Lenovo Case Study Summary

Around 2010, the company finally began to click. The worst of the cultural differences were getting resolved, and the Chinese had spent the period of upheaval learning about the capabilities needed within a multinational company. “They came to the United States ready to learn and absorb expertise’.Lenovo believe that with the advantage to the similarity between two companies, it should not be too difficult to integrate two corporate cultures. Even at, the pre-planning stage, the organization has designed a range of strategy such as cocktail party, a culture integration discussion board, set time up a cultural integration committee, to integrate two teams as well as to encourage communication between them. However, according to the result obtain

As the strategic goal of the organization is to expand its market beyond China and take part in competition within the world scope, the organization will not only face with changes in sales channels and supply chain, but also how to prevent IBM employee turnover. It has been noted that the employee of IBM are very proud of being a employee of IBM, questions may rise whether those employee will be willing to accept the new company structure and choose to stay with Lenovo. Given that Lenovo has been a localized company, it is lacking of experience in dealing with international operation, cross-cultural conflict management and etc, how to stabilize the overseas senior management, especially in the American market which is vital to the

Therefore, if Lenovo is able to prevent high turnover in IBM’s employee after the acquisition, it will be helpful to Lenovo in stabilizing the market as well as smoothing its operation in the first stage after merger. In order to avert this problem, Lenovo had designed several strategies before the acquisition being completed. Firstly, before the acquisition, Lenovo conducted an internal survey within the organization as well as IBM’s PC department to find out the staff’s opinions toward the M&A. According to the result which Lenovo gathered from both teams, it shows that both teams have display similar thoughts towards the integration. The staffs from Lenovo were really positive about the M&A as they believed that the integration would advance the company to an international level. On the other hand, although there are some employee who could not accept this move and choose to leave the company, the majority of staff in IBM PC department had displayed willingness to stay with new company after acquisition, especially when Lenovo displayed the attitude that the new company would be managed in an international manner as well as the guarantees from Lenovo about their remuneration schemes and welfares. From their point of view, Achieving Successful Cross-Cultural and Management Integration: The Experience of Lenovo and IBM