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Acer America

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Individual Case Analysis: Acer America
I. Strategic Profile and Case Analysis Purpose
Case Summary
The company was established in 1976 and began to expand internationally in the mid-1980s through strategic alliances. They’ve changed organizational concept into “client-server” model where the strategic business units (SBUs) and regional business units (RBUs) were given greater freedom to manage its unit locally. This led the company evolves towards a federation of locally responsive units close to their markets yet linked by the emerging Acer brand.
In 1994, a U.S. based sourcing company; Acer America (AAC) foresees the opportunity to create a home PC with multimedia capabilities to sell in the market which they named it “Aspire”. The AAC’s RBU have outsourced other company to design the product since they aren’t specializing in this field and the development of the product has been kept in secret. Until it’s time to present to Taiwan’s SBU, the engineers felt they could be of only limited help at this stage of the development process that it created many challenges in getting the standard components to fit since they didn’t integrate from the beginning. The computer’s part was then break down into sub-assembly systems responsible by different product managers. The problem then arises as when one of the sub-assemblies delayed, the whole process also been delayed or when the final product has problem, the engineers had to decide where the problem was occurred as each of the part was responsible by different person. In the end, no standard Acer parts were used in Aspire. This shows the RBU-SBU coordination problem as the case stated:”AAC did not have the engineering capabilities that we had in the SBUs, but they didn’t trust us to do any of the integration.”
Later on in 1996, they started to introduce Aspire to worldwide. However,

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