They had such a strong fleet of vendor that their suppliers were ready to move to any part of the worlds to supply raw material to them. The major strategy of Acer to enter foreign market was forming joint ventures to establish distribution systems and marketing and promotional activities in the local market.
Acer devised a term called perishable whereby they procured the most perishable components locally and others from manufacturing sites worldwide via air freight or sea transport.
Also, thegovernment allowed the work to be done in extra time instead of providing flexible working hours. As seen from the diagram we can conclude that highest value addition takes place at the inception of prototype followed by production of parts and module parts production.
General contact details of provider: There is very little chance of convincing them successfully right now, given the present scenario. Lin,took the decision to focus on the issue of global manufacturing strategies, which the company made in order to enter China for establishing its business.
More essays like this: Thus, looking towards the recent trend, Lin decided to focus on the manufacturing concern in China.
Thirdly, the huge market size of the economy would enable the company to exploit the economies of scale and hence become a larger player in the world PC market.
The attitude towards the workers is exactly poles apart for Taiwanese and Chinese companies and so are the Acer groups china manufacturing decion essay reactions on the part of the workers. The company believes in providing fresh technology to be enjoyed by everyone and everywhere.
So adaptation is another key competence they had. Build motivation towards the new workforce To achieve the contribution of the new laborforce, ACER could implement the culture of rewards and recognition because, in China, workers were demotivated bylimitations of fixed wages with no compensation on jobovertime.
In fact for a company like Acer China presents itself with the best opportunity since the country is the 2nd largest user base of PCs, second only to the USA. This compounds the HR issue further.
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So, these are the main reasons why ACER was desperate to establish manufacturing operations in China. This is just a sample partial work. Apart from transportation costs, it also includes input costs like manpower cost and raw material costs. The smiling curve defines all those factors that add value to the company or to the product or to the customers.
Other important factors are local tax incentives given by government, existence of local competition and long term policy of ACER as well as future developmental schemes of government of China. The history of the countries and the consequent and continuing antagonism between the two countries can create acute problems for the company as aptly demonstrated by the case of Formosa Plastics.
Added to this is the HR issue of convincing the Taiwanese managers of joining the company in China in this present atmosphere of mistrust and conflict between the two countries. This could actually lead to Acer increasing its revenues manifold and then exploit the other booming markets as well like the whole of Latin America.
I tell you, it was nice using your services. So adaptation is another key competence they had. Apart from this they insisted on recruiting local managers and local people to have stake in their company so that they consider the company to be their own venture and eventually add more value to the company.
As seen from the diagram we can conclude that highest value addition takes place at the inception of prototype followed by production of parts and module parts production. Fourthly, China also gives the opportunity for Acer to launch new technologies in the fragmented market of China and the market being fragmented gives a lot of opportunity to Acer to try out new varied technologies without the fear of losing the market altogether.
This compounds the HR issue further. Lin that was reducing an overall wage rate. The transportation and other restrictions are bound to come down in due course.
Chinese economy is one of the fastest growing economies, and hence any forward looking company would try to venture into China to exploit the mammoth size of the market.Acer Group’s China Manufacturing Decion Essay Sample palmolive2day.com students should see validity in each of the ‘don’t go’/go/’wait’ arguments separately.
Perhaps the ‘go’ decision is the easiest to justify upon examination of the case facts. Abstract: The Silicon Dragon is a systematic study of the growth of high-tech giants in the Greater China Region, depicting the success story of the microelectronics industry in Taiwan. The book examines the government policies that acted as catalysts to the growth of high-tech industries in Taiwan, along with the roles of high-tech ‘incubators' and government-administered science parks.
The Acer Group’s China Manufacturing Decision Case Solution. SITUATION ANALYSIS. Inthe vice president of Acer’s group, M.Y.
Lin,took the decision to focus on the issue of global manufacturing strategies, which the company made in order to enter China for establishing its business.
The Acer Group was one of the world’s largest PC and computer component manufacturers. The Vice-President of Global Operations is pondering whether the timing and the environment is conducive for Acer, based in Taiwan to begin full-scale production facilities in mainland China.
Acer has strenghts in manufacturing and is evaluating if the right decision is to build a new facility in China. The final recommendation is to have a partnership (strategic alliance) already established in China.
The Silicon Dragon is a systematic study of the growth of high-tech giants in the Greater China Region, depicting the success story of the microelectronics industry in Taiwan.
The book examines the government policies that acted as catalysts to the growth of high-tech industries in Taiwan, along with the roles of high-tech ‘incubators’ and government-administered science parks.Download