AcerPresented by:-Atmadeep DasJoshna ChowdhuryAmit KumarAhamed ShebeebNitika

Acer- Company IntroductionAcer Inc. is a Taiwanese multinational hardware and electronics corporation headquartered in Xizhi, New Tapai City, Taiwan. Acer's products include desktop and laptop PCs, tablet computers, servers, storage devices, displays, smartphones and peripherals. It also provides e-business services to businesses, governments and consumers. In 2013 Acer was the fourth largest personal computer vendors in the world.

• Name:- Acer Inc• Type:- Public• Industry:- Computer, hardware electronics• Predecessors:- Multitech International• Founded:- 1976 (Multitech)• Founders:- Stan Shih et al• Headquarters:- Xizhi, New Tapai, Taiwan• Key people:- Stan Shih ( Chairman and president)• Employees:- 7,757 (2011)

• 1983 potential market opened and Multitech decided to

manufacture IBM compatible PC.

• Sales grew to 100% during 10 years of operating.

• Acer shipped one million PC in the world market.

• Acer has a 20% market share in the Taiwan market.

• Acer changed it’s name from Multitech to Acer in 1988.

• Acer became public company in 1988.

Acer- Key Facts

• Acer established it’s first foreign manufacturing unit in

Malaysia in 1990.

• It penetrated the USA market by acquiring Altos

software company.

• It also penetrated the European market by acquiring a

Dutch company in 1990.

• By 1991 Acer had 44 overseas facilities in 13 countries

and over 5300 employees and 1500 of them were

outside Taiwan.

• 1989, the dramatic geographic growth lead to establish

Strategic Business Units.

Acer- Key Facts

Acer- Corporate culture and values:-

• Acer does not have any authoritarian work style.

• Acer promote free working style and have free work

culture.

• Acer has a “Self driving” approach and Acer does not

have a time bound working condition.

• Ever Acer employee has to go for a one month

classroom training session.

• Acer does not have commission it has performance

motivation awards.

• ACER increased sales while simultaneously reducing its labor force by identifying and using marketing strategies that best utilized their existing distribution channels.

By 2005, Acer employed a scant 7,800 people worldwide. Revenues rose from US$4.9 billion in 2003 to US$11.31 billion in 2006.

Acer's North American market share has slipped over the past few years, while in contrast, the company's European market share has risen.

Acer- growth:-

• Acer grew quickly in Europe in part by embracing the use of more traditional distribution channels targeting retail consumers when some rivals were pursuing online sales and business customers.

• In 2007 Acer bought Gatewayin the USA and Packard Bell in Europe and became the Number 3 world provider of computers and number 2 for notebooks, and achieved significant improvement in profitability.

• Acer has been striving to become the world`s largest PC vendor, in the belief that the goal can help it achieve economy of scale and garner higher margin.

But such a reliance on the high-volume, low-value PC market made Acer exposed when buying habits changed.

In 1988, Acer acquired Counterpoint ComputersIn 1990, Acer acquired Altos Computer CorporationOn 27 August 2007, Acer announced plans to acquire its US-based rival Gateway, Inc. for US$710 million. Acer's chairman, Jen-tang Wang, stated that the acquisition "completes Acer's global footprint, by strengthening our United States presence".Included in this acquisition was the emachine brand.In January 2008, Acer announced that it had acquired a controlling interest of 75% of Packard Bell

Acer- acquisitions:-

In March 2008, Acer acquired: E-TEN. In 2009, Acer acquired 29.9% of Olidata

In August 2010, Acer and founder technology signed a memorandum of mutual understanding to strengthen their long term PC business cooperation.

In July 2011, Acer Inc. bought IGware Inc. for $320 million to try possible potentially lucrative cloud market.

 IGware creates cloud software and infrastructure tools for devicesI

Taiwanese companies• Very few Taiwanese companies have their own

brand names most are satisfied to be OEMs, • They don't invest in R&D, marketing, distribution,

and advertising• Taiwanese companies need to become more

marketing-oriented, not enough real innovation is going on in companies

• As a country, Taiwan only spends a little over 1% of its GNP on R&D—less than half what the United States, Japan, and West Germany spend. Possibly that is why Acer is such an admired company.

Sten Shihs

In 1981 he was chosen as one of Taiwan's

Outstanding Young Entrepreneurs,

In 1983 the International Junior Chamber of

Commerce selected him as one of the Ten

Most Outstanding Young Men in the World

Approach to Competition PC industry is intensely competitive. Competition takes

place at three levels. At the top level are IBM, Compaq, Apple, and the big

Japanese companies, At the second level are companies like AST, Everex,

Epson, and Acer. The third level is composed of companies that don't have

recognized brand names. Acer wants to become a "world player." we have to

improve our brand image and develop new products faster.

Acer’s goal was to become an 'OBM’—meaning an Original Brand-Name Manufacturer.

Sales of its products exceeded US$750 million in 1990, Acer still had not achieved a "critical mass,“ and still have only about 3% of the world PC market, and are maybe only number 10 in the industry.

PC Industry

Despite a population of only 20 million people, Taiwan's PC industry was the largest in Asia, except for Japan's

Taiwan was also one of the world's largest producers of PCs. Hundreds of domestic manufacturers, most of them small, accounted for 25% of the all the IBM-compatible PCs sold.

In Taiwan, non-branded PCs accounted for about 52% of total sales, as compared with 21% in Korea and 28% in Hong Kong. In Thailand and Malaysia, two fast-growing markets, non-branded PCs accounted for over 65% of sales.

Situation in Late 1990 In 1990, Taiwan's economic growth slowed

dramatically to about 5%. Acer's sales and profits came under increasing

pressure. The analysts told that for several years the

overhead costs are higher than those of competitors

People forgot what had made them prosperous and spent all their time watching stock prices and forgot about their jobs.

Due to political liberalism now people want more freedom

Opinion among Management

Some proposed laying off others hold on to normal attrition

Strategies to lay off1. Remove bottom 5% of people periodically2. Shorter work week 3. Cutting salary

Motivation among employees Providing challenging jobs Stock options and bonuses

Some believed lower worker commitment is correcting themselves as the economy is slowing down

HR Issue

Chinese employees are more reserved in expressing their feelings and confronting problems

For eg: If a western company make a request to complete a task by certain date, Chinese are less likely to say “no” even if the work is impossible to finish by that time

Employee Distribution

Conclusion

Being huge and Employee centric have its own problems

A public company need to take care of its external stakeholders as well

Employee satisfaction should not be at the cost of company’s financial health

Cultural diversity is essential to make employees more open to express their feelings

Thank You…