Acer Mobile Systems Unit (B) Back on the Road to Growth

Development project selection is a key link between company strategy and the development of new products. Project selection is an integral part of the overall product development process and should be done systematically. The case presents a company where project selection is divorced from strategy and performed ad hoc.

Crossair, a Swiss regional airline, has to decide on how to obtain a critical new technology, GPS. It can develop the technology in house (with a supplier) or source it from the open market in the year 2000. A discounted cash flow (DCF) analysis shows only a marginal benefit from developing the technology in house, which does not justify the management attention.

This case deals with the integration of a recently acquired state-owned enterprise by Haier, a rapidly expanding, collectively owned company in China. It highlights the challenges of managing post acquisition integration in China, especially that of state owned enterprises and also provides useful information to understand the characteristics of emerging Chinese companies.