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1、lenovos takeover ofibms personal-computer businessbafe b anamec d the summarylenovo &ibmcase reviewpurchase analysisthe crisis of lenovocauses of lenovos crisiscross-cultural conflicts successful communication the solution of the crisis walks out of the crisispart1background informationpart2communic

2、ation failurepart3communication successlenovo group limited is a chinese multinational computer hardware and electronics company with its operational headquarters in morrisville, north carolina, united states and its registered office in hong kong. its products include personal computers, tablet com

3、puters, mobile phones, workstations, servers, electronic storage devices, it management software and smart televisions. lenovo is the worlds second-largest pc vendor by 2011 market share (after hewlett-packard) and markets the thinkpad line of notebook computers and the thinkcentre line of desktops.

4、lenovo has operations in more than 60 countries and sells its products in around 160 countries. lenovo was founded in beijing in 1984 and incorporated in hong kong in 1988 under its previous name, legend. lenovo is listed on the hong kong stock exchange and is a constituent of the hang seng china-af

5、filiated corporations index.international business machines corporation (nyse: ibm), or ibm, is an american multinational technology and consulting corporation, with headquarters in armonk, new york, united states. ibm manufactures and markets computer hardware and software, and offers infrastructur

6、e, hosting and consulting services in areas ranging from mainframecomputers to nanotechnologycase review the lenovo group that held close to 30% of the pc market share in china purchased ibms pc business for 1.25 billion dollars in cash and stock on 18 december 2004. meanwhile lenovo group agreed to

7、 pass a 0.5 billion of net debts to itself. the deal was worth 1.75 billion dollars in total.purchase analysis-ibm 1. the golden period of pc industry had been over. a price war would be breaking out. it was not worth staying in the pc industry with high risks and capitals 2. due to successive losse

8、s, pc business had been a burden to ibm. and it had not been ibms core business. 3. after spinning off pc business, ibm could focus its all efforts in areas with more value.purchase analysis-lenovo for the diversification strategy had failed, lenovo began to focus on its core business-pc business. b

9、ut its development has been limited in china owing to market scale. so lenovo had to explore the overseas market for the further development. ibm had the brand-thinkpad, technology teams and international resources, like the sales force and marketing channel etc. that could help lenovo make success

10、more likely in foreign markets.the crisis of lenovothe crisis of lenovo in 2004, after lenovo group have purchased the personal-computer business of ibm , mr.liu was replaced by mr.yang. however ,after 5 years , the lenovo group was heavily hitted by financial crisis and it suffered from a big losse

11、s . from some datum , we learn that in 2008 the second quarter achievement of lenovo that have decreased by 70% , and the retained profits is about $23,000,000. in the third quarter the amount of loss have increased by approximately $90,000,000 so it cant change anything in the fourth quarter in fac

12、t.lius back in times of crisis, liu chuanzhi came back the board of directors as chairman. and yang yuanqing moved to ceo from chairman. lius back gave a shot in the arm to lenovo where morale has been low. he is a spiritual leaders to us . said a employee who had worked for over 5 years in lenovo.c

13、auses of lenovos crisis the number one priority to liu and his teams was to find out the causes of the crisis after his back. liu thought: we get into trouble now. the international financial crisis is only the superficial reason, but the cultural clashes of internal management is the root cause, an

14、d specifically, there are many problems in communicating. even without the international financial crisis, our crisis would still erupt.some behaves of cross-cultural conflicts the difference of cultural policy:the ceo of western companies have great rights to make all major decisions; if the ceo of

15、 lenovo wants to make a great decision, there must be a team support behind. liu chuanzhi said, when lenovo merged ibm s pc business ,he saw that the trend of computer market is massive growth of customers in consumption(消费类客户)and the reduce of customer in commerce(商业类客户).some behaves of cross-cultu

16、ral conflicts but it is a pity, because of amelias short-term behavior; he refused to invest in the long term project and develop consumer market. although yang yuanqing disagreed with him, but amelia was a stubborn man and thought he is an experienced manager. yang cant change its decision for the

17、entire situation. the result is that lenovo cant withstand the challenge in front of crisiscommunication-the solution of the crisis lichuanzhi said: “i have awarded the key of problem. in the past, the short-term behavior of executives decided that lenovo wound be the fatal problem sooner or later.

18、if this fatal problem is not solved, lenovo cant recover. so we must take some measures. communication-the solution of the crisis first, replace the ceo of lenovo- amelia by yang yuanqing who are experienced and professional. second, liu chuanzhi returned to the board of directors and serves as the

19、chairman. he strengthened internal communication, condenses force of lenovo and supports the work of yang yuanqing. third, adjust the strategy, hold the chinese mainland market, and explore the overseas emerging markets.patience-successful communicationliu said : we should communicate with foreigner

20、s with respect and compromise. if not, you will failed to do something. therefore, when others opinion in the board of directors differs from mine, i would tell myself to remain patient in mind, i have to make others in the board of directors agree with my opinions, gradually, and bring the whole bo

21、ard of directors together.walks out of the crisis lenovo overseas markets began to make profit for the first time and most of emerging markets also profit by lius return after ten months.characters introduction- liu chuanzhi liu chuanzhi, lenovo founder, retired after winning merit in 2004 when leno

22、vo had established overseas development target and he felt overseas development has been stable . in 2009, he came back to be the chairman of directors when lenovo encountered the crisis.backcharacters introduction - yang yuanqing yang yuanqing became the president and ceo of the lenovo group from the beginning of 2001 , yang led the group successfully constructing the brand -lenovo, and organized acquisition of ibm - pc. in december 8, 2004 he became the chairman. in februar

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