Leadership is the process of achieving a dream together, especially when that dream seems impossible to achieve.

Stan Shih

Multinational Corporation Management

Acer, Inc.

Taiwans Rampaging Dragon

Group 3: Hendry Paul Vania

Outline
Acer America & The Aspire The Decision After The Case

If I were Stan Shih

Suggestion to Dream MNC

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Acer America Corporation

1992 Ronald Chwang assigned as new CEO 1994 - AAC recorded first profit after 6 years - Aspire was born

1989 Leonard Liu assigned as CEO and 1987 Chairman AAC start of AAC losing money

1990 Altos acquisition

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Acer America Corporation

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Birth of Aspire
January 1994 Mike Culver promoted to become AACs Director of Product Management new opportunities in home computing. Increasing
Client-Server Organization Structure Trend to Working at Home

Internet

Global Brand, Local Touch Philosophy

Potential for Multimedia Home PC

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Birth of Aspire
Worked with Frog Design to incorporate the Aspire with radically new aesthetics design.
Worked with development group in Taiwan to incorporate the Aspire with new multimedia capabilities. Voice-recognition technology with built-in microphone & enhanced audios capabilities Positioned in middle segments offering high quality innovative product at a less-thanpremium price $1,999 for basic product

CD-ROM drive capabilities

$2,999 for highestend system

Built-in modem with telephone and fax capabilities

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Birth of Aspire

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

The Decision
Go with Aspire Not Go with Aspire

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

The Decision
Should Stan Shih support the Aspire project, change it, or put it on hold?

What implication would his decisions have for the new corporate model he had been building?
Multinational Corporation Management
Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Update in 1995 After Aspire

Acer decided to implement the Aspire project.
They modify it by transferring the task of coordinating the development and delivery back to the SBUs in Taiwan for implementation. Aspire become the worlds most multimedia PC Acer Computer International ltd. Launched IPO in Singapore Total Revenue jumped to US$ 5 Billion
Multinational Corporation Management
Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Problem Arise
There was problems with the Aspire within 2,5 years after the launch
Strong emphasis on design cause technical flaws like CD-ROM and microphone issues Inaccurate forecast of sales Lack of customer service Use the American taste over the world not compatible in other regions

1996 Technical issues has been resolved 1997 All new model launched with more support from SBUs (lesson learned)
Multinational Corporation Management
Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Acer Aspire Series

1996 1st Generation Acer Aspire Today Aspire is a series of personal computers aimed at the casual household user or for small business use. 2010 Acer Aspire Predator 2013 Acer Aspire 5600U 1999 Acer Aspire Desktop 2008 Acer Aspire L5100

the hottest story of the season. leading IDC analysts

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Acer, Inc.
CEO
Stan Shih (1976-1989, 1992-2004)

Logo
1987-2001

Brand

Sponsorship
Ferrari Formula 1 racing team (2006)

J.T. Wang (2005-present)

2001-2011

Vancouver 2010 winter Olympic games

2011-now

London 2012 Olympic games

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Acer, Inc.
Market Share USA and Worldwide 1994
COMPANY U.S Market (%) 12.6 11.5 11.4 9.0 5.2 4.2 3.9 3.6 Worldwide Market Share (%) 9.8 8.1 5.1 8,5 2.3 Compaq Apple Packard Bell IBM Gateway 2000 Dell AST Toshiba

#8
2.6 2.7 2.4

#9 Acer
HP

2.4
2.4

2.6
2.5

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Acer, Inc.
www.gartner.com/newsroom/id/2301715

#4

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Acer, Inc.
Acer Inc. 2012 Conditions
Source: www.forbes.com/companies/acer/

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Leadership is the process of achieving a dream together, especially when that dream seems impossible to achieve. Stan Shih

We rely on people and build our business around them. Stan Shih
Multinational Corporation Management

If I Were Stan Shih

Multinational Corporation Management

Dont be Acer afraid because of past failure saw it as a learning, consider it as To make an organization that can think and learn, we must continue to investment pay tuition rather as long than a waste learn by action as mistake are unintentional and longterm profits exceed the cost of education. Stan Shih

The Aspire Project

Assemble in AACs plant with support of expertise and parts being imported from SBUs
Aligned with Entrepreneurial Culture Clearly showed the successful application of the Client-Server System Boosts Motivation Motivate the management and staff of AAC and also would be a motivation for other RBUs USA as Leading Market Innovation in computers developed in American environment is generally taken as a global trend

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Recommendation
Establish integrated network organizational structure Establish R&D facilities in potential RBUs with the assist of central SBU as global strategist
Improve the server-client structure Promote coordination between BUs
Form cross-BUs project management teams Increase responsiveness of local market needs

Increase pace of innovation

Allow SBUs to retrieve new ideas from RBUs and distributed it worldwide

Share resources and transfer knowledge between SBUs - RBUs

Cultural difference helps in blending of local touch with global brand

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Integrated Network Structure

Local Responsiveness BU Global Efficiency

BU
ACER GROUP

BU

Worldwide Innovation & Learning

Acer America & The Aspire

BU

BU

Knowledge Transfer

Multinational Corporation Management

The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Suggestion to Dream MNC

Multinational Corporation Management

Toyota in South Africa

Since June 1962, Toyota has been established a manufacturing operations in South Africa (Toyota South Africa Motors Ltd.)
Main Products: Corolla, Hilux, Fortuner, Dyna Average of 125,000 vehicles produce per year with 7,000 employee Main Supplier for Europe and Africa market

Acer America & The Aspire

The Decision

After The Case

If I Were Stan Shih

Suggestion to Dream MNC

Toyota Global Vision

The safest and most responsible ways of moving people There is always a better way Enriching lives around the world

Exceed expectations and be rewarded with a smile

Lead the way to the future of mobility

Respect for the planet

Our commitment to quality, constant innovation If I Were Stan Shih Suggestion to Dream MNC

Multinational Corporation Management

Acer America & The Aspire The Decision After The Case

2015 Global Initiatives

Product Strategy
Offer genuinely exciting models that meet the needs of each market Expand Toyota's line of hybrid models, launching about 10 more by 2015 Position Lexus as a truly global premium brand Achieve a balanced sales portfolio between Industrialized nations and emerging markets (60%-40% 50%-50%)

Toyota

Supply Strategy
Japan Make the most of Toyota's existing production capacity in manufacturing hybrid vehicles and other high-value-added products. North America & Europe Maximize productivity at existing plants Emerging Markets Expand production capacity, analyzing demand prospects in each region
Global Brand, Local Touch Philosophy
Multinational Corporation Management
After The Case Acer America & The Aspire The Decision If I Were Stan Shih Suggestion to Dream MNC

Toyota Environmental Technologies

Hybrid Vehicle Electric Vehicle Deploy the development of Green Vehicles abroad from only in Japan to another region including in South Africa

While hybrid sales remain minuscule in South Africa, the market has been steadily picking up speed, especially over the last four years.
(http://www.engineeringnews.co.za/ - 17th August 2012)

Fuel-cell Vehicle An analysis of the sales data for 2012 up to November by Standard Bank showed that the
sales growth for hybrid vehicles was 23.6% compared with petrol engine cars at 7.9%.

Plug-in Hybrid Vehicle

(http://www.moneyweb.co.za/ - 09 January 2013)

- The Department of Trade and Industry (DTI) of South Africa has announced plans, aimed at establishing an electric vehicle industry in South Africa. - South Africa is the 13th largest global emitter of CO2. The automotive sector is one of SA's most carbon-intensive, accounting for approximately 20% of emissions.
Multinational Corporation Management (http://www.southafrica.info/ - 3 May 2013)
After The Case Acer America & The Aspire The Decision If I Were Stan Shih Suggestion to Dream MNC

Global Brand, Local Touch Philosophy

Global goal / expectation is announced by HQ

Regional Subsidiaries come with their own how best to serve their customers Multinational Corporation Management

HQ collected all regional strategies and give furnish support for the initiatives

Acer America & The Aspire

The Decision

After The Case

If I Were Stan Shih

Suggestion to Dream MNC

Toyotas Growth Pace Problems

2010 Accident
- Mark Saylor and his family were all killed in a car crash apparently caused by a faulty Toyota accelerator - As of January 2010, 21 deaths were alleged due to the pedal problem since 2000

2010 Vehicles Recalls

The accident caused more than 2 million Toyotas were recalled in the US, 9 million worldwide

2013 Recalls
Toyota recalled more than 1 million vehicles sold in the United States over faulty airbags and windshield wipers Multinational Corporation Management
Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

Toyotas Growth Pace Problems

According to news reports, the recall crisis partly lies in Toyotas radical ambition over cost cuts and growth.

Akio Toyoda
Toyota has, for the past few years, been expanding its business rapidly. I fear the pace at which we have grown may have been too quick. We pursued growth over the speed at which we were able to develop our people and our organization, and we should sincerely be mindful of that.

Also taking example from the failure of Aspire project, it is a good example for every automaker or PC maker to learn that going forward is favorable only at right pace.
Multinational Corporation Management
Acer America & The Aspire The Decision After The Case If I Were Stan Shih Suggestion to Dream MNC

THANK YOU
FOR YOUR ATTENTION