Asus 2014 Annual Report Download - page 85

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ASUS expects to have a more flexible and efficient organizational operation, with
two business groups being formed—a System Business Group and an Open
Platform Business Group—in order to aggregate recourses and to be more
responsive to market changes. Each business group will focus on improving
procedure, form optimal strategy, and execute strategy completely.
ASUS will continue to invest resources in products that have competitive
advantages and that demonstrate strong sales across global markets, while also
supporting the two business groups having the most competitive product lines and
sales channels. ASUS is dedicated to providing consumers with better products and
services, to upgrade the brand value in the minds of consumers and ultimately to
turn brand recognition into market share.
Global business environment:
(1) Advantages:
a. ASUS has the capacity to lead the industry in developing advanced technology
with its excellent R&D.
b. One way ASUS controls costs is through high-efficiency channel and digital
marketing, which reduce operational expenditures and achieve effective marketing.
c. ASUS has a history of eco-friendly, energy-saving design and of developing
sustainable production processes. The company intends to acquire business
opportunities and market recognition for products fulfilling the global trend for
eco-friendly products.
(2) Disadvantages:
Export industries are subject to substantial fluctuations in foreign currencies.
Managers must consider risks associated with fluctuations in foreign exchange rates.
(3) Responsive strategies:
Stringent monitoring of changes in foreign exchange rates with proper adjustment on
foreign currencies to reduce risks of foreign exchange rates.
Internal conditions:
(1) Advantages:
a. Stable financing with sufficient funds.
b. Advanced inventory management system.
c. World-class team of technical talent to manage the R&D process.
d. Overall strategic planning is designed to consider short- and long-term indicators,
helping to keep ahead of industry development trends.
e. The company continues to focus on creating an environment that results in high
employee morale and outstanding performance across the organization.
(2) Disadvantages:
As ASUS grows significantly in both business operation and organizational structure,
it is crucial to expand and improve the effectiveness of our management.
Product and technological development:
(1) Advantages:
a. ASUS has created a strong R&D team for the development of motherboards,
graphics cards, optical drives, laptops, servers, desktop computers, smartphones,
tablets and wireless broadband mobile devices. The excellent R&D talents of