I have checked that the main section flows logically and is easy to read. 7. I have summarizes the authors findings, contributions or recommendations. 8. I have included all required headings. 9. My work contains no grammatical or spelling errors 10. My work contains no ambiguous or unsupported statements Declaration have checked that my article review satisfies each of the points of the check list above. I declare that, except where specifically acknowledged, the work contained in this assignment is my own work, has not been copied from other sources and has not been previously submitted for award or assessment. Deterrent that severe penalties may be imposed in cases where any significant portion of my submitted work has been copied without proper acknowledgement from other sources, including published works, the internet, existing programs, the work of other students, or work previously submitted for other awards or assessments. Signed: Shine CIA Date: 2015-04-11 The Internationalization and Globalization Strategies of Leno 1. Purpose The objective of this chapter is to demonstrate how Leno becomes the world’s largest globalization manufacturer of personal computers (PC’s) from a traditional Chinese IT company.
Under the leadership of Mr.. Hanging Yang, who is now the President, CEO and co-founder of Legend Holdings Ltd. Leno belongs to the Legend Holdings Group and Mr.. Chuan Ill who is the founder of Leno and the former CEO. It will illustrate in several aspects, e. G. What is the influence of the change of Chinese political-economic environment? What happens during the most shocked business community case – Leno’s acquisition of IBM PC? What are the risks correlated with the acquisition and what Leno does to handle these risks? Last but not the least, what is Leno doing now?
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Its two gently acquisition cases are Motorola joining Leno and the purchasing of Vim’s ex. server business. 2. Key Information 2. 1 Introduction The former Leno is primarily founded in a guard shack in Beijing, 1984. Mr.. Chuan Ill and other ten scientific researchers started the New Technology Developer Inc (the predecessor of the Legend Group) with an initial capital outcome of RAMBLE,OHO (US$25,OHO) from the CASE. These 11 researchers are all from the Institute of Computing Technology, the Chinese Academy of Sciences (CASE).. In 2001, Hanging Yang was appointed to be the President and CEO of Legend.
Lately in 2003, Legend announced to represent as ‘Leno’ and was ready to broaden its overseas market. Figure 1. 1 shows the Leno Logo conversion. Figure 1. 1 the conversion of Leno Logo During the whole year of 2005, Leno finished the Vim’s PC Division acquisition and achieved its goal of being a globalization IT competitor and the third-largest PC Company in the world. From 2011 to 2013, Leno developed itself to the mobile market and built the MIDI (Mobile Internet Digital Home) business. At the same time, it successively formed joints venture with NECK and EMCEE, while acquired Medico and Stoneware.
With those marked progress, Leno becomes the world’s largest PC vendor and fourth largest smartened company. Figure 1. 2 shows the moment that Leno grows into the top PC Company in the Q of 2012. Worldwide PC vendor unit shipment estimates for Q (Units) Company Q 2012 Shipment Q 2011 Shipment Growth (%) Leno 13,767,976 12,536,756 9. 8 16,21 7,987 -164 Dell -13. 7 Acre Group 8,633,267 9,616,572 -10. 2 SASS 6,380,690 11. 8 Others 35,954,748 40,683,666 -11. 6 Total -8. 3 Note: Data includes desk-based PC’s and mobile PC’s, including mini-notebooks but not tablets such as the pad. Figure 1.
Leno pips Hewlett to become top PC maker Last year in 2014, Leno just purchases Motorola Mobility from Google and acquires Vim’s System x (ex.) server business. Figure 1. 3 shows the milestone of Leno history. Figure 1. 3 the History of Leno There are three significantly appearances that Leno matures in the PC market and gets stable in the domination in this field. It continuously puts more emphasis on the mobile and big data services. Leno is no longer the nationalization small IT Company in China. Its strategy remodels itself to an international and worldwide enormous entrepreneur. . 2 President, CEO 2. 1 Checking Ill Mr.. Chuan Ill is the leader of the first 11 founders of Leno and persists the predominant director of it. Before, He is a scientist researcher at the Institute of Computing Technology, CASE and the same to all of the other founders. Under the environment of a planned economy and small primary investment, Mr.. Ill mainly focuses on the dominant of finances, human resources, and decision- making, which helps him to achieve the autonomy. He once said that Hewlett- Packard as an essential inspiration for Leno. From The Economist interview, he aid, “Our earliest and best teacher was Hewlett-Packard. Leno has distributed Hewlett-Packard’s products in China. After LENO exquisite Vim’s PC unit and later it is the top PC manufacturer, this is even beyond the dream. 2. 22 Hanging Yang Mr.. Hanging Yang is the present CEO of Leno. He joins Legend in 1989 while he is just 25, and later he is promoted expeditiously. His quiet and deep consideration characteristic draws the attention of Chuan Ill, who next encourages him to lead Leno’s PC business. In 2001 , after Mr.. Ill retires, Hanging Yang becomes the CEO of Legend. When he accepts Leno’s PC division, there are several moves to break Leno’s former culture.
He recommends staff for their appellation by the first name instead of the formal title. Besides, he contends that employees dress in official and phone with etiquette. In the manner, His employee feels like they are now doing high-tech works in developed markets. After the company culture transition, He put more emphasis on distribution. He abandons direct sales mode and begins to support independent agents in consideration of the vast expense of a compound sales network management. The reorganization of its distribution system and after- ales service is a critical step for expansion.
In 201 2, He honored a $3 million bonus for record benefits. However, he readjusts this to approximately 10,000 of Leno’s employees. 2. 3 Big Events 2. 31. The birth of Leno The primary name of Leno knows as New Technology Developer, Inc. Developing a Chinese characters translation circuit board for IBM PC’s provides its first considerable success. It begins to use the initial brand name ‘Legend’ in computer assembling and sales. Until 2002, under the go global’ policy announced by the Chinese government, Leno expands abroad as an IT industry director.
In 2003, Legend endorsed an original company name ‘Leno’. ‘El’, the beginning two characters, is from ‘Legend’ that matches its tradition. ‘Novo’ is from Latin, which represents ‘spirit of innovation’ that compounds the company’s errand. With the announcement of the brand new ‘Leno’, it is ready to expand the foreign market. 2. 3. 2. The Acquisition of Vim’s PC The big announcement shocks the whole world that Leno will acquire Vim’s PC division in 2004. As a continuation of Louis Serener the former CEO of IBM strategy that is focusing on software, and service provision, IBM sells its PC to
Leno in 2004. At that time, PC is a money-losing venture in IBM. It takes one year for them to finish the acquisition, and Leno takes more time to let PC profitable. There are several strategies for this transition. Firstly, it is the merely cost control and efficiency operation in manufacturing and procurement. For example, the assembly cost is US$4 in China per unit that is rather competitive than in the US, which is US$24. The other is the feasibility of target clients. For example, IBM sells their products exclusively to commercial customers, and not individual consumers.
However, Leno has two major product lines which are Vim’s Thinking and Leno’s PC’s after the acquisition. The first one can object to large clients, from high-end small to medium sized business. Since, Leno’s PC’s can conduct to the individual customer market and also the high-end small to medium sized business. In the manner, Leno provides a dual positioning for its products. Along with the profitable strategy, three sorts of risk are there that are the market loss, employee resign, and business and cultural confliction. For the market loss, Leno remains the IBM logo on Thinking for five years. The former
PC sales team retained and more than 2000 products have been sent out to customers to assure the product quality is the same. The headquarters have been established in New York that then transferred to Raleigh, North Carolina. Moreover, Leno publishes a wide range of job opportunities for its new employee. It accentuates its globalization and open minded company culture. Its official language is English. 2. 3. 3. Vim’s System x (ex.) and Motorola Mobility After holding the stable position of no. 1 in the PC market, Leno decides to take a big step to the enterprise server and portable devices market.
In 2014, Leno announced to acquire the IBM ex. server business, which makes it grow to the world no. 3 of enterprise server market share from no. 6 with almost 13% market share. This expansion not only includes the whole EX. server portfolio, but also contains the IBM system x partner network which providing consulting and distributing solutions for leading enterprise in recent ten years. On the other hand, Leno purchases Motorola Mobility from Google. The situation is quite different from ex.. It believed that Leno settles on the Motorola’s innovation history and its market in North America and Latin America.
Figure 1. 4 shows the history of visionary technology innovation in Motorola. Figure 1. 4 Motorola Brings a History of Visionary Technology Innovation 3. Summary In this chapter, it is revealed that how Leno develops into a globalization technology giant from a small traditional Chinese IT company. It founded a Chinese institute by Checking Ill, established and transformed into the ‘go global’ policy. Through the persistent acquisition and development, with the appropriate strategy from is CEO, Hanging Yang, Leno is now the world’s largest PC vendor and the fourth smartened company.