Business culture project research on the business of lenovo company

Information:- Headquarters: Lenovo''''s global headquarters is in Quarry Bay, Hong Kong, withoperational headquarters in Morrisville, North Carolina, U.S., and Beijing, China.- Presence: Le

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY THE UNIVERSITY OF SOCIAL SCIENCES AND HUMANITY

BUSINESS CULTURE PROJECT RESEARCH ON THE BUSINESS OF LENOVO COMPANY

Student’s name: Nguyễn Anh Luân

Student’s ID: 1837012180

Class: A30

Supervised by

Dr Nguyễn Tiến Huy

Ho Chi Minh City, October 2023

SUPERVISOR’S COMMENTS

-HCMC, ……/……/………

Supervisor’s Signature

This research focus on the business of Lenovo Company, a globally recognized technology conglomerate originally based in Beijing, China I systematically investigate Lenovo's historical evolution, strategic acquisitions, and diversified product portfolio, with a particular focus on its successful expansion and integration into global markets The study explores key factors that have contributed to Lenovo's meteoric rise, such as its acquisition of IBM's Personal Computing Division, its focus on innovation, and its sucess

in navigating geopolitics In addition to quantitative financial analysis, we also examine the company's corporate culture, leadership, and supply chain strategies that have enabled it to outperform competitors in various segments Insights from this research can offer a comprehensive understanding of Lenovo's business strategies and provide lessons for other enterprises looking to expand globally.

TABLE OF CONTENTS

1 THE BUSINESS 5

2 THE EXECUTIVE STRATEGY 7

3 THE MARKETING MIX STRATEGY 9

4 BUSINESS ANALASIS OF LENOVO COMPANY 11

5 THE MANAGING TEAM 13

6 THE FINANCIAL PLAN 15

7 THE PLAN FOR BUSINESS EXPANSION AND DEVELOPMENT 17

8 THE IMPLEMENTATION PLAN 19

1 THE BUSINESS

1.1 Background:

- Origins: Founded in 1984 by Liu Chuanzhi and a team of engineers in Beijing,

Lenovo was initially named "Legend." The company began by developing a circuit board to process Chinese characters on IBM-compatible PCs Over the years, the company grew to become the leading PC vendor in China

- Major Acquisitions: Lenovo made a bold step in its global strategy by acquiring

IBM's Personal Computing Division in 2005 This action placed Lenovo on the global stage, particularly with the acquisition of the renowned ThinkPad laptop series Further acquisitions, like Motorola Mobility from Google in 2014 and IBM's x86 server business, expanded its product range and global reach

1.2 Information:

- Headquarters: Lenovo's global headquarters is in Quarry Bay, Hong Kong, with

operational headquarters in Morrisville, North Carolina, U.S., and Beijing, China

- Presence: Lenovo has operations in over 60 countries and sells its products in

around 160 countries

1.3 Legal Structure:

- Publicly Listed: Lenovo is a publicly traded company listed on the Hong Kong

Stock Exchange

- Subsidiaries: Lenovo has numerous subsidiaries, including Motorola Mobility

(smartphones) and Medion (a European computer hardware manufacturer)

1.4 The Product:

- PCs and Laptops: Lenovo's PCs and laptops, including the ThinkPad,

ThinkBook, Yoga, and Legion series, cater to different market segments from business to gaming

- Smartphones: Under the Lenovo and Motorola brands, the company offers a

range of smartphones

- Servers: Lenovo's data center offerings include ThinkSystem servers and

ThinkAgile solutions

- Smart TVs: Lenovo also produces smart TVs primarily for the Chinese market.

- Other Products: This includes tablets, smart devices (like smart clocks and

cameras), storage solutions, and software

1.5 Technology Behind the Product:

- Innovation Centers: Lenovo has research centers in Beijing, Shanghai,

Shenzhen, Xiamen, Chengdu, Nanjing, Wuhan, Yamato (Japan), Kanagawa (Japan), Morrisville (U.S.), and Sao Paulo (Brazil) where it develops new technologies

- AR & VR: Lenovo has ventured into augmented and virtual reality solutions,

providing both hardware (like the Mirage Solo headset) and related software experiences

- AI & IoT: Lenovo's commitment to embracing artificial intelligence and the

Internet of Things is evident in its product evolution Lenovo's devices often come integrated with voice assistants, AI-driven cameras, and other smart features The company also provides IoT solutions for businesses

- Cloud Computing: With the acquisition of IBM's server business, Lenovo also

expanded its capabilities in cloud solutions, offering hardware and services for cloud storage and computation

2 THE EXECUTIVE STRATEGY

2.1 Organizational Structure:

- Lenovo's organizational structure is relatively hierarchical but aims for a global-local operational approach This means that while there's a global structure and strategy, local offices adapt and operate as per regional nuances

- CEO & Chairman: As of 2021, the CEO and Chairman of Lenovo was Yang

Yuanqing He oversees the company's global operations

- Business Groups: Lenovo is structured around specific business groups such as

the Intelligent Devices Group (IDG) which encompasses the PC and Smart Devices, and Mobile Business Group (MBG) among others Each group has its own set of executives and is responsible for its specific line of products and services

2.2 Function of Each Department:

- R&D (Research and Development): They focus on developing new

technologies, products, and innovations With research centers worldwide, they drive technological advancements and product design

- Sales & Marketing: Responsible for promoting Lenovo's products worldwide

and handling customer relationships This includes advertising campaigns, sales channel management, and public relations

- HR (Human Resources): Takes care of talent acquisition, employee training and

development, and overall employee welfare

- Finance: Manages Lenovo's budgeting, financial forecasting, risk management,

and financial reporting

- Supply Chain & Operations: Ensures the company's products are

manufactured, stored, and transported efficiently to meet global demand

2.3 Business Culture:

- Vision: Lenovo's vision is to provide smarter technology for all They aim to

develop world-changing technologies that create a more inclusive, trustworthy, and sustainable digital society

- Mission: Lenovo's mission is to integrate their device-to-cloud capabilities to

provide smarter technology and transform user experiences

- Core Values:

+ Customer-Centricity: Focus on creating genuine value for customers + Innovation: Constant commitment to R&D and bringing new solutions to

the table

+ Entrepreneurship: Encourage employees to take risks and think outside

the box

+ Integrity: Business is conducted with honesty and transparency.

+ Ownership: Employees are encouraged to take responsibility and pride

in their projects and products

- Commitment to Sustainability: Lenovo has shown dedication to producing

eco-friendly products and reducing its carbon footprint They have programs to reduce waste and use more sustainable materials

2.4 Diversity & Inclusion:

Lenovo places a high emphasis on fostering a diverse work environment They have programs in place to ensure gender diversity, inclusion of minorities, and an overall positive work environment for everyone

2.5 Community Involvement:

The company engages in numerous community outreach programs and philanthropic initiatives, particularly focused on promoting STEM(Science, Technology, Engineering, Math) education and supporting disaster-hit regions Lenovo's executive strategy can be summarized as one that values innovation, understands the importance of adapting to the local market while maintaining a global presence, and places high emphasis on customer satisfaction, integrity, and social responsibility

3 THE MARKETING MIX STRATEGY

Lenovo's marketing mix strategy can be analyzed through the traditional 4P framework: Product, Price, Place, and Promotion:

3.1 Product:

Lenovo offers a wide range of products to cater to different market segments:

- PCs and Laptops: ThinkPad, ThinkBook, Yoga, Legion, and IdeaPad are

some of the laptop lines targeting professionals, gamers, and everyday consumers respectively

- Smartphones: Under both the Lenovo and Motorola brands, they offer

everything from budget to premium smartphones

- Servers & Storage: Lenovo has a significant enterprise business offering

servers, storage solutions, and data center services

- Smart Devices: Tablets, smart clocks, augmented reality (AR) devices,

and smart home solutions are part of their product lineup

- Software: Beyond hardware, Lenovo also offers software solutions,

including utility apps and device management tools

3.2 Price:

- Segmented Pricing Strategy: Lenovo's pricing is designed to cater to multiple

segments

- Premium Segment: High-end laptops in the Yoga and ThinkPad X series target

premium customers and business professionals

- Mid-Range: Devices in the ThinkBook and some of the IdeaPad series cater to

the mid-range market

- Budget Segment: Lenovo offers budget-friendly devices, especially under its

smartphone lineup and some IdeaPad laptops

- Enterprise Solutions: Their enterprise products come at competitive pricing,

with options for bundled services and support

3.3 Place:

- Global Reach: Lenovo operates in more than 60 countries and sells its products

in around 160 countries

- Retail Stores: Lenovo products are available in major electronics retail outlets

worldwide

- Online Presence: Lenovo has a robust online sales strategy Their official

websites across different regions allow users to customize and order devices They also utilize e-commerce platforms for sales

- Partnerships: Lenovo collaborates with distributors, resellers, and other partners

to make their products available in different markets

3.4 Promotion:

- Ad Campaigns: Lenovo regularly conducts advertising campaigns across digital

platforms, TV, print media, and more

- Event Sponsorships: Lenovo has been involved in sponsoring major events,

including sports and tech conventions

- Online Marketing: Leveraging social media, search engine marketing (SEM),

and content marketing are crucial parts of their strategy

- Customer Engagement: Lenovo often rolls out customer-centric promotions,

such as cashbacks, extended warranties, and more

- Collaborations: They occasionally collaborate with other brands or influencers

for promotional campaigns

Lenovo's marketing mix is a blend of innovative product offerings, competitive pricing structures, a comprehensive distribution network, and engaging promotional strategies They continue to adapt and evolve their marketing mix based on market trends, technological shifts, and changing consumer preferences

4 BUSINESS ANALASIS OF LENOVO COMPANY

Analyzing Lenovo based on the SWOT framework and then discussing its expansion feasibility and potential solutions

4.1 SWOT Analysis of Lenovo:

- Strengths:

+ Diverse Product Portfolio: Lenovo has a broad range of products, from

PCs and laptops to smartphones and servers, allowing them to cater to different market segments

+ Global Presence: Lenovo operates in over 60 countries, giving them a

vast market reach

+ Strong Brand Equity: Acquisitions, especially of IBM's PC division,

enhanced Lenovo's global brand image

+ R&D Capabilities: Lenovo invests significantly in R&D, leading to

innovative products and solutions

+ Manufacturing Strength: Owning several of its manufacturing facilities

gives Lenovo better control over production costs and quality

- Weaknesses:

+ Intense Competition: Lenovo faces intense competition from companies

like Apple, HP, Dell, and other Asian manufacturers

+ Dependence on External Suppliers: For some components, Lenovo

relies on external suppliers, which can be a potential supply chain risk

+ Lesser Brand Loyalty in Smartphones: Despite the acquisition of

Motorola, Lenovo's smartphone division hasn't been as dominant or garnered the same brand loyalty as its PC division

- Opportunities:

+ Growth in Emerging Markets: Markets like Africa, parts of Southeast

Asia, and South America have burgeoning middle classes that present growth opportunities

+ Expansion in Cloud and Software: The industry is moving towards

software and cloud solutions, and Lenovo can leverage this

+ IoT and Smart Devices: With the increase of smart homes and IoT,

Lenovo can expand its product line in this direction

+ Enterprise Solutions: There's growth potential in providing solutions for

businesses, especially with remote work becoming more prevalent

- Threats:

+ Global Economic Conditions: Economic downturns can reduce

consumer spending on tech products

+ Rapid Technological Change: The tech industry evolves quickly Failure

to keep up can lead to obsolescence

+ Supply Chain Disruptions: Global events can disrupt the supply chain,

impacting production

+ Cybersecurity Threats: As a tech company, Lenovo needs to ensure its

products are secure from potential cyber-attacks

4.2 Expansion Feasibility:

- Lenovo has the advantage of a strong global brand and vast experience in multiple markets, making expansion into new regions or product segments feasible

- Their strong R&D capabilities can aid in creating products tailored for specific markets

- However, feasibility would also depend on local competition, regulatory environment, and market dynamics of the particular region or segment they aim to enter

4.3 Solutions:

- Strengthening Brand Loyalty: Lenovo can invest in building stronger brand

loyalty, especially in its smartphone segment, through exclusive features, customer engagement, or loyalty programs

- Local Collaborations: In new markets, partnering with local entities can help

navigate the landscape more effectively and provide a better understanding of consumer behavior

5 THE MANAGING TEAM

Key Members of Lenovo's Managing Team (as of 2021):

- Yang Yuanqing:

 Position: Chairman and CEO

 Brief: Yang Yuanqing, often referred to as YY, has been with Lenovo for

several decades and has played a critical role in the company's expansion and major acquisitions

- Gianfranco Lanci:

 Position: Corporate President and Chief Operating Officer

 Brief: Lanci has had significant roles in Lenovo's operational aspects and

global business operations

- Wong Wai Ming:

 Position: Executive Vice President and Chief Financial Officer

 Brief: Wong oversees Lenovo's global financial aspects, including

accounting, financial planning, and analysis

- Kirk Skaugen:

 Position: Executive Vice President of Lenovo Group and President of

Infrastructure Solutions Group

 Brief: Skaugen is responsible for Lenovo’s data center businesses,

including servers, storage, networking, software, and services

- Sergio Buniac:

 Position: President of Motorola and SVP of Mobile Business Group,

Lenovo