ISBM GDM ISBM CASE STUDY ANSWER SHEETS – How Lenovo was benefited by acquiring the PC division of IBM Discuss
ISBM GDM ISBM CASE STUDY ANSWER SHEETS – How Lenovo was benefited by acquiring the PC division of IBM Discuss
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CASE STUDY (20 Marks)
Lenovo Group Limited was founded in China ai Beijing in 1984 and within a span of 25 years it went global. While the company initially sold products of PC giants like Dwell and Compaq, it started sale of its own desk tops in 1990.Within 6 years it got its hold over domestic market. Before Lenovo went global, it acquired the PC division of IBM in 2004-2005. This gave Lenovo brand recognition in addition to increased sales. Lenovo’s low cost along with IBM’s skill and reputation made up a good combination for success. Lenovo emerged from east while IBM represented the west. Lenovo took some major steps to overcome the lingual and cultural barriers between the US and China. English was embraced as the corporate language and company-wide campaigns were conducted to improve the English language skills of employees. The work culture was also changed so that the management focused on tasks rather than on people. Another step taken by Lenovo towards internationalization was becoming a partner sponsor in sports events like Olympic games, world cups, etc.
Answer the following question.
Q1. How Lenovo was benefited by acquiring the PC division of IBM? Discuss.
Q2. How did Lenovo solve the problems of lingual and cultural barriers? Explain.
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