Lenovo vs Dell Organizational Management

HET 3380 Engineering Management 1
Lenovo Group Ltd. VS Dell Inc.
The research project on the Organization Management of Lenovo

Corporation and Dell Corporation
Prepared for:
Piraiarasi Chelladorai
Prepared by:
Chan Su Ming (7440286)
Tein Shyh Yau (4308999)
Wendy Wong (4308743)
Ian Jasper anak Philip (4324870)
Lim Beng Hooi (4309685)
Eric Tan Chun Pin (100061311)
Tan Sze Nian (4327268)
Acknowledgement
Each members of Group 20 would like to express uppermost appreciation to Madam

Piraiarasi Chelladorai for guiding us in completing the report. She had shown us the basic
theory of management and gave us a lot of inspirations while completing the report. We
would like to thank Swinburne University of Technology Sarawak campus as well as it
provides us the facilities that help us in completing the report. The resources in
Swinburnes library provide us a lot of information that needed by the report and the
internet service that provides by Swinburne assist us in getting information from the
World Wide Web. Without the supports from Swinburne, we might encounter hurdlers in
completing the report. Through the collaboration of each team members, this research
project has been completed successfully within the period provided. Last but not least, we
also strongly appreciate the assistance from people who shows full enthusiasm to give
suggestions and advices in this report.
Table of Contents
1.0 Introduction ............................................................................................................................... 1
1.1 Authorization..1
1.2 Objective.1
2.0 Background ................................................................................................................................ 2

2.1 Lenovo Background2
2.2 Dell Background2
3.0 Environmental Factors ............................................................................................................... 3

3.1 Internal Environment of Lenovo and Dell. 3
3.1.1 Lenovo Internal Environment.3
3.1.2 Dell Internal Environment.3
3.2 External Environment..4
3.2.1 Lenovo External Environment4
3.2.1.1 Political..4
3.2.1.2 Economic..4
3.2.1.3 Social...4
3.2.1.4 Technological.5
3.2.2 Dell External Environment5
3.2.2.1 Political..5
3.2.2.2 Economic..5
3.2.2.3 Social5
3.2.2.4 Technological.6
4.0 Sustainability..6
4.1 Lenovo Sustainability.6
4.1.1 Social.6
4.1.2 Environmental...7
4.1.3 Economic7
4.2 Dell Sustainability7
4.2.1 Social.7
4.2.2 Environmental8
4.2.3 Economic9
5.0 Ethical Issues..9

5.1 Lenovo Ethical Issues9
5.2 Dell Ethical Issues10
6.0 Social Responsibility

6.1 Lenovo Social Responsibilities..11
6.1.1 Communities.11
6.1.2 Environment.12
6.2 Dell Social Responsibilities.12
6.2.1 Communities12
6.2.2 Environment.13
7.0 Analysis
7.1 SWOT Analysis.14-16
8.0 Lenovo and Dell Porters 5 Forces

8.1 Lenovo Porters 5 Forces..17
8.1.1 Rivalry among Competitors..17
8.1.2 Threats of New Entrants.17
8.1.3 Threats of Substitutes..18
8.1.4 Bargaining Power of Buyers.18
8.1.5 Bargaining Power of Supplier..18
8.2 Dell Porters 5 Forces.19
8.2.1 Rivalry among Competitors..19
8.2.2 Threats of New Entrants.19
8.2.3 Threats of Substitutes..19
8.2.4 Bargaining Power of Buyer20
8.2.5 Bargaining Power of Supplier..20
9.0 Similarities and Contrasts between Lenovo and Dell.20-21
10.0 Structure and Unstructured Problems..21

10.1 Lenovo Structured Problem21
10.2 Lenovo Unstructured Problem.22
10.3 Dell Structured Problem22
10.4 Dell Unstructured Problem.23
11.0 Decision Making Style23

11.1 Lenovo Right Decision Making.23
11.2 Dell Right Decision Making.24
11.3 Lenovo Bad Decision Making24
11.4 Dell Bad Decision Making25
11.5 Characteristic of Decision Making..25-26
12.0 Policy and Procedure..26

12.1 Lenovo Policy and Procedure.26
12.1.1 Lenovos Goals26
12.1.2 Lenovo Return Policy.26
12.1.3 Lenovo Warranty.27
12.2 Dell Policy and Procedure.27
12.2.1 Dells Goal.27
12.2.2 Dell on Policy..27
12.2.3 Dell Return Policy.27
12.2.4 Dell Warranty.28
13.0 Conclusion..28
14.0 Meeting Minutes29-36
15.0 References..37-40
Executive Summary
The purpose of this report is to study and understand the similarities and difference in
environmental factors, ethical and social responsibility issues, current structures and
challenges of managerial decision making of two organizations with similar operation.
The two companies that had been chosen are Lenovo Group Ltd. and Dell Inc. In our
report, SWOT analysis is used to analyse the strength, weakness, opportunity and threats
of these two organizations. According to analysis of Porters Five Forces, Lenovo Group
Ltd. is rated as Low whereas Dell Inc. is rated as Moderate for their level of
competition in five forces. It is also found out that Lenovo and Dell are highly rated in
their internal environment. These two organizations had made bad decision which caused
many cases of ethical issues happens. However, they manage to benefits the society by
introducing sustainability in their product and donate money to people in need. Lenovo
faces challenges in global marketing because their supply chains are not well integrated
and their workers cannot speak English fluently. As for Dell, the company has limitation
in ideas and technology and often receives complaints from their customers for the poor
customer services. Therefore, it is recommended that both of the company to conduct
survey regularly, put customers at top priority and maintaining the quality of products.
HES3380 ENGINEERING MANAGEMENT 1
1.0 Introduction
1.1 Authorization
This research project is conducted to understand the organizational management of both
Lenovo and Dell Corporation, and is authorized by the unit convener of Swinburne
University of Technology Sarawak, Ms. Piraiarasi Chelladorai. The time given for this
report is to be completed before 14 November 2014.
1.2 Objective
The main objective of this project is to do a research on two IT Company with similar
operations. We prepare a detailed analysis, make comparison and find the contrasts
between these two organizations. The other parts to be highlighted in our project are
SWOT and Porters 5 Forces of both organizations and to acquire a view on the
efficiency and effectiveness of their current management. The right and wrong decision
making are being explored to understand how a company corrects from mistake.
For this report, the purpose of choosing Lenovo and Dell Corporation is to understand the
current managing style of both organizations as they are stand on top in technology
industry. Hence, the research will be conducted in aspects of their backgrounds,
environmental factors, sustainability, ethical issues and social responsibilities.
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2.0 Background
2.1 Lenovo Group Ltd.
Lenovo is a popular worldwide brand for laptops, desktops and also smart devices
while offering a good price for all products making the middle income family can
enjoy the latest technology that exist. Back in 1984, Liu ChuanZhi, a former
Peoples Liberation Army Institute of Telecommunication Engineering
(Institution renamed to Xidian University in 1988) student which study radar had
founded the company Lenovo at Beijing, China. Liu founded the company with
ten engineers by merely 200,000 CNY. Lenovo company first study and produce
their first product which is a television but it appear to be failed but the members
on board didnt give up easily and they do it all over again and conducting quality
checks for their own products before selling them. Back in then, computer are
gaining more popularity and getting more normal for office usage, Lenovo start to
develop hardware that can process Chinese characters that is compatible with
IBM personal computers. With the Chinese-character card, Lenovo receive the
highest National Science-Technology Progress Award in China. In the same year,
1988 Lenovo also established a branch company at Hong Kong. In 2005, Lenovo
acquired IBM personal computer business with a total amount of US$1.75 billion
and became the worlds third largest personal computer vendor. (Lenovo, 2005)
2.2 Dell Inc.

Dell Inc. was founded by Michael Dell back in 1984 at Austin, Texas, United
States where initially the company was named as PCs Limited (Renamed to Dell
in 1988). Michael Dell was a pre-med freshman at University of Texas at Austin.
Michael Dell founded PCs Limited with only US$1000 in 1984. Michael Dell
quit his study to fully focus on his company; direct sell products to customers can
understand more about what the consumer wish to have in the product so that he
can develop the product better for consumers. PCs Limited (also known as Dell
back in 80s) released their very own design personal computer Turbo PC for a
price of US$795. In 1988, the company changed the name to Dell to avoid
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confliction with one British company and make it professional as also they set up
more international operations. In 2006, Dell acquired Alienware to obtain more
gaming laptop and desktop knowledge and merging with their up to date
knowledge to create a better product to sell on market. Meanwhile they also go on
to acquire more company to extend their range of products from only personal
computer to high end gaming computer and also business and server classes
device. (The New York Times, 2006)
3.0 Environmental Factors

3.1 Internal Environmental (Lenovo and Dell)
Dimension Lenovo Dell
Attention to Details High High
Outcome Orientation High High
People Orientation High High
Team Orientation High High
Aggressiveness High High
Stability Medium Medium
Innovation and Risk Taking High High
3.1.1 Lenovo Group Ltd.

Lenovo collect and analyze the sales along with feedback of the product to
investigate the details of every product so that they have the best outcome
and as popular consumer. Lenovo always get to develop more product
ranges to fit into consumer life and also making all high end or the latest
technology available for everyone at a cheaper value. This makes a major
influence on their stability of organization. Since then, Lenovo as one of
the world leading technology companies keep on doing something unique
that can differentiate them apart. Lenovo had won the best track record of
the PC industry for innovation of products, receiving greatest reviews and
winning awards from time to time (Lenovo 2014).
3.1.2 Dell Inc.
Dell gathers and studies of feedbacks of their clients via discussion boards
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to improve their product. Besides, Dell would like to authorize states and
vendees to utilize technology in order to achieve their ambitions. In
addition, Dell also set up employee resources group to assist their
employee connected. By having Alienware to expand their organisation,
Dell plans to contend with rival aggressively in the markets and
concentrating on the business sector. But in fact, the establishment of Dell
official website has caused a negative impact to the sales agent (Dell 2014).
3.2 External Environment
3.2.1 Lenovo Group Ltd.
3.2.1.1 Political
China's government strongly promotes the green IT policy to reduce
energy consumption and cut down the noise pollution. Since then,
Lenovo has fulfilled the social obligation of green IT with an index of
less than 30 dB in noise pollution. In year 2005, China joined the
WTO and eventually the export tariff of the PC industry has reduced
to 9.1%. Thus, Lenovo has received the support to expand its
organization into the global market (Xiaojun Cui 2009, p. 151).
3.2.1.2 Economic
In 2008, the global economy shows a declining trend due to the
economic crisis. Meanwhile, China's government declared economic
policy to loose monetary and built structure finance by providing four
hundred million CNY to stimulate economic growth. Therefore, the
demand for PC products in China has slowly increased with the
gradual increment of GDP. Hence, Lenovo has gained strength to
compete in the market share as IT market gets bigger (Decicco et al.
2005, p. 95).
3.2.1.3 Social
The education level in China has risen to an adequate level in 2008
and hence this situation has provided an immense market for Lenovo
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to satisfy the need of society. Furthermore, people of China were

influenced by developed countries and thus become approach to
modern lifestyle which needed advanced technology product in daily
life. This situation gives Lenovo an effective environment for
development (Xiaojun Cui 2009, p. 152).
3.2.1.4 Technological
In 2005, Lenovo purchase IBM's PC operations and it helps Lenovo
to fully utilize of IBM' technologies in R&D to develop quality
products. Concurrently, evolution of technology in global reduces the
cost of communications and it facilitates various organization shares
their technology and methods in R&D. Eventually, Lenovo gain
beneficial from technology to improve its competency to expand the
global market in the next five to ten years (Xiaojun Cui 2009, p. 152).
3.2.2 Dell Inc.
3.2.2.1 Political
Dell applies a simple method to proceed in those countries by
establishing partnerships with local companies, and to supply
financial and technical resources. Nevertheless, Dell Company sees
returning potential in those countries which loosen their limitations
(Abey Francis 2011).
3.2.2.2 Economic
Dell expects its company has an increment depends on the economic
situation in a particular country that having an influence on the
purchasing ability of buyers. Meanwhile, profitability of Dell is
influenced by the currency fluctuation, changing rate of inflation and
the exchange rate of the home currency. Costs of imported products
may vary depending correspond to the rates of exchange. Besides,
consumers are capable of getting higher quality products when there
is an increase in income (Kenneth 2000).
3.2.2.3 Social
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Demand for Dell computers increases with an increase of educational

standard. Nowadays, kids begin acquainted with the use of an
electronic device since young and they are hardly lives and functions
without a computer in the future. In addition, the brand identity of a
company is increasingly imperative in customer purchasing decision.
Dell conforms to this trend by extending a broader range of
computers and attempting to build a strong brand image (Abey
Francis 2011).
3.2.2.4 Technological
China is expected to become the third largest PC production in the
world as its yearly production could achieve 7.6 million. The online
service offers a good chance for companies to tailor services for their
customer. However, access to the Internet is expensive in China and
thus becomes a threat to Dells business (Kenneth 2000).
4.0 Sustainability
Sustainability is how an organization contributes harmonious and sustainable
development to the society. To fulfil their commitments, Lenovo is trying to be
more ethical and put more efforts on promoting sustainability in all their company
activities. Their commitments are demonstrate based on a responsible and
transparent management with social, environmental and economic values. This
requirement has been set to Lenovos worldwide operation and each of the
particular members of Lenovo must apply this policy and also the contractors that
perform works on behalf of Lenovo. The three principles are as follow:
4.1.1 Social
Lenovo has shown their social values in the following aspects:
To ensure their employee work in a safe, healthy and enriching
environment.
Play their roles as a fair, responsible within the community that
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their business operate.

Make sure the values and expectations of Lenovo are upheld by
their supply chain.
Contribution of the community development and extending
Lenovos benefits to the communities.
4.1.2 Environmental
As a member to maintain this green environment, Lenovo sets some value
for their company to reduce the impact to the environment:
Make sure all the environmental requirements are strictly followed
by the company member wherever they does business.
Reduce Lenovos environmental impacts activities in aspect of their
products, operations and services. Lenovo also ensure the
awareness of potential environmental impacts to all their employees.
(Lenovo, 2013).
Minimize Lenovo climate change impacts.
Manage the resources with responsible.
4.1.3 Economic
For the economic parts, Lenovo provides a long terms value for their
investors and stakeholders. Through producing solutions and the best
technology, the economic situation of their customers can be improved.
4.2 Dell Inc.
4.2.1 Social
Dell goes beyond funding to create comprehensive programs that aim to
transform the communities they served. Dell empowers their team members
to use their skills and expertise to support the causes. The following are the
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examples of Dell committed in social responsibility.
Technologies reshaping societies and economies around the world

and concern people before in a way of generation.
Dell also takes a holistic approach by giving supplements funds

using technology, volunteerism and expertise. Doings these will
approach to long-term result and productive relationship to the
communities that they work around the world.
Youth learning also a part of dell contribution. Dell provides the

latest technology for the youth education.
4.2.2 Environment
Dell manages to improve the way to our global resources. In 2007, Dell has
set the goal to become a greenest technology around the world. The following
are the ways of Dell in to actualizing its goal.
Dell use the same innovation to develop their products and services
for customers can also give some opinion to discovering ways to
use fewer resources. (Dell, 2014)
Delivering energy efficient products and electronics recycling

solutions to help their customers further for an eco-friendly and
end-of-life products.
Dell leveraged their recycling industry leadership to advocate e-

waste legislations. According to Lesser (2011), Dell has partnered
with FedEx and provides a Dell Product pickup Program. This is a
completely free service that Dell collects unwanted products or
equipment from its customers home or business area.
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4.2.3 Economic
Dell works with their suppliers to ensure ethical operation, called supply chain.
Dell conducted globalization business in broader scale that enable them able
to manage a complex supply chain in a rapid evolving function. Dell
strengthens their executive leader supplier coaching and mentoring by
increasing participation in national supplier events.
5.0 Ethical Issues

In 2008, the new online ordering system of Lenovo Canada had caused many
inconveniences to its customers such as massive shipping delay, missing
customers order, shipping multiple products and sending wrong product.
According to Hogg (2008), a journalist who ordered a Lenovo Thinkpad online
had not yet received his laptop after waiting for 3 weeks. When he called the
customer service center, the receptor revealed that the new ordering system was
buggy and the company had received numerous complaints. Then, he
encountered a bad experience after speaking to president of Lenovo Canada who
claimed that he was unconcerned with this major change of software because he
was not directly responsible to customer space. Finally, an anonymous employee
said that Canada was being used as a test ground before the implementation of
this new ordering system globally. This system was still testing and did not work
out properly.
On 22 May 2014, Lenovo Canada advertised its Y410P laptop for only $279
during a Door Buster sale on its website. Soon the company abruptly cancelled
all the orders by giving reason that there is a pricing error. However, after
confirming the price error, Lenovos official website continued offering this
discount for the next 8 hours. On the other hand, many customers had not yet
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received refund after their orders had been cancelled. Some of them worried that
the purpose of Lenovo Canada is to collect personal and credit card information
through these cancelled orders (Bogart & OShea, 2014).
According to Olenick (2014), the U.S. Consumer Product Safety Commission

(USPSC) had received two reports about Lenovos battery pack. The overheating
battery had caused fire which damaged the battery, laptop and its nearby
property. Luckily, no one was injured. Therefore, USPSC activated a recall for
the batteries in order to avoid any accidents happen again. This recall impacted
more than 37,000 laptops sold in United States and Canada. Lenovo is offering
free replacement of all the defective batteries.
5.2 Dell Inc.
Having a good ethic is important for every company, however, according to

Yamada (2010), Dell which is one of the worlds leading computer
manufacturers, tried to hide the truth from customers serious malfunctions in
millions of computers marketed between 2003 and 2005. He also pointed out
that dells employees were actually aware the systemic problem of the computers
but still persuaded the customers to rely on trouble-prone machine. Dell refused
to fix 1000 suspected computers even the company defending dell in the lawsuit
affected. Technology consultant Ira Winkler and a former computer analyst for
the National Security Agency said that Dell fixed bad computers with bad
computers and misled customers at the same time (Yamada 2010).
According to ABC News, another related ethical issue is New York State
Attorney General Andrew Cuomo has filed a lawsuit against Dell, blaming the
company of being deceitful and illegal business practices. A company is allowed
to have their way of marketing but it could be a consumer fraud if it is beyond
aggressive way. Dell gave the impression of their service that available
consumers to have 24 hours services, but consumers faced difficulty to get help
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and technical service from Dell when their computers got trouble. Based on the
article, Cuomo said New York had received 700 complaints. A case is provided
in the article, Barbara Williams, a 67-year-old retiree who runs a crochet club
from her computer, paid Dell for an "in-home" service plan that can cost up to
$300. When her computer broke down, she called Dell thinking a technician
would come to her home to fix it. Instead, the technician told her to dissect her
computer on her own. She waited six weeks before a technician came to repair
her computer.
6.0 Social Responsibility

6.1.1 Communities
In September 21, 2009, Lenovo has donated $150 000 to Millennium
Promises Millennium Village Project (MVP). This has lead an establishment
of 9 new school labs and 25 Information and Communication Technology
(ICT) rooms in ten countries in sub-Saharan Africa. Lenovo also support
Millennium Village by purchasing 148 Lenovo PCs that included all the
installation, provide technology training and additional technologies
equipment. (Lenovo News, 2009)
During FY 2009/10, Lenovo and their employees give support to global

disaster relief efforts especially in Chile, Haiti and Taiwan. In 2010, Lenovo
gave financial support to the Medical Missionaries, donated equipment to the
American Red Cross and also organized an international charitable campaign
in which the donations from employee will be used to support the American
Red Cross. Lenovo global employees have donated more than $60,000USD
to the American Red Cross to support Haiti earthquake disaster victims.
(Lenovo, 2013)
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6.1.2 Environment
Lenovo has utilized the environmental friendly materials in manufacturing
laptops, computers, monitors and other devices. It makes use of Post-
Consumer recycled Content (PCC) plastics and Post-Industrial recycled
Content (PIC) plastics in its products and has successfully reduced the
emission up to 38798 tons emission of carbon dioxide (CO2). (Lenovo, 2013)
6.2 Dell Inc.

6.2.1 Communities
According to the Philanthropy News Digest, Dell has announced grants with
total $2.4 million to 26 organizations in 11 states of America. Dell employees
also donate their expertise and serve as role models and mentors to
participating youth as a part of initiative. The examples of organizations
include Skillpoint Alliance in Austin, Urban League in Oklahoma City, Youth
Villages in Nashville and Girl Scouts USA.
Dell has partnered with certain relief organization in respond to specific

community disaster. The organizations included American Red Cross,
NetHope and UNICEF. Dell donated $50,000 to UNICEF, 100 laptops and
$40,000 donation to first responder organizations in response to Philippine
that struck by the Typhoon Haiyan in November 2013. In May 2013,
Oklahoma City was impacted by multiple tornadoes that killed 24 peoples and
affected more than 10,000 peoples. In response to this, Dell donated more
than $540,000 in cash, food, water and clothing to all affected family.
Moreover, Dell provided funding via employee donations to Sichuan that
struck by a 7.0 magnitude earthquake in April 2013. (Dell, 2014)
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6.2.2 Environment
Dell Company has recycled more than 170 million pounds of end-of-life
computer equipment internationally and expanded the use of recycled-content
plastics in its flat-panel monitors and OptiPlex desktop systems. Besides, Dell
achieved the last of its 3Cs packaging strategy which 3Sc are Cube, Content
and Curb. The Cube is to reduce packaging size; Content is to use recycled
or sustainable materials; and Curb is to make packaging easily recyclable.
(Dell Inc., 2013)
Based on the researched information on both corporations, it can be concluded that both
corporation are putting social responsibility in high priority. This is considered due to
their donation to relief disaster around the world and giving support in education through
sponsorship and providing equipment to schools. Hence, both corporations have done
well in social responsibility in which they involved in protecting and improving society
welfare.
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7.0 ANALYSIS
7.1 SWOT Analysis
SWOT Company
Strengths Lenovo
Provides quality goods and services
Excellent brand recognition and renowned traditional
reputation
Up to 90% sales of its products in mainland China. ( Vora
2009 )
Expanding global markets strategy of marketing
Diversification of products
Owns very convenient and beautiful images
Good public relationship and sponsorship
Rapid responsiveness
Has knowledge about local market
Strong Research and Development (R&D).
Dell
Renowned brand in the world.
Latest technology
Supply Chain management
Advantage in their inventory turnaround time and well-
controlled relationships with suppliers
Good in targeting the business executive category
Low operating cost with respect to revenue because it supplies
directly to customer without going through retailer. (Bhasin
2013)
Environmental record involved in many green initiatives and
been rewarded as eco-friendly business.( Jurevicius 2013)
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Weaknesses Lenovo
Products and services are mainly sold by monopolized stores
Poor brand perception especially in the market of European
and US. Lenovos brand are not renowned in western
countries and its market are merely focus on mainland China
and Asia( Xiaolu 2013 )
Products recognition is low
Inadequate knowledge about global market
Less product styles
Marketing sources are not rich
Prices are not cheap
Dell
Poor customer services
Low investments in R&D Dell lost chance to produce good
products for tablets and smartphone as well as the innovative
skills.( Jurevicius 2013)
Too few retail locations
Low differentiation Dell products are no much differing
from the products of competitors
Opportunities Lenovo
Import barrier
Increase global demand
Growth of smart phone in India. Xiaolu(2013) stated that

India are lacking of phone company and thus it is considered
an opportunity to penetrate the Indian smart phone market by
introducing their cheap Lephone.
Government Association
Improving pc market.
Increase the diversification of products
Growth in tablet devices. ( Xiaolu 2013 )
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Dell
Acquire more patents for its products
Innovation and entry into tablets and Smartphone markets

with windows OS
Increased communication and technological integration
Reinforce their existence in competitive market
Expand into government and education market
Threats Lenovo
Fast changing technologies
Too many competitive corporations
Industry reaching maturity
Clone market competitor in China or in Asia. Clone mobile

phones are normally cheaper than the real Lenovo mobile
phone. This may influence the market of Lenovo in mainland
and overseas. ( Xiaolu 2013 )
Little firm growth
Cheap products appearing
Software privacy
Dell
Increasing competitor of PC market in China
Price difference among brands
Increasing demand of smartphones and tablets
Too many competitors such as Apple, Toshiba, Lenovo and

Acer. (Jurevicius 2013)
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8.0 Lenovo and Dell Porters Five Forces Analysis
8.1 Lenovo Porters Five Forces
8.1.1 Rivalry among competitors

Moderate rivalry among existing firm.
Competitive pricing will bring more alliance in the industry to cut down
development costs.
Lenovo expects greater competition from rivals Acer and HP as PC
vendors in prepare to launch devices that are able to attract consumers.
The PC industry shows a low gross profit and hence Lenovo precede
market by rising with the latest models (Chiwoo 2013).
8.1.2 Threats of new entrants

Low threat from new established companies.
Aggressive pricing and reducing margins of profit increases the hindrance
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for small companies to get into the market.

Large companies are capable of investing in R&D and hire top
management talent. Thus, it has greater benefit in product innovation.
Dell, Apple, HP, Toshiba, and Sony are being reputed as the most desirable
options when it concerns PC.
8.1.3 Threats of substitutes

Low threats of substitute.
Tablets are appealing alternatives for customers, but Ultrabook will affect
this changing by becoming a more appealing selection compares to tablets.
The PC industry faces a substantial threat from modern trends such as
cloud storage, which potentially brings down the demand for high storage
in portable laptops.
Advances in communication technologies given chance for devices such as
smartphones to compete with PC by providing correspondent capabilities.
8.1.4 Bargaining power of buyers

Moderate bargaining power of buyer.
Customers have great bargain power over producers in terms of buying
preferences and dictating demand.
Lenovo keep launching aggressively priced devices in an effort to attract
the price conscious customer.
Customers prefer for wireless connectivity and portability device at low
price influenced the development of the tablet market as compared to PCs.
Demand of customer for cheaper PC and the creation of new functions such
as touchscreen (Business Teacher 2014).
8.1.5 Bargaining power of suppliers

Low bargaining power of supplier.
Lenovo fabricates its own materials, primarily the raw materials like chips
and boards.
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Microsoft rules with its Operating Systems of Windows and consequently

maintains a significant power over PC industry.
8.2 Dell Porters Five Forces
8.2.1 Rivalry among Existing Firms

Moderate rivalry among existing firm.
Low degree of differentiation with the product of other competitor such as
HP and Lenovo.
High switching cost in research and development.
Exit barriers plenty are high as it is hard to switch industries since of
money has been invested in Research and Development.
8.2.2 Threats of New Entrants

Low threat from new established companies.
Large economies of scale in computer market that small start-up companies
are impossible to cause any influence on it.
Has a complex network of shipping points and distribution centers.
Investment of money in aspect of Research and Developments. Dell has
spent around 0.5 billion dollars in its technologies to keep it stay
atop.(Carpenter, Fink and Harris, 2008)
Strong partnership with largest technology companies.
8.2.3 Threats of substitute

Moderate threats of substitute.
Undifferentiating the products from other brands.
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Consumer purchasing the products based on price, need, quality and value.
8.2.4 Bargaining Power of Buyers

Moderate bargaining power of supplier.
Low in switching cost since the competitor product almost similar.
Buyers are price sensitivity that they will ignore the product brand name
and just based on price.
8.2.5 Bargaining Power of Suppliers

Moderate power of supplier.
Numbers of suppliers for its components such as keyboard, mouse,
hardware and others.
The company never relies on certain supplier permanently; however, the
company will change the supplier if they dont meet the required standard
of Dell.
Always looks for the suppliers that are innovative and can provide low cost
with high quality product.
Dell has utilized its low cost strategy to decrease the cost from the suppliers
of big company such as AMD, Intel and Microsoft. With this strategy, Dell
can purchases massive amount of quantities and reducing the bargaining
power of supplier.
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9.0 Similarities and Contrasts between Lenovo and Dell

SWOT
Similar
Weakness less product style & low differentiation
improve and enhancement their PC market
Opportunity
increase product diversification
Threats too many competitor
Contrast
Lenovo is well recognized in China but Dell is world recognized brand
Lenovo has a strong Research and Development but Dell is poor in the
Research and Development
Lenovo provide good services meanwhile Dell provide poor services
Dell directly supply their product to customer but Lenovo is mainly sold by
monopolized stores
Porters' Five forces

Similar
moderate rivalry among existing firms
low threats of new entrants
moderate bargaining power of buyers
Contrast
Lenovo has low level threats of substitute products compare Dell has
moderate level
Dell has moderate level bargaining power of supplier compare to Lenovo
has low level
Overall Dell has a higher level compare to Lenovo
GROUP 20 21
10.0 Structure and Unstructured Problems

10.1 Lenovo Structured Problem
With experienced personnel enter the company, the problem of Lenovos supply
chains was not well integrated. Gerry P. Smith pointed out that Lenovo had
separated distributors at different regions of the world and different customers
with different business models. Besides that, the company had 150 key
performance indicators (KPIs) for the employees to meet. This large amount of
KPIs will lead to increase the time of internal delays when orders are dropped.
Smith slashed the numbers of KPIs from 150 to only 5. With this less amount of
KPIs it had effectively shorten the time and also created a flexible organization
to turn things around easily and smoothly.
10.2 Lenovo Unstructured Problem

Lenovo was originated from China and mainly doing their business within their
main land. In year 2004, Lenovo has took a step further and goes global.
Lenovo formed a team in New York for the purpose of discussing the matters
that related to acquisition of IBM personal computer division. The problem they
faced for this is new, they are Chinese based company and nearly 99% of them
cant speak fluent English. This is a new and critical problem for them as
English is the international language and if they didnt manage to handle it, they
cant even enter the global market. The cultural of both countries are different.
CEO Yang Yuanqing decided to nominate a Western executive to be the chief
executive of the combined company. In such they can learn more about the
western culture so that the dream of expanding the company range can continue.
(William, J 2014)
10.3 Dell Structured Problem

In 2007, Michael Dell had returned to the CEO seat of the company after 3
years the company had suffered. Mr. Michael Dell restructures the company and
GROUP 20 22
reinvents the company. The first problem is where about studying on the
weakness of the product. Michael Dell appointed that the team should focus on
R&D (Research and Development) so that can produce better product that are
more relevant and useful. Besides that, the in house team also having some
limitation and ideas so Michael Dell acquired new enterprise companies. This is
necessary as it will help to solve more problems as the acquired companies had
different field and background experience of doing stuff that Dell Inc. might just
trying to do. After the company had experienced a lot of strategies of handling
customers complain and services, they still keep on learning and putting effort
to close the customer relationship. (Markowitz, E 2014)
10.4 Dell Unstructured problem

In the year of 2005, an incident happened which made a big shift for Dell Inc.s
culture and also customer service practices. An article which written by Jeff
Jarvis in June 21, 2005 complaining that the machine he bought at a high price
from Dell doesnt operating properly and the after sales service also didnt
performed as the company policy stated. At Jeff Jarviss blog also had a lot
people complaining Dell for being such irresponsible for the services. CEO
Michael Dell directly formed a team of members which initially act in
countering this situation and protect their company name. Michael Dell was the
first person in the company who realized the importance of the social media and
for this problem, he did personally involve to action. Michael Dell also
nominated Lionel Menchaca for the new position for handling all kinds of
customer complaints and leading the team to listen and respond, support,
building community relationship and also discussing topics which related to
their product and help out the customers to reach out for expertise. (Social Axis
2012)
GROUP 20 23
11.0 Decision Making Style

11.1 Right Decision Making of Lenovo
Lenovo brought Motorolas phone operations from Google in 2014 for $2.9
billion. From this case, Lenovo has demonstrated good decision because
Motorola can help the company to widen its market on mobile technology
especially in the United States. It is because Motorola is a long-historic
company in the United States and has close relationship with Verizon Wireless.
(Segan, 2014). Another right decision made by this company is the recall of
defective ThinkPad battery pack. According to Olenick (2014) Lenovo
apologized for this issue and is offering free replacement for the batteries to its
affected customer. In addition, a website is specially created for customers to
check if their laptops battery is included in this recall.
11.2 Right Decision Making of Dell

Shara(2013) pointed out that Dell has decided to work secretly with investment
firm Silver Lake partnering on a $24.4 billion leveraged buyout. Microsoft
donated $2 billion loan to help fund the deal as well. It is good to go private as
the private company can be more flexibility and gain more independence from
Wall Street investors to do things without disclosing every move to regulators
and public shareholders. Dell has played an essential role in the PC revolution.
However, Dell focused in providing data center technology instead of just
continue selling PCs has brought a little success in increase revenue of Dell's
server and networking business by 11 percent from the previous year to $2.32
billion. It can be concluded that Michael Dell has made a good move as he sees
growth in private company.
11.3 Bad Decision Making of Lenovo

Lenovo made wrong decisions and caused angriness of their consumers when
the company cancelled all the orders on a discounted laptop abruptly due to
GROUP 20 24
pricing error. After confirming the price error, the company continued
advertising the discount for the next 8 hours. Lenovo had offered $100 off to
the affected customers for their next purchase of Lenovos product. However,
many customers are unsatisfied with this decision and suggested the company
to honor the sale price of the laptop (Bogart & OShea, 2014). Moreover,
Lenovo had chosen Canada as test grounds to carry out testing of the new
ordering system without the acknowledgement of their customers in 2004.
According to Hogg (2008), the buggy ordering system had caused massive
shipping delays. Besides, the receptor from customer service center was
unfamiliar with this new system when customers asked for follow up of their
orders.
11.4 Bad Decision Making of Dell

In the article Dell earnings miss market targets, Dell Company has reported
earnings failed to reach markets target due to its slow sales, poor service and a
securities and exchange commission into its earnings. Dell is losing its clients
to Hewlett-Packard (HP) which is one of the rivals of dell as Hewlett-Packard
(HP) boosted sales by cutting prices to attract more customers. Meanwhile,
Dell has been struggling to fight off Hewlett-Packard (HP) to become the
worlds largest computer maker. It was found that Dell Company's shares fell
1.6% in after-hours electronic trading in New York. Dell admitted its growth
and profit margins "will be under pressure" in the next several quarters. In this
case, Dell Company has made a wrong decision that brought company failed to
achieve the goal.
GROUP 20 25
11.5 Characteristic of Decision Making
Lenovo
Good Decisions Bad Decisions
Corporate with other company Provide wrong information
Failure to correct information at the

Widen companys market
first moment
Responsible to any accidents Dishonest by hiding information
happened from customers
Lack of employees training on

new software
Table 1: Characteristics of good and bad decisions of Lenovo
Dell
Good Decisions Bad Decisions
See the growth in market Failed to satisfy customer
Good cooperation between firms Failed to achieve the goal
Follow market and consumers

Poor in solving problems
demand
Table 2: Characteristics of good and bad decisions of dell
GROUP 20 26
12.0 Policy and Procedure

12.1 Lenovo
12.1.1 Lenovo goals
Lenovo has applied the concept of sustainability in order to minimize
carbon foot print and prevent pollution. Besides, Lenovo also responsible
to reduce health and safety risks by disposing waste safely. Their goal is to
improve the facilities and supply chain that may endanger human health
and environment. Lenovo Company is also striving to improve their
performance in sustainability and provide a best environment management
system in their factories. Therefore, Lenovo Company is practicing the use
of environmental-friendly technologies in order to protect our environment.
In addition, Lenovo meets all legal requirements and standard of all
applicable environmental requirements for all their activities and products.
(Environmental Policy 2013)
12.1.2 Lenovo return policy

Under Lenovo Return Policy, customers are allowed to return or exchange
if they are unsatisfied with their purchased product. However, all the
returns must be carried out within 30 days from the purchased date and it
must pack in the original packaging with its accessories. To initiate a return,
customers need to fill up a form and return the product along with invoice
and original shipping label to Lenovo. (Lenovo Return Policies 2013)
12.1.3 Lenovo Warranty

The warranty period for all Lenovos products is limited to 12 months
unless it is otherwise specified. Lenovos customers are allowed to
exchange or replace their defective product free of charge within these 12
months (Lenovo Support (US), 2014).
GROUP 20 27
12.2 Dell
12.2.1 Dells Goal
Dell has stressed on sustainability and reduction in pollution. For example,
Dell has reduced 12% of the package size and successfully decreased 20
million pounds of packaging waste. (Sustainable Packaging: Innovative
Solutions to Learn From 2014). Dells objective is to deliver and design a
product that brings less bad impact on environment. Moreover, Dell
operates their facilities and factories in the way that harmful impacts on the
environment are minimized. (Policies and Positions 2014)
12.2.2 Dell on Privacy

Dell may collect personal information, credit card information and history
of visiting Dells official website from their customers. The information
collected is used for delivery and protection of Dells private business
information. Dell may combine customers information with other Dells
resources and supply to other parties. (Privacy Statement 2014)
12.2.3 Dell Return Policy

Dell company offers return within 15 days of the date of Dell's invoice for
dell products. To return products, the customers are required to contact Dell
to receive a Credit Return Authorization Number to make further deal
(Returns and Refunds for Change of Mind Policy, 2014).
12.2.4 Dell warranty

Dell products come with a 3 months plus 1-year till 5-year or other limited
hardware warranty. Dell warranty can be extended or renewed within the
current warranty period (Dell Warranty, 2014).
GROUP 20 28
Recommendation
Dell and Lenovo is advised to be prepared for the potential rivals in this competitive
world. It is recommended to do survey regularly. Through survey, a company could
identify the customers need and market demands. Instead of solving the problems caused,
it is more important to know what people want. In the dimension of business, a good
image of a company is a very important thing. Having a good attitude is a key factor to
have good image and the way to change customer views and seeds their trust. A company
should take the responsibility and do their part as the policy stated in order to gain trust
and interests from customers. A company should think twice and make wise decision to
achieve the goal. As a service company, it is recommended to always put the customers
on the top of the priority. To optimize the return in investment for a company, a company
should have a good relationship with customers. This way, the company could maintain
their reputation and profit. During product development process, both companies should
put more efforts and concerns in manufacturing process in order to minimize product
launch risk and maintain high quality products. In conclusion, both companies should
consider the recommendations given.
GROUP 20 29
Conclusion
In conclusion, by completing this research project it had given a very good opportunity
and also image to understand more about organizations and also management systems.
Lenovo Group Ltd and Dell Inc. did shows positive and also negative activities and
attitudes but they did share some similarities but also having difference in some aspect
such as management process and skills. They are one of the world leading technology
companies and produce latest gadgets, but being a leader in this range is tough due to
they need to focus on many aspects that no one had ever discovered and most of it is
classified as environmental factors such as internal and external factors. They also had
involved in some ethical issues such as having bad attitude to customers. Social
responsibility and sustainability also did shown by them. Both companies did giving
back some goods to the society such as Dell Inc. giving their opportunities to help in
education for increasing the education level of some country such as Africa. With the
increasing demand of market on tablet PCs, both of them facing difficulties because they
are not into this range of market yet result in moderate bargaining power of buyers and
rivalry. Structured and unstructured problems exist in both companies. Their own
companys policy and procedure also prevent any experienced and un-experienced
problem to occur again.
GROUP 20 30
13.0 Minutes Meeting

HES 3380 ENGINEERING MANAGEMENT 1
Research Group 20
Title: Lenovo Group Ltd. versus DELL Inc.
Lecturer : 1.0 Introduction
Piraiarasi The general meeting was held on 12th of September 2014 by Chan Su
Chelladorai Ming at 1.30pm.
Tutor : 2.0 Confirmation of Minutes

Kii Ing Bui Minutes of meeting was proposed by Lim Beng Hooi.
Chairperson : 3.0 Meeting content

Chan Su Ming This is the first meeting that held by the group. Purpose of this meeting is
to introduce each other and to know each other well.
Vice Chairperson : Attendances are follow:
Tein Shyh Yau Chan Su Ming
Lim Beng Hooi
Secretary : Ian Jasper
Wendy Wong Tein Shyh Yau
Ian Jasper Wendy Wong
Eric Tan
Resource Tan Sze Nian
Manager :
Lim Beng Hooi After introducing, we began to discuss which two organizations to be
Eric Tan presented as our topic of the research project. Immediate we start to search
on the internet for information and share the topic that we had searched
Multimedia : separately.
Tan Sze Nian
At the end of the meeting, all of us had agreed that to compare Lenovo
and Dell since they are Worlds leading computer manufacturer and we
love to study about them and learn about them on how to be so successful
until managing the company worldwide.
Topic of the researched also been distributed evenly within the members
by Tein Shyh Yau and Wendy Wong reminded to post our details and
contact number to the group blog.
4.0 Closing
Due to time constrain and also there are no more topics to discuss, the
meeting was dismissed at 2.30pm.
Recorded by: Confirmed by:
Wendy Wong CHAN SU MING

Secretary Chairperson
GROUP 20 31

Research Group 20

Kii Ing Bui Minutes of meeting was proposed by Wendy Wong.

Chan Su Ming The second meeting was to update the current status of the overall project.
Questions are also raised by all members and also share information that
Vice Chairperson : had already found by individual person.
Tein Shyh Yau
During the meeting, we also look into the criteria of the initial
Secretary : presentation and also discussing who shall be the initial presenter.
Wendy Wong
Ian Jasper The presenter for the initial presentation was volunteered by Tan Sze
Nian. The information that had gathered earlier was given to him so that
Resource he can prepare the slides for presentation.
Manager :
Lim Beng Hooi While the rest of us continue with exchanging information and also
Eric Tan immediate doing online research for more information that can be put into
the slides for initial presentation.
Multimedia :
Tan Sze Nian Chan Su Ming also assigned Ian Jasper to design the Gantt Chart for the
presentation for showing the planning of our project.
4.0 Closing
No more other topic that is raised from members, the meeting was ended
at 2.30pm.
WENDY WONG CHAN SU MING

GROUP 20 32

Research Group 20


Chan Su Ming The meeting was held for the discussion of the upcoming group task 2.
Each member are assigned with different part of work as follow:
Vice Chairperson : 1. Background of both company Tan Sze Nian
Tein Shyh Yau 2. External and Internal environmental - Lim Beng Hooi
3. Sustainability - Ian Jasper & Eric Tan
Secretary : 4. Ethical issues - Wendy Wong & Tein Shyh Yau
Wendy Wong 5. Social responsibilities - Chan Su Ming
Ian Jasper
After distributed to tasks, members continue to look into the criteria and
Resource specific topic that are required to answer which prepared by the lecturer.
Manager :
Lim Beng Hooi
Eric Tan
Multimedia : 4.0 Closing

Tan Sze Nian No more other topic that is raised from members, the meeting was ended
at 2.30pm.
IAN JASPER CHAN SU MING

GROUP 20 33

Research Group 20

Piraiarasi The general meeting was held on 3rd October 2014 by Chan Su Ming at
Chelladorai 1.30pm.

Kii Ing Bui Minutes of meeting was proposed by Eric Tan and Lim Beng Hooi.

Chan Su Ming The purpose of this meeting is to know the overall progress of the project.
Vice Chairperson : We also take a look with the overall research to confirm that we had
Tein Shyh Yau answered correctly base on the questions that is stated in group task 2
handout.
Secretary :
Wendy Wong Chan Su Ming also assigned Eric Tan to do the compile job for the
Ian Jasper research report.
Resource Tein Shyh Yau, Wendy Wong and also Lim Beng Hooi are assigned to
Manager : summaries the report.
Lim Beng Hooi
Eric Tan

Tan Sze Nian Due to time constrain and also there are no more topics to discuss, the
meeting was dismissed at 2.30pm.

GROUP 20 34

Research Group 20

Piraiarasi The general meeting was held on 17th October 2014 by Chan Su Ming at
Chelladorai 1.30pm.

Kii Ing Bui Minutes of meeting was proposed by Chan Su Ming.

Chan Su Ming This is a short meeting where we look through the compiled documents
and comment on the final work that had already done on the date.
Vice Chairperson :
Tein Shyh Yau Several part of the report is changed to finalize the report before
submission.
Secretary :
Wendy Wong
Ian Jasper
Resource 4.0 Closing

Manager : Due to time constrain and also there are no more topics to discuss, the
Lim Beng Hooi meeting was dismissed at 2.00pm.
Eric Tan
Multimedia :
Tan Sze Nian

GROUP 20 35

Research Group 20

Piraiarasi The general meeting was held on 31st of October 2014 by Chan Su Ming
Chelladorai at 1.30pm.

Kii Ing Bui Minutes of meeting was proposed by Chan Su Ming.

Chan Su Ming This meeting is proposed for the reason of distributing work of Group task
3 among members. Work distribution as follow :
Vice Chairperson : Chan Su Ming Dell SWOT and Porters Five Forces Analysis
Tein Shyh Yau Lim Beng Hooi Lenovo SWOT and Porters Five Forces Analysis
Tein Shyh Yau Wrong decision making
Secretary : Wendy Wong Right Decision making
Wendy Wong Ian Jasper Policy and Procedure
Ian Jasper Eric Tan Strategic Management
Tan Sze Nian Structure and Unstructured Problems
Resource
Manager : After work details had been distributed, members are sharing ideas on
Lim Beng Hooi related topic to prepare a better quality for the research project.
Eric Tan
Multimedia :
Tan Sze Nian
4.0 Closing
at 2.15pm.

GROUP 20 36

Research Group 20

Piraiarasi The general meeting was held on 7th of November 2014 by Tein Shyh Yau
Chelladorai at 1.45pm.

Kii Ing Bui Minutes of meeting was proposed by Wendy Wong.

Chan Su Ming Meeting was proposed to get known to each members progress on the
research project.
Vice Chairperson :
Tein Shyh Yau With some of the members had done a well progress on their given tasks,
Chan Su Ming assigned them to help on the others where they had
Secretary : difficulties.
Wendy Wong
Ian Jasper Correction on the latest project also be instructed by Tein Shyh Yau.
Resource
Manager :
Lim Beng Hooi
Eric Tan
Multimedia :
Tan Sze Nian
4.0 Closing
at 2.30pm.

GROUP 20 37

Research Group 20

Piraiarasi The general meeting was held on 14th of November 2014 by Chan Su


Chan Su Ming The meeting was held for the purpose of checking and compiling the latest
job done to a single file.
Vice Chairperson :
Tein Shyh Yau Checking was done directly by all members. Tein Shyh Yau and Ian
Jasper pointed out few mistakes that need to be correct.
Secretary :
Wendy Wong The report had been finalized before the 2:20pm and ran through final
Ian Jasper checking. Ready for submission.
Resource
Manager :
Lim Beng Hooi
Eric Tan

Tan Sze Nian No more other topic that is raised from members, the meeting was ended
at 2.20pm.

GROUP 20 38
14.0 References
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October 2014, <http://www.mbaknol.com/business-analysis/pest-analysis-of-dell-computers/>.
Bhasin, H, SWOT analysis of Dell, Marketing91, viewed 25 October 2014,

<http://www.marketing91.com/swot-analysis-of-dell/>.
Bogart, N & OShea S 2014, Lenovo Canada cancels customer orders after online pricing error,
Global News, 26 May, viewed on 10 October 2013, <http://globalnews.ca/news/1355313/lenovo-
canada-cancels-customer-orders-after-online-pricing-error/>.
Bogart, N & OShea S 2014, Lenovo Canada cancels customer orders after online pricing error,
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<http://mmoore.ba.ttu.edu/ValuationReports/Spring2008/Dell-Spring2008.pdf>.
CSRwire 2014, Dell Highlights Environmental, Giving and Community Achievements in FY13
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Community-Achievements-in-FY13-Corporate-Responsibility-Summary-Report>.
David Yamada 2010, Minding the Workplace, David Yamadas blog, 30 June 2010, viewed 10
October 2014, <http://newworkplace.wordpress.com/2010/06/30/dells-full-scale-ethical-
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Decicco Tracy, Jerry Biediger, Timothy Green, 'Strategic Action at Lenovo', Organizational
Dynamics, vol. 34, no. 1, pp. 89-102.
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<http://www.dell.com/learn/us/en/uscorp1/cr-diff-disaster-
relief?c=us&l=en&s=corp&cs=uscorp1>.
Dell 2014, Our History, Dell Incorporation, viewed 3 October 2014,

<http://www.dell.com/learn/us/en/uscorp1/our-history>.
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<http://www.dell.com/learn/us/en/uscorp1/secure/2013-11-20-dell-youth-learning-legacy-of-
good>.
Dell earnings miss market targets, 2007, BBC News, 1 March, viewed 9 November 2014,<
GROUP 20 39
http://news.bbc.co.uk/2/hi/business/6410279.stm>.
Dell, Policies and Positions, 2014, Dell, viewed 8 November 2014, <
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Dell, Returns and Refunds for Change of Mind Policy , 2014, Dell, viewed 8 November 2014, <
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Eric Markowitz, 2013, How Michael Dell Could Reinvent His Company, Inc.com, viewed 18
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company.html>.
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<http://thailehuy.wordpress.com/2010/02/03/dell-swot-analysis/>.
Hogg,C 2008, Exclusive: Terrible Customer Experience Uncovers Nationwide Internal Flaws at
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<http://www.digitaljournal.com/article/248931>.
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<http://www.strategicmanagementinsight.com/swot-analyses/dell-swot-analysis.html>.
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Lenovo 2013, Social Investments, Lenovo Group Ltd., viewed 3 October 2014,
<http://www.lenovo.com/social_responsibility/us/en/social_investments.html#>
Lenovo 2013, Think Green Products Materials, Lenovo Group Ltd., viewed 3 October 2014,
GROUP 20 40
<http://www.lenovo.com/social_responsibility/us/en/materials.html>.
Lenovo, Environmental Policy, 2013, Lenovo, viewed 9 November 2014,

<http://www.lenovo.com/social_responsibility/us/en/environmental_policy.html>.
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fire, Tech Times, 28 March, viewed on 11 October 2013,
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overheating-battery-could-cause-a-fire.htm>.
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Tech Times, 28 March, viewed on 11 October 2013,
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GROUP 20 41
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GROUP 20 42

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HET 3380 Engineering Management 1

Lenovo Group Ltd. VS Dell Inc.

The research project on the Organization Management of Lenovo

Each members of Group 20 would like to express uppermost appreciation to Madam

2.0 Background ................................................................................................................................ 2

3.0 Environmental Factors ............................................................................................................... 3

5.0 Ethical Issues..9

6.0 Social Responsibility

8.0 Lenovo and Dell Porters 5 Forces

9.0 Similarities and Contrasts between Lenovo and Dell.20-21

10.0 Structure and Unstructured Problems..21

11.0 Decision Making Style23

12.0 Policy and Procedure..26

14.0 Meeting Minutes29-36

2.2 Dell Inc.

3.0 Environmental Factors

3.1.1 Lenovo Group Ltd.

to satisfy the need of society. Furthermore, people of China were

Demand for Dell computers increases with an increase of educational

their business operate.

4.2 Dell Inc.

examples of Dell committed in social responsibility.

Technologies reshaping societies and economies around the world

Dell also takes a holistic approach by giving supplements funds

Youth learning also a part of dell contribution. Dell provides the

Delivering energy efficient products and electronics recycling

Dell leveraged their recycling industry leadership to advocate e-

5.0 Ethical Issues

According to Olenick (2014), the U.S. Consumer Product Safety Commission

5.2 Dell Inc.

Having a good ethic is important for every company, however, according to

6.0 Social Responsibility

During FY 2009/10, Lenovo and their employees give support to global

6.2 Dell Inc.

Dell has partnered with certain relief organization in respond to specific

Increase global demand

Growth of smart phone in India. Xiaolu(2013) stated that

Increase the diversification of products

Growth in tablet devices. ( Xiaolu 2013 )

Innovation and entry into tablets and Smartphone markets

Increased communication and technological integration

Reinforce their existence in competitive market

Expand into government and education market

Too many competitive corporations

Industry reaching maturity

Clone market competitor in China or in Asia. Clone mobile

Little firm growth

Cheap products appearing

Price difference among brands

Increasing demand of smartphones and tablets

Too many competitors such as Apple, Toshiba, Lenovo and

8.0 Lenovo and Dell Porters Five Forces Analysis

8.1 Lenovo Porters Five Forces

8.1.1 Rivalry among competitors

8.1.2 Threats of new entrants

for small companies to get into the market.

8.1.3 Threats of substitutes

8.1.4 Bargaining power of buyers

8.1.5 Bargaining power of suppliers

Microsoft rules with its Operating Systems of Windows and consequently

8.2 Dell Porters Five Forces

8.2.1 Rivalry among Existing Firms

8.2.2 Threats of New Entrants