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AT Kearney management consulting report for Acer.

Extracts from this document...

Introduction

Module: International Business Management Module code: 4MBS641 Seminar Tutor: Alexander Corts AT Kearney management consulting report for Acer Group: Laura Geron W00145221b Tajinder Rai W01066409b Leah Wysocki W0320998 Table of contents Executive summary........................................................................................3 Terms of reference.........................................................................................4 Introduction.................................................................................................5 Section 1: Taiwan an emerging nation.....................................................................................5 Section 2: Acer's performance over the past 3 years...............................................7 Section 3: Collaboration assessment for Acer.......................................................15 Section 4: Recommendations...........................................................................20 References..................................................................................................22 Appendices.................................................................................................23 Executive summary Section 1: This section was based on the emergence of Taiwan in the electronics industry. This is analysed through Porters Diamond theory covering: Factor conditions, demand conditions, relating and supporting industries, firm structure, strategy and rivalry, chance and government. Finally it looks at the relationship between Taiwan and China and the benefits to both parties by working together in manufacturing and exports. Section 2: Acer's global performance over the last three year could be characterized by three distinct stages. In stage one; throughout 2001 Acer encountered difficulties due to the decline of the global recession, September 11th terrorist attack and war in Iraq. However this negative impact had lead Acer to rethink its business strategies, refocusing its units on more specific target and technology, and even licensed and merged in hopes of future profits. In stage two; In 2002 Acer applied and reinforced its strategies, trying to revitalize its global positioning. And we could say that in stage three Acer reached some of its targets and is starting to gain a consequent competitive advantage on a global level. Section 3: The story so for Acer and there current strengths and weaknesses as a firm. This section also discusses the possibility of collaboration with other firms analysing the many options available to Acer and why they would benefit from such changes. Section 4: Overall we recommend that Acer continues to work on its internal strategy of creating a well trained workforce and managers to implement Acer strategy worldwide. Externally Acer needs to continue to collaborate with other industry clusters. ...read more.

Middle

Therefore it was no longer such a specialist facility that had been acquired, consequently losses were incurred. A part acquisition was the 19% interest in its Mexican distributor Computec. Furthermore Computec formed a joint venture company responsible for the Latin America area: Acer Computec Latin America (ACLA). More recently Acer formed a joint venture with Texas instruments in Taiwan. The JV will mean a complete global coverage of the US, Japan, Europe and Asia Pacific. For Acer it implies that there will be a full and definite supply of DRAMS (memory chips) for all its products i.e. PC's, peripherals etc. Therefore it can better maintain its place in the market with guaranteed supply31. Although Acer owns 74% of the JV stake, both companies will provide staff and management. 3.2 SWOT analysis of Acer's position Why does Acer need to collaborate? 3.2.1 Strengths Frugal and economical Able to differentiate Offer high quality products at less-than-premium rate prices 3.2.2 Opportunities Becoming a global brand, with a local touch Components and marketing: Possible joint ventures and collaboration Home computing market Need to go outside to R&D companies to gain the right kind of innovative design 3.2.3 Weaknesses Lack of organisational structure and procedure based administration. Strategic business units (SBU) based in Taiwan too distant to produce the right strategies to appeal to diverse global cultures. They face a problem of remaining competitive on a global level. 3.2.4 Threats PC firms such as Dell and Packard Bell. Reduction of product life cycle 6-9 months 3.3 Collaboration options Acer could prosper from collaborating with another firm within the same or related industry. Collaboration comes in several forms, but not every option is going to suit Acer. Collaboration is a strategy that can be deployed to reinvent the enterprise as a global firm. The ever growing need to produce innovative products rapidly, at low prices and still maintain high quality standards, creates extra pressure on electronics manufacturers such as Acer. ...read more.

Conclusion

Q1: 1.06% Mar 01 3.9% Apr 01 3.9% May 01 4.2% Q2: - 2.35% Jun 01 4.5% Jul 01 4.9% Aug 01 5.2% Q3: - 4.21% Sep 01 5.3% Oct 01 5.3% Nov 01 5.3% Q4: -1.9% Dec 01 5.2% Jan 02 5.1% Source: DGBAS Unemployment rates in Asia Year Taiwan Japan Korea Singapore 1995 1.8% 3.1% 2.0% 1.1% 1996 2.6% 3.4% 2.0% 1.5% 1997 2.7% 3.4% 2.6% 2.6% 1998 2.7% 4.1% 6.8% 4.4% 1999 2.9% - 6.3% 5.9% 2000 3.0% 4.7% 4.1% 4.2% 2001 4.6% - - - Source: DGBAS and United Nations Appendix X Acer Inc. Consolidated September 2003 revenue (NT$) September 2003 September 2002 Growth August 2003 Growth 14.07B 9.25B 52.1% 12.20B 15.3% January~September 2003 January~September 2002 Growth 101.51B 74.08B 37.0% l Acer Inc. consolidated revenue includes revenues from other companies in which Acer Inc. has 50% or more ownership, and already deducts any revenues between Acer Inc. and these companies to avoid double-counting. l The exchange rate used to convert NT$ to US$ was 33.75.) http://global.acer.com/about/news.asp?id=6356 1 See Appendix I 2 See Appendix II 3 Taiwan country scan- ICFAI press- www.roc-taiwan.org/ www.stat.gov.tw 4 http://wwwtaiwan.com.au/Polieco/History/ROC/report04.htm 5 http://www.unu.edu/unupress/unupbooks/uu11ee/uu11ee0m.htm + See Appendix VIII 6 Idem + See Appendix V and Appendix VIII 7 http://www.unu.edu/unupress/unupbooks/uu11ee/uu11ee0m.htm + See Appendix VIII 8 Taiwan (country scan)ACFAI press. www.roc-taiwan.org 9 http://wwwtaiwan.com.au/Polieco/History/ROC/report04.htm 10 Globalization and the urban system in Taiwan. H.H.Tsai + See Appendix IV 11 Idem -The developing economies 362- 12 Taiwan (country scan) ACFAI press. Adapted from www.business.auc.dk 13 Idem + See Appendix III 14 http://www.unu.edu/unupress/unupbooks/uu11ee/uu11ee0m.htm& Globalization and the urban system in Taiwan. H.H.Tsai 15 Idem 16 Idem 17 -2002 Annual report- http://66.102.104/serach?q=cache :F6blNjkHcDMJ:global.acer.com/about/investor 18 http://www.ems-tw.com/laben.htm + See Appendix IX 19 http://www.eetimes.com/sys/news/OEG20010215S0024 20 http://global.acer.com/about/news.asp?id=75 &74 21 http://global.acer.com/about/news.asp?id=72 22 Datamonitor. Acer Inc. www.datamonitor.com 23 http://www.embeddedstar.com/press/content/2002/12/embedded6337.html 24 http://global.acer.com/about/news.asp?id=6356 + See Appendix X 25 http://www.taipeitimes.com/News/biz/archives/2003/11/25/2003077225 26 http://global.acer.com/about/news.asp?id=6431 27 http://www.taipeitimes.com/News/biz/archives/2003/11/25/2003077225 28 http://publish.gio.gov.tw/FCJ/past/03121231.html 29 http://www.taipeitimes.com/News/taiwan/archives/2003/10/21/2003072746 30 Http://www.acer.co.uk/acereuro/page29.do?inu102.current=1714_1694_1387 31 www.ti.com/corp 32 www.ibm.com 33 www.ibm.com 34 www.easysoft.com 35 Acer case study 36 International business mgt. Lecture notes 37 http://global.acer.com/about/organization2.htm ?? ?? ?? ?? 1 ...read more.

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