Acer, Inc: Taiwan’s Rampaging Dragon

2193 Words May 1st, 2008 9 Pages
Acer, Inc: Taiwan’s Rampaging Dragon

Michelle L
Danielle Humphreys

2) Executive summary

Acer, Inc, is a Taiwanese personal computer (pc) company, originally known as Multitech, was founded in Taiwan in 1976, by Stan Shih, his wife and three friends. Under the guidance of the CEO Shih, a strong norm of frugality, nobility, evidenced by his many slogans, employee involvement and ownership, an anti-classic Chinese entrepreneur’s tight personal control, and joint ventures led to early successes for the company and guided early expansion
The case describes the strategic, organizational, and management changes that led Acer from its 1976 startup to become the world's second-largest computer manufacturer. Outlines the birth of the
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Building on his frugality concept, he believed high tech products had to be low-priced in order to ensure turnover, avoid the use of debt by receiving cash payment s quickly, and above all, the” Acer 1-2-3” principle (customers come first, employees second, and shareholders third).Shih totally went against the traditional patriarch-dominated, family run Taiwanese business model, by delegating substantial decision-making responsibility to his employees to accentuate his strategic business fit, trusting employees to act in the firm’s best interest. His commitment to employee education was of prime importance, hence the slogan “Tutors conceal nothing from their pupils”, which emphasized the open nature of relationships and reminded managers of their responsibility in the development of strong teaching relationships between themselves and their subordinates. Culturally, this bred a sense of family, but a demanding one, hence, Stan Shih made a concerted effort to combat what he called “the big rice bowl” sense of entitlement- constantly challenging subordinates and allowing managers to freely make decisions, providing they take responsibility for their actions. This whole concept of delegation was extended to organizational units, forcing independent operational entities and competition with outside companies. This

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