SECTION 1
Lenovo ltd has been provision of services since its inception in the 1984, quite a long time in the market place for a company to make an impact on its products. For any business offering products or services to customers, such a long a time, it must have a rollercoaster ride through different market forces like competition, internal conflicting goals o how to move the company forward amongst other crucial decisions determining the company’s future (Choi2010)
Like any other business, the company has to satisfy different stakeholders who have been involved in different aspects of moving the company towards achieving its long-term goals. To mention a few, share holders of the company have invested money, which means return is the main focus at designated trading times. Due to steward ship, employees have dedicated their time in ensuring that the business runs smoothly hence are expecting a competitive pay that caters for all their needs. We have lenders who have dedicated their capital to ensure that the business is on expansion trajectory by issuing their equity in order for the business to tap in opportunities that could otherwise be left in the current financial level of the company (Choi2010)
I) maximize shareholder wealth:
Every investor is guided by the fact that his money will not be used in vain; he will earn some good returns from their investment. It is against this back drop that the company will ensure most of the operations it engages in will yield a competitive return. In this case, Lenovo Company has been involved in the production of computers amongst other array of electronic materials which can be sold at a profit to customers (Brown,2011).
It will thus be observed that maintaining product lines that have high returns will ensure that the company will keep afloat in the midst of competition as well as affording to pay dividends to the shareholders .To underline such a noble commitment of maintaining the profitability track in the market place, the recent decision to ensure that the company is listed in Hong Kong stock exchange has been a positive move in securing funds from willing investors who prospect exponential growth in the company. It will again give the company reason to venture in to untapped opportunities that will assist improving the income streams of the company (Brown,2011).
Broadening production lines
Against the back drop of unlimited capital from all the willing investors as well as prudent leadership from the directorship of vision oriented people, Lenovo limited will find it easy to expand in different areas of production that secures a blue chip tag for the company. As indicated above, improvement of shareholders wealth in any business is hinged on the ease with which the company taps in opportunities that comes its way. Through the engine o time and dynamic market place, Lenovo limited will find a challenge in progressive production of some items due to change in the market terrain to the worse. It is such items the company should not focus on producing and introduce others which bear a bright future for the company (Brown,2011).
Broadening a company’s production It has been considered a two sided sword, venturing in to new products at the same time maximizing on the already manufactured products currently. This will be achieved by continuous research geared towards improving efficiency of the company by cutting unnecessary costs that will come with production of the personal computers by Lenovo limited. Cutting such unnecessary costs will determine the profit margin of the business, hence dictating the long term financial health of the company (Leonard, 2003).
Carrying out social corporate responsibility
This has been one of the marketing narratives of most companies in twenty first century. Corporate social responsility is synonymous with marketing products of any company, Lenovo included to the residents of a specific jurisdiction hence good for the company’s long term growth (Leonard, 2003).
Keeping up to date with technological changes
It has been a well known phrase that the only constant thing in this world is change. Technology been one of the key drivers of business .With it comes efficiency, phenomenal drop in production costs as well as improvement of the products offered. Training employees will pay dividends for the company, as well as adopting up to date technology (Leonard, 2003).
Leadership
One of the reasons for the meteoric rise of the Lenovo Company is because of progressive leadership by the senior management of the company.Worth mentioning is the `reverse mentoring’ owes its origin from a mammoth U.S company, General Electric and C.E.O Jack Welch.Conventionally, it has been known that a company is driven by it’s experienced staff who are tasked with the responsibility of training the earthlings who join as trainees anticipating to lead the company at one point (Brown,2011)
In some of the happenings of the twentieth century, thus trend has changed due to various developments in the technological front. One being internet, the youth were known to understand it better than old people who have lots of experience in what the company does. As way of maximizing the company’s human resource, there has been mentoring from all sides depending on what the subject is, and who knows it better not one way as it used to be several years ago or in different firms in the globe. This has seen the output of Lenovo rise phenomenally (Brown,2011)
Implementation of policies
It has been an impressive implementation of all the goals set by the management team. This has been through active participation of every stake holder in every assigned role. This has been one of the key strengths of Lenovo limited towards achieving its goals as discussed below (Brown,2011)
Cost cutting
This company has been on a cost cutting drive for the last four years. This has seen the company adopt a different industry recommended ways of production means. There has been adoption of lean manufacturing where the company has been focusing mainly on cutting production costs in the identified lines of production. In an effort to keep costs as low as possible, the company also adopted six sigma process where breakages of products that has gone through the production process (Leornard,2003)
Off late the company has been implementing just in time system (J.I.T.) whereby manufacturing has been based on orders made for a given duration of time. This has been not picked up as expected since most of the demand has been random and producing as per the orders placed will have short comings when walking clients’ and random orders have been placed (Brown, 2011).
The most important aspects of coca cola products which are used as a value proposition to the customer is the quality of the product, needs of the customer as well as the product range.
SECTION 2
Quality of product/brand
The quality of the company’s products is not in dispute. The product development process ensures the highest quality and durability, as well as top of the art manufacturing technology, making Lenovo one of the most valuable brands in the world. This is reflected in the company’s soaring revenues in almost all countries that the company operates.
The Lenovo brand is also a very famous one in the world. This means that any of its products are easily marketed and adopted in the market as a result of the peoples Lenovo’s brand awareness (Hill,T(2013,March 1)..
Affordability/price
Pricing the new products at a manageable price has not only ensured that the company has stayed afloat, but has also ensured that the company is doing all it can to ensure that it reaches all sort of people and walks of life.
Product availability/placing
This entails making the aforementioned products from the company accessible to any client who looks to buy, either for the purposes of consumption or reselling. It is a complex process that is initialized at the point of manufacture, culminating at the customer’s premises. With reference to Lenovo Company, one may be left wondering how a company that started in china thirty years ago had such a tremendous growth .Here are the established reasons (Hill,T(2013,March 1).
i) The company has set up franchises in very corner of the earth to act as a pivot between its production capacity and the ballooning customer growth. Franchise is business whereby a licensed producer of a particular product will allow an investor, probably from a different place to manufacture and supply the same product to the customers who may be restricted by distance (Morton,F.(2006)..
ii) Hiring effective distribution specialists (Morton,F.(2006)..
In the nineteen century, emergence o logistics has been one of the positive effects of increased industrialization in businesses. This has seen different transport means being adopted to help cushion growing demand of industrial goods from the gaps o production and shortages. Considering companies like DHL, Three way shipping services, this has been a big boost to the globalization drive by different governments whose key goal was to ensure that physical boundaries would not hinder the distribution of goods and services worldwide. This has been one of the key reasons why coca cola products have been in a uniform pattern everywhere since the effects of shortages are bridged by effective transportation by logistic firms. It was a viable strategy for growth of the company since introduction (Morton. (2006).
Promotion
Notably, the company has invested heavily in marketing her many products in all the countries that Lenovo operates. Through TV and print media as well as e- marketing, the company has managed to not only reach a large market base, but also encouraged consumers from other brands to adopt the coca cola brand, as its one of the best product offerings in the world.
The company has also gone to great depths in doing personal and retail marketing. By providing spare parts to almost every retailer, the company has ensured that the new products can be consumed at the bought at their best state. This has been a major boost to retailers who are required to sell more and always have the product to capacity, thus ensuring a high volume of transaction by the company.
References
Choi, F & Meek, G (2010).globalization. Edition7. Publisher: Prentice Hall.
Reilly, F & Brown, K (2011).Investment Analysis and Portfolio Management (with
Thomas R. &Paul M. (2004).Financial statement analysis: New York: McGraw Hill.
Leonard C. &Robin J. (2003).Business & economics. New York: McGraw Hill.
Retailer&Industry News.22 (3).38. Retrieved from Business Source Premier database
Morton,F.(2006) Consumer benefit from use of the internet. NBER Innovation Policy& the Economy (MIT Press).
