Lenovo Management Structure

Lenovo was a State Owned Enterprise in China, known as Legend Holdings, until it had been sold by the government of China and incorporated in Hong Kong in year 1988 (Romann 2013). Hence, the structure of Lenovo was an evolution of State Owned Enterprises and also influences by Chinese cultures. As an emerging market multinationals company, organizational structure and management structure of the company are the keys of success to become the world’s number 1 PC company in year 2013. An emerging market multinationals company refers to a company that has its assets or other facilities in other countries other than its home country and the economic activity of that countries are stronger than least developed countries but weaker than a developed …show more content…
Due to the different countries practice different cultures in emerging markets, the managers need to take effective measures to solve urgency problems in time in different countries (Zhang and Alon 2010). Currently, the management structure of Lenovo has four aspects. First of all, Lenovo is emphasizing on the team consciousness in order to create great team works between the employees. Furthermore, creating duties and responsibilities for the shareholders and managers that will help to influence the employees to improve their sense of responsibilities in the company. Besides, Lenovo always reinforce the periodical meeting in the company as well as the ceremonies. Lastly, Lenovo practices a collective leadership concept, which shows in the board of directors, two out of four of the managers in the board of directors are foreigners and the other two are local (Lenovo …show more content…
Since then, the organizational structure of Lenovo diverged into two parts, one focusing on the customers from the mature markets and the other one focusing on the customers from the emerging markets. In the new structure that focuses on emerging market, Lenovo have four business groups: PC Business Group, Mobile Business Group, Enterprise and an Ecosystem and Cloud Services that emphasizes on the contents or services for the user base of the company (Osawa 2014). The new organizational structures allows Lenovo to better leverage synergies that exist between similar markets that may be separated geographically but share market dynamics that impact on the customers, what products Lenovo sell and how Lenovo enter to that market. The goal of Lenovo is to create a faster, more streamlined organization that can adapt quickly to target strong growth opportunities while more effectively focusing resources on their core