Growth in technology over the world have seen to it that companies and pother business entities undertake some restructuring of their organizations o as to keep up with the market trends. The reason behind the restructuring activities is so as to accommodate the changes that arise in the market. The essay below is a discussion on the importance of restructuring and how it can affect the success of a company.
Organization Structure and Control Systems
MNCs should be global and act local. This means that the MNCs of a company should be streamlined with the global standards but focus its operations on the local level (International Center for Management Research (IMCR) (2008). As such, the company should have global visions but act at the local level.
Centralization of the decision making function at the headquarters can help in synchronizing the operations at all outlets of a global business. As such, customers everywhere get similar services with no one put at an advantage. As such, customer retention is assured since the individuals are sure that the services and their quality is the same at any outlet. Though the process takes long to achieve, it helps in making an organization attain uniformity.
Information systems are important in the reporting process since they help to make the process more effective. Inadequate MIS systems in foreign affiliates cause problems for the MNCs since they distort the information received by the decision making organs. Such misleading information can lead the organization to make bad decisions, which can lead to a downfall (IMCR, 2008).
In 2007, Acer was the largest computer shipment company in the world. It had a market share of 7.6% and was observing a growth rate of 315. The company sought to expand its wings and it therefore spread its operations in India. To ensure successful growth, it had to get into mergers and acquisitions this saw the successful penetration of the company in the Indian market, though this was not without a share of problems and challenges.
Acer’s growth in the global arena can be greatly attributed to the restructuring of its operations. For instance, to retain the market share and sustain the growth in business, it had to go global. It had to engage in market research and come up with ways to gain access to new markets. After taking up the global approach to business, its growth responded positively.
The growth measures adopted by Acer in India were quite diverse. For instance, there was brand popularization where an Indian film star was used as the brand ambassador. It also adopted a retailing form of business which helped it to reach a larger clientele base. Lastly, it merged with some Indian companies and acquired others. This led to a boom in business (ICMR, 2008). Continuing with such marketing strategies can make Acer even more successful in India today.
Currently, Acer has developed into a global giant in computers. It is the EMEA regional leader in sale of notebooks, holding a market share of 18%. It has also increased its portfolio to include PC notebooks, desktops, monitors, peripheral devices, LCD TVs, e-business solutions among other computer based products (Shop Acer, 2012). As such, the company is quite successful. It also has branches in many parts of the world thereby counting as a lead player in the computer products’ market. It can therefore be concluded that Acer is an example of a company that took advantage of organizational restructuring so as to gain international recognition. It is proof that adopting global strategies could be the key to a firm’s success.
Acer Shop. (2012). About Acer. Retrieved on 15th March 2012 from http://www.shopacer.co.uk/sitepage/about_acer.html
IMCR. (2008). Implementing Strategy for International and Global Operations. (pdf)