Challenges Faced By Lenovo And Merger

1001 WordsNov 11, 20155 Pages
Lenovo and IBM formed a joint venture by acquisition to form the third largest PC maker in the global world. Lenovo faced various problems after the merger and acquisition such as integration of human resource, cultural difference, financial distress and supply chain issues (Ng et al., 2012). The essay determines challenges predicted or forecasted while acquisition. There were several hindrances post-integration of both the companies that are analysed in the essay. The company has struggled hard to overcome barriers where a critical analysis is made upon its success and failure. Mergers and acquisition are a method of foreign market entry mode. The acquisition is a way of purchasing other private or public company for expanding the scope. Mergers and Acquisitions have advantages and disadvantages. The advantages involve financial gain, increased market power, meeting stakeholder expectations, building market presence in the global market (Washington Post, 2015). The success of merger and acquisition is determined by the outcome of the fulfilment of client 's objectives. The company also have an opportunity for growth regarding competition, customer base, valuable assets, additional quality staff (Tingley et al., 2015). On the other hand, Mergers and acquisitions may also result in a failure due to several reasons. There are various challenges faced such as integration problems, cultural barriers, mismanagement of resources, employee conflicts, etc. There were various
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