Man4633 - Mnc Strategy

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Acer Case Raphael Simard Machado ID: 5048629 Acer, Inc: Taiwan's Rampaging Dragon 1. Identify three (3) factors you think contributed to Acer’s decline immediately following the 1988 IPO. The main three factors that I think contributed to Acer’s decline immediately following the 1988 IPO were: allowing any employee with one year in the company to buy shares, hiring many employees (“paratroopers”) to the company once the company had a rapid growth, and bringing to the market the minicomputers. In my opinion these three factors were significant for Acer’s decline. Allowing employees with one year in the company to buy shares was not a good idea, as many of them would not have the knowledge and experience to take responsibilities with the company’s shares. After seeing a rapid growth in the company, Shih decided to hire many recruiters that were not familiar with the company’s culture and it affected the company’s performance. The last factor was innovating a new product, Shih had the vision to create a new product in the market, but the consumers were clearly not interested to change their PCs to minicomputer. 2. In your opinion, which played a greater role in Multitech’s growth strategy: Traditional Motivations or Emerging Motivations? Why? Definitely Shih used the Emerging Motivations for the Multitech’s growth strategy. The reason why is because the company first started in Taiwan and after they expended their company overseas leading to the U.S. The Multitech was motivated to internationalize as they had increased their competitive positioning allowing cross subsidization of markets overseas. 3. Should Shih allow the development of the Aspire to continue? Why or why not? Be sure to incorporate the innovation models in Ch. 5 in your answer. I do think Shih should allow the development of the Aspire to continue. The reason why is because

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