In July 2001, Acer, the most famous Taiwanese company was in the midst of an ambitious restructuring. The objective was to reverse flagging sales in the branded Acer computers and peripherals business and problem solving major customers of the business of contract manufacturing. The reorganization involves the separation of the company into three parts, mass layoffs, changes in the geographic focus, and a complete change of business philosophy. Acer's chairman and co-founder Stan Shih personally led reorganization, indicating the seriousness of the situation Acer and its liabilities. However, questions remain as to whether the reorganization will be effective in dealing with Acer and turn around the company's fate. This case can be used to teach strategy in unstable conditions, the problem of creating a successful brand, and the link between the strategy of the company and the location advantages and disadvantages. "Hide
by Michael Enright, Vincent Mak Source: University of Hong Kong, 29 pages. Publication Date: November 9, 2001. Prod. #: HKU171-PDF-ENG
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