Lenovo Case free essay sample

Hydroelectricity or hydroelectric power is the electricity obtained by harnessing the power of water flowing down from a high level. It is a timeless and renewable resource. Huge generators convert the potential energy of falling or fast moving water into electrical energy. The potential energy of the water is first converted into mechanical energy and then into electrical energy. Water, usually stored in dams, is led down through large pipes or tunnels to lower levels, and in the course of the fall, the water rotates turbines. The mechanical energy produced is converted to electricity by the generators connected to it. The structure that houses the turbines and generators is called the powerhouse. Transformers change the alternating current produced by the generators into current of very high voltage for easy transmission through long distances. Hydropower is one of the three principal sources of energy used to generate electricity, the other two being fossil fuels and nuclear fuels. Hydroelectricity has certain advantages over these other sources: it is continually renewable thanks to the recurring nature of the water cycle, and causes no pollution. Also, it is one of the cheapest sources of electrical energy. The Itaip Dam between Brazil and Paraguay, which is 190 metres high and generates more than 12,600 MW, is the largest hydropower dam in the world. (The 185-metre Three Gorges Dam, now being constructed in China on the upper Yangtze River, would take its place by 2009, producing 18,200 MW of power ). The Grand Coulee Dam, located near Spokane, Washington, is the largest hydropower dam in the United States, producing 6,480 MW. The Rogun Dam, in Russia, the tallest in the world, is 335 metres high. The Oroville dam, located in California, the tallest in the United States, is 235 metres high. Idukki dam in India is Asias first and largest archdam. Lenovo Case Study By vaibhavtaneJa PROJECT MANAGEMENT IMPROVES LENOVOS STRATEGY EXECUTION AND CORE COMPETITIVENESS l. Background In recent years, the personal computer (PC) industry has been developing by leaps and bounds. Global sales of PCs totaled 230 million units in 2006, representing a 9 percent increase over the previous year. Lenovo has a product line that includes everything from servers and storage devices to printers, printer supplies, projectors, digital products, computing accessories, computing services and mobile handsets, all n addition to its primary PC business, which made up 96 percent of the companys turnover as of the second quarter of 2007. Since its acquisition of IBMs Personal Computing Division in May 2005, Lenovo has been accelerating its business expansion into overseas markets. The company transferred its corporate headquarters from Beijing, China to Raleigh, North Carolina, USA. Today, the group has branch offices in 66 countries around the globe. It conducts business in 166 countries and employs over 25,000 people worldwide. Lenovo is organized into four geographical units: Greater China, America, Asia-Pacific, Europe, and the Middle East and Africa (EMEA). Within each unit there are functional departments that include production, transportation, supply chain management, marketing and sales. Sales outside of Greater China compromised 59 percent of the companys total turnover in the second quarter of 2007. II. Challenges Before 2004, multinational PC makers like Dell and HP were experiencing difficulties localizing their business in the Chinese market and thus did not pose a serious competitive threat to Lenovo. However, their operations began to have a major impact n Lenovo market share in 2004, particularly among key accounts†mandating better execution and core competitiveness in order to increase market share and improve business performance. Ill. Solutions In order to address these challenges, Lenovo proposed substantial changes to its business model and strategy in 2004, employing a project-focused approach to develop its corporate strategy. Specific steps taken were: Implementing project management as the tool for executing corporate strategy 1 . After confirming the companys overall corporate strategy, Lenovo set about referred to as strategic projects. Strategic projects differ from RD projects in that time and cost cannot be used as yardsticks for success. Such projects may be about expanding into new markets, solving underlying problems, enhancing organizational efficiency, integrating strategic resources or improving employee satisfaction or capabilities. In the past, some strategic planning had not been followed up on sufficiently but the application of strategic project management solved this problem; strategic projects began to actually be executed and generated results. 2. Lenovo also established a Project Management Office (PMO) to coordinate strategic projects. Beginning in 2004 and early 2005, Lenovo put in place the processes and the organizational structure for its PMO. It also formalized the relationships between strategic leaders and the PMO and budgeted resources for the office. Subsequently, all of Lenovos other departmental regulations needed to conform to PMO regulations, with detailed regulations being outlined by specific business departments. However, Lenovos PMO did not interfere with projects administratively; rather it offered training and established standardized procedures. Lenovo employees see the PMO as a kind of resource rather than an administrative facility. Designating a PMO as an administrative facility is one of several things that have doomed such offices in the past, but Lenovos office has thrived, winning the companys excellent team award. The company believes that certain conditions must exist in order to successfully utilize project management: First, a company must face a challenge (i. e. an external factor that demands it to do so); second, the office must be prioritized by the company leadership; third, the office must be led by a professional team in order to guarantee that company-specific systems are eveloped; and finally, it must conform with the companys organizational culture and be appreciated. Otherwise its hard to execute