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Lenovo's global strategy - Assignment Example

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(Source: The Digital Reader 2012) LENOVO’s Global Strategy Please take care about the learning outcome: 1. Identify some of the key patterns and trends in international business activity 2. Explain the theoretical underpinning of the globalisation process and be familiar with the institutional framework which supports it 3…
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Lenovos global strategy
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Download file to see previous pages Apply the analytical underpinnings of international business to real world and up-to-date case study situations in order to inform and direct international business decision-making. As explain in page no:3 of the Moodle guide. The question no 2: 2 (a) Using one specific Multinational Company (MNC) that is headquartered in one of the following countries- Brazil, Russia, India, China or South Africa, Mexico, Nigeria or Turkey - identify and critically evaluate the strategies used by the company to internationalise. (50%) Guide – 1800-2000 words. Learning Outcomes 1, 2, 4 & 5 (b) What recommendations, i.e. future strategic direction, would you make for the MNC to sustain its competitive advantage? (30%) Guide - 1000 words. LO: 4 & 5 (c) Structure, format & standard of English (10%) (d) References and referencing skills (10%) This assignment is an investigation of Lenovo’s initiatives and strategies in order to expand overseas. As a Chinese company, it adopted a hybrid internationalization model (hence the claim of “new way” and “next generation” in its self-description) that is typified by the Chinese socio-cultural characteristics such as collectivism and long-term orientation in tandem with conventional methods of international expansion and strong state intervention. Lenovo, today, is one of the leading global manufacturers of computers. In its corporate website, the expanse of the organization was described in the following statement: Lenovo is a US$21 billion personal technology company and the world’s second-largest PC vendor. We have more than 26,000 employees in more than 60 countries serving customers in more than 160 countries… We create and build exceptionally engineered personal technology, but we are much more than a tech company. We are defining a new way of doing things as a next generation global company (Lenovo 2012). This achievement is a result of a daring global strategy of a Chinese firm with humble beginnings to become one of the multinational companies (MNC) in its industry. The Chinese Context The Chinese government plays a strong role in the manner by which domestic firms began to pursue MNC ambitions. This is revealed in many empirical studies examining the motivations of China’s outward FDI (e.g. Taylor 2002, Deng 2004, Liu and Li 2002 and Zhang and Filippov 2009). The current policy is radically different from the Chinese position during the “open door policies” in the 1970s and the policies adopted when China became a member of the World Trade Organization (Sung 2009; and, Bhattasali, Li and Martin 2004). During this period, China’s policies were more focused on dealing with the global trade flows (Laal and Albaladejo, 2004). The policy trend favors a more aggressive outward flow of direct investment. As a matter of fact, it is part of public policy. China mandated that companies should go global (Bell 2008, p.254). This mandate entailed support that covers the legal, financial and political aid from the government. What this means is that loans are available, the domestic conditions for business is favorable (such as streamlined business approval process), and the mechanisms that encourage production, sales and exports are in place. For instance, China created key agencies that approves and facilitate export ...Download file to see next pages Read More
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