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Essay / Research Paper Abstract
This 4 page paper discusses Lenovo's acquisition of IBM's PC and Laptop division. The essay begins with a very brief description of IBM and Lenovo. The advantages of the merger for both companies is discussed, including trends in the global PC market. finally, the writer comments on the risks of the acquisition, for example, will Lenovo be accepted by the U.S. market. bibliography lists 4 sources.
Page Count:
4 pages (~225 words per page)
File: MM12_PGIBMLV.rtf
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Unformatted sample text from the term paper:
previous year (Lower, 2005). Net income for 2004 totaled (in mil.) $8,430.0, an 11.2 percent increase (Lower, 2005). IBM, the acronym for International Business Machines, produces mainframes, storage systems, servers,
and peripherals (Lower, 2005). The service division at IBM is the largest in the world (Lower, 2005). It is also heavy into software, in fact, its size is second only
to Microsoft and it is also heavy into semiconductors (Lower, 2005). The company has been acquiring other companies for many years, using this strategy to augment both its service
and software businesses (Lower, 2005). At the same time, IBM has been streamlining its hardware operations by divesting and selling some operations to other companies (Lower, 2005). They sold the
disc drive operations to Hitachi and most recently, in May 2005, IBM have sold their PC operations to Lenovo (Lower, 2005). The price Lenovo paid is reported to be $1.75
billion (Lower, 2005). Lenovo Lenovo was initially names Legend Group Limited (Meyer, 2005). Lenovo, although most consumers may never have heard of it, is the largest PC maker in
the world and it continues to grow (Meyer, 2005). Sales in 2004 totaled (in mil.) $2,971.2 (Meyer, 2005). That represented an astounding 14.5 percent growth over the previous year (Meyer,
2005). Net income for 2004 totaled (in mil.) $135.0, which was a modest 3.5 percent growth (Meyer, 2005). It seems fitting that the largest PC maker in the world
should be located in the largest, most populous country in the world, China (Meyer, 2005). The company specializes in low-priced computers that have Chinese character systems (Meyer, 2005). Lenovo also
makes handheld computers, servers, imaging equipment and mobile phone handsets (Meyer, 2005). Lenovo also "provides manufacturing and IT integration and support services" (Meyer, 2005). Legend Group Holdings, a group controlled
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