Management of organizational change of Lenovo

Lenovo is a computing firm established in 1984 by eleven computer engineers and researchers from China with an idea to bring the benefits of information technology to the Chinese people. The corporation improves, make as well as market pioneering, dependable, excellent personal computer merchandises and value-added proficient amenities that deliver to clienteles all over the universe with smoother customs to be dynamic and viable (Lenovo,2006).

Its acquisition of IBM Personal Computing Division led to the change in management of the organization and also fast-tracked Lenovo’s access to foreign markets this, in turn, improved both branding and technology for the firm. Implementing these changes would bring about many challenges at both organizational and individual levels for the firm.

RESEARCH METHODOLOGY

After the acquisition of IBM, they came to the realization that customers were talking about Lenovo products on forums such as notebookreview.com and thinkpads.com. To help out in this, they decided to go into social media to get customer feedbacks.

To collect data they used a peer to peer customer service to get views from all over the world from their customers’ experiences with their products. They were able to streamline various departments such as marketing and sales to be able to fast track changes and various improvements to the customers. This led to a 20 percent reduction in laptop service call volumes and an increase in customer service agent productivity.

This data collected is secondary data and is qualitative in nature; this means data is collected in the word-based form on a foundation of comment and contact with participants. This type of research is where by the researcher is interested in gaining a much more complex understanding of peoples experience and not obtaining information which can be generalized to other larger groups. Qualitative research advances some philosophy or looks for a pattern of connotation on the foundation of data collected.

This research does not depend on pre-determined hypothesis, but it is possible to identify a problem or topic which they can examine and mostly they are guided by a theory which gives a framework for the investigation.

ANALYSIS

The reason behind the use of social media was because the cost of putting available customer service for digital lifestyle products is on the rise. Lenovo identified that public mass media could assistance them in learning, from the consumer’s point-of-view, the topmost matters with the provision, product features, purposes, interruptions in shipments and all from a worldwide standpoint.

Researchers, in general, tend to use methods which give the respondents some level of freedom instead of making those select from a predetermined set of responses. With this in mind, they adopted an approach which was less formal and not rigid to use in the research.

The IBM acquisition led to a major restructuring of the organization and also the reshuffling of top management by 2009 returning Liu the founder as chairman. This improved Lenovo shipments exponentially from 2009 to 2012. Liu further lay off 11% of Lenovo’s global workforce and cut back salaries and bonuses of managers by 30% – 50%. With this change we can see that the company had a positive growth going into the years as seen in the table above.

LIMITATIONS

Some of the limitations to this would be in the collection of data since most companies don’t voluntarily give out their information to the public.

The limitation to the research method can be biased, since it only focuses on people who use social media while those who are not on social media cannot give their views. With the research method, it will be hard to determine the honesty of the respondents.

CONCLUSION

By the formation of the new Lenovo out of the two independent companies, Lenovo has in turn improved in services and as well as delivery. With such an expansion the Lenovo brand has improved and reached various clients all over the world with ease. The lesson from the organizational change should be emulated since this change has brought more business to the Lenovo Company and also it has improved the brand and made to remain relevant to compete with DELL and HP in the global market.

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