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Shih since the beginning of the company gave “key employee’s equity and the opportunity to obtain substantial ownership positions in subsidiary companies” He came up with the idea of Acer 1-2-3 customer’s first, employees second, shareholders third. He was a delegator who would give participation to his employees on decision making, Liu in the other hand brought more of a professional (based on American-individualistic culture) model to Acer since it was believed that the company was “frugal and hard-working, but with little organizations structure or procedure-based administration.” In contrast with Shih, Liu would not give importance to relationships, and instead of following the austerity campaign Shih had implemented; Liu started with harder measures like Acer first major layoffs in January 1991. The two type of management are very well described in page 59: Shih was a paternalistic he had a supportive, family oriented approach different from Liu’s Authoritarian approach had a “by-the-numbers” approach. And care less about employee
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The most important factors were: (1) Change of name, we can compare this is the most recently problem Gap suffered when changing its logo; it was only the logo, it is definitely worst when the name has to be changed, Shih knew people had already brand identity to Multitech as mentioned in page 56 he knew they had to start all over again, (2) Acquisition of Altos, Acer paid too much for a company that was having losses for the two previous years. 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
The most important factors were: (1) Change of name, we can compare this is the most recently problem Gap suffered when changing its logo; it was only the logo, it is definitely worst when the name has to be changed, Shih knew people had already brand identity to Multitech as mentioned in page 56 he knew they had to start all over again, (2) Acquisition of Altos, Acer paid too much for a company that was having losses for the two previous years. 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