Founded in 1984, Lenovo is China and Asia’s largest computer manufacture. In 2005, the computer giant bought IBM’s personal computer division for $1.25 billion. Workers at the Lenovo production plant in China are used to stringent manufacturing systems, with only 18 seconds to add components before they are moved on in the assembly line . This ensures more than 400 Lenovo laptops are produced each hour. Workers are also expected to show respect to their high ranked staff. Unlike western economics, Lenonvo’s staff are not generally encouraged to voice their opinions or to think independently. They would certainly shy from questioning the decisions of senior management . Hence, it may have cultural difference and causing problems in joint ventures with other companies.
Culture is the set of beliefs and values held by the staff of an organization, thereby determining what is considered the ‘norm’ in the business organization, it also help people to ‘fit’ in, based on the way things are traditionally done in the organization. As 30 years old company, Lenovo have it very own culture and the cultural differences between Eastern and Western firms can create a natural barrier to effective integration of the different cultures. Other problems such as language barriers and the workers of Lenovo might refuse to change to co-operate with another firm, as they are used to the Chinese culture.
All in all, this joint venture’s success is really depend on can the different culture of companies be integrated together.