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

Acer look about real strategic decisions - Essay ExampleThe company ensured that they occupy space just as they needed. They guaranteed quick turnover by making sure their products ar 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 trading 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, geared wheel and develop and the managers are responsible in teaching their subordinates. Shih also encourage his employees to participate in the carry finished 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, Acers sales were increased without investing an enormous amount of capital th rough joint projects. With this, the company does not have to be anxious about losing its capital. As soon as the company headstrong to venture abroad, Shah opened in small markets to study and gain international survive first.2. After a strong decade, why did Acers growth and profitability tumble in the late 1980s? How appropriate was Stan Shins response to the decline? How do you evaluate Leonard Lius performance?The major reasons why Acers profitability declined in the late 1980s are overexpansion and the deficiency of professional management. Many of the new employees applied to gain Acers ownership without considering and instinct 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 individualized computers is one of the external factors that helped pull down the companys profitability. In response to the decline, Shin decided to step down as CEO and hire d