Management Essay Example | Topics and Well Written Essays - 2500 words - 2

Management - turn out ExampleSome of them can be listed as Dell, Hewlett Packard, Toshiba, Acer, Apple Inc., Lenovo and many more meeting the inevitably of the various segments of the industry. It is to be noted that in 2002, Compaq and Hewlett Packard formed a merger and in 2004, IBM sold rancid their PC business to Lenovo. The Compaq and IBM used to dominate the market in the mid-1990s and HP and Dell were formidable players in the late 1990s when share of IBM was dwindling year after year. With a great foresight, IBM became a minority share holder in Lenovo capturing18.4% share holding and IBM granted Lenovo rights to use their brand for 5 years. Eventually, Lenovo got the harvest-festival brand ThinkPad from the IBM on permanent basis. (IBM sells PC2004) ASPECT 1 SWOT Analysis of Lenovo It will be worthwhile to see the Strengths, and Weaknesses of the participation. Further it would be appropriate to look into the opportunities that are waiting for the company and impend brats which can hamper the growth of the company. Strengths a. The company has got back-up of IBM with their well qualified technical and managerial staff. b. each(prenominal) its computers are sold with IBM brand ThinkPad providing a confidence to the consumers in the market place. c. For having access to low-cost labor, the company enjoys low cost of production across its product range. d. Being a state-owned company, the company is supported through local favorable rules and regulations during normal and adverse market conditions. Weaknesses a. Having few manufacturing bases outside china, the company may be in trouble during calamities, or natural disasters within the country. b. Being a state-owned company, certain delay in decision making process is inevitable and that works negatively for the company. Opportunities a. Worldwide installations are growing at the rate of 10 percent and above. PC penetration is still low in emerging markets and thither is also a considerable ma rket waiting to be tapped in matured economies. This provides a keen growth possibility for the company like Lenovo. b. The field of computers is making regular up gradation and callable to its linkages with IBM the company is well placed in adopting any new applied science that may come from its technology partner. c. In the long run, IBMs expertise in the field of software and the long history of search and development is likely to give immense benefits to Lenovo. It forms a good synergy between the companies like Lenovohaving a low-cost manufacturing base and technology inputs from a technology giant like IBM. Threats a. Lenovo is currently competing with some of the knowledge domain best companies like Acer, Dell, and Hewlett Packard. Any merger between them is likely to create a big threat to Lenovo. b. Dell and HP are expanding their operations and opening new manufacturing bases in China. This can certainly be looked as a big threat to the company. The SWOT analysis will also have sort of some of the external forces that may affect Lenovo. It will be worthwhile to identify some of the sociopolitical and separate factors that may influence the working of Lenovo. Lenovo is a state-owned company having most of its operations in China nix a few installations in India and Mexico. India and Mexico operations are mostly for the local needs of that country. (News 2007) Majority of the manufacturing operations of Lenovo are based at China. Lenovo is a stat