Acer Group:A

Family of Brands
Case Study

Aashai Singhal
PGDM 2017-19
NMIMS, Indore
Ans 3: Integration

Integration is one of the most important parameter to be considered when implementing

technology. Blending or creating fit in an organization whether it is an alliance, joint venture, or
merger/ acquisition, requires developing shared norms, capturing competencies from both
organizations, creating compatible and better systems and structures, and integrating teams, groups
and functions.

The Critical elements in integration include: Due diligence, Shared lessons and Blended structures
and cultures

Leadership

Leadership is the second major element in the implementation of an external means of obtaining
innovation capability and improving technology in an organisation. It is an art of getting things done
through others. Here in externally focused methods of acquiring technology, leadership has the goal
to: Integrate policies and procedures, Develop a strategy for critical activities and Ensure that these
activities occur in a timely manner

Execution

Execution is the people related issues that are addressed during this implementation process.
Nothing positive happens and can’t happen without the individuals or working population and teams
within the organization working toward common goals whether an alliance, joint venture or
mergers/acquisitions are involved. To obtain the complete effort here, this include: Training and
development, blending individuals and developing synergies

Alignment

The last critical element that needs to be considered in this implementation of the acquisition of
technology and capability is the fit between people, systems, operations, and strategic goals. This
whole fit represents the alignment in an organisation. To ensure the alignment is done, the
leadership must ask several questions during this integration process. These questions give
directions and provide a basis for evaluating and improving how the blending of the different
entities is proceeding.

Ans 1: Basic Strengths are –

• In comparison to other brands such as HP, Sony, Dell, Apple etc. Acer provides Laptops and
other products at a lower cost, which is an edge and advantage for the company.

• One of the most prominent and basic reasons of Acer being able to sell devices at lower
costs is its operational efficiency. Supply chain of Acer is known, targeted and benchmarked as an
example of end-to-end operational efficiency.

• Acer has more than 7000 employees around the world operating in 70 countries and has its
retail locations spread over 160 countries.

• Innovation, patented products and mergers

• Acer has been successful achieving economies of scale considering its global existence and
has been very successful in maintaining a low pricing structure.

• Acer has a list of netbooks as well as chrome books which are also known as mini laptops.
Acer have received wide acceptance for these laptops of in the market and is the leading brand in
netbooks.

• Acer is the 6th ranked brand in this segment and has 7% of Market share.

Missing Things –

• Acer has a relatively low presence in B2B markets while compared to competitors like Dell,
Lenovo etc. even after so many mergers and acquisitions.

• Acer needs to increase its product variety and portfolio venturing into premium products in
different product lines as well as different domains. Its lower price strategy keeps and makes people
looking for premium or customised products away from it. Acer has been a victim of the negative
impressions of equating low price with low quality.

• While keeping the price of your product low, consumers assumes and perceive that the
quality of the product might be inferior. This is a basic problem hitting the Acer brand hard and
more. Because of the penetrative prices, the perceived quality of the brand is relatively low.

To amend the process to make it better:

With the emerging and advent of new technology and internet, demand for laptops and mobile
phones is rapidly increasing. Since Acer is known for its low price products, it can utilise this
opportunity to good effect and in the situation of economic slowdown, Acer can also be a preferable
option that can achieve better performance at lower costs. The demand for laptops is also increasing
considering demands due to Gaming and Virtual Reality. Although cost is the competitive edge of
Acer, it can also bring in a premium line of laptops which are high performance, more reliable and
durable. This will also add brand value and equity to the brand and it can later compete with top
players like HP, Dell etc.

Ans 2: After the merger,

• Firstly we will assess the situation that includes the analysis of the strength, weakness,
opportunity and threats that is the SWOT analysis is to be done as we need to figure out where we
stand before executing our plan

• Second step will be seizing the growth opportunities considering execution, innovation,
collaboration as we will have more diversifies environment

• Find the opening which include the relationship development and fining the gap between
the things to make it filled by the approaches made by us.

• Will also evaluate the job perspective and accessing the career directions for us as we will
have more experts to get the guidance
• Acknowledging the lost things during the mergers and filling those gaps in the new joint
venture.

• Learning more opportunities to grow in the new joint venture

Yes I will surely work in joint venture as we will have these opportunities:

Ability to Bid on Larger Ability to Partner with Access to Geographic

Construction Projects Minority-Owned Firms Locations

Access to Specialized
Access to Specialized
Flexibility Staff, Technology and
Knowledge
Finances

Sharing Risks and Costs Access to New Markets Better Resources

New insights and

expertise

Circumstances that can change my perspective are:

There is no such thing as an

Vague objectives Flexibility can be restricted
equal involvement.

Unclear and unrealistic

Imbalance Clash of cultures
objectives

You might be tempted to

Unreliable partners Lack of clear communication
leave the joint venture

It may be hard for you to exit

Limited outside
the partnership as there is a
opportunities
contract involved
Ans 4: The basic reason why acer has emphasized the market team approach because of thease
reasons:

Aligning assets with industry characterstics

Defending with the home field advantage

Etending own advantages to more diversified area

Dodging with globalisation and outslought

Contending on the global level

Managing transations in better way

Advantages and disadvantages of this type of market team approach:

Disadvantages:

 Lack of focus in an individual

 Challenging motivation for team based
 Decentralised rather than hierarchy
 Lack of centralisation
 Coordination and control problems in management

Advantages: Team-based organization filters decision making to all levels of management for
betterment. It requires that all employees participate in the decision-making process to make them
feel that they are a part of the total organization, rather than members of an individual department.
Consequently, team-based organizations also run more efficiently as well as effectively, giving them
a competitive edge in today's global market.

Ans 5: The special evaluation needs for any company are:

 Examining the company structure and noting the requirements of the company at
each level.
 Analysing how well the business intelligence is incorporated with company
operations.
 Business strategy for a successful operation of a company like acer
 One of the tasks of the management team is to select and assemble the employees,
best fit for the internal culture, values and strategic goals of the company
 Evaluation in any company is defined by its employees
  Internal standards and processes should be clear
 Change management
 Customers should be taken care by the company
 Suppliers are also important in terms of customer satisfaction.
 Attention should be paid to the speed of information and feedback flow as well as to
the quality of communication
 Constant product and service quality in changing business environment

Basic characteristics of Acer to evaluate its progress toward stated innovation goals are:

Creatinfg a
vission and
value (come
share my
dreams)

Revolutionary Higher level of

thinking cognitive
(Nothing like activities
this has ever (strategy is
been done hard mental
before) work)
Characterstics

Gathering
Anticipating multiple
and creating inputs
future (lets (Strategy
invent a new accumulations
world) are
democratic)

Ans 6: Steps of evaluation and control:

Engage
stakeholders

Ensure use
and share Standards Describe the
lessons Utility program
learned
Feasibility
Accuracy
Accountability

Justify the Focus on

final evaluation
conclusion design