Acer Inc. Case

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Case 1-3 Acer, inc: Taiwan’s rampaging dragon By introducing Aspire as first Acer product, the founders did not realize they were laying the foundations for one of Taiwan’s great entrepreneurial success stories. Great startup through; * Frugality, high tech products have to be priced with a low margin to ensure turnover. * Receiving cash payments quickly. * Avoid using debt. * Customers first, employees second, shareholders third. (Acer 1-2-3) * Delegated substantial decision-making responsibility to his employees to harness ‘the natural entrepreneurial spirit of the Taiwanese’. * He believed that he could create a company where employees would constantly be challenged to ‘think and learn’. * Created a family. Acer going global by changing brand name. Internally grown managers lacked international experience. One of the key tasks assigned to the ‘paratroopers’ was to implement the companies ambitious offshore expansion plans. Leonard lui was assigned as new CEO because he was an experienced top-level executive. * He began to focus on opportunities in the networking market in the US. Acer made an acquisition in Altos, Altos brand, technology and distribution network. * He began working on Acer’s established organization and management approaches. Increased managers accountability regarding profit and loss. (standards for intra-company communications, reduce management layers, introduced productivity and performance evaluations) Acer wanted to keep a ‘commoner’s culture’. Which means turn lights off, fly economy class, use both sides of the paper. Lui was not doing this -> resigned in 1992. In 1993, the client server organization model, to reinforce the more networked approach of his new management philosophy. Taiwanese headquarter = ‘server’ that uses its resources to support ‘client’ business units, which controlled

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