The case gives us an insight into global business strategies and operations of Acer Group, one of the largest PC and computer components manufacturers. The case study discusses the pros and cons of expanding the business in China and reasons whether the Acer group is ready to start their business in China.
As part of their global manufacturing strategy, Acer had adopted the ‘fast food’ business model on inventory management. This model involved shifting assembly sites of computers to local sites i.e. areas where the computers would be distributed. This model provided up-to-date products to the customers, reduced inventory, expedited transportation and developed a highly flexible logistic system. In spite of implementing the mentioned
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Whereas the Chinese people were inflexible with their schedule as they were assured pay irrespective of their individual performance. 2. The Taiwanese government had a very strict and constrained policy regarding large investments in China and they strongly discouraged the idea of investing on the mainland which made the Taiwanese less future oriented. 3. Taiwanese market had a very rigid approach toward new profitable opportunities from different markets as opposed to the Chinese market who grabbed these opportunities with both hands. Thus the Taiwanese tried to avoid risk. 4. Many amenities in Taiwan were available freely when compared to China, i.e. the standard of living in China was lower than that in Taiwan. Family ties were strong in the Taiwanese culture. 5. Good education since the very beginning was an integral part of Taiwanese culture. The schooling system in Taiwan was of higher caliber as compared to China. The standard of work in Taiwan was better than China too.
Yes I would recommend the senior management at Acer to put up manufacturing operations in China due to following reasons – * China has a huge market and ample opportunities which will help Acer have a very strong foothold in the global market making the brand stronger. * The restrictions imposed on transportation will be relaxed after Taiwan becomes a member of World Trade Organization. * Considering a location in China will give advantages in