please develop a clear strategic plan for lenova company comprising
of your own prepared mission and vision statement comprising of all 9 elements of mission statement.Develop EFEM and CPM matrix, develop IFEM matrix, SWOT matrix, SPACE matrix, BCG matrix, IE matrix, QSPM.Make sure that there should be no plagerism. www.lenovo.com, LNVGY Headquartered in Beijing, china, Lenovo designs, produces, and markets thinkPad personal computers, notebook computers, tablet computers, desktop computers, mobile phones, workstations, servers, electronic storage, information technology (it) management software, and smart televisions. Lenovo is the world's second-largest Pc vendor(behindHewlett-Packard [HP]), and markets the thinkPad line of notebook computers and thinkcentre line of desktops. Lenovo's U.S. headquarters is in Morrisville, north carolina, and its registered office is in Hong Kong. Lenovo has operations in more than 60 countries and sells its products in around 160 countries. Lenovo ranks fourth in the global tablet market by volume. Lenovo's fiscal year ends on March 31 every year. For fiscal 2012/2013 ending March 31, 2013, Lenovo's revenues increased 14.5 percent to $33.8 billion while net income increased 33 percent to $631 million. Lenovo sells directly to consumers and businesses through online sales, company-owned stores, chain retailers, and other distributors. Lenovo's principal facilities are in Beijing, Morrisville, and Singapore, with research centers in those locations, as well as Shanghai, Shenzhen, Xiamen, and chengdu in china, and Yamato in Kanagawa Prefecture, Japan. Lenovo operates factories in chengdu and Hefei, china and recently started production in argentina. in July 2012, Lenovo and the national Football League (nFL) announced that Lenovo had become the nFL's "Official Laptop, Desktop and Workstation Sponsor." Lenovo said that this was its largest sponsorship deal ever in the United States. Lenovo will receive advertising space in nFL venues and events and be allowed to use the nFL logo on its products and ads. Lenovo said that this sponsorship would boost its efforts to market to the key 18-to-35-year-old male demographic. Lenovo entered the smartphone market in 2012 and quickly became a huge vendor of smartphones in the chinese market. entry into the smartphone market was accompanied by a change of strategy from "the one-size-fits-all LePhone strategy" to a diverse portfolio of devices. In 2012, Lenovo passed apple to become the number 2 provider of smartphones in china with about a 15-percent market share, behind Xiaomi. in late 2013, Xiaomi was a growing smartphone rival to Lenovo, both firms being valued at $10 billion. chinese-made smartphones are becoming serious competitors to apple and Samsung both at home and overseas. in the second quarter of 2013, Xiaomi overtook apple within china and became the sixth-largest smartphone maker globally with 5 percent market share compared to apple's 18 percent. Xiaomi also derives revenue from its own digital game platform and social messaging app, MiLiao.Lenovo is contemplating making a move to acquire Xiaomi—or it could it be the other way around if Lenovo falters? Lenovo has invested U.S. $793 million in the construction of a mobile phone manufactur- ing and research-and-development facility in Wuhan, china. Lenovo has expanded sales of its smartphones into russia, indonesia, and india, with further expansion intended. the LePhone smartphone is offered at a low price point and is customized for the chinese market. it has ben- efited from strong support from chinese mobile phone companies and content providers such as Baidu, alibaba, and tencent. a 7,500-square foot flagship Lenovo store opened in Beijing in February 2013. at the same time in the USa, Lenovo introduced the thinkPad X131e chromebook—a rugged Pc designed for K-12 education. this product simplifies software and security management for school administrators and provides students and teachers with quick access to thousands of apps, education resources, and storage. History Liu chuanzhi founded Lenovo in 1984 with a group of 10 engineers in Beijing. For the first 20 years of its existence, the company's english name was "Legend" but in april 2003, the company publicly announced its new name, "Lenovo," with a large media campaign involving huge outdoor billboards and primetime television advertisements. Lenovo's first successful l was lan add-on card for Pcs that allowed them to efficiently process chinese characters. Lenovo became a publicly traded company after listing in Hong Kong in 1994, raising nearly $30 million. Lenovo acquired iBM's Pc business in 2005 amid a backlash in congress against chinese companies trying to purchase U.S. businesses. Lenovo's acquisition of iBM's Pc division accel- erated access to foreign markets while improving both its branding and technology. Lenovo paid $1.25 billion for iBM's computer business and assumed an additional U.S. $500 million of iBM's debt. this acquisition made Lenovo the third largest computer maker worldwide by volume. in January 2011, Lenovo formed a Pc joint venture with nec, a Japanese it company. the venture is named Lenovo nec Holdings B.V., which is registered in the netherlands. Lenovo owns a 51 percent stake in the joint venture, whereas nec holds a 49 percent stake. Lenovo has a five-year option to expand its stake in the joint venture. this joint venture is intended to boost Lenovo's worldwide sales by expanding its presence in Japan, a key market for Pcs. nec spun off its Pc business into the joint venture, so Lenovo is now the largest Pc seller in Japan. Lenovo recently acquired Medion, a german electronics manufacturing company, doubling its share of the german computer market to 14 percent and making it the third-largest vendor by sales after acer and HP. the deal was the first in which a chinese company acquired a well- known german company. The Year 2012: Expanding Globally Lenovo had acquired the Brazil-based electronics company cce that sells products under the brand name Digibras for a base price of 300 million reais (U.S. $148 million) in a combination of stock and cash and an additional 400 million reais dependent on performance benchmarks. Before this acquisition, Lenovo already established a $30 million factory in Brazil, but Lenovo desired a local partner to maximize regional growth. Lenovo realizes that the 2014 World cup that will be hosted by Brazil as well as the 2016 Summer Olympics and cce has a reputation for quality. Lenovo acquired the U.S.-based software company Stoneware, in its first software acquisition to date. Lenovo desires to improve and expand its cloud-computing services. For the two years before its acquisition, Stoneware partnered with Lenovo to sell its software. During this period, Stoneware's sales doubled. Stoneware was founded in 2000. Stoneware is based in carmel, indiana, and has 67 employees. Lenovo has made an investment in Vertex, a technology-oriented venture capital firm in israel. Lenovo's chief executive Officer (ceO), Yang Yuanging, said that this investment was just the beginning. He said, "Definitely we are interested in israel's technology, to grow our company, to grow our business." Lenovo recently introduced the more powerful desktop computer ideacentre a720, with a 27-inch touch-screen display and running Windows 8. With a tV tuner and HDMi, the a720 is also a multimedia hub of sorts. in 2013, Lenovo added a table computer to the ideacentre line. Lenovo sells tablet computers under the ideaPad and thinkPad product lines abroad and as the LePad in Mainland china. the LePad is part of an effort by Lenovo in the market for mobile internet devices. Lenovo has established a Mobile internet and Digital Home Business group to compete in this space. Lenovo is developing a new smart television product called LetV. the Pc, communications, and tV industries are currently undergoing a "smart" transformation. Lenovo recently offered a new cloud computing service that will allow users to share content between multiple devices, in addition to managing their personal information and social networking. Internal Issues Vision and Mission Lenovo's vision statement reads as follows: "to create personal devices more people are inspired to own, a culture more people aspire to join and an enduring, trusted business that is well respected around the world." Lenovo's mission statement reads as follows: "to become one of the world's great personal technology companies." Organizational Structure: Lenovo's organizational structure depicts that there is no chief operations officer (cOO), and the structure appears to be divisional by region because the only two presidents head geographic regions. there are three females among the top 13 executives. new geographic based structure became effective in april 2012 with the creation of new report- ing business units as follows: (1) china, (2) asia-Pacific/Latin america (aPLa), (3) europe- Middle east-africa (eMea), and (4) north america. the new geographical structure, according to Lenovo, enables the firm to stay as close to its customers as possible. Strategy Lenovo is still primarily a Pc company, but demand for Pcs is falling; however, demand for smartphones is rapidly growing, so Lenovo is shifting gears. in smartphones, Lenovo is compet- ing with chinese rivals, such as Huawei technologies co Ltd. and Zte corp., that are already among the top-five smartphone companies globally. although the second-biggest smartphone vendor in china, Lenovo has begun selling smartphones in russia, indonesia, the Philippines, and Vietnam, but the company faces stiff competition globally from Samsung electronics co. Ltd. and apple inc. Lenovo's manufacturing operations are a departure from the usual industry practice of outsourcing to contract manufacturers. Lenovo instead focuses on vertical integration to avoid excessive reliance on suppliers and to keep down costs. Speaking on this topic, Yuanqing said, "Selling Pcs is like selling fresh fruit. the speed of innovation is very fast, so you must know how to keep up with the pace, control inventory, to match supply with demand and handle very fast turnover." Lenovo benefited from its vertical integration after flooding affected hard-drive manufacturers in thailand in 2011 because the company could continue manufacturing opera- tions by shifting production toward products for which hard drives were still available. Lenovo began to accentuate vertical integration after a meeting in 2009 in which Yuanqing, and the head of Lenovo's supply chain, analyzed the costs versus the benefits of in-house manu- facturing and decided to make at least 50 percent of Lenovo's manufacturing in-house. Lenovo chief technology Officer george He said that vertical integration has an important role in product development. He stated, "if you look at the industry trends, most innovations for Pcs, smartphones, tablets and smart tVs are related to innovation of key components—display, bat- tery and storage. Differentiation of key parts is so important. So we started investing more ... and working very closely with key parts suppliers." Lenovo has partially moved production of its thinkPad line of computers to Japan. thinkPads are produced by nec in Yamagata Prefecture. akaemi Watanabe, president of Lenovo Japan, said, "as a Japanese, i am glad to see the return to domestic production and the goal is to realize full-scale production as this will improve our image and make the products more acceptable to Japanese customers." Lenovo recently started manufacturing computers in Whitsett, north carolina. For Lenovo's third quarter of 2012 that ending December 2012, the company reported a quarterly profit of $200.0 million, up 30 percent from a year previously. that amount exceeded its previous record of $163 million, on strong sales of smartphones and tablet computers. For the third quarter, Lenovo's revenue grew 12 percent from a year previously to $9.4 billion, but the bulk of that still came from its Pc business. Lenovo shipped 9.4 million smartphones in the third quarter, all but about 400,000 of them however in china. ceO Yang says "the smartphone business outside china is 'still in the first stage' and Lenovo needs to invest to gain market share before focusing on profitability." the company's third-quarter revenues in the bigger but slowergrowing Pc market rose 7 percent to $7.9 billion. Lenovo's global market share in Pcs increased to 15.9 percent in the third quarter, trailing HP's 17.0 percent, but well ahead of both Dell and acer. Lenovo's 15.9 percent was the aver- age of their 11.1 percent market share in eMea, 9 percent in north america, and 36.7 percent in china. Lenovo has rapidly gained market share in the Pc sector and in early 2013 trails HP only by a slim margin in Pc shipments. However, as Pc demand growth slows, Lenovo has been diversifying into the mobile device sector to tap robust demand for smartphones and tablets, par- ticularly at home in china, the world's biggest market for mobile phones and Pcs about a one-tenth of Lenovo's third-quarter revenues in 2012 came from its mobile internet and digital home (MiDH) business—mainly consisting of its smartphone sales in china, which jumped 77 percent to $998 million, although that was only 11 percent of total revenue. the com- pany's third-quarter shipments of media tablets rose 77 percent to 800,000 units. MiDH now con- tributes 11 percent of Lenovo's overall revenue. at the end of the third quarter in 2012, Lenovo is number-three worldwide in Smart connected Devices (Pc's, tablets, and smartphones). Lenovo basically has what it calls a two prong strategy: (1) Protect its commercial global Pc business and its china business and (2) attack three high-growth opportunities in emerg- ing markets with smartphones, tablets, and smart tVs. For quarter ending January 31, 2013, Lenovo's "attack" businesses delivered 50 percent of the company's revenues, a significant increase from four years ago when the company first launched the strategy and attack revenues were 32 percent. Lenovo's MiDH revenues include its smartphone, tablet, and smart tV busi- nesses and accounted for a record 11 percent of total Lenovo revenue in the third quarter, up 77 percent year-over-year. and for the first time ever, Lenovo's smartphone business in china became profitable in third quarter. Ethics in fiscal 2012, Lenovo ceO Yang received a $3 million bonus as a reward for record profits, which he in-turn redistributed to about 10,000 Lenovo's employees. according to Lenovo spokesman, Jeffrey Shafer, Yang felt that it would be the right thing to "redirect [the money] to the employees as a real tangible gesture for what they done." Shafer also said that Yang, who owns about eight percent of Lenovo's stock, "felt that he was rewarded well simply as the owner of the company." the bonuses were mostly distributed among staff working in positions such as production and reception who received an average of 2,000 yuan or about U.S. $314. this was almost equivalent to a month's pay for the typical Lenovo worker in china. according to Lenovo's annual report, Yang earned $14 million, including $5.2 million in bonuses, during the fiscal year that ended in March 2012. Finance Lenovo's recent income statements and balance sheets are provided in exhibits 2 and 3, respec- tively. note in exhibit 2 the 14.6 percent increase in revenues for fiscal 2012/2013, as well as the 33 percent increase in net income. EXHIBIT 2: Lenovo's Income Statements (U.S. $ 000,000 omitted) Fy2012/13 Fy2011/12 revenue 33,873 29,574 cost of sates (29,800) (26,128) Gross profit 4,073 3,446 Other income, net 20 1 Selling/distribution expenses (1,888) (1,691) administrative expenses (847) (730) research and development expenses (623) (453) Other operating income - net 65 11 Operating profit 800 584 Finance income 44 43 Finance costs (42) (44) Share of losses of associated companies (1) (1) Profit before taxation 801 582 taxation (170) (107) Profit for the period 631 475 Profit attributable to: equity holders of the company 635 473 non-controlling interests (4) 2 Dividend 248 183 earnings per share (U.S. cents) Basic 6.16 4.67 Diluted 6.07 4.5 end 2012. EXHIBIT 3 Lenovo Balance Sheet (in millions of U.S. dollars) Mar 31, 2013 Mar 31, 2012 non-current assets 4,492 4,040 Property, plant and equipment 480 392 intangible assets 3,326 3,092 Others 686 556 current assets 12,390 11,820 Bank deposits and cash 3,573 4,172 trade, notes and other receivables 6,694 6,297 inventories 1,965 1,218 Others 158 133 current liabilities 12,091 11,809 Short-term bank loans 176 63 trade, notes and other payables 10,576 11,251 Others 1,339 495 net current assets 299 11 non-current liabilities 2,111 1,603 Total equity 2,680 2448 Segments Lenovo does an excellent job of reporting segment financial information both by geographic region and by product. exhibit 4 reveals geographic segment information for Lenovo's 2012/2013 fiscal year that ended March 31, 2013. note the high revenue growth in europe/ Middle east/africa (eMea) and the high profit margin in china. at March 31, 2013, Lenovo's worldwide personal computer (Pc) market share grew from 13.0 percent to 15.3 percent, trailing only HP's 15.7 percent, and above Dell's 13.2 percent. Competitors a financial comparison of various Lenovo competitors is provided in exhibit 5. note that apple crushes all competitors, including Lenovo, on profit margin and earnings per share (ePS). note that HP is struggling and that Lenovo does not have that many shares outstand- ing versus most rival firms. apple is the second-largest publicly traded corporation in the world by market capitalization with its $424 billion figure. Lenovo is also concerned about china's Zte corp., which plans to become one of the world's top-three smartphone brands. Zte was struggling financially as 2012 ended, but the company has aggressive plans and a good product. Apple, Inc. Headquartered in cupertino, california, apple's best-known products are the Mac line of com- puters, the iPod, iPhone, iPad, itunes, iLife, and iWork. apple software includes the OS X and iOS operating systems and the Safari web browser. apple is the world's second-largest informtion technology company by revenue after Samsung electronics. apple is also the world's third- largest mobile phone make after Samsung and nokia. as of november 2012, apple has 394 retail stores in 14 countries and an online apple Store and itunes Store. For its fiscal year that ended in September 2012, apple posted revenue of $22.5 billion in china, taiwan, and Hong Kong, nearly double the amount from the prior year. However, partly as a result of Lenovo, apple's market share dropped to 4.2 percent of the china smartphone market in the quarter ended September 2012, from 5.8 percent the prior year. another problem for apple in china is that the china's largest mobile carrier, china Mobile Ltd., does not sell the iPhone, although that company had 87.9 million subscribers to high-cost, third-generation mobile services at year end 2012 4 Lenovo's Sales and Profit by Region (in U.S. dollars) Segments Revenue Oprting Profit Profit Margin Fy13 Y/Y Fy13 Fy12^ Fy13 FY12 china 14,539 17% 678 569 4.7% 4.6% china - Pc 11,751 6% 733 638 6.2% 5.8% aPLa 6,860 8% 24 0 0.3% 0.0% eMea 7,535 20% 147 83 2.0% 1.3% north america 4,939 9% 168 161 3.4% 3.5% note: eMea = europe/Middle east/africa; aPLa = asia/Pacific/Latin america. EXHIBIT 5 A Financial Comparison of Lenovo with Rival Firms (in U.S. dollars) EXHIBIT 5 A Financial Comparison of Lenovo with Rival Firms (in U.S. dollars) Lenovo Apple dell hP Toshiba Fujitsu Sales ($) 34 B 165B 5B 120B 63 B 49 B income ($) 631M 42 B 2.7B -12.B 1.3 B 279 M Profitmargin1.86% 25.35% 4.44% -10.5% 2.27% 0.55% Market capitalization ($) 11.07 B 424 B 24 B 32.5 B 18.5 B 8.5 B Shares Outstanding 518 M 939 B 1.75 B 1.95 B 4.25 B 414 M ePS ($) 1.10 44.10 1.47 -6.45 0.30 0.64 an increasing number of companies are interested in purchasing Mac computers for all or part of their global operations. apple focuses its business toward consumers and does not aggressively develop products and services for global enterprise customers. Organizations that have multiple-country operations oftentimes have to make separate arrangements in each region, with local partners making global deployments more complex. apple has outstanding product design and innovation as well as financial stability, but the company lacks consistent global service and support. in September 2012, apple unveiled the iPhone5, featuring an enlarged screen, more powerful processors, and running iOS6. the phone also includes a new mapping application (replacing google Maps) that has attracted some criticism. Dell, Inc. Headquartered in round rock, texas, Dell is the third-largest Pc vendor in the world after HP and Lenovo. Dell employs more than 103,300 people worldwide and is a strong corporate Pc supplier with good global coverage and capabilities. Dell is positioning itself beyond its Pc roots however and as such is becoming less competitive on Pc pricing. to diversify away from Pcs—although that product, like Lenovo, is still Dell's best seller—Dell in 2012 acquired Wyse technology and Quest Software and gale technologies and credant technologies. these acquired firms produce and market other high-technology products and services, but not Pcs, smartphones, or tablets. Fujitsu Headquartered in tokyo, Japan, Fujitsu is the world's third-largest it services provider mea- sured by revenues after iBM and HP. Fujitsu executes on a global basis and provides a good option for corporate purchasing for many organizations. although its U.S. operations are still weak, Fujitsu has added desktops and bolstered its north american capabilities. Fujitsu is also a strong supplier of pen tablet Pcs, an important segment with Windows 8. Fujitsu has a good desktop service portfolio across europe and is strong in the Middle east, africa, and Japan. in May 2011, Fujitsu entered the mobile phone market again and released various Windows Phone devices. Fujitsu offers a public cloud service delivered from data centers in Japan, australia, Singapore, the United States, the United Kingdom, and germany based on its global cloud Platform strategy. the platform delivers infrastructure-as-a-Service (laaS) virtual information and communication technology (ict) infrastructure, such as servers and storage functionality. Hewlett-Packard Headquartered in Palo alto, california, HP has a strong global Pc presence and portfolio of services and products and is a viable supplier for global enterprise customers, regardless of business size. in May 2012, HP announced plans to lay off approximately 27,000 employees, after posting a profit decline of 31 percent in the second quarter of 2012. the profit decline is largely as a result of the growing popularity of smartphones, tablets, and other mobile devices that have slowed the sale of Pcs. HP recently merged its printing and Pc businesses under one executive, todd Bradley. in november 2012, HP recorded a write down of around $8.8 billion related to its $11.3 billion acquisition of the U.K.-based software maker autonomy corp. HP accused autonomy of deliberately inflating the value of the company before its takeover, but autonomy flatly rejected the charge. the FBi is investigating but HP's stock has fallen to a decades' low. Toshiba Corporation Headquartered in tokyo, Japan, toshiba provides a wide range of notebook computers targeted at businesses, but its global focus has shifted increasingly toward the consumer and small- business markets. toshiba remains strong in canada and australia in commercial sales, but a lack of desktop offerings makes toshiba inappropriate if a sole Pc vendor is desired for a company. toshiba's focus has shifted toward the nonenterprise notebook market. toshiba is no longer a major concern for Lenovo because the two firms' product lines overlap less and less every day. Acer Headquartered in taiwan, acer plans to build up its smartphone business, raising sales from 500,000 units in 2012 to 1.5 million in 2013, and 5 million in 2014. acer is targeting specific operators individually instead of trying to offer models across entire markets. acer has suffered two consecutive (2011 and 2012) annual losses, still struggling from its bad acquisitions of gateway, Packard Bell, and eMachines. Of late however, acer has posted strong sales of note- books using google's chrome platform. Nokia Corporation nokia is a communications and it corporation headquartered in Keilaniemi, espoo, Finland. its principal products are mobile phones and portable it devices. nokia was the world's larg- est vendor of mobile phones from 1998 to 2012 but over the past five years, the company has suffered declining market share as a result of the growing use of smartphones from other vendors, principally the apple iPhone and devices running on google's android operating system. as a result, its share price has fallen from a high of U.S. $40 in 2007 to under U.S. $3 in 2012. Since February 2011, nokia has had a strategic partnership with Microsoft whereby nokia smartphones will incorporate Microsoft's Windows Phone operating system (replacing Symbian). nokia unveiled its first Windows Phone handsets, the Lumia 710 and 800 in October 2011 but sales subsequently dropped and nokia made six consecutive loss-making quarters from second quarter 2011 to third quarter 2012.. the fourth quarter of 2012 saw nokia return to profit after strong sales of its new Windows Phone 8 handsets, particularly the high-end Lumia 920. in October 2012, nokia said its high-end Lumia 820 and 920 phones, which will run on Windows Phone 8 software, will soon be available across europe and in russia. in December 2012, nokia introduced two new smartphones, the Lumia 620 and 920t. in January 2013, nokia reported 6.6 million smartphone sales for the fourth quarter in 2012, consisting of 2.2 million Symbian and 4.4 million sales of Lumia devices (Windows Phone 7 and 8). in north america, only 700,000 mobile phones have been sold including smartphones. Samsung Electronics Based in Seoul, South Korea, Samsung makes the popular galaxy smartphone. Samsung also makes DVD players, digital tVs, and digital still cameras; computers, color monitors, LcD panels, and printers; semiconductors such as DraMs, static raMs, flash memory, and display drivers; and communications devices ranging from wireless handsets and smartphones to networking gear; microwave ovens, refrigerators, air conditioners, and washing machines. galaxy runs on google's android mobile-operating software. The Future: Lenovo's diverse product brands overlap more and more, which is becoming confusing to many customers. the company's current aggressive pricing may not be profitable in future years. the differentiation provided by Lenovo's thinkVantage software tools is eroding. alternative offerings from Microsoft and third parties are improving, and are often free, reducing the value of Lenovo's unique tools. even for a strong firm such as Lenovo, rivals await at every turn to seize market share and customer loyalty. the global smartphone market increased by 39 percent in 2012 in terms of units shipped, according to international Data corporation. in the summer of 2013, Lenovo introduced another new product, a table Pc that weighs 17 pounds and runs off Windows 8 and is called the Lenovo idea centre Horizon table Pc. the new product does everything and features a 27-inch high-definition display panel. Hundreds of fun games and educational apps come preloaded on the new product. Lenovo is engaged in discussions to acquire the maker of the BlackBerry smartphone, but a larger concern for the company perhaps is Xiaomi. Officer Han-card