Management Of The Organization: Lenovo

Introduction

This report is having a brief discussion about Lenovo and its vision, mission, strategies. There
is also a discussion about the leadership style adopted in Lenovo, different communication
strategy used in Lenovo. Organizational culture of Lenovo is also discussed with the help of
five P's i.e. Plan, perform, prioritize, practice and pioneer. The main focus point of this report
is organizational culture and different types of communication which is used within Lenovo
premises. This report shows how Lenovo deals with their employees and customers. There is
a description of Lenovo vision and mission on which they work (Lenovo.com, 2015).

About Lenovo

Lenovo is worldwide famous company of its innovative PCs, mobile and internet devices.
Among 500 famous companies in technological products manufacturing Lenovo is one of the
largest companies in PC retailing and 4th ranked in smart phones section (Russellreynolds.com,
2015). Lenovo has an older history but it came into existence in 2004.The main focus of Lenovo
is to deliver their customers what they want in technology, appearance of any electronic
product. Lenovo is a company which works taking into consideration their employees, as well
as their customers (Lenovo.com, 2015). Lenovo always focuses on innovation i.e. every
product of Lenovo is having some changes in comparison of other product. The value on which
Lenovo works is innovation i.e. Lenovo likes innovating their product as per present market
requirement and their customers' needs and demand (Russellreynolds.com, 2015). Lenovo after
getting great success in Chinese electronic market decided to expand their business in Asian,
European and American electronic markets (Agtmael, 2007).Every product of Lenovo
produces different revenue of percentage which helps in company's profit income.

Figure1: Lenovo PC share in 4 different regions

Figure 1 shows the performance of Lenovo in different regions i.e. the Lenovo performance
geography. In the above diagram EMEA stands for Europe – Middle East Africa, AP is Asia Pacific,
and AG is America. Lenovo performance vary in all these region has their customer choice, needs
and demand depend on geographical factor. According to the report An exciting notebook: The
Lenovo T440s [From the Screen of Stone], 2014) Lenovo in the end of financial year( FY) 2013
have highest market share in all the four geographical areas as Asia Pacific, Europe Middle East
Africa and China. Figure 1 shows the market share of Lenovo PCs in the financial year (FY) in
2013 and 2014.

Figure 2: Revenue of Lenovo

Figure 2 shows the total revenue of Lenovo in the financial year 2012, 2013 and 2014. The revenue
generated by Lenovo is calculated by taking into consideration all the products profit share and
market share in four regions (An exciting notebook: The Lenovo T440s [From the Screen of Stone],
2014). Figure 2 shows total revenue of Lenovo in different market.

Figure 3: Lenovo revenue from different products

Figure 3 represents the revenue generated by Lenovo in their different products sections.
According to ((Anon, 2015)) Lenovo in fiscal year 2013-14 attained good growth in shipment of
PCs and mobile devices. The revenue generated by Lenovo all products are different from each
other. By the above diagram, it is clear that the highest revenue generated is by Lenovo notebook
and their desktops.
Lenovo Background, Description Of Lenovo Mission, Vision And Strategies

Lenovo is a multinational company Chinese based who manufactures computer technology related
products like PCs, tablets, smartphones, smart TV, workstations, computer servers, different
computer related software, notebook, note PAD and etc(Russellreynolds.com, 2015). The main
products manufactured by Lenovo are electronic and computer related software as well as
hardware. Lenovo was founded in 1984 by Liu Chuanzhi in China but after few years company
become worldwide famous for its electronic and computer products. Recently by a survey
(BIEDIGER et al., 2005) it was found that Lenovo is the first, and the largest company in PC selling
more in than 160 countries Lenovo have their customers. The main focus of Lenovo for their
business is innovation. According to Chianasat and Wijaya (n.d.), the electronic or computer
products are developed by them are always having something new which their customer will
appreciate and like using. The plus point which makes Lenovo different from other same field
companies is their innovation strategy, excellence in their operational, their strong channel of
working and the brand image (BIEDIGER et al., 2005). The competitors present in the market of
Lenovo are Apple Inc., Samsung Electronics Co., Sony Corporation, HP, Dell Inc. etc., (De Waal,
2011).Lenovo has a strong bonding with their enterprise customers and business partners which
help in getting success to them.

Mission statement of Lenovo defines their objective and aim for which they work. The main motive
of Lenovo is to achieve the highest rank in computer technology field. Mission statement
represents the goals of Lenovo, principle on which Lenovo works to achieve their objective and
aim (lenbrzozowski, 2012). Mission statement of Lenovo aims to show their customers what they
plan to achieve and what they have aimed to take into consideration their customers (Chianasta
and Wijaya, n.d.). While deciding mission statement, Lenovo always considers their customers
feedback.

Vision statement of Lenovo represents their future planning to their customers. Vision statement
is based on long term planning for achieving success. Vision statement helps their customer know
how they are working i.e. their organizational culture and strategies which will be adopted by
Lenovo to fulfill their customers demand and needs (De Waal, 2011). Vision statement of Lenovo
shows that they have planned to develop more electronic and computer products which people will
like buying. Every product of Lenovo will be new in technology and appearance so that people are
automatically influenced to buy their product (De Waal, 2012). Lenovo has also decided to work
according to their customers demand and needs.

Lenovo has adopted different strategies for marketing, promoting, advertising their products. As
per the market requirement all these strategies will be planned, every market have different
practice and culture (lenbrzozowski, 2012). Lenovo always focuses on innovation i.e. they try to
make changes in their every new product in comparison of old products and other competitors'
product. Mission, vision, and strategies are decided by every organization prior to their working
(Haberberg and Rieple, 2001). This helps in planning further planning i.e. how to implement
strategies for achieving their decided objective and aim.
Leadership Style In Lenovo

According to De Waal (2012), the leadership style followed in Lenovo is not selfish i.e. the leaders
of the company do not only focus on company's profit but they also think about their people
(employees, customers, stakeholders etc) who are connected with Lenovo (IBM Redbooks., 2014).
As per the leadership style of Gerry Smith, while making innovations in their products, Lenovo
analyze their customers' requirement and needs with prioritization. On the other hand, while
making changes in house i.e. in company's policies or practice they think about their employees'
welfare. There is an incident which describes the unselfishness nature of Lenovo (lenbrzozowski,
2012) leaders is as the company once has earned a profit which he decided to distribute among
the junior level employees which impacted the working environment in positive nature i.e.
employees felt that they are the part of organization and on the other hand junior level employees
were motivated to perform better than their previous performance (An exciting notebook: The
Lenovo T440s [From the Screen of Stone], 2014). As per the leadership style of Gerry Smith,
Lenovo leaders believes in achieving success by motivating everyone to perform in a team not
individually for achieving goal (IBM Redbooks., 2014). The organization is motivating their
employees by giving different rewards or bonus and other facilities. Lenovo Leaders also believe
the leadership style of Gerry Smith, who says there needs to create a situation or condition which
influence them to work rather than forcing them for working. The situation will help them to find a
best solution for the problem which will automatically help organization. According to HQAsia
(2015), Lenovo working style and leadership style is different from other Chinese organization
which is the reason for success of Lenovo in such a short period. According to Gerry Smith, leader
in any organization are the people or group of people who influence or motivate other subordinates
to work according to the principles of the organization (Russellreynolds.com, 2015). Moreover,
Gerry Smith also believes that leaders also help the organization in achieving their aim and
objectives whether it is long term objective or short term objective (Small Business - Chron.com,
2015). Leaders' good coordination with their subordinates makes Lenovo achieves a benchmark
in electronic and computer technology field.
Figure4: Leadership challenges in Lenovo

Every organization has to undergo the process of succession planning, recruitment and
selection of junior level, senior level and executive level(Yin et al., 2008). While planning
these programs leaders of Lenovo has to consider their internal and external factors i.e.
organizational culture, working style, working environment, requirement of the company in
relation to technology, skills etc.

Communication Strategy Followed In Lenovo

The communication styles which are used in Lenovo are formal communication and interpersonal
communication. Communication is used for interchanging the ideas, views with each other. For a
proper communication there should be a sender who speaks, a receiver which listens to speaker
and the main part is feedback which is given at the last of communication (Wave
Sicherheitstechnologie für Lenovo-Computer, 2012). Formal communication usually happens in
offices or among professional where both speaker and listen are from the same profession or
different.

Formal communication in Lenovo– Formal communication in Lenovo is done for exchanging official
information among the profession. For example suppose in Lenovo Manger of technical team
wants to convey his subordinates a message then the communication process used by him will be
formal (Tzeng, 2011). The flow of information is from upward to downward i.e. from higher level
managers to junior level manager or employees or vice versa.

Figure 5: Types of formal communication done in Lenovo

The flow of information in formal communication is in controlled manner i.e. no personal information
can be exchanged. Lenovo performs formal communication in different from like written and
verbally or oral. As explained in figure 5 the written message can be conveyed in the form of letters,
electronic mail, blog, notices, bulletins, memos etc. The verbal, formal communication is done by
presentations, speeches, conferences etc(An exciting notebook: The Lenovo T440s [From the
Screen of Stone], 2014). The controlled flow of information makes formal communication a hurdle
free communication (Teasley, 2010). Formal communication in Lenovo is used to make a proper
channel-based communication by which information is exchanged with everyone.

Figure 6: Formal communication in Lenovo

Formal communication can be done in Lenovo by the help of presentation, documentation or in

any other written form. In Lenovo formal communication is two ways upward and downward i.e.
when top level managers have to convey their message to down level employees the message
convey instructions, directives, policies and working practices but on the other hand, when low-
level employees send any message to top level manager it is information regarding work or
organization (IBM Redbooks., 2014). Formal communication in Lenovo is done to pass their
policies and practices details to everyone. For example, CEO of Lenovo has to transfer any
information regarding their new policies or any changes in policies regarding their employees then
the flow of information will be from upward to downward without any breakage of information so
that every level of employees receives the same information (Stone, 2010). So this flow of
information is formal communication style of Lenovo.

Interpersonal communication in Lenovo–Interpersonal communication is the interchanging

process of information among two or more people in Lenovo. When directly or indirectly two or
group of people is exchanging their views or thoughts it is interpersonal communication.
Interpersonal communication can upward, downward, horizontal and peer to peer (IBM Redbooks.,
2014). For example, suppose two or group of twenty junior level employees are exchanging their
views and thoughts regarding their work, this interchange process of information are interpersonal
communication (Jurevicius, 2015). Interpersonal communication can be done by electronic device
or social networking or face to face verbally (Small Business - Chron.com, 2015). Interpersonal
communication helps people know each other (Sharma, 2010). When peers have interpersonal
communication among themselves that help to build good coordination and strengthen their
communication. Interpersonal communication helps in building teamwork and coordination among
the employees of Lenovo.

Now days Lenovo organization has adopted a new technique for advertising i.e. social media.
Lenovo believes in adoption strategy i.e. making changes and accepting the new thing properly. It
is found in a survey (Haberberg and Rieple, 2001) that people are more believing on advertisement
which is shown on social networking sites like Facebook etc, in comparison of television or
hoarding method. Lenovo is having a separate department of social networking advertisement
whose responsibility is to update the technology and advertisement on different social media.
According to Lenovo (HQAsia, 2015) customer beliefs regarding advertisement style has been
changed i.e. from television, hoarding method to social media advertisement. Lenovo adopted
social media promotion and advertisement method for their new product and services so that
everyone worldwide com to know about their product easily and completely.

Organizational Culture Of Lenovo

Organizational culture represents the way or style of working of Lenovo. Organizational culture
shows their customers how Lenovo works daily and also there planning for achieving their objective
and aims (Russellreynolds.com, 2015). The main focus of Lenovo organizational culture is based
on five P's like plan, perform, prioritize, practice and pioneer

Every P is having their own important and responsibility in Lenovo culture. First p stand for plan
before starting any new task Lenovo decides their target, aim for which they will work. Planning
helps Lenovo employees work step by step by which working environment will always be
motivational for other subordinates. If Lenovo managers or senior level employees do not plan
working process, then the subordinates will be unaware of their roles and responsibilities which
can affect the profit of Lenovo (IBM Redbooks., 2014). The second P stand for performing i.e. as
per the planning every employee will be given a set of responsibilities which will help in achieving
objective as a team. Responsibilities should be distributed to everyone according to their skills and
knowledge which have to examine by leaders of the team. Third P stand for Prioritize which
explains every employee of Lenovo whether it is the senior level or junior level that they should
work in a team considering their organization profit or their individual profit first. Priority list has to
be discussed by leader or manager with their subordinates before beginning their work so that they
work for Lenovo or their individual profit (Rossouw, 2005). Fourth P explains the practice which is
performed in Lenovo by their employees. The practice or process, which group or team of Lenovo
performs to achieve the common goal to increase Lenovo profit. Last P explains the pioneering
process i.e. Lenovo welcomes the new ideas by their employees regarding their task which they
are doing (Jurevicius, 2015). Lenovo believes in new ideas or innovation whether it is in their
products or in-house policies.

Lenovo culture defines the way of working for their customers and employees. Lenovo culture has
helped them to achieve success in their field and win several award for their product and services
(Kaul, 2012). Lenovo works for their people, and the people are their employees and their
customers. By giving their employees different rewards for their performance they motivate them
to work better and think creatively. Lenovo creates policies and practices which help in welfare of
their employees. Lenovo always focuses on innovation which their customers want in their
computer product and services (lenbrzozowski, 2012). Lenovo biggest strength is their innovation
which they always do as per requirement of their customers and electronic market. Lenovo policies
motivate their employees to perform in a team and sharpen their skills, knowledge.

Conclusion
The report is having a brief discussion about their mission, vision, strategies, leadership style,
communication style or channel and the organizational culture of Lenovo. Lenovo is one of the
fastest grown Chinese multinational Company. The main products of Lenovo are PCs, notebook,
tablets, mobile devices, servers and other electronic and computer software and hardware. Lenovo
mainly uses the formal and interpersonal communication method of communication for proper flow
of information (Lenovo.com, 2015). The main reason Lenovo uses formal and interpersonal
communications are as mentioned below:

To maintain roles and responsibilities of all employees' i.e. senior level, lower level, and others.

 To continue a proper and clear communication inside the organization premises.

  To maintain a proper communication among top level, middle level, and low-level
employees.

 To maintain a proper and clear flow of information.

 Helps in communicating information to everyone within the organization.

The importance of five P's in Lenovo in relation to their culture is explained. The importance of
communication and organizational culture in Lenovo is also explained here.