Acer Case Transnational Management

1. When Multitech was starting up, Stan Shih preached frugality in the form of not spending more money then necessary and not being wasteful with the resources the money spent provided. Shih went as far as creating a campaign that focused on turning lights off, using both sides of paper, and traveling economy class. This is vastly different then the philosophy of other startup companies that spend more money then they have available and quickly go bankrupt. Secondly, Multitech made employment very attractive through delegated responsibility. Most companies have a top-down management approach where all decisions are made at the top and employees need to do what they’re told and keep their ideas to themselves. With Multitech, there was a sense of freedom, which led to the recruitment of bright young engineers. That type of creative freedom, as long as it’s for the betterment of the company, breeds increased productivity. Third, to compensate for offering no more then a modest salary, Multitech offered key employees equity in the form of ownership in subsidiary companies. Can you imagine just coming out of college and being offered ownership in a company? I would take a little less per hour for that opportunity. Imagine if any of us had such an opportunity with Apple or Facebook. Wow! Lastly, joint ventures allowed Multitech to expand its sales into new territories without the risk of hiring more people or raising more capital. In other words, Multitech increased their market share without taking on additional expenses or putting in more money. To sum up, keeping spending under control, hiring the best minds and keeping them happy, and expanding for “free” leads to an impressive startup.

2. Leonard Liu added value to Acer by making employees responsible for their actions. Liu did this by introducing productivity and performance evaluations. Before Leonard Liu came on board, employees did not have a profit and loss responsibility and as we know, the difference