Description of changes that Acer has undergone
Acer is the most impressive technology company formed in 1976 by Shih Chen. It is currently the leading exporter of personal computer brand in Taiwan and seventh largest computer companies in the world. Over the years, the company has undergone several changes in a bid to improve its performance and efficiency and also curb the great market uncertainties. The company has changed its inventory control strategies, production system and corporate structure and leadership style.
Acer has put a lot of efforts to reduce inventory across its retail channels through by introducing an efficient inventory control system. It has also improved its method of collecting accounts receivable thus lessening the burden of the company’s operations. Additionally, in April and November 2012, the company underwent two major reshuffles in management where the top management was reformed.
Acer has been transforming itself from a manufacturer into a company that focuses in global marketing of its high quality products in the last five years (Pederson, 2006: 89). The management of the company considers the manufacturing sector to be of little importance. It uses global logistics to increase added value. This strategy enables the company to continuously hold its customers and attract more others. Its brand name is still undergoing renovation in a bid to make it more appealing to the clients.
Today Acer uses a new business model. The model is Acer’s foundation in the global arena. The company is striving to extend its New Channel Business Model and work with other global resellers and distributors to compete head to head with Dell which uses a direct business model (Pederson, 2006:67). Application of the model has enabled the company to leave the actual manufacturing processes in the hands of contract manufacturers and directed its attention towards marketing and distribution of its pure brands. This model comprises of a wide range of sales services than the direct model that it has previously been using. The company adapted this model as it is perceived to be cost effective and has the potential of boosting its sales immensely. The company is talking major steps to outsource from top-tier partners and vendors. The company has also created a sufficient supply chain that has provided its clients with competitively priced and fresh technologies.
In the supply chain, the company has recently assumed a strategy of vertical disintegration. Lately, the company sold most of its stakes in BenQ and Wistron two major companies that were providers of Acer’s services (Moyle, 2013: 99). The disintegration of the supply chain clearly demonstrates a transformation of the company’s marketing strategy. The disintegration is quite evident in the corporate structure of the company. Its corporate network has greatly changed and it is still changing under the leadership of Jim Wong who took over the leadership of the company in 2005.
In 2011, Acer ensured that all its tie-one suppliers acquired ISO certification. Afterwards, the company undertook to producing product that are environmentally friendly and reduce the adverse effects of CFCs on climate (Moyle, 2013: 79). It has likewise launched some new products that are free from brominated flame retardants and polyvinyl chloride plastic. The company still promises to conserve the environment by ensuring that most of its products are free from PVC and BFR.
Acer has also established a network of virtually independent affiliates rather than the common centrally controlled foreign subsidiaries network. The affiliates are managed by persons who determine product pricing, promotional programs and configurations based on regional preferences. The adoption of this strategy is aimed at improving inter-organizational
Pest analysis
The PEST analysis of the Acer Company refers to the Political, Economic, Social and Technological factors which are applied to analysis potential, market and macro environment in Taiwan. This analysis provides an idea of environmental situations that can use by the Acer Management to develop and change mission and vision accordingly.
Political factor
The political factors provide a great influence under which the businesses and spending power of consumers can be regulated. In the recent years, the political situation in Taiwan is stable and the world situation has offered an enabling environment for Acer and other affiliate businesses. Although in the recent days there has been a struggle between the ruling party and the president, the government has effectively formulated policies that favor the development and growth of the company. Those preferential policies and incentives include government funding and subsidies and tax advantage.
Economic factors
The state of trading economy in the long run and in the short run is significant to the growth of Acer Company among other business especially when planning for the international economics. In 2002, Taiwan became a member of World Trade Organization, and since then it has signed trade pacts with significant trading partner. An example of such pact includes the Economic Cooperation Framework Agreement with China. There are also undergoing policies aimed to sign more trade pacts with the neighboring countries. Such pacts are favorable to boost the operation and marketing of the Acer Products.
China, as a Taiwan partner, is anticipated to become global largest manufacturing centers as it assimilates to the world economy. Taiwan will consequently benefit from massive supplying to the Chinese manufacturing production and will also benefit from assimilating its economy with the Great China Free-Trade Area. This integration is anticipated to reduce the cost of vertical assimilation to the manufacturing industries in the Taiwan Strait and enhance global competition for both Taiwan and china in the world manufactured goods market.
Social factors
Social culture factors in Taiwan provide a great impact to the Acer Company. The religion and the people in the Island embrace the use of the technology, hence high demand for the Acer Products. The company has, however, communicate its image as a global image brand so that their consumers can feel associated and connected to the world. The Taiwan’s reputation has been focused on the production and manufacturing low-ended products.
Technological factor
Technology is considered as a significant factor for competitive advantage, and it is therefore regarded as a major driver for globalization. This applies for the Acer, because it falls in the IT industry whose growth is in the larger extent relying on the advancement and technology innovation. The Acer’s innovation strategy has a vital influence on the New Product Development (NPD) and functional corporation performance. Various previous NPD studies have showed a positive influence for the innovation strategies on the NPD development. The company has developed a simple design called AcerBasic that helps the consumers not to get confused of the wide range of products. Since the global IT landscape is highly changing due to innovations and new products, the competition of the Acer Company is ever fierce to ensure that the company is going hand in hand with the changing technology. The company has also heavily invested in research and development to ensure that it is technologically in the frontline.
Indicators of effective managers
An effective manager must always remain goal oriented so that he can ensure the organizations are managed in an orderly and competent way. The manager ensures that he remains focused to deliver the goals as they are planned. He must ensure that he is time conscious and works in line with the timeline. An effective manager ensures that the entire workforce gets glued in achieving the missions and visions of the organization.
An effective manager must be in a position to conduct periodic assessment of the workers performance. This enables him to point out the weaknesses that may arise amongst the employees. A manager who conducts periodic assessment of his employees will always understand all the operations of the organizations and will be in a position to conduct the SWOT analysis which is very important in ensuring that an organization becomes more successful. (Williams, 2008:56).
An effective manager is also required to have the ability to balance between both the external and the internal needs of his organization. The managers support networking within individuals and he fights to ensure that the relationships with his clients is maintained. An effective manager goes ahead to promote communication in the entire organization so that the culture of poor communication and misunderstanding can be eliminated.
For an organization to be successful, it requires an effective manager who will work towards supporting training. He must organize training of his employees through seminars and workshops so that more skills and knowledge is added. For a manager to be effective, he must develop performance evaluation forms that will also assess their individual performance.
Respect for diversity is another factor in being an effective manager to in ensuring that the managers are focused in ensuring effective management of the organizations. The manager must be in a position to understand the diverse opinions of all the employees. He must handle all the workers in a sensitive manner so that he can work out on their differences with a goal to achieve better performance. An effective manager will listen to the opinions of his workers, respect them but he is only supposed to impose the relevant and useful views.
Another underlying factor is self-confidence and optimism. A manager who ensures that he is confident is assured to achieve high performance. The sense of humility will be automatically balanced in the presence of self-confidence. A self-confident individual will always be able to reach decisive conclusions and sound decisions regardless of the pressure that exist within the organization (Bensoussan & Fleisher, 2009:46). A confident individual will not be domineering and aggressive therefore creates room for all his employees.
Professionalism is also an underlined factor that must accompany effective mangers. A top manager is responsible of setting organizational standards that will develop an exemplary performance behavior. The aspect will also ensure that a culture of excellence becomes evident in the performance of an organization.
Organizational effectiveness will eliminate the problems that arise in organizations as well as reduce the existing discrepancies in the level of performance of an organization. All effective mangers will have a purpose that will determine ant steps they make and this will promote organization performance.
Bibliography
Acer Inc SWOT analysis. (n.d.). London: Datamonitor Plc.
Bensoussan, B. E., & Fleisher, C. S. (2009). The Financial Times guide to analysis for managers: Effective planning tools and techniques. Harlow, England: Financial Times Prentice Hall.
Moyle, K. (2013). Building innovation: Learning with technologies. Camberwell, Vic: ACER Press.
Pederson, J. P. (2006). International directory of company histories: Volume 73. Detroit, Mich: St. James Press.
Williams, C. (2008). Effective management. Mason, Ohio: Thomson/South-Western
