PERSONALITY DEVELOPMENT AND COMMUNICATION SKILL-III (MINOR PROJECT REPORT) ON

LENOVO

Submitted in partial fulfillment of the requirements

For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

To

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of Submitted by

Dr.Sanjay Kumar Sadana Lakshit Chauhan

(Associate Professor BBA-III Semester

And UG Head) Enrollment No.00480401714

Session 2014 – 17

2

To Whom It May Concern

I LAKSHIT CHAUHAN, Enrolment No.00480401714 from BBA-III Sem, Shift FIRST Of

the Tecnia Institute of Advanced Studies, Delhi hereby declare that the Personality

Development And Communication Skill-III (Minor Project Report) (BBA-209) entitled

LENOVO is an original work based on secondary data and the same has not been submitted

to any other Institute for the award of any other degree. A presentation of the Minor Project

Report was and the suggestions as approved by the faculty were duly incorporated.

Date:

Signature of the Student

Certified that the Personality Development and Communication Skill-III (Minor Project

Report) submitted in partial fulfillment of Bachelor of Business Administration (BBA) to be

awarded by G.G.S.I.P. University, Delhi by LAKSHIT CHAUHAN, Enrolment No.

00480401714 has been completed under my guidance and is Satisfactory.

Date:

Signature of the Guide

Name of the Guide

3

ACLKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind

support and help of many individuals and organizations. I would like to extend my sincere

thanks to all of them.

I am highly indebted to GURU GOBIND SIGNH INDERPRASTA UNIVERSITY for

their guidance and constant supervision as well as for providing necessary information

regarding the project & also for their support in completing the project.

I would like to express my gratitude towards my parents & member of TECNIA

INSTITUTE OF ADVANCED STUDIES for their kind co-operation and encouragement

which help me in completion of this project.

I would like to express my special gratitude and thanks to industry persons for giving me

such attention and time.

My thanks and appreciations also go to my colleague in developing the project and people

who have willingly helped me out with their abilities.

(Lakshit Chauhan)

4

CONTENTS

INTRODUCTION AND COMPANY HISTORY

VISION, MISSION AND OBJECTIVES OF THE COMPANY

MARKET LINKAGES

FINANCIAL LINKAGES

COMPANY IMAGE

CONCLUSION AND YOUR OPINION

BIBLIOGRAPHY

5

CHAPTER 1

INTRODUCTION AND COMPANY HISTORY

6

COMPANY PROFILE

Type Public

Traded as SEHK: 0992, OTC Pink: LNVGY

Industry Computer hardware, Electronics

Founded Beijing, China (1984)

Founder Liu Chuanzhi

Headquarters Haidian District, Beijing, China Morrisville, North Carolina, U.S.

Area served Worldwide

Key people Yang Yuanqing(Chairman and CEO)

Products Smartphone, desktops, servers, notebooks, tablet computers

,notebooks, peripherals, printers, televisions, scanners, storage devices

Revenue US$ 46.296 billion (2015)

Operating

income US$ 1.108 billion (2015)

Net income US$ 837 million (2015)

Total assets US$ 27.081 billion (2015)

Total equity US$ 4.016 billion (2015)

Number of

employees 60,000 (2014)

Subsidiaries Motorola Mobility

Website www.lenovo.com

7

INTRODUCTION

Lenovo Group Ltd. /lɛnˈoʊvoʊ/ is a Chinese multinational computer technology company

with headquarters in Beijing, China, and Morrisville, United States. It designs, develops,

manufactures and sells personal computers, tablet computers,

Smartphone, workstations, servers, electronic storage devices, IT management software

and smart televisions. In 2014, Lenovo was the world's largest personal computer vendor by

unit sales. It markets the ThinkPad line of notebook computers and the Think Centre line of

desktops.

Lenovo has operations in more than 60 countries and sells its products in around 160

countries. Lenovo's principal facilities are in Beijing, Morrisville and Singapore, with

research centres in those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in

China, and Yamato in Kanagawa Prefecture, Japan. It operates a joint venture with EMC,

LenovoEMC, which sells network-attached storage solutions. It also has a joint venture

with NEC, Lenovo NEC Holdings, which produces personal computers for the Japanese

market.

Lenovo was founded in Beijing in 1984 as Legend and was incorporated in Hong Kong in

1988. Lenovo acquired IBM's personal computer business in 2005 and agreed to acquire its

Intel-based server business in 2014. Lenovo entered the Smartphone market in 2012 and as of

2014 is the largest vendor of Smartphone in Mainland China. In January 2014, Lenovo

agreed to acquire the mobile phone handset maker Motorola Mobility from Google, and in

October 2014 the deal was finalized.

Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng

China-Affiliated Corporations Index

Lenovo has offices in 6 locations across India— Bangalore (Registered Office),

Gurgaon, Kolkata, Mumbai, Chennai, and Pune. It provides both pre-sales and post-

sales support and service to Smartphones, idea products, think products, and tablets.

We are one of the leading PC companies in India and have a large retail presence, with

more than 1,000 retail stores across the country.

8

HISTORY

1984

Liu founded Lenovo in with a group of ten engineers in Beijing with 200,000 Yuan. Lenovo

officially states that it was founded on 1 November 1984. The Chinese government approved

Lenovo's incorporation on the same day. Jia Xufu, one of the founders of Lenovo, indicates

the first meeting in preparation for starting the company was held on 17 October of the same

year. Eleven people, the entirety of the initial staff, attended. Each of the founders was a

middle-aged member of the Institute of Computing Technology attached to the Chinese

Academy of Sciences. The 200,000 Yuan used as start-up capital was approved by Zeng

Maochao. The name for the company agreed upon at this meeting was the Chinese Academy

of Sciences Computer Technology Research Institute New Technology Development

Company.

1994

Liu Chuanzhi received government permission to open a subsidiary in Hong Kong. Lenovo

became publicly traded after a 1994 Hong Kong listing that raised nearly US$30 million.

Prior to its IPO, many analysts were optimistic about Lenovo. The company was praised for

its good management, strong brand recognition, and growth potential. Analysts also worried

about Lenovo's profitability. Lenovo's IPO was massively over-subscribed. On its first day of

trading, the company's stock price hit a high of HK$2.07 and closed at HK$2.00. Proceeds

from the offering were used to finance sales offices in Europe, North America, and Australia;

expand and improve production and research and development; and increase working capital

When Lenovo was first listed, its managers thought the only purpose of going public was to

raise capital. They had little understanding of the rules and responsibilities that went along

with running a public company. To fund its continued growth, Lenovo issued a secondary

offering of 50 million shares on the Hong Kong market and raised about US$212 million.

1998

The Tianxi was designed to make it easy for inexperienced Chinese consumers to use

computers and access the internet. One of its most important features was a button that

instantly connected users to the internet and opened the web browser. It was co-branded with

China Telecom and it was bundled with one year of internet service. The Tianxi was released

in 1998. It was the result of two years of research and development. It had a pastel-coloured,

shell-shaped case and a seven-port USB hub under its screen.

9

2005

Lenovo acquired IBM's personal computer business in 2005, including the ThinkPad laptop

and tablet lines. Lenovo's acquisition of IBM's personal computer division accelerated access

to foreign markets while improving both its branding and technology. Lenovo paid US$1.25

billion for IBM's computer business and assumed an additional US$500 million of IBM's

debt. This acquisition made Lenovo the third-largest computer maker worldwide by volume.

The ThinkPad logo as shown on the ThinkPad x100e notebook computer.

IBM acquired an 18.9% shareholding in Lenovo in 2005 as part of Lenovo's purchase of

IBM's personal computing division. Since then, IBM has steadily reduced its holdings of

Lenovo stock. Lenovo closed its acquisition of IBM’s server division, with the final price put

at $2.1 billion which was lower than the previously announced $2.3 billion partially because

of a change in the value of IBM inventories.

2009

Lenovo Group acquired the entire interest of Lenovo Mobile Communication Technology

Ltd. from a group of investors led by Hony Capital, the private equity arm of Legend

Holdings. Consideration of the acquisition is approximately US$200 million in cash and

Lenovo shares.

2011

o JOINT VENTURE WITH NEC

On January 27, 2011, Lenovo formed a joint venture to produce personal computers with

Japanese electronics firm NEC. The companies said in a statement that they would establish a

new company called Lenovo NEC Holdings, to be registered in the Netherlands. NEC

received US$175 million in Lenovo stock. Lenovo was to own a 51% stake in the joint

venture, while NEC would have 49%. Lenovo has a five-year option to expand its stake in the

joint venture.

10

This joint venture was intended to boost Lenovo's worldwide sales by expanding its presence

in Japan, a key market for personal computers. NEC spun off its personal computer business

into the joint venture. As of 2010, NEC controlled about 20% of Japan's market for personal

computers while Lenovo had a 5% share. Lenovo and NEC also agreed to explore

cooperating in other areas such as servers and tablet computers.

Roderick Lappin, chairman of the Lenovo-NEC joint venture, told the press that the two

companies will expand their co-operation to include the development of tablet computers.

o ACQUISITION OF MEDION

In June 2011, Lenovo announced that it planned to acquire control of Medion, a German

electronics manufacturing company. Lenovo said the acquisition would double its share of

the German computer market, making it the third-largest vendor by sales

(after Acer and Hewlett-Packard). The deal, which closed in the third quarter of the same

year, was the first in which a Chinese company acquired a well-known German company.

This acquisition will give Lenovo 14% of the German computer market. Gerd Brachmann,

chairman of Medion, agreed to sell two-thirds of his 60 percent stake in the company. He will

be paid in cash for 80 percent of the shares and will receive 20 percent in Lenovo stock. That

would give him about one percent of Lenovo.

2012

o ACQUISITION OF CCE

In September 2012, Lenovo agreed to acquire the Brazil-based electronics company Digibras,

which sells products under the brand-name CCE, for a base price of 300 million real’s

(US$148 million) in a combination of stock and cash. An additional payment of 400 million

reals was made dependent upon performance benchmarks. Prior to its acquisition of CCE,

Lenovo already established a $30 million factory in Brazil, but Lenovo's management had

felt that they needed a local partner to maximize regional growth. Lenovo cited their desire to

take advantage of increased sales due to the 2014 World Cup that would be hosted by Brazil

and the 2016 Summer Olympics and CCE's reputation for quality. Following the acquisition,

Lenovo announced that its subsequent acquisitions would be concentrated in software and

services.

o ACQUISITION OF STONEWARE

In September 2012, Lenovo agreed to acquire the United States-based software company

Stoneware, in its first software acquisition. The transaction was expected to close by the end

of 2012; no financial details have been disclosed. Lenovo said that the company was acquired

11

in order to gain access to new technology and that Stoneware is not expected to significantly

affect earnings. More specifically, Stoneware was acquired to further Lenovo's efforts to

improve and expand its cloud-computing services. For the two years prior to its acquisition,

Stoneware partnered with Lenovo to sell its software. During this period Stoneware's sales

doubled. Stoneware was founded in 2000. As of September 2012, Stoneware is based in

Carmel, Indiana and has 67 employees.

o LENOVOEMC, A JOINT VENTURE WITH EMC AND LENOVO

The signing ceremony for the LenovoEMC joint venture

Lenovo and EMC formed LenovoEMC as a joint venture to offer network attached

storage (NAS) solutions. LenovoEMC products were formerly offered under the

Iomega brand name. After the formation of LenovoEMC, Iomega ceased to exist as business

unit. LenovoEMC products are designed for small and medium-sized that does not have the

budgets for enterprise-class data storage. LenovoEMC is part of a broader partnership

between the two companies announced in August 2012.This partnership also includes an

effort to develop x86-based servers and allowing Lenovo to act as an OEM for some EMC

hardware. Lenovo is expected to benefit from the relatively high profit margins of the NAS

market. LenovoEMC is part of Lenovo's Enterprise Products Group.

2014

o ACQUISITION OF MOTOROLA MOBILITY

On 29 January 2014, Google announced it would sell Motorola Mobility to Lenovo for

US$2.91 billion in a cash-and-stock deal. When Google and Lenovo first announced the

acquisition of Motorola, they said the purchase would be funded with $660 million in cash,

12

$750 million in Lenovo stock, and a $1.5 billion promissory note due in three years. As of

February 2014, Google owns about 5.94% of Lenovo's stock. The deal includes Smartphone

lines like the Moto X and Moto G and the Droid Turbo. Lenovo also got the future Motorola

Mobility product roadmap. Google will retain the Advanced Technologies & Projects unit

and all but 2,000 of the company's patents. Lenovo will receive royalty free licenses to all the

patents retained by Google.

Lenovo received approval from the European Union for its acquisition of Motorola in June

2014. The acquisition was completed on 30 October 2014. Motorola Mobility will remain

headquartered in Chicago, and continue to use the Motorola brand, but Liu Jun—president of

Lenovo's mobile device business, became the company's chairman.

o ACQUISITION OF IBM’S X86 SERVER BUSINESS

On September 29,2014 Lenovo announced that conditions for Lenovo’s acquisition of IBM’s

x86 server business has been satisfied and the parties anticipate they will begin closing the

transaction effective on October 1, 2014. The acquisition makes Lenovo the third largest

player in the $42.1 billion global x86 server market.

Lenovo is acquiring System x, BladeCenter and Flex System blade servers and switches, x86-

based Flex integrated systems, NeXtScale and iDataPlex servers and associated software,

blade networking and maintenance operations. IBM will retain its System z mainframes,

Power Systems, Storage Systems, Power-based Flex servers, PureApplication and PureData

appliances.

13

CHAPTER 2

VISION, MISSION AND OBJECTIVES

14

PURPOSE OF FORMATION

Liu founded Lenovo in with a group of ten engineers in Beijing with 200,000 Yuan. Lenovo

officially states that it was founded on 1 November 1984. The Chinese government approved

Lenovo's incorporation on the same day. Jia Xufu, one of the founders of Lenovo, indicates

the first meeting in preparation for starting the company was held on 17 October of the same

year. Eleven people, the entirety of the initial staff, attended. Each of the founders was a

middle-aged member of the Institute of Computing Technology attached to the Chinese

Academy of Sciences. The 200,000 Yuan used as start-up capital was approved by Zeng

Maochao. The name for the company agreed upon at this meeting was the Chinese Academy

of Sciences Computer Technology Research Institute New Technology Development

Company.

Their first significant effort, an attempt to import televisions, failed. The group rebuilt itself

within a year by conducting quality checks on computers for new buyers. Lenovo soon

started developing a circuit board that would allow IBM-compatible personal computers to

process Chinese characters. This product was Lenovo's first major success.

In May 1988, Lenovo placed its first advertisement seeking employees. The advertisement

was placed on the front page of the China Youth News, and it was quite rare in China at that

time. Out of the 500 respondents, 280 were selected to take a written employment exam. 120

of these candidates were interviewed in person. Although interviewers initially only had

authority to hire 16 people, 58 were given offers. The new staff included 18 people with

graduate degrees, 37 with undergraduate degrees, and three students with no university-level

education. Their average age was 26. Yang Yuanqing, the current CEO of Lenovo, was

among that group.

CURRENT STATUS IN INDIA

Lenovo has gained significant market share in India through bulk orders to large companies

and government agencies. For example, the government of Tamil Nadu ordered a million

laptops from Lenovo in 2012 and single-handedly made the firm a market leader. Lenovo

distributes most of the personal computers it sells in India through five national distributors

such as Ingram Micro and Redington.

15

Given that most Smartphones and tablets are sold to individuals Lenovo is pursuing a

different strategy making use of many small state-centric distributors. Amar Babu, Lenovo's

managing director for India, said, "To reach out to small towns and the hinterland, we have

tied up with 40 regional distributors. We want our distributors to be exclusive to us. We will,

in turn, ensure they have exclusive rights to distribute Lenovo products in their catchment

area."

Lenovo has assembled a team of senior managers familiar with the Indian market, launched

mobile phones at all price points there, and worked on branding to build market share. As of

February 2014, Lenovo claims that its sales of Smartphones in India have been increasing

100% per quarter while the market is only growing 15-20% over the same period. Lenovo did

marketing tests of its Smartphones in November 2012 in Gujarat and some southern cities,

where Lenovo already had a strong presence. Lenovo's strategy has been to create awareness,

maintain a broad selection of phones at all price points, and develop distribution networks.

Lenovo established a relationship with Reliance Communications to sell Smartphones. The

Smartphones carried by Reliance have dual-SIM capability and support both GSM and

CDMA. Babu claims that the relative under penetration of Smartphones in India represents an

opportunity for Lenovo. Lenovo partnered with two national distributors and over 100 local

distributors. As of February 2014, more than 7,000 retail outlets in India sold Lenovo

Smartphones. Lenovo has also partnered with HCL in order to set up 250 service centres in

110 cities

VISION

At Lenovo, our vision is that Lenovo will create personal devices more people are inspired to

own, a culture more people aspire to join and an enduring, trusted business that is well

respected around the world. This vision guides us in pursuit of our mission to become one of

the world's great personal technology companies.

We will accomplish this through:

Personal Computers: Lead in PCs and be respected for our product

innovation and quality.

Convergence: Lead the industry with an ecosystem of devices, services,

applications and content for people to seamlessly connect to people and web

content.

16

Culture: Become recognized as one of the best, most trusted and most well-

respected companies to work for and do business with.

OBJECTIVES OF LENOVO IN INDIA

o To provide the computing solutions with an ease at affordable price.

o To work as a catalyst to bring about institutional improvement in

streaming the functions of PC business.

o To mobilize various types of resources viz. domestic and international.

o To strive for up gradation of skill in PC sector for efficient and

effective growth of the company.

o To maximize the rate of return through efficient operations and

introduction of innovative environment friendly Desktops and Laptops

and services in PC sector.

17

CHAPTER 3

MARKET LINKAGES

18

LENOVO PROVIDES A VARIETY OF PRODUCTS AND SERVICES

Laptops & Ultrabooks

o ThinkPad X Series

o ThinkPad T Series

o ThinkPad Yoga

o ThinkPad Y Series

o ThinkPad Z Series

Smartphones

Tablet

o Yoga Tablets

Desktops &All-in-Ones

o Lenovo A Series Desktops

o Lenovo B Series Desktops

o ThinkCenter M Series tiny

o ThinkCenter M Series AIO

Workstations

Systems

o Servers

o Storage

o Networking

Accessories

SERVICES

DOit apps

o SHAREit

o WRITEit

o DOit

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PRODUCTS

ThinkPad

A Lenovo ThinkPad X1 Ultra book

The ThinkPad is a line of business-oriented laptop known for their boxy black design,

modelled after a traditional Japanese lunchbox. ThinkPad’s were originally an IBM product;

they have been manufactured and sold by Lenovo since early 2005, following its acquisition

of IBM's personal computer division. The ThinkPad has been used in space and is the only

laptop certified for use on the International Space Station.

ThinkCentre

The ThinkCentre is a line of business-oriented Desktop computers which was introduced in

2003 by IBM and since has been produced and sold by Lenovo since 2005.ThinkCentre

computers typically include mid-range to high-end processors, options for discrete graphics

cards, and multi-monitor support.

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ThinkServer

The ThinkServer product line began with the TS100 from Lenovo. The server was developed

under agreement with IBM, by which Lenovo would produce single-socket and dual-socket

servers based on IBM’s xSeries technology. An additional feature of the server design was a

support package aimed at small businesses. The focus of this support package was to provide

small businesses with software tools to ease the process of server management and reduce

dependence on IT support.

ThinkStation

Lenovo ThinkStation is workstations designed for high-end computing. In 2008, Lenovo

expanded the focus of its THINK brand to include workstations, with the ThinkStation S10

being the first model released.

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ThinkVision displays

High-end monitors are marketed under the ThinkVision name. ThinkVision displays share a

common design language with other THINK devices such as the ThinkPad line of notebook

computers and ThinkCentredesktops. At the 2014 International CES, Lenovo announced

the ThinkVision Pro2840m, a 28-inch 4K display aimed at professionals. Lenovo also

announced another 28-inch 4K touch-enabled device running Android that can function as an

all-in-one PC or an external display for other devices.

IdeaPad

A model with a Lenovo IdeaPad at a launch party in Japan.

The IdeaPad line of consumer-oriented laptop computers was introduced in January 2008.

The IdeaPad is the result of Lenovo's own research and development; Unlike the ThinkPad

line, its design and branding were not inherited from IBM. The IdeaPad's design language

differs markedly from the ThinkPad and has a more consumer-focused look and feel.

In October 2012, Lenovo released the IdeaPad Yoga 13, a laptop running Microsoft Windows

8 that can be converted to a tablet by flipping the screen all the way backwards. Lenovo has

22

subsequently released the IdeaPad Yoga 11 running Windows RT and announced the IdeaPad

Yoga 11S running Windows 8. Lenovo's Yoga products reflect the company's commitment to

the "PC plus era" where innovative products allow Lenovo to resist commodity pricing of

PCs.

In November 2013, Lenovo introduced the Lenovo Yoga 2 Pro, an Ultrabook-class

convertible device that can be used as both a tablet and laptop computer. The Yoga 2 Pro is

thinner than the Yoga 13 and has tapered edges giving it an appearance more like a

conventional Ultrabook laptop vs the earlier model's pleasing "book-like" symmetrical

design. At 1.39 kilograms, the Yoga 2 Pro is significantly lighter than the Yoga 13. The Yoga

2 Pro has a subtle rubber trim around the edge of its top half in order to prevent slipping on

hard surfaces when intent mode. The new design is easier to pick up and hold than Lenovo's

previous generation of Yoga devices. The Yoga 2 Pro comes with a backlit keyboard. Unlike

earlier Yoga products, the home button is now a touch-key on the bottom centre of the

display. Lenovo moved the power button away from the front and to the side in order to

prevent accidental key presses.

In October 2014, Lenovo introduced the Yoga 3 Pro, an ultra-thin Broadwell-based 13.3-inch

touch screen laptop with a hinge that allows for use as a tablet and other configurations. It

uses Intel Core M processors and comes standard with solid-state drives. Its screen has 3200

pixel by 1800 pixel resolution and is multitouch capable. It is 13 millimetres thick. The Yoga

3 Pro's hinge differs significantly from the Yoga 2 Pro. The new all-metal hinge is referred to

by Lenovo as a "watchband." It is much less bulky and forms a continuous curved shape from

the chassis of the laptop to the bottom of the screen. It has six mounting points as opposed to

two for a more solid feel and structural strength.

IdeaCentre

A Lenovo IdeaCentre all-in-one PC

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All IdeaCentres are all-in-one machines, combining processor and monitor into a single

unit. The desktops were described by HotHardware as being "uniquely designed". The

first IdeaCentre desktop, the IdeaCentre K210, was announced by Lenovo on June 30,

2008. While the IdeaCentre line consists only of desktops, it shares design elements and

features with the IdeaPad line. One such feature was Veriface facial recognition technology.

At CES 2011, Lenovo announced the launch of four IdeaCentre desktops: the A320, B520,

B320, and C205. In the autumn of 2012, the firm introduced the more powerful IdeaCentre

A720, with a 27-inch touch screen display and running Windows 8. With a TV tuner and

HDMI in, the A720 can also serve as a multimedia hub or home theatre PC.

In 2013, Lenovo added a table computer to the IdeaCentre line. The Lenovo IdeaCentre

Horizon Table PC, introduced at the 2013International CES is a 27-inch touch screen

computer designed to lay flat for simultaneous use by multiple people. Thanks to its use of

Windows 8, the Horizon can also serve as a desktop computer when set upright.

COMPARISION OF LENOVO ALL IN ONE PC WITH ITS COMPETITORS

Lenovo Horizon 2e

Apple iMac 21.5-Inch(2014)

Acer Aspire Z (AZ3-615-UR15)

DISPLAY

21.5 inches ,1920x1080 resolution

21.5 inches, 1920x1080 resolution

23 inches, 1920x1080 resolution

MEMORY

8GB RAM, 1000GB HDD 8GB RAM, 500GB SDD

8GN RAM, 1000GB HDD

OS Windows 10 Mac OS X Windows 8.1

PROCESSOR

Intel Core i5-4030U, 1.9GHz

Intel Core i5-4260U, 1.4GHz

Intel Core i5-4570T, 2.9GHz

TOUCH SCREEN

YES NO NO

PRICE Rs.48750/- Onwards Rs.71435/- Onwards Rs.61750/-Onwards

CONCLUSION

Lenovo is the number 1 pc maker in terms of sales volume

24

Almost all Lenovo’s all in one has touch screen to user a large tablet like experience

It provides value for money products

As compared to its competitors, Lenovo provides door to door service and warranty

to all desktops

Smartphones

As of January 2013, Lenovo only manufactures phones that use the Android operating system

from Google. Numerous press reports indicated that Lenovo planned to release a phone

running Windows Phone 8, According to JD Howard, a vice president at Lenovo's mobile

division; the company would release a Windows Phone product if there is market demand.

Lenovo has implemented an aggressive strategy to replace Samsung Electronics as Mainland

China market's top Smartphone vendor. It has spent $793.5 million in Wuhan in order to

build a plant that can produce 30 to 40 million phones per year. Data from Analysis

International shows that Lenovo experienced considerable growth in Smartphone sales in

China during 2012. Specifically, it saw its market share increase to 14.2% during 2012's third

quarter, representing an increase when compared to 4.8% in the same quarter of 2011. IDC

analysts said that Lenovo's success is due to its "aggressive ramping-up and improvements in

channel partnerships." Analysis International analyst Wang Ying wrote, "Lenovo possesses

an obvious advantage over rivals in terms of sales channels." The company's CEO, Yang

Yuanqing, said, "Lenovo does not want to be the second player ... we want to be the best.

Lenovo has the confidence to outperform Samsung and Apple, at least in the Chinese

market."

According to IHS iSuppli, Lenovo was a top-three Smartphones maker in China with a 16.5%

market share in the first quarter of 2012. According to a May report released by IDC Lenovo

ranks fourth in the global tablet market by volume. As of November 2012, Lenovo was the

second largest seller of mobile phones in China when measured by volume.

25

In May 2013, Lenovo CEO Yang Yuanqing indicated that the company had aimed to release

Smartphone in the United States within the next year. Later in October, Lenovo expressed

interest in acquiring the Canadian Smartphone maker BlackBerry Ltd. However, its attempt

was reportedly blocked by the Government of Canada, citing security concerns due to the use

of BlackBerry devices by prominent members of the government. An official stated that "we

have been pretty consistent that the message is Canada is open to foreign investment and

investment from China in particular but not at the cost of compromising national security".

In January 2014, Lenovo announced a proposed deal to acquire Motorola Mobility to bolster

its plans for the U.S. market. Microsoft officially announced that Lenovo became the

hardware partner of Windows Phone platform at the Mobile World Congress2014.

26

COMPARISION OF LENOVO PHONE WITH OTHER BRANDS

Lenovo K3

Note

Samsung

Galaxy J5

Sony Xperia

C3

DISPLAY 5.5 inches

1080 x 1920 pixels

(~401 ppi pixel

density)

5.0 inches

720 x 1280 pixels

(~294 ppi pixel

density)

5.5 inches

720 x 1280 pixels

(~267 ppi pixel

density)

CHIPSET Mediatek MT6752

(Octa-core 1.7 GHz

Cortex-A53)

Qualcomm MSM8916

Snapdragon 410

(Quad-core 1.2 GHz

Cortex-A53)

Qualcomm MSM8926

Snapdragon 400

(Quad-core 1.2 GHz

Cortex-A7)

MEMORY 16GB ROM, 2GB

RAM

8/16GB ROM, 1.5GB

RAM

8GB ROM, 1GB

RAM

CAMERA 13MP back, 5MP front 13MP back, 5MP front 8MP back, 5MP front

BATTERY 3000mAh 2600mAh 2500mAh

NETWORK Dual SIM (4G LTE) Optional Dual SIM(4G

LTE)

Single SIM(4G LTE)

PRICE Rs.9999/- Rs.12390/- Rs.16990/-

CONCLUSION

Lenovo phone are value for money products.

As compared to other phones in same range, it has bigger screen size and battery than

its competitors.

Lenovo phones are competitively priced.

27

DOit apps

REACHit

REACHit is a storage management application. It is designed to help users access, organize,

and search files across multiple devices and operating systems. It connects Windows personal

computers, Android devices, and iOS devices and works with Google

Drive, OneDrive, Dropbox, and Box. On Windows devices, REACHit is integrated with

Windows File Explorer. Lenovo began bundling REACHit with all its computers in early

2015.

SHAREit

SHAREit is a free application from Lenovo that allows Windows, Windows Phone, Android,

and iOS devices to transfer files directly by ad-hoc Wi-Fi connections.

WRITEit

In April 2015, Lenovo released WRITEit, a hand-writing recognition engine that interprets

input from a stylus and turns it into text. WRITEit works with almost all applications and

online forms that accept text input.

28

CHAPTER 4

FINANCIAL LINKAGES

29

2013 ANNUAL REPORT

2013 2012 Year-on-year

For the year ended March 31 US$ million US$ million Change

Group Results

Revenue

Gross profit

Gross profit margin

(%) Operating

expenses

Expense-to-revenue ratio

(%) EBITDA1

Pre-tax income

Pre-tax income margin (%)

Profit attributable to equity holders of the Company

EPS – basic (US

cents) EPS – diluted

(US cents)

Interim dividend per share (HK

cents) Final dividend per share

(HK cents)2

Total dividend per share (HK cents)

33,873

4,073

12.

0

(3,27

3)

9.7

1,067

801

2.4

635

6.16

6.07

4.5

14.0

18.5

29,574 15%

3,446 18%

11.7 0.3 pt

(2,862) 14%

9.7 Nil

821 30%

582 38%

2.0 0.4 pt

473 34%

4.67 1.49

4.57 1.50

3.8 0.7

10.0 4.0

13.8 4.7

Cash and Working Capital

Bank deposits and cash and cash equivalents

Total bank borrowings

Net cash reserves

Cash conversion cycle (day)

3,57

3

(47

9)

3,09

4

(

8

)

4,171 (14%)

(63) 660%

4,108 (25%)

(19) 11

Notes:

1 Excluding restructuring charges and other income, net.

2 Subject to shareholders’ approval at the forthcoming annual general meeting.

30

2014 ANNUAL REPORT

31

2015 ANNUAL REPORT

Notes:

1 Excluding restructuring charges and other income, net.

2 Subject to shareholders’ approval at the forthcoming annual general meeting.

32

STOCK PRICE OF LENOVO GROUP

33

CHAPTER 5

COMPANY IMAGE

34

Lenovo is committed to ethical corporate citizenship and to promoting sustainability in all of

its activities. We demonstrate these commitments through transparent and responsible

management of our social, environmental, and economic values. These values respect and are

informed by those of all of our stakeholders, including the communities with which we

interact. As the top PC maker in the world and an emerging PC Plus leader serving customers

in 160 countries, Lenovo is committed to operating ethically and promoting corporate

citizenship and sustainability in our business activities. As we've transformed our business for

the PC Plus era (focused on mobile Internet devices, including PCs, tablets and

Smartphones), we continue to demonstrate these commitments through transparent and

responsible management of our environmental, social and governance performance. Lenovo's

success is built on product innovation, a highly efficient global supply chain, strong strategic

execution, and our ability to deliver on our pledges to investors, employees, customers, local

communities, the planet and future generations. We take our responsibilities seriously, and

are focused on setting and achieving higher sustainability standards each year as we grow and

diversify our product portfolio to lead in the PC Plus era.

Lenovo's Commitment to the Environment

Lenovo is committed to environmental leadership in all of our

business activities from operations to product design and recycling

solutions. Lenovo's corporate policy on environmental affairs is

supported by the company's ISO 14001 certified global

environmental management system (EMS), which is key to our

efforts to achieve results consistent with environmental leadership

and ensures the company is vigilant in protecting the environment

across all of our operations worldwide.

Lenovo's Commitment to Sustainability

Environmental responsibility is only one aspect of Lenovo's overall sustainability program.

Lenovo's sustainability policy expresses our commitment to taking care of the long-term

economic, social and environmental health of our company and the communities in which we

operate. Lenovo is a global company and we demonstrate corporate social responsibility

everywhere we conduct business.

Combating Climate Change

Lenovo recognizes that climate change is a serious threat and believes that we should all do

our part to reduce harmful greenhouse gas (GHG) emissions. Lenovo acknowledges and

accepts the findings of current climate science which indicate a human contribution to

climate change. We support the consensus conclusions of the scientific community described

in the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. The

company accepts the call to action which arises from these conclusions.

Lenovo is dedicated to reducing our global carbon footprint. We have developed a

comprehensive strategy to address all aspects of our business, set aggressive objectives and

targets, and we are measuring our performance against each objective and target to insure that

we stay on track. Lenovo commits to absolute reductions in the emissions of greenhouse

35

gasses from company operations and to drive and facilitate similar reductions in Lenovo's

supply chain and customer base through the implementation of a comprehensive climate

change strategy. Lenovo's climate change strategy will be consistent with the findings of

developing climate change science and a goal of maintaining global economic security.

Waste and Water

One of Lenovo's primary environmental objectives for operational facilities involves

minimizing solid waste and maximizing recycling and reuse. Lenovo manufacturing and

R&D facilities, and some large office locations worldwide, achieved a reuse/recycling rate of

86.7 percent during FY 2014/15. Lenovo operations generate minimal quantities of hazardous

waste.

Hazardous waste generated at operational facilities includes oils, coolants, organic solvents,

batteries, fluorescent light bulbs and ballasts. All are disposed of in accordance with local

environmental regulations with reputable vendors who are approved through a stringent

Lenovo audit process. During FY 2014/15, Lenovo neither imported nor exported any

hazardous waste.

Lenovo's manufacturing and product development operations do not have any wet processes.

Since Lenovo withdraws water only from municipal sources and only for human support, we

have minimal impact on local water resources. As such, there are minimal opportunities to

reuse and recycle water, but this metric is tracked. We do, however, identify and implement

opportunities to reduce the amount of water we consume.

Green Product Packaging

Lenovo is committed to offering environmentally preferable packaging for its products. Over

the past several years, Lenovo has had a strong focus on increasing the use of recycled and

recyclable materials in packaging, reducing the size of packaging, and expanding the use of

bulk and reusable packaging solutions. Since 2008, Lenovo has totally eliminated over 1000

tons of packaging consumption by weight through design optimization and refinement across

all Lenovo product shipments.

Beginning in 2008 with the ThinkCentre M58/58p ECO USFF desktop PC, Lenovo has

implemented the use of 100% recycled and recyclable packaging material on many products.

The new packaging material, made from 100 percent recycled thermoformed cushions,

enables PCs to be stacked together and requires less packaging material. This new material

also helps minimize shipping costs. In addition, on many Lenovo notebook product lines

Lenovo has implemented the use of 100% post-consumer molded fiber (paper pulp)

packaging, which can typically be readily recycled in municipal waste streams. Lenovo

discourages the use of polystyrene packaging wherever possible, and encourages the use of

molded pulp and fiber and LDPE.

Lenovo continues to drive increases in the use of recycled content materials in product

packaging. Lenovo has a strong focus on size reductions in our packaging to minimize the

amount of materials used while maintaining adequate protection for our products. Smaller

36

packages also contribute to increase pallet density; in many cases Lenovo has been able to

increase pallet density by over 33%.

Lenovo has also eliminated the use of multi-page user manuals shipped with many of our

products. For example, with our line of PC options and accessories, Lenovo was able to

condense 50 page user manuals into one page posters. This single action has allowed Lenovo

to save approximately 350 million printed pages per year.

Packaging Objectives and Targets

Packaging has been identified as a significant environmental aspect of Lenovo's operations,

and as a result remains a focus item under Lenovo's environmental management system

(EMS). For FY12/13, Lenovo's primary EMS Packaging objective is to "Minimize the

consumption of packaging material while driving the use of environmentally sustainable

materials. Targets in support of this objective are as follows:

Increase the use of environmentally friendly packaging materials in a minimum of 12

products by December 31, 2012.

Reduce the quantity of packaging material used for a minimum of 5 products by

March 31, 2013.

Increase the package pallet density by at least 15% for two products by March 31,

2013.

Implement at least two innovative customer reuse applications for Lenovo product

packaging

Product Recycling Program

Lenovo offers environmentally sound managed asset recovery services (ARS) and product

take back and recycling programs to business and consumer customers, respectively, in many

countries around the world. These offerings are designed to satisfy specific customer and

geographic needs while maximizing the reuse, recycling, and/or environmental disposal of

replaced and end of life products, parts, and waste.

37

CHAPTER 6

CONCLUSION AND OUR OPINION

38

CONCLUSION

With the help of this project, we reached at the result that for certain features

notebooks are feasible against desktops, while for others, the vice versa. As far as individual

buyers and B-schools are concerned, notebooks are the first choice; but when it comes to

offices, corporate, malls, etc.; desktops are preferred first.

During our survey, we found that the market penetration of LENOVO is quite low as

compared to its competitors like HCL and HP.

Why Choose Lenovo?

We asked Lenovo employees around the world what makes Lenovo special to them. This is

what they told us.

Lenovo is a company in a constant state of creation. We are the world's fastest-growing major

PC Company with the spirit of a start-up and the pace to match. Which is why we’re looking

for pioneers? Lenovo thrives on entrepreneurs who are ready to grow a company and your

career.

Our world is without borders or limits. Together we're building a great global technology

company unlike any other. Our culture blends the best of East and West. We serve people in

more than 160 countries. And as the world grows smaller, your opportunity grows bigger.

We have a dynamic culture of making tools for those who do. At Lenovo, communication is

open and knowledge is shared. Roles are fluid and rapid change is reality. And with change

comes opportunity. To learn from each other. To grow. To help those who do.

You are the architect of your own career and the industry. Lenovo is shaping the PC+ era.

You'll work with smart people on world-changing technology. You'll pioneer new ideas and

master new skills. Lenovo is for leaders.

Do you have what it takes to be successful at Lenovo?

The Lenovo Way is summarized in a simple statement: "We do what we say and we own

what we do."

39

This combination of commitment and ownership is the common ground of an organization

that is uniquely global. Our top 10 leaders represent seven nationalities. Our top 100

executives hail from 17 countries. So we know ideas and leadership come from anywhere.

If you're inspired by entrepreneurship.

If you're ready to explore and continually improve.

If you want to help grow one of the world's great technology companies rather than simply

work for one.

Then Lenovo may be right for you.

40

CHAPTER 7

BIBLOGRAPHY

41

www.Google.com

www.lenovo.com

www.gsmarena.com

www.wikipedia.com

www.pcmag.com