Case 1 - Case 1-3: Acer, Inc.: Taiwans Rampaging...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Case 1-3: Acer, Inc.: Taiwan’s Rampaging (radalieren) Dragon Birth of the Company Founded by Shih and his wife 1975, originally known as Multitech Started out with $25000 of capital and 11 employees It grew by grasping every opportunity available- providing engineering and product design advice to local companies, importing electronic components, offering technological training courses and publishing trade journals Laying the foundations Because Multitech was capital constrained, CEO instituted a strong norm of frugality (Einfachheit) Was convinced products had to be priced with a low margin to ensure turnover Importance of receiving cash quickly and avoiding the use of debt Customers first, employees second, and shareholders third Acer 1-2-3 principle Shih’s early experience biased him against the patriarch- dominated, family- run company model that was common in Taiwan He delegated substantial decision making responsibility to his employees Shih trusted employees to act in the best interests of the firm His approach saw many as the polar opposite of the classic Chinese entrepreneur’s tight personal control The young company soon developed a reputation as a very attractive place for bright young engineers His belief was to create a company where employees would be constantly challenged to learn and think This created a close knit (eng verbunden) culture The philosophy of delegation extended to organizational units which to the extent possible, Shih forced to operate as independent entities and to compete outside companies Shih began experimenting with joint ventures as a way of expanding sales Allowed Multitech to expand its sales without the risk of hiring more people or raising more capital Early successes through employee ownership, delegated accountability, management frugality and joint ventures led to what Shih called a “ commoner’s culture” This reflected his belief that the way to succeed against wealthy multinationals was to join forces with other commoners (mass market customers, local distributors, owner- employees, small investors, supplier partners) Expansion abroad (through Asia, Middle East, Latin America) was greatly helped by new products By 1986 it also came to Europe, with marketing office in Düsseldorf, and Warehouse in Amsterdam Birth of the Dragon Dream Shih’s plan for the next 10 years called dragon dream Expecting revenues of 150$ mio, in 1986, and 5$ bio by 1996 Tom implement the initiative he emphasized the need to identify potential overseas acquisitions, set up offshore companies and seek foreign partners and distributors Outcome of a seminar that Shih held: statement of four values that captured the essence of their shared beliefs
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1. An assumption that human nature is essentially good 2. Commitment to maintaining a fundamental pragmatism and accountability in all business affairs 3. A belief in placing the customer first
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/11/2011 for the course ECON 202 taught by Professor Sneijder during the Fall '10 term at Erusmus University Rotterdam .

Page1 / 5

Case 1 - Case 1-3: Acer, Inc.: Taiwans Rampaging...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online