Lenovo is the top worldwide PC vendor, ahead of rivals HP and Dell. Lenovo is based in China and generates more than $38 billion in total sales and offers desktops, laptops, tablets, workstations, servers, and mobile phones to customers across the globe. Company Strategy The PC industry has reached maturity, especially in the advanced economies. The industry is global, which means firms compete with each other, and cater to customer needs, on a global scale. Lenovo has adopted a global strategy for its operations. As part of this strategy, management views the world as one large marketplace. Key to Lenovo’s success is ensuring organizational learning to optimize the firm’s value-chain activities continuously. Lenovo uses mergers and acquisitions (M&As) to acquire needed knowledge and other assets from partner firms and to expand into markets worldwide. In 2005, Lenovo acquired the PC business of IBM. The deal instantly established Lenovo as the number-three PC maker worldwide. In 2011, Lenovo formed a merger with NEC, the largest PC vendor in Japan, to access the huge Japanese PC market better. The merger increased Lenovo’s scale economies in manufacturing and marketing. In 2014, Lenovo acquired the telecommunications firm Motorola Mobility. This provided Lenovo with a strong footing in the global smartphone business. Lenovo follows a protect-and-attack strategy. While protecting its core business, especially the Chinese market, Lenovo is aggressively growing its market share in emerging markets and advanced economies. Lenovo now obtains about 20 percent of its revenues from emerging markets outside China. Senior management emphasizes global products and branding, global human resources, and creation of a corporate culture conducive to global success. 1. Name and briefly describe the strategy Lenovo is using. A complete answer must include at least two extracted examples from the Case, to help support your answer.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Lenovo is the top worldwide PC vendor, ahead of rivals HP and Dell. Lenovo is based in China and
generates more than $38 billion in total sales and offers desktops, laptops, tablets, workstations,
servers, and mobile phones to customers across the globe.
Company Strategy
The PC industry has reached maturity, especially in the advanced economies. The industry is
global, which means firms compete with each other, and cater to customer needs, on a global scale.
Lenovo has adopted a global strategy for its operations. As part of this strategy, management views
the world as one large marketplace. Key to Lenovo’s success is ensuring organizational learning to
optimize the firm’s value-chain activities continuously. Lenovo uses mergers and acquisitions
(M&As) to acquire needed knowledge and other assets from partner firms and to expand into
markets worldwide. In 2005, Lenovo acquired the PC business of IBM. The deal instantly
established Lenovo as the number-three PC maker worldwide. In 2011, Lenovo formed a merger
with NEC, the largest PC vendor in Japan, to access the huge Japanese PC market better. The merger
increased Lenovo’s scale economies in manufacturing and marketing. In 2014, Lenovo acquired
the telecommunications firm Motorola Mobility. This provided Lenovo with a strong footing in the
global smartphone business. Lenovo follows a protect-and-attack strategy. While protecting its
core business, especially the Chinese market, Lenovo is aggressively growing its market share in
emerging markets and advanced economies. Lenovo now obtains about 20 percent of its revenues
from emerging markets outside China. Senior management emphasizes global products and
branding, global human resources, and creation of a corporate culture conducive to global success.
1. Name and briefly describe the strategy Lenovo is using. A complete answer must include at least
two extracted examples from the Case, to help support your answer.
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