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Since Acer was founded in 1975, Stanley Shih has pushed the company to be bigger and better. He has worked to transform it from a relatively small but successful company in the Asian computer market to be a major player in the world market for computers. Due to the low level of capital at startup, Acer was forced to be extremely frugal which worked to their advantage. The computer industry is highly competitive and Shih wanted Acer to be able to deliver machines at a low cost to the consumer by keeping their margins low, which would increase turnover. The frugality of the company contributed to the development of their culture as well. Shih wanted this company to be different than the traditional patriarchal Taiwanese model. He delegated much of the decision-making authority to the employees believing this would make people act in the best interests of the company. So even though Acer may not have been the highest paying company, they were able to attract quality workers and developed a reputation as a great place for young engineers. Managers were teachers for their subordinates and strived to have everybody working towards the improvement of the company. Shih was able to get his managers to think like this by tying their promotion to the cultivation of their staffs. All of this created a kind of family culture in which it was normal for everybody to do whatever necessary to improve the company. Shih happily delegated authority as long as people took responsibility for their actions. He acted as the company cheerleader, constantly communicating slogans and stories to the employees that reinforced the culture and behavior he wanted. Shih’s approach was different than the other major computer manufacturers leading to much of their early success. He had what he called a “commoner’s culture.” He gave great authority to employees, was very fugal, and was willing to do almost anything to be successful. He joined with other small companies, distributors, and suppliers to expand his sales and learn about other regional markets without having to raise any additional capitol. Shih went on to target neighboring markets since they were seen as less valuable to the giant computer companies at the time. The early response was lukewarm, but Acer was able to succeed in these markets through persistence and by the expansion of its product line. After this success and with the possibilities the growing PC market presented Shih continued to push the company to expand even more and to reach for a global position in the computer market. After the success of the first ten years Shih set his sights even higher and projected sales of $5 billion by 1996. He saw incredible potential for expansion in foreign markets and wanted to once again push the company to excel by finding new oversees business opportunities. At the same time the company evaluated and reaffirmed their values.
Approximate Word count = 1915
Approximate Pages = 7.7
(250 words per page double spaced)
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