1. محمد جلالیان – حسن زند – ماهان سپهری فر سید کمال الدین میرنظامی – بهرام نقبایی

5.  Acer’s beginnings  Company was created in 1976  Capital stock: 25, 000 USD  Workforce: 11 employees  Activity: IT products distributor

6.  Acer: 34 years later...!  One of the Largest PC Manufacturers  Ranked in the Top 10 popular Brands  More than 23000 employees  3 more brands belong to Acer Group : Gateway (2007), E-machines (2007) & Packard Bell (2008)  Capital stock: 805 million USD  Revenues for 2010 reached US$19.9 billion.

7. 1987–March 2001 March 2001-2011 2011–present

8.  Mission Statement: Fresh technology, enjoyed by anyone, anywhere  Acer’s Vision: Transform the Acer group into a leading global high-tech corporation Investing heavily in R&D activities

9.  Taipei R&D lab: Established in late 1970’s Two major activities: Commercial development of all Acer’s product & hardware Customizing electronic products for regional market clusters

10.  US R&D lab: Established in late 1980’s focus: Developing prototypes Locating strategic partners

11. Advantages: Presence in Chinese Market Shanghai’s Skilled Workforce Obstacles: China’s relationship with Taiwan Communication Challenges IPP Uncertainty

13.  4 centralized function  decentralized in less important issues  Challenge: to find the balance between core concept of symbiotic common interest and core concept of adopting a highly decentralized management system  Global vision with a local touch

14.  Joint venture with local partners  Product adapttion to suit local market tastes  Creation of a global coalition of highly autonomous Acer companies (21 in 21)

15.  17 prodution sites  30 assembly plants  In 24 countries  Not only expanding manufacturing plants throughout the world but also shifting the assembly to areas where the computers would be distributed (fastfood biz model)

16.  The Fast Food Approach: Moving the assembly of PC’s to local sites, using components supplied by SBUs  The concept of “Perishable” components determined by how much was at risk if the part was kept in inventory or not available  These components were shipped via air freight to keep them fresh  The most perishable components(CPUs,…) were sourced locally  Non perishable components(power supplies,…) were shipped via sea transport  Acer’s central kitchens in Asia produced Motherboards, housings & monitors  A major thrust of Acer’s globalization strategy: Setting up central kitchens closer to world’s fast growing markets

17.  Predicted on market forecasts  High level causes cash flow problems  Remarkable role in Acer’s loss in U.S market

18.  Acer’s thinking: Footing in niche markets, leading to footing in large markets  Acer’s strategy: Surrounding the cities from the countryside  Third world markets: Villages  Markets like US & Japan: Cities

19.  Inexpensive labor costs  Huge market

20.  Political relationships problems  Human resource problems

21.  Transfer the group to a leading Global High-Tech corporation Enjoyed Everywhere Fresh Technology Enjoyed by Everyone Acer Vision

22. PC Assembling Components Manufacturing EducationEntertainmentEcommerce Software SemiconductorsCommunication Consumer Electronics Decentralization with a centralized core: R&D Brand Mgmt Global Logistics Customer Service & IT infra IT industry

23. R&D Strategy Functional Strategy Manu. Strategy

24. R&D Strategies Increasing software capacity Joint venture Employing well- educated engineers IIPPcentralization