What are the significance of LENOVO to host country and world economy? 1.

Significance of LENOVO to host country Lenovo, which had not sold a single computer outside its home market of China until 2006, now has customers in 66 countries, it got one of the worlds best distribution systems in one fell swoop when it acquired IBMs personal computer division and moved its headquarters to Raleigh, North Carolina. Former Chief Financial Officer Mary Ma, who was involved in the negotiations with IBM, says of American William Amelios appointment as CEO of Lenovo: We didnt send a successful guy from China to head it up. We wanted to have the best people in the industry who understood the local market. Amelio previously served as president of Dell in Japan and the Asia Pacific region. Ma has since moved on to the Texas Pacific group, where she is a Partner and Managing Director. Ma says that one of the biggest difficulties for western executives working with their Chinese team is the cultural difference rather than language. For example, differences in communication styles are to be expected. An over simplification is that the western style is characterized by talking, understanding and listening. The Asian style starts with listening, understanding and then talking. Therefore, we strongly encouraged our staff in China to be more outspoken at meetings, so as to share their views and opinions. On the other hand, we encouraged our foreign staff to listen to their Chinese counterparts views at meetings. Mary Ma says the company sends Chinese people into markets in the United States, France and Singapore to help build the transactional model used successfully in China and to marry it with the relationship model that helped build IBMs market share.

2. Significance of LENOVO to world economy Lenovo has give an impact to the world economy as Lenovo is the world's secondlargest PC vendor by 2012 unit sales. It markets the ThinkPad line of notebook computers and the Think Centre line of desktops. Lenovo has operations in more than 60 countries and sells its products in around 160 countries.. Lenovo's acquisition of IBM's personal computer division accelerated access to foreign markets while improving both its branding and technology. Lenovo paid US$1.25 billion for IBM's computer business and assumed an additional US$500 million of IBM's debt. This acquisition made Lenovo the third largest computer maker worldwide by volume. Starting in 2011, the leader of Lenovo Mobile was Liu Jun. Lenovo entered the smartphone market in 2012 and quickly became the largest vendor of smart phones in Mainland China. These changes driven by the popularity of the Apple iPhone and Lenovo's seeking to increase its market share in the domestic market, the result of the strategy change. Lenovo passed Apple to become the number 2 provider of smartphones to the Chinese market in 2012. Besides that, Lenovo held around 13.5% of the worldwide computer market as of October 2011. In May 2012 Lenovo announced an investment of US$793 million in the construction of a mobile phone manufacturing and R&D facility in Wuhan, China. China became the world's largest smartphone market in 2012 and is Lenovo Mobile's primary market. However, the unit has expanded sales into Russia, Indonesia, and India, with further expansion intended.

REFERENCES Davis, G. Leadership Challenges of Asian Companies. Retrieved from http://globalasia.org/pdf/issue9/Gerry_Davis.pdf