Acer Case Transnational Management Essay

1. When Multitech was starting up, Stan Shih preached self-restraint in the form of not spending much money hence necessary and not being wasteful with the resources the money spent provided. Shih went as far as creating a campaign that wayed on act lights off, using both sides of paper, and traveling economy class. This is vastly incompatible accordingly the philosophy of another(prenominal) startup companies that spend more money and so they dumbfound available and quickly go bankrupt. Secondly, Multitech made employment rattling attractive through delegated responsibility.Most companies guide a top-down heed approach where all decisions are made at the top and employees exact to do what theyre told and keep their ideas to themselves. With Multitech, there was a sense of immunity, which take to the recruitment of bright young engineers. That type of creative freedom, as pine as its for the betterment of the go with, breeds increased productivity. Third, to compens ate for offering no more then a modest salary, Multitech offered key employees equity in the form of ownership in subsidiary companies.Can you imagine incisively coming out of college and being offered ownership in a alliance? I would take a little less per hour for that opportunity. say if any of us had such an opportunity with Apple or Facebook. screaming Lastly, joint ventures allowed Multitech to expand its sales into new territories without the risk of hiring more heap or raising more capital. In other words, Multitech increased their food market share without taking on additional expenses or putting in more money. To sum up, holding 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 liable for their actions. Liu did this by introducing productivity and performance evaluations. onward Leonard Liu came on board, employees did not have a profit and loss responsibility and as we know, the difference amongst a successful company and an unsuccessful company is profit. Now, if an employee wanted freedom to make his own decisions, that employee had to make authorized his freedom produced a profit. Before Liu, there was a lack of structure within the company. Liu brought a professional person management structure to Acer by establishing standards for intra-company communications to make surely everyone was on the same page.Most importantly, Liu created structure within the company by creating RBUs and SBUs. With this change, organizations, subsidiaries, and marketing companies under the Acer umbrella all had specialised responsibilities instead of doing a little bit of everything. Unfortunately, some of the changes Liu implemented seemed to do more damage then good, which eventually led to employees questioning his perceptiveness and implementing his directives half-heartedly. The supportive family approach was gone having been replaced with an iron-fisted form of management. Employees were not responding. The change was likewise drastic.Something in between Shihs approach and Lius approach would have probably been more productive. Also, frugality was replaced with lavish spending on explanation and law firms and full acquisitions of companies instead of joint ventures, which put all the fiscal responsibility on Acer. If the goal was profit, Liu was losing just as much, if not more money.3. In regards to development of the draw a bead on, I believe a local-for-local model was used. The Aspire was the first product designed and developed by an RBU, in repartee to a locally sensed market opportunity. Acer America and other RBUs felt that Acers Taiwan-based SBUs were too aloof to develop product configurations that would appeal to diverse consumer and competitive situations around the globe. The indorsement aspect of the local-for-local model requires that subsidiaries use their own resources to d evelop products.With that criteria, Mike Culver, AACs Director of Product Management, commissioned a series of local focus groups to explore opportunities in home computing. After the focus groups showed a authority for a consumer PC, Culver hired Frog Design to create a range for the Aspire. By using focus groups and hiring Frog Design, a company single-handed from Acer, Culver was using resources available to him outside of the Taiwan home base. From start to finish, the development of the Aspire happened in the US as a product ab initio for the US market.4. Shih should allow the development of the Aspire to continue as tenacious as implementation is transferred back to the SBUs in Taiwan. If all of the companys engineering and production expertise is located in Taiwan, those with the nearly expertise should handle the launch of such an expensive product into a highly saturated and competitive market. Shih would also need to make sure that the design of the Aspire stays as-i s to achieve economies of scale on production. As far as marketing, I see no problem with unlike markets customizing the marketing plan for the Aspire. Companies all over the world implement different marketing strategies for a product depending on the market. For example, Diet Pepsi is marketed as Pepsi shine in some countries outside of the US. What may be an important gambol of the Aspire in the US market might not be as important in a different market.