Acer

1. Shi was not paternalistic like the majority of family owned corporations where in Taiwan at the time nor was he autocratic in that all the decision making power resigned in him. Shi’s strength asan effective manager lay in his ability to trust and to empower his subordinates with decision making capabilities. He did not want an organization in which people followed rules he instead opted foran organization in which subordinates openly learned from their superiors. On the other hand when Lui took over he made some very dramatic changes by creating strategic business units that heldmanagement more accountable for performance than had existed before. As a result of his changes the company was run by the number than it had been.
2. Early in Multitech’s young history Shih laid a strongfoundation for growth and innovation through its compensation package of equity which gave managers substantial ownership in subsidiary companies. When managers are given equity ownership this tendsto reduce agency costs and it increases the value of the firm because the managers themselves share in the success of the company. A second reason for Multitech’s success was Shih’s discretion indelegating substantial responsibility to his employees in order to act in the best interest of the firm. A third reason for its success is its tight nit culture was coworkers treated each other likefamily. Corporate culture can have a significant impact on a company’s success because it gives its employees a sense of belongingness and in turn a sense of responsibility to contribute to the overallhealth of the company. The fourth and final reason for its success is management’s focus on frugality, high turnover, and low debt ratio allowed the company to take cash from operations to be reinvestedquickly and its low debt ratio gave the company flexibility with its operations.




Lui’s value added activities included his professional management style that was a no nonsense style. He...