Lenovo Goes Global Term Paper Example | Topics and Well Written Essays - 1750 words

Lenovo Goes Global - Term Paper Example This acquisition was a great opportunity for the Lenovo brand; however, it also posed significant challenges to the company’s management. The key challenge was associated with differences of the American and Chinese cultures. It took almost five years before the company has managed to resolve the worst of the cultural differences (Holstein, 3). This was a process of learning of a way in which the multinational company should operate in order to succeed. In result of this experience, the company has surpassed such global players on the PC’s market as Dell and Hewlett-Packard Company (Holstein, 4). Lenovo’s sales have almost doubled in 2014 compared to 2008, and reached $39 billion. This success was partially attributed to the company’s Mergers & Acquisition strategy. The company has successfully entered many foreign markets by acquiring local players. One of the most recent acquisitions was the handset division of Google and IBM’s low-end server busi ness in China (Holstein, 4). Another success factor was attributed to the company’s capability to develop a global network. Lenovo has developed effective HR strategies based on the global approach, adopted global management principles, and created network oriented enterprise. Also, the company has managed to transform its ineffective and costly supply chain into highly integrated, cost-effective, flexible and competitive supply chain system. In order to achieve this, Lenovo’s management has eliminated excessive elements and policies, have developed effective system of performance measurement, and provided extensive training to its top managers. Lenovo has also adopted â€Å"out of box† thinking culture and against all the stereotypes have reestablished electronics assembly in the United States (Holstein, 6). Despite the fact that the workforce in the US was more costly than in China, Lenovo has