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Is Lenovo stepping on mine field when it bought IBM's PC?
www.chinanews.cn 2005-09-30 13:40:54
Chinanews, Sept. 29 - In acquiring IBM's PC division in a lightning
strike, Lenovo not only created its only miracle, it also created the
miracle of a Chinese enterprise going international. After 150 days of
Lenovo completing its acquisition, Chief Operating Officer Liu Jun talked
about the whole acquisition process on September 28 in Shanghai for the
first time and said that acquiring the IBM division was like walking on a
"mine field".
Liu Jun said that China is a good market for laptop computers, but
combining the two companies are hard work and will take time. In fact,
having quickly bought IBM's PC division, Lenovo has yet to completely
digest its acquisition. When an international company has been totally
acquired by a domestic company, the two will have differences in culture,
management and other details that cannot be resolved in a short period of
time. He said that China's corporate culture and management style are not
the same as those for American companies. Chinese enterprises tend to
emphasize stringent management, emphasize obedience while in the West the
emphasis is on a more liberal culture that relies on personal
self-discipline and personal rights. This will create challenges in
merging two corporate cultures. Lenovo must have an all-encompassing
culture to resolve these problems. At the same time, Liu Jun said that
Chinese corporate culture has its own strong points, but how to persuade
American staff to accept such culture is an important problem that needs
resolution.
It was understood that since 2000, Lenovo's business has been confined to
a single PC product line and its growth rate is decelerating. After
numerous tries, Lenovo finally seized the opportunity to make a lightning
acquisition of IBM's PC division. Liu Jun said candidly that at the
beginning he did not look favorably on this acquisition and most of the
real decision makers at that time all thought buying IBM was like walking
into a mine field. However, now that Lenovo has completed its integration
with IBM's markets, the time is now to focus on concrete steps to
integrate the rest of the two companies.
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