditions. Acer used the strategy of the ‘GO’ game in the decision to explore Mainland China. Its strategy was based on the development of various competencies as a necessary prerequisite to tackle competitors. However due the political unrest between China and Taiwan, Acer was particularly concerned to enter the Mainland. Tensions had grown between the two countries after the civil war between Nationalist and Communists and there were various policies and restrictions on transport links put up by the Taiwanese. However, Acer and other companies were optimistic about the situation as the opportunity in Mainland was immense. This was not the first time Acer had faced such challenges as the Juarez manufacturing site had faced a lot of challenges too. One of the major issues Acer had to consider before entering the Mainland was Human Resource Management. The employees at Taiwanese factory were provided with all the basic amenities and also financial rewards were given based on performance levels. Acer expected to train and provide similar
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