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ANALYSE ORGANIZATIONAL STRUCTURE AND NATURE OF BUSINESS
ANALYSE ORGANIZATIONAL
STRUCTURE AND NATURE
OF BUSINESS
CHINESE MNC- LENOVO
10/18/2014
UNIVERSITY NAME:
STUDENT NAME AND ID:
INTRODUCTION
China continues to be the world’s most emerging top most multinationals that seek to set up
the existence and expand their footstep in the 2
nd
largest economy of the world (aicpa.org
2008). The Chinese multinationals play a key role. In any case China has advanced rapidly,
as have Chinese homegrown businesses. It is an aggressive environment and Chinese
household players are cu
ently raising the stakes, with worldwide yearnings for their own
particular
ands. Since China opened its ways to the West 30years back, there has been a
sensational change in China's financial fortune. The advancement of Chinese organizations
from shut entryway seclusion to internationalization, and even worldwide mix for a few, has
een emotional and quick. As these firms developed, there have been real shifts in talent
management, human resources, technology management and also corporate strategy which
are giving a competitive edge to the Chinese firms. European and American have started to
fear and notice the shifts that the Chinese MNCs are taking (kpmg.com 2013).
This essay will examine the key success factors of the Lenovo, the China’s leading computer
technology organization. The essay focuses on discussing the strategies that had made
Lenovo successfully globalized. The essay describes the evolution of the company, the
structure of the organization and also the drivers that has lead the organization to head
towards the success.
OVERVIEW OF LENOVO
Lenovo is one of the biggest well known PC creators on the planet. Today, Lenovo strives to
e the worldwide piece of the overall industry pioneer in each of the business they serve. On
September 24, in 2004, Lenovo obtained the individual machine business and the
and
"Thinkpad" popular machine IBM in the IT business everywhere throughout the world. This
historic point transaction is taken as its most paramount phase of the worldwide procedure in
the machine business (lenovo.com 2012). This marks the trinity Lenovo's internationalization
system has climbed to another stage, which shows that Lenovo officially in the United States
uilt a
and-name picture confinement. Presently, the Lenovo has turned into the worldwide
application organization (deals) that have their bundle plants in additional than 7 nations and
collaboration plants in numerous nations and make the neighborhood ventures business
permit and circulation contract. Lenovo is likewise one of the major worldwide organizations
(deals), and it has it generation plants in 7 nations, its items are showcasing in about 160
nations (China Hands 2014).
ORGANIZATION STRUCTURE
Headquarter of Lenovo is located in Hong Kong. It has around 66
anches with sales and
distribution in around 50 different countries. The organization has research centers in Japan,
China, Yamato, Beijing and Shanghai. Lenovo operates assembly and manufacturing
facilities in Mexico, India, US and China. The founder of the organization is Liu Chuanzhi
who has transformed the overall organization. Under his leadership, the organization had set
up an incentive mechanism and option plan that has helped many people go aboard in their
initial position of leadership itself. Presently the organization is run under the leadership of
Yang Yuanqing who is the present CEO of the organization. Under his leadership the
organization continues to have a robust business impetus, profitability in their earnings and
also delivering trace revenue. To maintain this momentum, there are other leadership
positions like CFO, CTO, COO and other positions based on the different functions of the
organization who support the CEO to make Lenovo more profitable and the global player in
the computer technology market (Lenovo.com 2014).
STRATEGIES TO SUSTAIN IN COMPETITIVENESS
To sustain in this competitive world, the organization has developed four different business
groups in the year 2014; Cloud and Ecosystem Services that is led by George He, who is the
CTO of the organization his main responsibility is to build up an ecosystem that drives the
strategy for expanding the ecosystem and also for monetization. Next is the Enterprise that is
led by Ge
y Smith. The main aim is to forcefully fa
icate another, quickly developing
enefit motor in big business, where we as of now have a strong establishment. Another one
is the Mobile Business Group led by Liu Jun. This business group is centered on making
Lenovo a productive worldwide player in the quickly developing cell phone and tablet and
creating our
illiant TV business. Lastly is the PC Business Group led by Gianfranco Lanci.
This business group will guarantee that the organization keep on innovating, drive benefits
and stretch our lead in our center PC business around the world (News.lenovo.com 2014).
Lenovo has three different products in the international market that occupies the first three
positions in the industry of computers. The main aim of the organization is to become the
first manufacturer of personal computer in the world in the upcoming future. The PC
shipment of Lenovo rose by 21%. In China the organization accounts for 46% in its overall
evenue (Luk 2014). Lenovo has turned into a ""wonder"" in the Chinese data engineering
(IT) industry today due to its interesting managerial methodology and individual’s first
system. Lenovo Group consumes ''making room to create representatives, updating their
quality, and enhancing their working and living quality'' as its mission; thusly workers
subordinate their individual interest to Lenovo's long haul improvement. Today, Lenovo is
China's biggest and the world's fourth-biggest PC maker, after Acer of Taiwan, Dell of the
U.S. and Hewlett–Packard Co. Lenovo has centered its degree, and as of now produces
desktop and note pad PCs, workstations, servers, stockpiling drives, IT administrations and
IT administration programming (Fletcher 2014).
BUSINESS PROCESS OF LENOVO
The business operation of Lenovo, mainly focuses on the developing an efficient marketing
activities that help the organization to have a competitive edge in this competitive
environment. Lenovo focuses on three factors before choosing their target market: Created
ustic market, those customers have solid
and mindfulness. This swarm has structured piece
of buying power, Moreover, Lenovo early did the demonstration of the "free movies for
countryside" to create the provincial market, the exercises have
ought the
and affect, so
picking this some piece of the swarm as the target customer bunch, obviously can rapidly
enter the country market; U
an communities customers who have the abnormal state of
training, higher on affirmation, and are matured underneath 45. Lenovo called this swarm
“high-end crowd”, the swarm is helpful for high-end items deals; Solid
and mindfulness,
city customers who have progressed ideas. In the PC market, the effect of Lenovo
and is
near preference, so picking such target customers can indulge the needs of such customers
(Chu).
Expanding upon its past triumphs and concentrating on conveying productive development,
Lenovo is re-ve
alized its responsibility to five vital pillars; Pursuing excellence in their
operations, enhancing the intimacy of the customers, wining in the core businesses, gaining
profitability and then building a strong
and(lenovo.com 2008).
Source: http:
www.lenovo.com/ww/lenovo/pdf/annual-interim/2007-2008-annual-report.pdf
OPERATIONAL EXCELLENCE
Lenovo drives its operational efficiency by emphasizing on the main keys areas that help the
organization to add efficiency to their process. First is to complete the...