Founder-CEO Succession at Acer

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    FOUNDER-CEO

    SUCCESSION AT

    ACERBy

    Abhishek Panda

    F038

    Sudhanshu Bhasin

    F008

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    Introduction

    Stan Shih

    Founder and Chairman

    Acer inc.

    Leonard Liu

    President

    Acer inc.

    Ground Troops & ParatroopersWestern & Chinese styles of ManagementCarolyn Conundrum

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    Shihs Background

    Shih had a very early e!osure to

    business "orld and he "as #uick to sort

    out his basics$%arly turnover and

    cash&lo"s' (ood academic record

    )eclined o!!ortunity to study overseas

    Chose *nitron over Philli!s$Led thedevelo!ment o& the &irst deskto!

    calculator'

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    Qualitron & Shih(1972)

    +incent Lin made him +P,-) Activities

    /nnovationso! 10 outstandin2 youn2

    !erson 145

    6ualitron,Amon2 &astest 2ro"in2

    com!anies in ai"an "ith Shih7s

    res!onsibilities 2ro"in2

    Success "as marred by bad cor!orate2overnance $/m!ortant Learnin2 &or

    Shih'

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    Multitech(1976)

    (eor2e uan29 Fred Lin$- ) eam'9 u

    Chin Chuan$industrial )esi2n eam'9 :en

    ai$Sales'9 -o2er Shen$rade Practices'

    80; votes rule

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    Caroln Shih(!in Controller)

    Lacked %!ertise in technolo2y

    ?ominal chair!erson o& the board to take the

    &all

    )id everythin2 auiliary to !roductdevelo!ment and business develo!ment

    Procurement9 &inance9 accountin29 bill

    !ayments

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    "round troo#s

    First )istributors o& semiconductors

    Com!uter hard"are and so&t"are develo!ers

    ed7s Shares distributed to @nd(en at 0; o&

    bookvalue %m!loyee reco2nition throu2h shares at

    discounted value

    *nconventional %SP !ro2ramme

    %m!loyee im!rovement /nternal

    Certi&ications

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    "ln $%ect

    180 %)* 80

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    a'#aging ragon goesInternational

    -evenues tri!led &rom 18,85

    Launch o& Gorld7s second 3@ Bit PC

    %!ansion to %uro!e and South %ast

    Asia

    184

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    a#'#aging ragon goes South

    "o Failed ac#uisitions &ollo"ed by

    technolo2ical chan2e renderin2 Acer7s

    o&&erin2 !ointless

    Ac#uisition o& Service /ntelli2ence &or A&tersales in *S but ended u! "ith hu2e

    losses$18'

    (lobal e!ertise and e!osure re#uired Alvin on2$% /B

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    eonard iu

    Shih "as lookin2 &or !rior e!erience in

    mana2in2 masses and kno",ho" to

    make the best o& ?orth American market

    Liu @0 year Com!uter /ndustry +eteranbased out o& Santa heresa9 Cali&ornia.

    (ood academic back2round9 Ph.) &rom

    Princeton *niversity echnolo2y )evelo!ment9Sales9

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    ius I'#act

    Chan2e in r2 Structure to SB*s and -B*s

    -es!onsibilities came "ith accountability

    Packard Bell )ell unconventional business

    models Acer no"here near -am!a2in2 )ra2on tar2et

    Altos Com!uter Systems Ac#uisition

    11First ever loss re2istered by Acer o"in2

    to Altos

    )i&&erences in a!!roaches o& /B< Acer

    blamed &or the losses

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    !inal Situation

    (ro"in2 ri&t bet"een Carolyn Liu

    Shih "orried about "hat ideolo2y "ould

    "ork to"ard achievin2 the -am!a2in2

    )ra2on tar2et hree years o& I1; 2ro"thJGho "as

    to blameE

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    hank >ouKKK