Case Analysis of Lenovo M&A IBM PC department
Investment Alternatives and Analysis for Fair Value
Case Analysis of Lenovo
Merging and Acquiring
IBM PC Department
Contents
Introduction ………………………………………………… 1~4
Body
1. The critical successful factors that are the focus of the successful M&A activities …………………………… 4~6
2. The summary of lessons learned which made the factors successful……………………………………………… 6~8
3. What is the company should do next to improve its post-M&A initiatives…........................................................ 9~10
Conclusion ………………………………………………….. 10~11
Introduction
Lenovo Group Limited is a Chinese transnational computer hardware and electronics company. Its operational headquarters are located in Morrisville, North Carolina, United States and its registered office is in Hong Kong. It produces personal computers, tablet computers, mobile phones, workstations, servers, electronic storage devices, IT management software and smart televisions.
Lenovo has operations in more than 60 countries and sells its products in around 160 countries. Lenovo was founded in Beijing in 1984 and incorporated in Hong Kong in 1988 under its previous name, Legend. Lenovo is listed on the Hong Kong Stock Exchange and is selected as a constituent stock of the Hang Seng China-Affiliated Corporations Index.
In the 1980s, when market reforms were in progress, the Chinese government hired Liu Chuanzhi to distribute imported computers. In 1984, Liu founded Lenovo with a group of ten engineers and 200,000 yuan in Beijing. Their first significant effort to import televisions was failed. The group could rebuild itself within a year by carrying out quality checks on computers for new buyers. Shortly afterward, Lenovo started developing a circuit board that would allow IBM-compatible personal computers to process Chinese characters. This product was Lenovo's first major success. Lenovo started to manufacture and launch computers tagging its own brand
Case Analysis of Lenovo
Merging and Acquiring
IBM PC Department
Contents
Introduction ………………………………………………… 1~4
Body
1. The critical successful factors that are the focus of the successful M&A activities …………………………… 4~6
2. The summary of lessons learned which made the factors successful……………………………………………… 6~8
3. What is the company should do next to improve its post-M&A initiatives…........................................................ 9~10
Conclusion ………………………………………………….. 10~11
Introduction
Lenovo Group Limited is a Chinese transnational computer hardware and electronics company. Its operational headquarters are located in Morrisville, North Carolina, United States and its registered office is in Hong Kong. It produces personal computers, tablet computers, mobile phones, workstations, servers, electronic storage devices, IT management software and smart televisions.
Lenovo has operations in more than 60 countries and sells its products in around 160 countries. Lenovo was founded in Beijing in 1984 and incorporated in Hong Kong in 1988 under its previous name, Legend. Lenovo is listed on the Hong Kong Stock Exchange and is selected as a constituent stock of the Hang Seng China-Affiliated Corporations Index.
In the 1980s, when market reforms were in progress, the Chinese government hired Liu Chuanzhi to distribute imported computers. In 1984, Liu founded Lenovo with a group of ten engineers and 200,000 yuan in Beijing. Their first significant effort to import televisions was failed. The group could rebuild itself within a year by carrying out quality checks on computers for new buyers. Shortly afterward, Lenovo started developing a circuit board that would allow IBM-compatible personal computers to process Chinese characters. This product was Lenovo's first major success. Lenovo started to manufacture and launch computers tagging its own brand