Case Solution & Analysis for Lenovo: Is the Cultural Integration Template Reusable? by Aijing Ran, Xiaobing Liu, Jiawei Dong, Yuekun Liu, Miao Cui.
Complete Case details are given below :
Case Name : Lenovo: Is the Cultural Integration Template Reusable?
Authors : Aijing Ran, Xiaobing Liu, Jiawei Dong, Yuekun Liu, Miao Cui
Source : Ivey Publishing
Case ID : 9B16M166 / W16631
Discipline : General Management
Case Length : 11 pages
Plagiarism : NO (100% Original work)
Description for case is given below :
The number and value of Chinese enterprises’ cross-border mergers and acquisitions (M&As) are increasing, but their success rate remains very low. The failure of cultural integration is one of the most important reasons. In 2005, Lenovo Group Ltd., acquired IBM’s PC division in what was called a “snake swallows elephant” acquisition that caused a sensation worldwide. During the ten years after the M&A, Lenovo integrated IBM’s PC division’s culture through several stages of acculturation, which ended with great success. In 2014, Lenovo acquired IBM’s x86 Server. Lenovo faced a challenge: Should the first acquisition’s cultural integration be replayed and copied for the x86 Server acquisition? Or should Lenovo look for a new approach?
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