Liu Chuanzhi, chairman of Lenovo, clearly recalls his early tentative dealings with IBM in 1985.
Liu and a small group of researchers from the Chinese Academy of Sciences had only the year before plunged into business and wanted to sell foreign personal computers in China. “I remember the first time I took part in a meeting of IBM agents,” Liu says. “I was wearing an old business suit of my father’s and I sat in the back row. Even in my dreams, I never imagined that one day we could buy the IBM PC business. It was unthinkable. Impossible.”
But the unthinkable has happened. Lenovo has announced the acquisition of Big Blue’s iconic personal computer unit for $1.75 billion, a deal that will make it the world’s third-largest supplier of desktop PCs and laptops.
Lenovo had inauspicious beginnings. In 1984, the restless researchers raised 200,000 renminbi (about $25,000) to start their business. Their first big deal, an attempt to import color televisions, was a disaster. The group rebuilt its hopes mainly with a year of hard work conducting quality checks on PCs for new buyers. They invested money in developing a circuit board that would allow IBM PCs to process Chinese characters.
It was their breakthrough product. In 1990, they started to assemble PCs under their own Legend brand as well as selling printers for Hewlett-Packard. By 1994, Legend, which became Lenovo this year, was able to establish its own brand of PCs as its core business.
Now, however, Lenovo is taking a giant leap. Buying IBM’s PC unit will quadruple sales from 2003’s $3 billion. If Lenovo pulls it off, it could become China’s first truly global brand. “It’s as if previously we were a small boat on a river,” Liu says, “and now we’ve become a ship heading out of port.”
–Mure Dickie, Financial TimesFinancial Times
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
