Company Analysis | Lenovo Group

Organizational Development
Group Assignment
Lenovo Company Analysis

Table of Contents
1. Organizational Profile.........................................................................................................1
2. Background.........................................................................................................................1
3. Structure..............................................................................................................................2
4. Products/service Portfolio...................................................................................................2
5. Market Competition............................................................................................................5
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1. Organizational Profile
Lenovo group limited also named as Lenovo is Chinese multinational technology company
which is incorporated in Hong Kong while having its global headquarters in Beijing and
operational in Morrisville with operational center in Singapore. Lenovo started in 1984 with
10 engineers in Beijing where totally 11 people were part of initial staff of Lenovo. All the
founders of Lenovo were members of institute of computing technology of Chinese academy
of sciences. The startup capital of Lenovo was 200,000 yuan which was approved by Zeng
Maochao. The firstly approved name of Lenovo was Chinese Academy of Sciences
Computer Technology Research Institute New Technology Development Company. Its
organizational structure was approved as of 1985 after Chinese New Year where it included
technology, engineering, administrative and office department. Company was rebuilt while
doing computer quality checks and failed during testing of digital watch as well. It started
manufacturing marketing its products under its brand name as of May 1990.
2. Background
In May 1988, Lenovo set its first enrollment ad on the front page of China Youth News. Such
advertisements were very uncommon in China at the time. Out of 500 respondents, 280 were
chosen to take a composed employment exam. 120 of these were interviewed face to face.
Although interviewers at first just had power to recruit 16 individuals, 58 were given offers.
The new staff included 18 individuals with advanced educations, 37 with undergraduate
degrees, and three understudies with no college level training. Their average age was 26.
Yang Yuanqing, the current executive and CEO of Lenovo, was among them. Liu Chuanzhi
got authorization to shape an auxiliary in Hong Kong and to move there with five other
workers. Liu's dad, effectively in Hong Kong, facilitated his child's desire through coaching
and facilitating advances. Liu moved to Hong Kong in 1988. To set aside cash during this
period, Liu and his coworkers walked as opposed to taking public transportation.
To keep up appearances, they leased lodgings for gatherings. A portion of organization's
initial triumphs incorporated the KT8920 centralized server PC. It likewise built up a circuit
board that permitted IBM-viable PCs to handle Chinese characters. Lenovo (referred at the
time as Legend) turned out to be traded on an open market after a 1994 Hong Kong Initial
public offering that raised almost US$ 30 million. Preceding IPO, numerous experts were
hopeful about Lenovo. On its first day of exchanging, company's stock value hit a high of
HK$ 2.07 and shut at HK$2.00. Continues from the contribution were utilized to finance
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