Acer Case Essay

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ACER CASE 1. After reading and analyzing the case, I was able to identify autocratic and democratic as the management styles that of both Shih and Liu. These two types of management styles are the opposite of each other. Stan Shih since the foundation of Acer has demonstrated a democratic management style towards his employees. Slogan, stories and concept were Shih main means to provide new ideas and guidance to the new company. Over the years trust, strong teaching relationship, and communication were among his philosophy. For example, He said ’We don’t believe in control in the normal sense, we rely on people and build our business around them’’ shows how he trusted employees and that they will act in the best interest of the company. On the other hand, Leonard Liu management style was recognized by his autocratic ways. Upon arrival at Acer Liu tried to centralize and control the company. His already known reputation for a no-nonsense management style was quite the opposite of Shih’s enthusiasm and well-known pragmatism. Liu tendency to spend lavishly on top accounting and laws firms and hire people to who stayed at first-class hotels did not suit with Acer ‘’ commoner’s founding culture’’. 2. Factors that contributed to Acer decline after 1988: A) Around a dozen top- level mangers along with 100 middle managers were hired. These new hires were called ‘’ paratroopers’’. Shih’s plan with the new hires was ‘’ to take charge and stir things ups with new ideas.’’ The paratroopers main task was to create a scoop for the multinational by managing cross borders tasks. ‘’ground troops’’ (old employees) saw the paratroopers as intruders because they did not recognized the company’s culture or values but were attracted by the company’s soaring stock. There was a wall in between the ground troopers and paratroopers that caused high turnover.
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