Case Study of Lenovo

Topics: Decision making, Lenovo, Leadership Pages: 18 (5742 words) Published: April 6, 2013

GSBS 6004
Organizational Behaviour & Design
Trimester 3, 2012

Lecturer: Dr Robert Zinko

Student Name Student ID
Jing DING 3154797
Xi YUAN 3156114
Yu GUAN 3170072
Wei SHI 3157777

Group Project:
Leader: Chuanzhi Liu

Executive Summary
This paper undertakes analysis of Mr Chuanzhi Liu who was as a President, CEO and co-founder of Legend Holdings Ltd and, later, Lenovo. The significant events related to Chuanzhi Liu are listed as following,

▪ The founding of Legend and later Lenovo, personality analysis with help of Big Five Theory is conducted

▪ Acquisition of IBM’s PC Unit, types of negotiation and benefits for both Lenovo and IBM is illustrated in this paper

▪ The return to lead position to overhaul Lenovo’s market performance of Liu, charismatic leadership analysis is brought into the real situation of Lenovo.

▪ The success of reform of ownership and shareholding systems promoted company’s sustainable development in IT industry not only in Chinese market, but in the global geography.

Mr Liu’s success as a leader, manager and founder of the company could be concluded in the following aspects,

▪ His capability of undertaking risks and having optimistic attitudes in the tough situation,

▪ Courage in investment and the experience and good personality promoted his success.

▪ The ability of learning from his working and studying experience

▪ Well-established relationship with Chinese government

1. Introduction
Mr Chuanzhi Liu was a President, CEO and co-founder of Legend Holdings Ltd and, later, Lenovo, who was born in 1944 in Shanghai in China. The paper undertakes the analysis of the funding of Legend and later Lenovo. The personality analysis was conducted at the beginning stage of his career. The 32 years of experience in IT industry promoted Liu to achieve success in this field. The acquisition of IBM’s PC Unit made Lenovo the world’s third-largest producer of PCs. The deal reflected some negotiation skills which were seen as a milestone case that marked the next phase of Chinese industry – from a low-cost labour-intensive manufacturer to a major international player in high-level areas. Liu’s left and finally returning to Lenovo indicated that he is a good leader to take the company out of huge loss, which will be analyzed from the theory of Charismatic leadership style. Liu made some innovative actions in the perspective of ownership of company and shareholding systems, which has created an effective incentive system to bring in sustained growth of his company by detailed procedures, rules and actions which motivate his employees. During the reforming process, he implemented his beliefs that the main obligation of a manager is to ‘build an effective team, formulate a visionary strategy, and develop promising successors’. The values of Liu will be mentioned in the last part, which is considered to have an effect on the employees’ and organizational performance.

2 Entrepreneurial process of Chuanzhi Liu
Chuanzhi Liu graduated from Xi’an Electronic Engineering Institute, and he had worked as a researcher in the Institute of Computer Technology of the Chinese Academy of Sciences for 14 years. Before he started his business career, he was always in the high level of technology in China, and he is ambitious. Despite the fact that he couldn’t show his talent in that the special period, he always wants to make a career, and he never give up. Because of his big ambition, he becomes one of the forefront and successful businessmen in China, and his personality makes him unique. Therefore, this part will analyze his decision making process from his personality in Chuanzhi Liu’s entrepreneurial process (Wikipedia).

In the year of 1984, the Institute of Computer Technology of the Chinese Academy of Science wanted to...
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