CASE: ACER, INC.: TAIWAN ‘S RAMPAGING DRAGON
CASE: ACER, INC.: TAIWAN ‘S RAMPAGING DRAGON
In comparison to Stan Shih, Leonard Liu was a Taiwan-born, US based senior IBM executive “with a reputation for a no-nonsense professional management style”. On the other hand, Stan Shih had a more frugal approach to management and delegated a decision making responsibilities to his employees to harness “the natural entrepreneurial spirit of the Taiwanese. Shih believed in a “hands off” style of management, bias for delegation and an informal manner. His style of management put all the trust of the firm in the hand of the employees hoping the employees will always do the right thing in the interest of the firm. This style of management worked because it created a very close family among the employees and attracted up and coming engineers that didn’t want to work for companies that suppressed their creativity. Stan Shih management style didn’t believe in the interest of the shareholders as the first priority. Stan Shih management embedded the focus that the customers are first, employees second and shareholders are third. Shih management style challenged employees to “think and learn” at the same time while they are working for the firm. In Shih’s management style management were allowed to nurture the pupils and as long as the mangers took responsibility for their actions, the managers had the freedom to make decisions. As I mentioned in the beginning, Leonard Liu had a no-nonsense professional management style. Liu worked for a US based IBM; therefore he had the Americanized conquest and conquers management style. He believed in acquisitions of companies that can help Acer improve their products no matter the state of the company they are acquiring. Take for example, Counterpoint (acquired for $1 million plus a stock swap) and Service Intelligence a $500,000 transaction) Shih suggested the deal be structured as a joint venture to maintain the Altos managers’ stake in the business. However, Liu insisted on
In comparison to Stan Shih, Leonard Liu was a Taiwan-born, US based senior IBM executive “with a reputation for a no-nonsense professional management style”. On the other hand, Stan Shih had a more frugal approach to management and delegated a decision making responsibilities to his employees to harness “the natural entrepreneurial spirit of the Taiwanese. Shih believed in a “hands off” style of management, bias for delegation and an informal manner. His style of management put all the trust of the firm in the hand of the employees hoping the employees will always do the right thing in the interest of the firm. This style of management worked because it created a very close family among the employees and attracted up and coming engineers that didn’t want to work for companies that suppressed their creativity. Stan Shih management style didn’t believe in the interest of the shareholders as the first priority. Stan Shih management embedded the focus that the customers are first, employees second and shareholders are third. Shih management style challenged employees to “think and learn” at the same time while they are working for the firm. In Shih’s management style management were allowed to nurture the pupils and as long as the mangers took responsibility for their actions, the managers had the freedom to make decisions. As I mentioned in the beginning, Leonard Liu had a no-nonsense professional management style. Liu worked for a US based IBM; therefore he had the Americanized conquest and conquers management style. He believed in acquisitions of companies that can help Acer improve their products no matter the state of the company they are acquiring. Take for example, Counterpoint (acquired for $1 million plus a stock swap) and Service Intelligence a $500,000 transaction) Shih suggested the deal be structured as a joint venture to maintain the Altos managers’ stake in the business. However, Liu insisted on