Acer Business Environment

Acer Business Environment

Acer Business Environment

Introduction

This report is concerning with the impact of internal and external factors in Acer Incorporated. The major discussion is to analyze the porter value chain of Acer Incorporated that contains strength and weakness in area of internal factor that create an competitive advantages to achieve its organization objectives in the contemporary business market.

Besides, this report also explores the impact of macro environment (political, economic, social-cultural, technology, legislation, and eco-environmental) in Malaysia that create opportunities and threats for Acer Incorporated.

General Company Profile

Acer Incorporated (Acer) was established in 1976. Its long term mission is to break barriers between people and technology around the world. Acer's core business is to focus on its IT (Internet Technology) products such as desktop PCs (Personal Computers) and mobile, notebooks, servers and storage, high-definition TVs LCD (Televisions with liquid crystal display) and monitors, projectors, and etc. Acer was known as the third-largest PC and second largest notebooks manufacturer around the world. The total revenue of Acer generated was US$12.8 billion from quarter one to quarter three in year 2008 by growing with 31 percent more than year 2007. The operating income of Acer also increased from year 2007 of US$209 million to year 2008 of US$314 million. It had shown 50 percent increase in worldwide.

Acer outsourcers its manufacturing globally and sells its product through resellers and distributors in five areas that are Asia, China, Pacific area, Middle East and African, Europe and Pan-American. It includes the Acer Sales & Services Sdn Bhd in Malaysia that was established in 1990. In Malaysia, Acer was ranked as the first PC and notebooks vendor in year 2007 when compared to Hp and Dell. It carries over 330 employees to manage its distributors with marketing and support services to its customers in Malaysia.

Vision and mission

Acer's vision is empowering people with its integrated hardware, software and service to release power and creativity in its products to provide satisfactory to its customers. The long-term mission of Acer is to remove barriers between humans and technology. This mission is to ensure customers are able to fully enjoy its technological breakthrough that provides easy-to-use technology products in the market.

Part 1:

Environment analysis

Environment factors act as a major impact on Acer's that affecting its business and management in contemporary business market. Environmental factors can be categorized in internal and external environments factors.

PESTEL Analysis

Acer should identify the external analysis that is known as microenvironment forces (political, economic, socio-cultural, technology, eco-environmental and legal factors) to determine the opportunity and threats in the market.

Political Factors

Trade barriers that consists tariffs are the issue that related to political and legal environment. Higher tariffs affected the selling price of the Acer in Malaysia due to the IT products were imported goods. Nevertheless, the planning of eliminating tariffs on electronic products in ASEAN including Malaysia in year 2006 had created an opportunities for Acer to revise its pricing and marketing strategies to obtain more consumers in ...