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Global strategy for lenovoContent Abstract Introduction Learning skills and globalizationStep one: research learning. Step two: microcosmic learningStep three: trail learningStep four: deepen and development learning Step five: reform enterprise DNA International employee and Lenovo next steps development Supply chain Global marketing and double operation mode Global strategy and differentiation strategy Reform Lenovo business DNA for build new company culture and global development Summary Reference Table of Contents Abstract Now days, more and more companies are going global. In China Lenovo is a representative in that area. During I do the research about Global strategy I am very interested in the Lenovo group. It might be the earliest one gets the mind about globalization. At the beginning to run company they get them target is going global. In my paper I find some area for them strategy try to find a way to suit for this big company. I will take seven parts to written this paper. There are:Learning skills and globalization International employee and Lenovo next steps development Supply chain Global marketing and double operation modeGlobal strategy and differentiation strategyReform Lenovo business DNANew company culture and global development This will be a system for a company should be taking on the global way. I want to explain ways to suitable Chinese company are going to global. Lenovo is a case to learn.Introduction Lenovo take a goal is international is come up very early. Lenovo has been raised from the factory opened in Hong Kong to buy IBM PC department. From list to open research and development base overseas. Lenovo is step by step towards international, to a multinational company. But deep in the blood of Lenovo company culture is a good thing or will become hinder development in the further is a point. Lenovo existing resources and the international strategy Lenovo take are good enough for the international journey.Through Lenovo history to find strategies Lenovo was taken Investigate Lenovo history is not difficult 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 catch hold of peoples national feeling and do the right marketing as them general engineer Ni guangnan. Today, Chinas international are also give Lenovo provides a strong support.From Lenovo development history is to view. Lenovo no mater what management mode, operating mode or technology mode have been in development. Each one changes is against every major change in the marketplace. But this time for Lenovo globalization them mark the change is not good enough. From the first to make the control of the plane to crash was indeed beyond imagination. Lenovo is from the confidence to headhunt from Dell. From Hong Kong to set up plants to in India and Mexico to establish research and development centers. Go to global is more real in the history of the Lenovo. Learning skills and globalization There are five steps enterprise should be take during them go to globalization. They are five different level learn enterprise will be taken. First three steps are get seedtime. For Lenovo, Last two steps are more impotent. If a company is not learning before they are going to international. Its hard to successful. Its like a student will be study in a new country but he or she can not know anything about that new country he or she is hard to enjoy his or her study. Step one: research learning.Step two: microcosmic learning Step three: trail learning Step four: deepen and development learningStep five: reform enterprise DNAResearch learning Research learning is survey of the target countrys macroeconomic environment and learning it. Before 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 GDP of the economy and the Chinese governments intervention in the situation of more then one investigation. This is one very important point to explain why War-Mart so successful. Similarly, Lenovo must be research the target country macro environment Such as politics, economy, population, technology and environment. Lenovo Group on July 26, 2007 in Beijing announced that it will invest 31 million US dollars in India and Mexico for a new manufacturing center, in order to meet these growing demands for computers. Before Lenovo group mark this decision they must be get research about India and Mexico. For example: In recent years the information technology industry in India stress on the bull market, is expected in 2008 Indias software industry output value of 87 billion US dollars, exports reached 50 billion US dollars, Indias software industry has become an important pillar for economic development. The information like that Lenovo group must be known before them marks this decision. Of course Lenovo group must research the governments intervention in the situation of these two countries. Microcosmic learningThe second phase of the study is aimed at relatively minor issues. The study focused on consumers and the local some unspoken rules. It contains the legal inside. If the analogy to the internationalization of a war, then only can we win the battles mutual understanding. However, the key factor in winning is not the master of public information. 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 hidden 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 greater problems. In fact, Lenovos acquisition of IBMs PC department does have a big problem.The first 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 imagine, if Lenovo Group and the United 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 work 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 difficult to continue. TCL and Frances Thomson acquisition is between pictures of a negative example. Before TCL buy Frances company Thomson they are not conducted a detailed analysis and study for Frances legal system. In the end TCL encountered big issue in dealing of layoffs in the financing. French law 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 stage of in-depth. The first two stages of learning are to go abroad for the door before a preparatory work. The third phase is learning test water. In this regard Wal-Mart has done quite 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 needs further verification by the domestic market analysis and forecasts of expected adjustments 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 succeed at the international level, it is the first Wal-Mart to learn patience and ability to learn. Lenovo Group in the United States, Europe, India, Mexico and other countries of the target market has sufficient patience to learn. At this stage of learning is the creation 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 also 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 base and develop their own localization of management talent. If Lenovo not build a team in the target country they are hard to quite join the local market. Localization is first step and most important step for the international. If Lenovo failed localization so it is difficult to achieve internationalization. Google appointed Kai-Fu Lee, vice 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 learningThe fourth stage of learning is to deepen and expand the learning. Foreign brands to enter an unfamiliar market, and in fact created a new brand 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 survive it so successful marketing is essential.In this regard Lenovo marketing done on the more successful. 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 performance to join the TOP program 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 positive competition 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 strong management team and the localization response agile supply chain. But in fact its notReform enterprise DNAThe fifth phase of the study is recombinant DNA enterprises time. Its enterprises rooted target countries, to thoroughly international. This stage enterprises need 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 shareholders of such a simple matter.Before Samsung go to global it just need get responsibility for them investor. Need money earnings. But now Samsung has not only South Koreas Samsung. It needs 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 foster 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 rationale management listed companies. Now Lenovo whether there is sufficient justification capacity management a multinational? Lenovo seems to be done in this regard also not perfect. The mail incident in the United States is worrying Lenovo in the United States do the preparatory work. 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 model. After Lenovo acquisition of IBMs PC debasement emerging the contradictions in the management seem to be quite difficult. So Lenovo headhunt DELL CEO Departure to the CEO of Lenovo Group. Lenovo hopes he has come to a temporary solution 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 determined 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 eighth session of CEO annual meeting, at present the company has encountered two big difficult problems in the internationalization advancement: 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 process exceptionally is difficult, before we the brand superiority which form in the Chinese market has vanished, must form the international well-known brand, must make the very big effort, and needs 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 absorbed the colleague which many has the overseas 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 distance”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 Singapore, the Lou advantage (the American North Carolina state) with Paris, disperse in global each place associates in GAO Guanceng, most probably 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 still 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 speeds 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 founder to ask the reporter questions also said 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 project SCM. At the same time, Lenovo started a supply chain management system.The logistics sector-lead VMI project created with the vendor Lenovo synergy values and customs, and re-planning of the
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