Global Strategy for Lenovo

globose schema for lenovo Content O snitch O Introduction O Learning skills and globularization misuse wizard query accomplishment.Step deuce microcosmic hold ining Step collar foot check up on knowledge Step four escalate and training instruction Step quintuple re run go-ahead desoxyribonucleic acid O International employee and Lenovo adjoining move discipline O Supply fibril O Global marting and double cognitive operation way of life O Global system and antitheticiation strategy O Re pretend Lenovo business desoxyribonucleic acid for s eye unfermented political party civilisation and worldwide encyclopaedism O unofficial O Reference Table of Contents Abstract flat days, more than than than and more companies ar going global. In chinaw ar Lenovo is a representative in that ara. During I do the research nearly Global strategy I am very interested in the Lenovo assembly. It might be the earliest star hold backs the mind ab proscribed globa lization. At the beginning to run association they bond them prat is going global. In my paper I image several(prenominal)(prenominal) ara for them strategy try to find a demeanor to hold for this walloping companionship. I go out win seven parts to scripted this paper. There ar Learning skills and globalization International employee and Lenovo next steps guideing Supply fibril Global commercializeing and double operation mode Global strategy and several(predicate)iation strategy regenerate Lenovo business DNA sensitively guild culture and global discipline This go out be a schema for a community should be taking on the global way. I take to explain ways to fitted Chinese political party be going to global. Lenovo is a case to learn. Introduction Lenovo take a polish is supranational is keep up up very early. Lenovo has been raised from the grind opened in Hong Kong to buy IBM PC department. From list to open research and development brute everywh eresea. Lenovo is step by step to wards international, to a transnational company. lock away deep in the blood of Lenovo company culture is a in effect(p) thing or leave behind become hinder development in the further is a picture.Lenovo existing resources and the international strategy Lenovo take are computable luxuriant for the international journey. Through Lenovo history to find strategies Lenovo was taken Investigate Lenovo history is non tight to find that Lenovo development seems get some relationship with Chinas political. Chinas international will be the Lenovo international. Lenovo is a national feeling of enterprises. 80s ideas for the national association provide excellent development opportunities. Lenovo look on hold of peoples national feeling and do the decent merchandise placeing as them general engineer Ni guangnan. Today, Chinas international are overly give Lenovo provides a streng pasted support. From Lenovo development history is to view.Lenovo no mater what charge mode, operating mode or technology mode stool been in development. Each unrivaled modifys is against either major(ip) change in the securities industryplace. just this beat for Lenovo globalization them mark the change is non good enough. From the stolon to make the control of the insipid to crash was indeed beyond imagination. Lenovo is from the confidence to headhunt from dell. From Hong Kong to doctor up plants to in India and Mexico to wee-wee research and development centers. Go to global is more objective in the history of the Lenovo. Learning skills and globalization There are fivesome steps enterprise should be take during them go to globalization. They are five different take aim learn enterprise will be taken.First three steps are get seedtime. For Lenovo, Last dickens steps are more impotent. If a company is not breeding pilot lightly they are going to international. Its hard to roaring. Its same(p) a scholarly person will be w eigh in a new inelegant but he or she tail end not know anything about that new country he or she is hard to enjoy his or her study. Step one research encyclopedism. Step two microcosmic learning Step three trail learning Step four deepen and development learning Step five reform enterprise DNA enquiry learning Research learning is survey of the manoeuver countrys macro economic environment and learning it. in advance Wal-Mart has been open any supermarket in China.There management must be get research for Chinese population, income and consumption levels, the per capita gross domestic product of the economy and the Chinese governments intervention in the occurrence of more wherefore one investigation. This is one very authoritative point to explain why War-Mart so self-made. Similarly, Lenovo must be research the target country macro environment Such as politics, economy, population, technology and environment. Lenovo conference on July 26, 2007 in Beijing announced that it will invest 31 jillion US dollars in India and Mexico for a new manu positionuring center, in orderliness to meet these growing withdraws for computers. Before Lenovo assembly mark this decision they must be get research about India and Mexico.For example In upstart years the culture technology industry in India stress on the bull market, is expected in 2008 Indias software system industry output honour of 87 billion US dollars, exports reached 50 billion US dollars, Indias software industry has become an important pillar for economic development. The in fundamental law like that Lenovo mathematical root word must be kn induce before them marks this decision. Of parentage Lenovo group must research the governments intervention in the space of these two countries. Microcosmic learning The spot phase of the study is aimed at relatively minor issues. The study focused on consumers and the local anaesthetic some silent rules.It contains the legal inside. If the analogy to the internationalisation of a war, then only fucking we win the battles mutual understanding. However, the key factor in winning is not the master of public breeding. Master of public information is necessary, but not completely conditions. And this public information is that the internationalization of the war is that the macroeconomic environment analysis. So completely conditions are the local consumer habits, language, unspoken rules, logical thinking and values of the legal system and potential constraints which undercover in the surface. Those in the international war can be viewed as the enemy within the military.Lenovo is the same in acquisition of IBMs PC division, Lenovo if learn the American consumer habits, lifestyle, and the legal situation of the values Americans have to understand that it acquired in association with the issue of integration after winning exposed to great puzzles. In fact, Lenovos acquisition of IBMs PC department does have a big problem. Th e get-go is IBM and Lenovo two different cultural conflicts. This situation is inevitable, but before Lenovo buying IBM PC department if Lenovos management was learning the Americans these potential habits and the rules has so understood will be relatively less. You can say, if Lenovo Group and the unite States in the negotiations of the use of the broken English is cooked then you can imagine people sitting in the two countries will have to hit with how great the differences and contradictions.If Lenovo executives level are not study the united States culture and the unspoken rules before they buy IBM PC department so that the major acquisitions will be unmanageable to continue. TCL and Frances Thomson acquisition is between pictures of a ostracise example. Before TCL buy Frances company Thomson they are not conducted a detailed analysis and study for Frances legal system. In the finish TCL encountered big issue in dealing of layoffs in the financing. French expertfulnes s on the protection of layoffs far exceed TCL budget. The outcome of the restructuring are not embarrassed. Trail learning The third step is learning phase of the second set of in-depth. The first two tiers of learning are to go abroad for the door before a preparatory organise.The third phase is learning test water. In this conceive Wal-Mart has through with(p) kind of well. Wal-Mart entered China in 1996 after five years in China did not have open one more supermarket. Is Wal-Mart hasnt enough money for more supermarket running in China? No, its not. Its Wal-Mart is doing the trail learning in China. In these five years, Wal-Mart take further verification by the domestic market analysis and forecasts of expected ad thoments and the development of strategic planning. Because of Wal-Marts goal is to open Wal-Mart stores in China each city, perhaps further with the development of an opening in every town. So one trail learning is necessary for Wal-Mart.Lenovo If you want to s ucceed at the international level, it is the first Wal-Mart to learn patience and ability to learn. Lenovo Group in the linked States, Europe, India, Mexico and other countries of the target market has sufficient patience to learn. At this stage of learning is the existence and nurturing of talents localization of management. If you have done research shows that the McDonalds and KFC Wal-Mart manager almost no Americans, the United States except shop. Wal-Mart in the five-year period not only learning to do business in China, to study the habits of the Chinese people and Chinese people to do things the way they want to alike train them in conformity with the standards of the people and in accordance with the standards of the supply chain.So Lenovo in the United States and other targeted countries on the market to do less is to establish their hindquarters and develop their own localization of management talent. If Lenovo not fabricate a team up in the target country they are hard to kind of join the local market. Localization is first step and most important step for the international. If Lenovo failed localization so it is difficult to give internationalization. Google appointed Kai-Fu Lee, sin president for global concurrently president of China is a good example. Google to open the Chinese market to compete and Baidu, he first has to do is a localization team. Deepen and development learning The fourth stage of learning is to deepen and expand the learning.Foreign ring mails to enter an unfamiliar market, and in fact created a new brand name with a same place. That is, no one knows you no one will take the initiative to buy. Therefore, a brand in a local market in order to outlast it so triumphful marketing is essential. In this regard Lenovo marketing done on the more conquestful. Firstly Lenovos sport marketing was successful in global. You can say this point is Lenovo learning from Samsungs successful experience. Lenovos sports marketing and event marketing mathematical process to join the TOP weapons platform and Olympic soccer star Ronaldinho signed. These are reflected in the Lenovo in this regard made by the marketing efforts. It may Lenovo chairman Yang Yuanqing who is doing business on it.At this stage, enterprises in the target countries have started small-scale operations. It is a substantiating disceptation and competitors time. McDonalds in China began opening large fast-food chain has been established at the time of its raw material supply base in China. Wal-Mart Chinas rapid opening of the supermarket chain has been building his management team and rapid reaction supply chain. Theoretically Lenovo in the international market competitors began when awakened positive competition should also establish a beefed-up management team and the localization response agile supply chain. But in fact its not Reform enterprise DNA The ordinal phase of the study is recombinant DNA enterprises time.Its enterprises rooted target countries, to thoroughly international. This stage enterprises pick up to reconsider the definition and rectification. This time the companies have no points of the country. It is not only to do right for the regionholders of such a simple matter. Before Samsung go to global it just select get responsibility for them investor. take money earnings. But now Samsung has not only South Koreas Samsung. It inevitably of his enterprises in the world is responsible for the country. Need to integrate global resources and the right of consumers around the world responsible. They need to contribute to the community and they need to advance the image. Samsung done so it Samsung was successfully.Lenovo listing of the problems facing this series, the reasons for Liu to defeat summed up a word, is listed after the changes are not suited. Still in the management of a small company means a sagee management listed companies. right away Lenovo whether thither is sufficient justi fication capacity management a multinational? Lenovo seems to be done in this regard also not perfect. The mail hazard in the United States is worrying Lenovo in the United States do the preparatory acidulate. DELL salesman wrote in the e-mail, buy Lenovo is a disguised form of support to the Chinese government. He hopes to use this speech to persuade Lenovo customers to DELL. This incident will be taken bad influence for Lenovo group in the international.It also reflects Lenovo wasnt establishing an image suit for consumer mind about multinational companies. The big problem exists internal of Lenovo is management case. After Lenovo acquisition of IBMs PC debasement emerging the contradictions in the management seem to be quite difficult. So Lenovo headhunt DELL chief operating officer Departure to the CEO of Lenovo Group. Lenovo hopes he has come to a temporary root word to the conflict tripartite management of the two sides will win unanimously. More or less the Lenovo Group also did not establish applicable to international management of the approach. It is also indicates that Lenovo impelled to establish a new management system. International employee and Lenovo next steps developmentOn November 9, 2004, Lenovo group President Liu Chuanzhi speaks frankly at the octadh session of CEO annual meeting, at present the company has encountered two big difficult problems in the internationalization progress Brand internationalization difficult and the internationalization talented person is deficient. He indicated obtains the success after the Chinese market, the company in order to seek the achievement the breakthrough, at present is moving towards the internationalization and the multiplication. However meets two major problems in the internationalization advancement First is the brand internationalization influence exceptionally is difficult, before we the brand superiority which form in the Chinese market has vanished, must form the international wel l-known brand, must make the very big effort, and inevitably to have the massive funds.Second is Lenovo need more high level international people to help them if company wants to successful in the international. He thinks this is very difficult for a local company. He expressed, Although we have draped the colleague which many has the oversea table service experience, but our backbone staff mainly is develops in the native place, raises, these years we unceasingly absorbed China to study to the overseas, to be some colleagues which the work came back, But requested to the internationalization talented person also to have the very great remoteness The December of 2005, Dell senior vice- president concurrent Asia an the Pacific and japan area president William . J .Arab League Mei Liao leaving Dell and join Lenovo group and take up the post of CEO. This is a change for Lenovo group about them always like use people who are group up inside of Lenovo. From Beijing, Hong Kong to Sin gapore, the Lou advantage (the American North Carolina state) with Paris, overspread in global each place associates in GAO Guanceng, most plausibly is the foreigner. In Lenovo has formed the internationalization first step is as employees localization understanding. In the present case, the Lenovo group faces the biggest difficult problem unagitated is to the internationalization talented persons demand. A company wants to be really international they must be having international employee first.Now, for Lenovo group the problem is they didnt get enough international employees to do that work. Lenovo group build up them Research and development center any Headquarters in United States of America. In America Lenovo group feel very hard for looking for the suitable employees who understand Lenovo group culture. About this problem Lenovo get them own solution is improve them request for the new stuffs and change them officer language to English to suit for this problem. This also is the Lenovo quickens up the adoption internationalization advancement a demand. Lenovo must be know that Stealing Managers isnt only way to get suitable employees way. Them must be build a good system to mark them own person with ability inside.Even Lenovo group break dance to ask the reporter questions also express Lenovo like manger who are group inside. The main reason is Lenovo want to continue them company culture. Now, Lenovo group face the new position them must be get new employees who get more strong skills as learning new things and strong innovation skills. They must be get good team work skills. Supply chain In the supply chain, Lenovo Group of China there is a clear advantage. In 2000, Lenovo in domestic enterprises in the first successful implementation of the ERP, and then at that time the supply chain management under the leadership of the Department, took two years to complete the render SCM. At the same time, Lenovo started a supply chain management system.The logistics sector-lead VMI figure created with the vendor Lenovo synergy values and customs, and re-planning of the procurement logistics network layout, with the suppliers chronicle visual image of collaborative management, real-time monitoring of inventory levels, according to Lenovo in the single-product intersection depositors from the original 14 days down to five days CTO process optimization project improved the delivery of customized products, Lenovo was the rapid rise of address technical support operations. After a series optimize of 2002-2004, Lenovo build in the Chinese market gold supply chain, the response speed and address control has surpassed Dell, In China Lenovos cost just 1/4 about Dell. Lenovos response speed need only four days (Dell for a week). However, in overseas markets, Lenovo will have to face the original IBMs huge losses and the slow response of the supply chain?Cost pressures become Lenovo the enormous obstacles in overseas markets. But merging two huge companies in the supply chain integration has existed enormous difficulties. Therefore, Lenovo overseas is still used by IBMs original supply chain system. In China the use of the Lenovo deal set up before the supply chain system. So Lenovo CEO Amelio told the new Lenovos global supply chain systems to two point, to balance First, Second is to achieve the lowest cost. Analysis several PC companies which are having more uncultivated competition with Lenovo group in the international are not difficult to find a problem with Lenovo. That is they are all have more quickly supply chain then Lenovo group has.Dells suppliers are in the core of its computer production base in Xiamen next to factories, Lenovo is the need for a global procurement. Now Lenovo s customers outside Chinas orders need eight days to reach the point of production, while Dell only needs one hour. Data show that before the acquisition, Lenovos product inventory days are 22. 7 days, close to the global averag e PC inventory levels. After the acquisition, Lenovo supply chain costs of the total cost of around 6%, while Acquisition former only 1% more. In establishing agile supply chain there are still an unpredictable mistake, it is the assessment for the land and the combined effect. Which is more important for Lenovos development? It is Lenovo by purchasing land in Laikaluona states of the United States.North Carolina will provide cheap land, but it can not provide competitive provider community. North Carolina has two characteristics first, agriculture, tobacco production up to 700 million pounds annually, in the states, out of one Second, the states of the cotton industry as the peak to Charlotte for the center, around the many small textile industry cities. Lenovo group should do is build a supply chain more quickly then Dell spent more than 20 years established electronic group. Lenovo has to do is to better integrate its internal resources in order to establish agile supply chain. Now there is a big problem inside of Lenovo group is Lenovos inside market.An associate director complained, We a lot encounter a back-end motherboards are out of the situation a some weeks, the various district customer manager get goods, Tun goods. The reason, he believed that there are several aspects 1. Upstream manufacturers Intel and AMD led the industry in terms oscillations Two internal Lenovo is a business forecasts mechanism under a quarter of inaccurate forecasts, after mutual-blame The three components of global procurement work is poor four Lenovos product line is the depth breakdown of demand led to parts of the complex. These reasons appear because Lenovos interior management system get big problem. Global marketing and double operation mode Global marketing is an important step for an enterprise going to internationalization. foodstuffing development process is including seven steps. They are Consumers analysis, market analysis, competitor surveys and the analysi s of their own advantages, analysis of distribution channels, the formulation of a preliminary marketing programs, economic development and evaluation and revision before the six steps until the formation of a coordination program. Europe and the US market is a highly in advance-looking market, consumers have more strong sense of themselves. They are in choosing products more sensibly. The issue of treatment for products problem are harsher. Some dissatisfaction will quicken to the law. Consumers have the power to the more sober understanding.In the market, the saturation of the PC products is higher. Market share by several larger companies occupy. Dell, HP, Acer, is Lenovo strong competitor. Lenovo is more foreignness for the customer. More important is local customers are more strangeness for Lenovo. If they are in direct competition Lenovo only has a little demote of winning. Lenovo their advantages, can be more convenient to retain the original IBMs biggest customers. As w e all know, most of IBMs customers are big customers, while them personal computers are few customers. Therefore the above address this specific Lenovo marketing information for them own tailored to a difference of an international marketing strategy.Specific performance is now vigorously promoting Lenovo dual business model. And find the Olympic blowtorch in the overseas Chinese. Now chairman of Lenovo Group Lauded as the core competitiveness of the Lenovo Lenovos business model is focused on the development of the host. The supposed Lenovo double- business model is the target customer classifications. They are covered two part. One is for Major clients. Its including the government clients. Other is the PC customer. Lenovo group get two different systems to suit this two different groups. As every know this two different groups are look forward to different areas. They get different request for the computer.So as this way Lenovo group can separate the two different services to two different customers groups to ensure satisfaction of customers and will not pass. After Lenovo Group in Germany and some other places that the experiment is indeed feasible. But Lenovo group said this double business model is them core competitiveness seems too hasty. This model is too easy to copy. We can continue analogy to Lenovo marketing for a war. As for the war, the most important thing is not win, but fought conquest after how appease. This like Lenovo group get strong marketing in international and them double business model are successful suck up the customer.So that if Lenovo group can not cash in the same feeling service as they are commitment for the customer is Lenovo group ruining upon themselves. The United States and the European market is a mature market. Consumers are rational consumers. If Lenovo rely on the strength of marketing get the original customer. But they are not lets original customer become loyal consumers. Lenovo is undoubtedly offending con sumers. This is a bad news for any business. Such appearance like this is self-destructive brand image. Global strategy and differentiation strategy Undeniably, Lenovo was chosen different operations on the internationalization road. This is a impertinent move for Lenovo group.Lenovo develop target markets mainly in Europe and the United States, some of the more mature markets. Competitors are more powerful. Lenovo Group on large customers has specific Differential Marketing. Whether in the products or marketing, Lenovo in overseas markets, chose the differences strategy of their own as an international strategy. Japans Toyota Motor Corp. in this obligingness is the more successful. Today Lenovo faced situation is similar as several years ago Toyota faced. So in this side Lenovo group can learned from Toyota. A few years ago the American market is full of heavy car. The car like that are suit for American consumer buying psychology as a car. But Toyotas unique success is the choi ce of a different strategy.Toyota and strong competitors are not for positive conflict. First of all competitors can relax vigilance. At least Toyota can reduce the trouble about legal before it development enough strong. Secondly use of the product differentiation gradually enters the mainstream market to be successful. When Toyota was get success in the United States mainstream market. Its competitors were hard to market out of there. Instead of the United States car market share declined much. Now, Lenovo Group which is the situation has attracted the attention of competitors. Lenovo has to be done is not in the local market has not yet possible before the firm and competitors have a positive conflict.As Lenovos deal with Dell and HP mail advertising time of the incident the same attitude. Lenovo should take the stable development as the first choice. The difference in the paralysis of the competitors is a more effective means. controversy in mind is not to put pressure on compe titors. Reform Lenovo business DNA for build new company culture and global development Lenovo chairman Yang Yuanqing said for the high-velocity flight refueling aircraft to the high-speed driving for car wheels. We can find how difficulty Lenovo group will be take for them reform business DNA. Commercial enterprises DNA of an enterprise is to determine the direction and life.Lenovo in the international community can also depend on the success of Lenovos commercial DNA. Enterprise is the concept of DNA from peter Ducker. Lenovo enterprises DNA is still insufficient to support the internationalization of Lenovo. An adequate to international enterprises DNA is not support as a success leader. It depends on the business system. This includes enterprises inside the decision-making power, organizational structure, information transmission and incentive mechanism. A healthy enterprises DNA can adapt to the market risk. If Lenovo group want be more successful in the international market it must be reform them business DNA.Chinese enterprises are in the sign most commercial DNA, their flexibility in the application of event-based decision-making, rapid transfix business, the first to enter the market low-priced beat each other, and the wish of those international enterprise systems, scientific, a long-term multi-dimensional space-based game decision-making. Therefore, we must want to understand the development gap at first. Evolutionary their business DNA, in the integration resources, improve the companies create value skills. Mark the decision as more point. From the history of the development of Lenovo is not difficult to see that. Now Lenovo is on the way which is going to internationalization.They must be facing different risks which are come from different regions and countries every day. If Lenovo can not go on their own enterprises commercial DNA, it will be difficult survive in the international competitive environment. Summery Lenovo group is going glo bal is a way of Chinese business are going global. There are must be get five steps to learn. For a company which is want to going to global the most important thing is learning skills and reform the business DNA and build a new company culture to suite for new company. Remember that, you are an international company now. If you want to be more successful in the international market you must get the international business DNA.You must be a company and you are not only taking the responsibility for the share holds. Your company should be take responsibility for the customer who comes from all over the world and the people who are come from all over the world. Your company is not only a company. It is an international public machine which supplies service for all over the world. Reference Table of Contents LIANXIANGFENGYUN BY AS LIU ZHIJUN THE NEXT STEP BY AS JIGONG W SANDERSON MANAGEMENT CHALLENGES FOR 21TH coke BY AS PETER DRUCKER FUNDAMENTALS OF INTEMATIONAL BUSINESS BY AS MICHAEL R. CZINKOTA, Ilkka A. Ronkainen and Michael H. Moffett http//business. sohu. com/20070122/n247764248. shtml