15-01-2014, 01:04 PM
LENOVO: A WORLDWIDE LEADER IN TECHNOLOGY:
A WORLDWIDE LEADER.docx (Size: 114.4 KB / Downloads: 18)
INTRODUCTION
Lenovo is an innovative, international technology company formed as a result of the acquisition by the Lenovo Group of the IBM Personal Computing Division in 2005. A global leader in the PC market, Lenovo develops manufactures and markets cutting-edge, reliable, high-quality PC products and offers value- added professional services that provide customers around the world with smarter ways to be productive and competitive. Lenovo markets its products directly to consumers, small to medium size businesses, and large enterprises, as well as through online sales, company-owned stores, chain retailers, and major technology distributors and vendors.
Lenovo maintained a prestigious status in the Greenpeace rating, well before going green became an industry trend. Today, all Lenovo products are energy star rated for highest energy efficiency and are made from up to 98% recyclable materials.
Lenovo, the leading PC maker, operates manufacturing and assembly facilities in China, India, the U.S and Mexico and has sales operations in more than 60 countries worldwide. It has closed down its Baddi (Indian) facility with a view to rationalizing its operations in the country. The plant has production capacity of about a million units and all production for Lenovo has been undertaken to build capacity at its second plant in Pondicherry. The unit in Pondicherry has a capacity of 3 million units of desktops and laptops, and has a staff of over 150 people. Lenovo may have overestimated demand for its products in India, when it created new manufacturing capacity. Lenovo has a 15.8% share in the Indian PC market, as per IDC report.
Chinese computer giant planned to upgrade its Pondicherry based manufacturing unit. The facility was previously owned by IBM, but after the acquisition of IBM by Lenovo it came under possession of the Chinese company. Lenovo may import units from china if Indian facility fails to meet the demand; Lenovo is planning structured up gradation of the unit. The aim is to keep up with the global levels of supply chain management.
HISTORY:
Legend group (Lenovo) was incorporated in Hong Kong in 1988. Its parent company, legend holdings, was established in China in 1984. In 1988, a branch of Legend was established in Hong Kong. To distribute foreign brand computer products and peripherals for legend (Beijing) and other distributors in China. The groups distribute
At the beginning of the 1990s, Legend began to design, manufacture and distribute its own line of PC’s. Shortly after, Legend (Hon ed products manufactured by organizations such as IBM, AST and Hewlett-Packard. g Kong) invested in the Huiyang and Guangdong provinces to construct the legend science and technology park. The technology park served as legend’s manufacturing base. Legend (Hong Kong) was listed on the Hong Kong Exchange in 1994. The group also started to manufacture printed circuit boards during 1994. Legend successfully spun off its foreign brand distribution arm, Digital China Holdings in 2001.
In 2002, the group announced that it would become the first China-based partners of Brocade Communication Systems, a provider of infrastructure solutions for storage area networks (SAN’s). Legend and Brocade agreed to enter a strategic relationship in which Legend would sell and support the group’s intelligent fabric products.
LOCATIONS:
Lenovo organizes its worldwide operations with the view that a truly global company must be able to quickly capitalize on new ideas and opportunities from anywhere. By foregoing a traditional headquarters model and focusing on centers of excellence around the world, Lenovo makes the maximum use of its resources to create the best products in the most efficient and effective way possible. In addition, our dispersed structure keeps us closer to customers, enabling Lenovo to react quickly to local market requirements.
ORGANIZATIONAL STRUCTURE:
It is the formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. This structure depends entirely on the organization’s objective and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degree of autonomy.
PRODUCTION DEPARTMENT/ ENGINEERING TEAM:
Production is the core functions for any business set up. No enterprise or organization can survive in the absence of production. The wage bill, the administrative expenses and other overheads could be paid only when there is continuous production of the right quantity at right time through the best and cheapest means. Every society aims to maximize production from all the three sectors the primary, secondary and the territory.
In Lenovo, they manufacture desktops, laptops, servers etc. and this involves a number of steps which gives new shape to the raw materials. In a broader sense production includes the mental work of designing, planning, controlling, recording and accounting as well as the physical manipulation of material. All these functions become operative with the help of material movement, employment of workers and the operation of machines in a well-defined manner.
Lenovo product managers are responsible for the establishing objectives and measuring results to drive continual improvement in quality and customer satisfaction and all the employees are expected to contribute to continual quality improvement. Lenovo has a global quality management system designed to collect and drive improvements into current and future product designs. Lenovo’s product repair action rates are among the lowest in the industry. Lenovo proactively seeks input on design and product features from customers. Prototypes are extensively tested and products in final form are put through extreme condition before they will be made available for sale to customers.
SUPPLIER PERFORMANCE ASSESSMENT:
Procurement evaluates supplier performance regularly to ensure that the best products and services are provided to Lenovo. Lenovo’s goal is to measure performance and provide feedback to core and strategic suppliers on a regular basis. Supplier performance feedback will be accomplished through Lenovo issuing formal performance reviews, Lenovo participation in supplier performance programs, or through normal business communication channels. Lenovo and each of its suppliers work together to develop an action plan. Lenovo conducts quarterly supplier performance evaluations of their performance against their action plans that include a corrective action mechanism.