Business Report of Lenovo

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Business Report of Lenovo

Section 1

Introduction

Lenovo was found in 1984 in Beijing and it is the world’s second-largest PC vendor. According to the last official statistic, Lenovo consolidated turnover of 146.6 billion Yuan and Lenovo employs nearly 40,000 people. Lenovo is a well-known national brand in China and Lenovo is serving customers in more than 160 countries. In order to expand overseas business and access to world-class brand, Lenovo carried out an acquisition of the former IBM Personal Computing Division in 2005. IBM was founded in 1911 in the United States and it is the largest information technology and business solutions company in the world, currently has more than 30 million employees in the world, with operations in over 160 countries and regions. The problems experienced by Lenovo concerns the construction of cross-cultural teams. Most of the merger and acquisition fail in the post-merger cultural integration. Lenovo set up work teams for designing the future of IBM and developing the new view after acquisition. The results had been shown it uneasy and can lead to the failure of the Lenovo’s acquisition strategy. At the beginning of the acquisition, cultural differences had not been enough anticipated in the acquisition process. And Lenovo wants to remedy the problem as soon as possible to make IBM acquisition profitable in the next strategy.

The report part of the business plan

Summary

This report is intended to identify, describe and propose some solutions to Lenovo to solve the problems about teams and groups in the acquisition of the IBM. This report will describe problems associated with team building, provides some possible solutions and evaluates each of these. And, this report will describe the impact of cultural differences on the establishment of work groups. Actually, Lenovo had taken some measures, but it with little success. According to the current state of Lenovo, this report will give some suggestions and solutions to overcome or avoid the conflict caused by cultural differences and set up effective cross-cultural teams. Especially, these solutions are based on literature on the issue. It concludes that it is necessary for the company to establish effective and appropriate measures to eliminate the barriers in cross-cultural teams, as absence of this may threaten the company’s long-term development. To overcome the problem, Lenovo should take the follow action for IBM survival: * Obtain the core values between Chinese employees and American employees through an internal survey. * Design an international training program for all the employees and especially for managers. * Incorporate both corporate cultures of Lenovo and IBM to create a new corporate culture. * Every cross-culture team should organise monthly meeting or weekly meeting to evaluate the progress of communications and work. * Organise some internally non-working activities to create more opportunities for the communication among employees with different cultural context. * Set up the special teams to deal with the problem caused by cultural difference in every cross-cultural team. Introduction

This section of business plan will introduce the problems caused by cultural differences in cross-cultural teams and give some suggestions to overcome the problems. In the acquisition of IBM, Lenovo accepted more than 10,000 employees and it also means that Lenovo accepted a very different culture. Lenovo is not only facing the differences between western and eastern culture, but also Lenovo facing the problems of how to integrate the teams with different organisationally cultural context. In this report, the recommendations to overcome the problems in cross-cultural teams and groups are based on the literature on team building and cross-cultural team management.

Body

At the beginning of the acquisition of IBM, Lenovo had taken some measures. For example, in order to both sides can...
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