AYESHA AYUB

20211-29883
MANAGEMENT AND ORGANIZATIONAL DYNAMICS (MOD)
SUBMITTED ON 29TH, September, 2021
ASSIGNMENT- 01
LENOVO’S GLOBAL STRATEGY

Discussion Questions:

1. Where in this example do you see pressures for global integration? Where do you see
pressures for local responsiveness?

Lenovo faced pressures for global integration during the floods in Thailand due to which
the supply of computer hardware was interrupted. As only limited supply of Hard Drive
was available among computer makers Lenovo was fast to make prompt adjustments to
its production lines which was focused towards making the most profitable models using
the hard drives available. Companies that outsourced were less swift, and Lenovo gained
market share at their expense. Another pressure faced by Lenovo for local responsiveness
was brand imaging. Lenovo prioritized its distribution in developing economics such as
Brazil before HP, Apple or other competitors as well as Russia and India the company
managed to create establish a good reputation by when it comes to economies like the US
it was trickier as the consumers were expected more exciting electronic devices.

2. Which global strategy (international, multinational, global, or transnational) do you think

is most appropriate for Lenovo? Why?

As Lenovo goes global the best global strategy would be transnational. Since it is a well-
known brain it has investment in its own country as well as abroad. Since the diverse
market in which they operate (US, Asia, Europe) each has a unique consumer taste and
preferences they should modify their supply according to the market demand. By
preserving central coordination at one specific location i.e. China, Lenovo should
maintain functions in foreign country. Lenovo itself has a “Protect and Attack” policy. It
protects their competitive market in China while attacking the emerging ones in other
countries.