Study regarding FDI method for Lenovo Group
Module Subject: International financing and expense
Module SIMPLY NO: 56357
Component Leader: Dr . Peijie Wang
Student IDENTIFICATION: 200900219
Text Word count number: 2600
Submission Date: 05/04/2011
The Lenovo Group
Lenovo Group can be committed for superior laptop or computer creating, the company based on the organization model which can be oriented to get innovation, very efficient and the client satisfaction, besides the firm is also actively entering the newest market. The Group is formed by Lenovo Group and the former organization division of IBM Personal Computer that to undertake the creation, developing as well as to sales reliable, top quality, safe-to-use technology products and additionally, it provides specialist services all over the world. These are some details which can be related to the development of Lenovo Group: в—Џ Lenovo operates it is business much more than 60 countries and provides pcs for more than 160 countries in the world. в—Џ Lenovo Group includes a unique organization structure which is divided into the emerging marketplace and older market intended for coping with it is market attributes in response to rapid and effective execution for appropriate strategies. в—Џ Lenovo is the fourth major PC suppliers in the world, and it is also the very best five PC supplier in which grows the fastest. Since 1997, Lenovo continues to be kept primaly in Chinese domestic market segments, and now the corporation is accounting for over thirty percent into the reveal of personal pc market. в—Џ In January of 2011, Lenovo Group announced that it established a joint venture with NEC Organization so that they with each other established Japan's largest laptop or computer group. Lenovo will be leading the way in the world's top three personal computer industry. в—Џ Leading world-class 3rd there’s r & G team stationed in the Yamato Research Commence in The japanese, Chinese Beijing, Shanghai, Shenzhen and the Raleigh in New york of Us.
The FDI strategy of Lenovo Group
For companies, the real internationalization is to help to make its products, solutions and company system to be set up in a global platform and finally form a worldwide brand which can be approved by global customers. However for the unevenly developed countries especially the economically backward countries in which the businesses may get a substantial challenge. Yet , the international factor of production must be recombined and industrial transfer accelerates within the new situation which means try to apply to global strategic vision, and take advantage of international and domestic markets and methods that have been an inevitable decision for countries and businesses. As a multinational corporation that Lenovo Group has been looking at how to enter the international industry and make use of the overseas resources, individuals factors has to be considered inside the following:
Location choosing strategy- Generally, there are leading twenty elements (Wang. l, 2009) must be taken into consideration that happen to be showed by the figure 1 ) Figure 1 . Factors impacting on FDI area choice
Top ten factors
Another 10 factors
Source: MIGA/World Bank
The figure which is showed in below implies that the top 10 factors happen to be prior regarded by the majority of multinational corporations, and the following 10 factors should also end up being paid focus by a lot of companies specially the company, which usually establishes an overseas department on the first time; the weighting of each and every factor in the chart which depends on the dependence on different multinational companies that could be changed. Nevertheless , Lenovo group also required into consideration all factors high have been classified by above, however the most important factors which could end up being valued by top supervisor of Lenovo are secure social and political environment, infrastructure conditions, geographic conditions, policy and institutional environment, level of modern day service and human resource circumstances; those components are...