Acer case about real strategic decisions Essay Example | Topics and Well Written Essays - 500 words

Acer case about real strategic decisions - Essay Example The company ensured that they occupy space just as they needed. They guaranteed quick turnover by making sure their products are priced with low profits and evaded tying up their income with debt. The company wanted to evade redundant costs and able to take full advantage of their capital. Thus, their operations department ensured that cash collected are directly reinvested into the production. Shih gave importance to employee education and development by promoting that their employees should learn, train and develop and the managers are responsible in teaching their subordinates. Shih also encourage his employees to participate in the process of decision making. He believed that his employees will help him improve the company. The company ensured that their employees exert their best effort by offering them ownership. Lastly, Acer’s sales were increased without investing an enormous amount of capital through joint projects. With this, the company does not have to be anxious about losing its capital. As soon as the company decided to venture abroad, Shah opened in small markets to study and gain international experience first. 2. After a strong decade, why did Acer’s growth and profitability tumble in the late 1980s? How appropriate was Stan Shin’s response to the decline? How do you evaluate Leonard Liu’s performance? The major reasons why Acer’s profitability declined in the late 1980s are overexpansion and the deficiency of professional management. Many of the new employees applied to gain Acer’s ownership without considering and understanding the culture of the company. Because of this, these new employees had difficult time managing the company. Aside from these reasons, the competitive dynamics in the market of personal computers is one of the external factors that helped pull down the company’s profitability. In response to the decline, Shin decided to step down as CEO and hired