The Acer Group’s China Manufacturing Decision Essay

1996 WordsNov 16, 20128 Pages
Homework n° 3: The Acer Group’s China manufacturing decision Summary: This case study will discuss the eventual possibility for Acer to implement business in China. The Acer Group is one of the world’s largest PC and computer component manufacturers. Lin the vice-president of Acer Global Operations Centre for Manufacturing Operations has to decide if whether or not Acer Group is ready to do business in China. Firstly, the report will discuss of the different issues that Acer Group should face, and then the report will explain the three different possible alternatives that Acer Group can take. The first one is to go to China and create a joint venture, the second is to go to China and begin the implementation with the “Go” Game strategy, and the last is to decide to stay out of China because the company is not ready and is willing to take the risk. Marine Gilet 10/21/12 The Acer Group’s China manufacturing decision: I. Statement of the problem: 1) Identification of the problem: The Acer Group is one of the world’s largest PC and computer component manufacturers. In 1998, M.Y.Lin, the vice-president of Acer’s Global Operations Centre for manufacturing operations had to figure out if whether or not, Acer should start full-scale manufacturing operation in the Chinese mainland. Relationships between Taiwan and China were pretty tense, mainly for political reasons. China sees Taiwan as one of its province and does not recognize Taiwan’s independence. Both have different political status. Yet, Acer Group needed to maintain profit margin and had a niche in PC systems in the huge Chinese market. To that end, Acer Group had to deal with several problems; transportation, investments, political risks, cultural differences, and manager safety. 2) Identification of causes and effects: Political and security issues cause many

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