Acer Case Analysis

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MNC Strategy

Acer Case Analysis

1. Based on the information presented in the case, what type(s) of strategy

        (i.e., international, multinational, global, or transnational) would you say

        is used by Acer? Be sure to explain the reasons for your selection.

The type of strategy Acer used was the transnational strategy. Acer began in Asia as a multinational company that eventually wanted to have join ventures then establish partnerships with distributors and dealers in small neighboring countries as an early expansion strategy. It slowly became a transnational strategy when it introduced the 10-year “dragon dream” plan by identifying potential overseas acquisitions, set up offshore companies, and seek foreign partners and distributors. They used ex-centralization when it came to offshore companies.  Acer also has a very complex company so by using this type of strategy, they make central corporate decisions of the foreign market to improve their profit margins while achieving competitive advantage.

1. Do you think Leonard Liu’s resignation was beneficial for Acer? Why or

        why not?

I believe it was beneficial for Leonard Liu to have resigned because his management style was of complete opposites of Shih’s. Shih had thought that the company need to restore discipline to its 10 year plan and bring back its “commoners culture.” Unfortunately, Mr. Liu’s professional management style that he brought from IBM, did not have the “family-oriented” approach, only “by the numbers” approach, which was against Acer. He made multiple layoffs, changed operating systems and management style that eventually “impacted Acer’s culture and morale” but also profits.