International Management 7 Essay Example | Topics and Well Written Essays - 1000 words

International Management 7 - Essay ExampleThis led to the 2 companies forming an alliance to benefit fro each others strengths and share in the weaknesses.In 2001, Lenovo was the biggest computer comp either in China and its business was booming since they did not have any serious competitors. Moreover, China had not joined the WTO hence foreign firms did not have access to the Chinese market. Lenovo therefore saw no need in forming an alliance since the conditions were good for them. However, in 2004, the business environment changed tremendously with Dell emerging as a serious competitor locally. Also, the Chinese market capable up to foreign companies, depressing prices and reducing margins (London, 2005).In 2004, the Chinese companies experienced pressure from foreign firms, which flooded its market with cheaper products, posing a serious holy terror to the local firms. This pressure transformed Lenovo from being a local Chinese company to a global one, selling 60 per cent of its products to other countries.Lenovo Groups results for the chip fiscal quarter of 2006 saw the companys consolidated revenue increase to US$ 3.7 billion. The firms shipments globally increased by about 10 per cent, this being higher than the industrys number of 8 per cent, with most of the growth occurring in China. This growth has been attributed to an improvement in the companys operational efficiency referable to restructuring efforts by the company.However, Lenovo faces some challenges in some of its segments due to competition and slow growth in the mature PC market. Lenovos brand awareness in the US is very weak compared to that of China, which has strong sales, providing the company with the requirement cash for sustaining losses in the overseas market. Lenovo Group is faced with big challenges in the global markets, notably the tough international price competition.Part twoThe Beijing Businessville Hotel and Around the World Hotels alliance Issues need to be consider edBeijing Businessville Hotel and Around the world Hotels need to put into consideration a number of factors forrader they get into an alliance. This is due to the differences in their current environments as well as other key factors. Both hotels must consider how the economic system of the impertinent venture country will affect their business since they run low in two different economic systems. They must also consider the legal systems, political systems, physical infrastructure and technical know-how of the country they will be operating in. They must also find ways of adjusting to these new conditions in order to operate optimally (Lockyer, 2007).Moreover, there are socio-cultural factors to be considered seriously before the alliance. Such factors include the language used by the host country, religion of its people and education. ethnical factors include the beliefs of the people in the host country, their norms as well as values. They must also bear in mind the attitudes of the people in these countries with heed to such issues as change, individualism, materialism, time and work. Moreover, individual and group employee behavior must be seriously looked into, focusing on issues such as