Case Analysis: Acer, Inc.: Taiwan’s Rampaging Dragon 1. As to a comparison we can say that both were looking for the best of the company, Shih being his company had worked thru years for having his company blossom not only locally but also internationally, reason why he then brought Liu to bring to the company professional management structures; structures that had an American base since were brought from the previous company he had worked: IBM. Other than that and being both Taiwanese, they actually had more contrast than similarities on his management styles. Shih was more of a paternalistic and democratic manager, he was more traditional in his management practices as to the Asian community, and they are more of a
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Not taking this into consideration, Liu faced a problem many CEO’s suffer they think they would be able to change a company like Altos and in the future take advantage of it, but within the same year Altos had a loss of more than 20 million, (3) Shortage of management, due to the rapid growth of the company the number of employees increased but not the number of managers until Shih noticed this situation and hired people to fill the positions, however this new employees did not know anything about Acer’s culture, and the (4) Shift of company’s culture; Acer began to move from its “commoner’s culture” like specified in page 57, Shih perceived it and knew he needed to pay attention to this change, as well as to be conscious of the then current financial situation of the company.
3. Yes, A company with a culture like Acer had since the beginning it is always going to suffer when changing from a democratic to an authoritarian way of management (as explained in question one) form Shih and Liu, respectively. Liu did not respect the history of the managerial position/culture of the company at all, he just went “by-the-numbers” and starting cutting expenses everywhere forgetting that Acer was a Taiwanese company and that relationships are not handle the