Business Report of Lenovo Essay

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Launch Lenovo was found in 1984 in Beijing and it is the world’s second-largest PC seller. According to the previous official statistic, Lenovo consolidated turnover of 146. 6 billion Yuan and Lenovo employs practically 40, 500 people. Lenovo is a famous national company in China and tiawan and Lenovo is providing customers much more than one hundred sixty countries.

In order to expand international business and access to brilliant brand, Lenovo carried out an acquisition of the previous IBM Personal Computing Division in june 2006. IBM was founded in 1911 in the United States and it is the largest information technology and organization solutions organization in the world, presently has more than 30 , 000, 000 employees on the globe, with businesses in above 160 countries and parts. The problems skilled by Lenovo concerns the construction of cross-cultural teams. A lot of the merger and acquisition are unsuccessful in the post-merger cultural the usage.

Lenovo build work teams for developing the future of APPLE and growing the new view after buy. The results had been demonstrated it uneasy and can lead to the inability of the Lenovo’s acquisition approach. At the beginning of the acquisition, ethnical differences has not been enough expected in the purchase process. And Lenovo really wants to remedy the challenge as soon as possible to create IBM acquisition profitable over the following strategy. The report section of the business plan Synopsis This survey is intended to identify, describe and propose several solutions to Lenovo to solve the down sides about groups and groups in the purchase of the IBM.

This survey will explain problems associated with team building, gives some feasible solutions and evaluates all these. And, this kind of report will certainly describe the impact of ethnic differences on the establishment of work groups. Basically, Lenovo experienced taken several measures, nonetheless it with little success. According to the current state of Lenovo, this record will give some suggestions and solutions to get over or stay away from the conflict brought on by cultural differences and set up effective cross-cultural teams.

Especially, these alternatives are based on literary works on the issue. It concludes that it is essential for the company to establish effective and appropriate steps to eliminate the barriers in cross-cultural clubs, as absence of this may warned the company’s long-term creation. To get over the problem, Lenovo should take the follow action for IBM survival: 5. Obtain the main values between Chinese staff and American employees with an internal survey. * Design an international training program for all the workers and especially for managers.

2. Incorporate both equally corporate cultures of Lenovo and IBM to create a new corporate culture. * Every cross-culture crew should organise monthly getting together with or every week meeting to judge the progress of sales and marketing communications and operate. * Arrange some internally nonworking actions to create more opportunities pertaining to the communication among staff with different ethnic context. 2. Set up the special groups to deal with the challenge caused by ethnical difference in every cross-cultural staff. Introduction It of strategy will present the problems due to cultural variations in cross-cultural teams and give a lot of suggestions to overcome the problems.

In the purchase of IBM, Lenovo accepted more than 10, 500 employees plus it means that Lenovo accepted an extremely different traditions. Lenovo is not only facing the differences between traditional western and eastern culture, although also Lenovo facing the down sides of how to integrate the teams based on a organisationally cultural context. Through this report, the recommendations to overcome the difficulties in cross-cultural teams and groups are based on the literature on team development and cross-cultural team management. Body At the start of the acquisition of IBM, Lenovo had considered some measures. For example , in order to both sides can communicate better, the new Lenovo use the worldwide common vocabulary – The english language as the state language in the company.

Yet cultural incorporation is a long lasting process, which will requires companies to devote their bit of and the conversation, compromise among both of dangerous, and personnel in the buy. It must not be also hasty. Bottom on the fact of Lenovo, there are three elements should be noticed and superior. Firstly, IBM has a very long history and APPLE has very high brand understanding.

In addition to the manufacturer, employees will get the admiration for personal beliefs? and an appropriate working environment could be provided for staff by the human resources services plus the improvement from the system. In comparison, Lenovo has a big gap no matter the position in IT industry and the strength of themselves. In the event some associates uphold the cultural superiority or group superiority that their own ethnic value system better than these members from the other cultures or groups, all their behavior could be resulting in the failure of team building mainly because they will be likely to take hate and bannissement from other members, even result in conflict.

Because the conflicts caused by cultural differences between team members and specific differences below thus influence, analysis and identification of cultural differences is necessary. Subsequently, communication is a process of exchange and tranny of information when it comes to or groupings. Because of the multi-cultural background, dialect and non-language barrier, people lack of knowledge of each other’s political, financial, legal, sociable and social environment, plus the understanding of the customs, values, etc . are different. They are often depending on their own perspective to make an analysis and judgment on each other’s info, and thus the misunderstanding and conflict in many cases are obtained.

Due to these, design a multi-cultural training and carry a monthly meeting or regular meeting is important. Thirdly, a company has an purchase of another organization means a great integration of two diverse corporate ethnicities. When the workers of a cross-cultural group happen to be conscious of the several of personal cultural awareness with others, will probably be cause the group misplaced their goal.

Based on the chance, establish a common business concept and corporate traditions is a good solution to this problem. Establish a new joint administration concept and a strong lifestyle based on environmentally friendly requirements and the principle of the company’s ideal development, in order that reducing ethnical conflict which each employee’s thinking and behavior can combine with the company’s businesses and purpose. Adopting these recommendations and the actions to conclude can make internal and external combination of the teams even more closely, establish a good status in the intercontinental market and enhance international cultural adaptability.

This is the greatest goal of why Lenovo needs solve the cross-cultural issues of teams and group inside the acquisition of IBM. (1077 words) Section 2 1 . The actual literature says “teams and groups” The importance of clubs and groups for an organisation In modern society, one person’s electric power, information and resources happen to be limited. The majority of time you need cooperate with others no matter working or perhaps others while Handy (1993) said “On average, managers spend fifty percent of their time of day in one kind of group or perhaps other. Elderly managers may spend 80%”. Although there is zero clear and single meaning of a “teams and groups”, there is a basic limited classification by Bennett (1991) “a collection of two or more people who include a common purpose”.

The formation of your organisation groupings in order to attain the purpose of function more efficiently. A great organisation will produce some different varieties of groups, by way of example: formal and informal, CHIFLADO, HICO, clubs, etc . An organisation must be aware of all their differences and use them while efficiently as possible. There are a lot fulfilling reasons why an organisation should create operate groups.

For instance , organising effective groups can have some uses for the circulation of work, the management and control of function, problem-solving and decision-making, details processing, details and thought collection, tests and ratifying decisions, co-ordination and liaison, increased commitment and involvement, negotiation and conflict resolution, inquest or inquiry into the earlier. (Handy, 1993) No matter what sort of a group there exists a bottom line can be “A strong group is … usually more powerful than a strong specific and can include a considerable impact on organizational policy and practice. “(Thomson, 2002) This literature review will probably pay attention on teams largely. In a staff, everyone takes on different position and they have got specific function and they working with an important theory “voluntarily co-ordinate their work in order to achieve group objectives”(Bennett, 1991).

Creating a team People hope they can define their identity through their regular membership of certain groups like people participate in local political and pressure groups, for example , because they experience a shared set of values while using other people in the group which reinforces their particular values. However according to Thomson (1997), one reason why people belong to group is “social needs”. As Thomson & Mabey said “some … organizations will be family members or a friendly relationship groups, that are formed to meet a diverse selection of needs including affection, protection, support, belonging or identification.

Some could possibly be committees, exactly where members usually represent distinct interest groupings who come together to discuss all their differing points of views on issues of interest”, people ought to build a group for the job that is highly complex problems, need for consensus decisions and there is uncertainty when a broad range of competences will be required. A company is known as a big number of a lot of people coming together, so the managers are responsible to make effective clubs or workgroups. After collecting more person talents, creating a team has the ability to use the skillsets on a united effort and success is essential (Woodcock, 1979). Consequently, the managers ought to know how to efficiently build a staff.

In general, the managers need to have the knowledge about the five development phases (forming, storming, norming, doing and mourning) in a crew or workgroup and they really should have an appropriate leading method for themselves (Thomson & Mabey, 1994). Of course , this is simply not enough for managing a staff. The managers need realize everyone’s positive aspects and dis advantages inside the team and particularly the differences of their culture circumstance. Teams and cross-cultural framework In their particular, business environment developed quickly international. Distinct cultural associates mixed in a team so the team has powerful ability to solve complex problem.

However individuals coming from different ethnic context need to show another type of behavior and values in the team. The reason is , the people’s cognition, pondering, needs, beliefs, code of conduct, customs, etc . are formed inside the years of existence, work and education. The person differences brought on by cultural differences led to the conflict in the team in the cross-cultural circumstance (Sun, 2012). So , learning to make a cross-cultural team operating effective is the main responsibility of managers. In a cross-cultural team, there is key point is a crystal clear understanding of every one culture and values, and a process of acculturation.

The acculturation method is a mutual exchange of cultural routine (Olie, 1995). Related to the case of Lenovo, the best recommendation for acculturation is the use. It several with a single culture rule the others, incorporation is a procedure for acculturation (Nahavandi & Malekzadeh, 1995).

Curiosity for Lenovo In the case of Lenovo, Chinese and American need to accept one another for operating effectively. However the main problem inside the cross-cultural teams is communication. The managers of Lenovo must make everyone in the group understands and adapt to the various culture with a few training or perhaps actions. Plus more important can be design a politic cooperatively cultural routine.

2 . What really does the literature say about diverse cultural contexts and its affect on teams and organizations What are lifestyle and its importance According to Hofstede(2003), culture is “the collective programming of the brain which differentiates the members of one group or category of people coming from another”. That related to a group. With a considerable research study of IBM twigs around the world by simply Geert Hofstede, the lifestyle is considered a compositive job.

Geert Hofstede creates a fresh way to spell out culture through five variables: power distance, individualism, masculinity/femininity, uncertainty prevention and long-term orientation. All theories have got limitations. Although this method produced by Geert Hofstede is usually not totally right, that affect the theory of Hofstede can review one country’s culture as being a valuable application. Contract while using case of Lenovo, the most crucial effect simply by culture is definitely “Currently just 25% of international mergers and acquisitions in Europe are good.

The price of failing is substantial. Cultural misconception lead to loss of face, lack of money and, in intense case, actually loss of life” (Gibson cited in Naysmith, 2006). In the event that managers usually do not pay enough attention within the culture, that possibly can cause the failure of the purchase of IBM. Organisational culture Lifestyle is not only exists in the countries, but likewise culture is present in any business constituted by simply people. Based upon Handy (1993) said, “The role organisation will do well as long as it might operate within a stable environment”.

A steady cultural environment is essential for an organization get success. At the same time, efficiency culture is manageable it will affects the approach of management, the accepted desired goals and customer of the culture determine and influence that what managers strive for as well as the rule observed by managers (Stewart reported in Naysmith, 2006). Therefore , the organisation also based on the ethnical context with the country. The organisational traditions can also assessed by the five variables produced by Hofstede. (Geert Hofstede, 2001) Impact of tradition on “teams and groups” If a company formed simply by people originates from different ethnical country, the corporation will use a special energy.

It is a competitive advantage from a cross-cultural context. But , exerting the competitive advantage effectively is the most important obstacle for the cross-cultural group. Because in a cross-cultural group the users have different functioning purpose and processes will probably be revealed. (Maznevski & Peterson, 1997) The effectiveness of work group will be lowered by the ethnocentrism, stereotypes, diverse expectations and difference in values. And these unfavorable emotions will certainly produce the anxiety and misunderstanding in-group, even diminishing the workers dedication to the company and wrecking the group ardor.

Interenst for Lenovo Cross-border mergers and acquisitions not only are the corporate social differences of both sides, although also include the cultural dissimilarities between the countries of the two sides. Set up some actions or social training to create more chances for every understanding different tradition can eliminate the negative affects effectively. three or more. Conclusion This kind of literature review introduces some keys quickly for understanding teams and groups within a cross-cultural context. Firstly, teams and groups are particular important for a great organisation. Yet there are some concerns should be solved in a cross-cultural group.

The managers is not only should know everyone’s skill and talent, nevertheless also they have to know their particular difference brought on by different social context. Plus some actions can produce a good conversation between one another for learning the differences are necessary. Secondly, depending on enough know-how to understand the value of culture, the managers should get rid of the negative influences of cross-cultural context through some actions or schooling. And the most critical is creating an appropriate organisational culture. It can give the cross-cultural group an approach, so the cross-cultural group may exerts the competitive positive aspects completely.

Geert Hofstede, (2001), Culture’s Outcomes: Comparing Beliefs, Behaviors, Organizations, and Businesses Across Nations around the world, Second Edition, Thousand Oak trees CA: Sage Publications Geert Hofstede, (2003), Cultures and Organisations, Intercultural Cooperation and its particular Importance pertaining to Survival, Gentle ware in the Mind, London: Profile Literature Ltd. Useful, C, (1993), Understanding Organisations (4th male impotence. ), London: Penguin, pp. 150-2.

Nahavandi, A. & Malekzadeh, A. R., (1995), Acculturation in mergers and acquisitions, In Jackson (Ed. ), Cross-Cultural Management, pp. 328-341, Oxford: Butterworth-Heinemann Limited. Olie, 3rd there�s r., (1995), Tradition and the usage problem in worldwide mergers and acquisitions, In T. Knutson (Ed. ), Cross-Cultural Management, pp. 308-325, Oxford: Butterworth-Heinemann Ltd. Sunshine Ziwen, (2012, April 13), Case evaluation of the ethnical integration in cross-border mergers and acquisitions of China enterprises, People’s Forum, 356(2), 7. Thomson, R., (2002), Managing persons (3rd male impotence. ), Oxford: Butterworth-Heinemann, pp.

92, 96. Thomson, Ur. & Mabey, C., (1994), Developing Recruiting, Oxford: Butterworth-Heinemann in association with the Institute of Management, pp. 177. Woodcock, M., (1979), Team Development Manual, Aldershot: Gower Press Teakfield Limited, pp.


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