Product details

In July 2001, Acer, Taiwan''s best known company, was in the midst of an ambitious reorganisation. The goal was to reverse flagging sales in Acer''s branded computer and peripherals businesses and to address the concerns of major clients of its contract manufacturing business. The reorganisation would involve massive layoffs and other cost-cutting measures. The geographic focus would shift from the United States, where several operations would be closed, to Europe and Asia (particularly Greater China). Acer aimed to change its business philosophy from that of a computer and electronics hardware manufacturer to a service and marketing organisation. The Acer Group would be divided into three divisions and its Design, Manufacturing, and Service or DMS (ie contract manufacturing) Division would be spun off into a new company. Acer''s Chairman and co-founder Stan Shih had personally taken charge of the reorganisation, signalling the seriousness of Acer''s position and his commitment. However, questions remained as to whether the reorganisation would be effective in meeting Acer''s challenges and turning the company''s fortunes around.