Lenovo’s Acquisition of IBM PC Division

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Compare the two case
In this section, I am going to compare human resource management performance in the two cases. But first we should define what is good human resource management, what kind of the HRM can be called a good example. There may be many standards but I think the most significant one is that the human resource strategy should fit the company’s strategy, which means that HRM strategy of the two company should fit the acquisition strategy.
And according to the Bower(2001), there is five kinds of strategies of acquisitions, which are overcapacity acquisitions, product or market extension acquisitions, the geographic roll-up acquisition, the industry convergence acquisition and acquisitions as R&D (Research and development). Obviously, Lenovo’s acquisition and TCL’s acquisition belong to the second group.(Although there can be several goals of an acquisition, I think the strategy comes from the main one. For example, the goal of TCL’s acquisition can be market extension as well as R&D, but the main one is market extension, so I consider it belong to the second group. Then I will figure out the HRM role in product and market extension acquisition strategy.

•The role of HRM in product and market extension acquisition strategy
I examine the role of HRM in the integration phase of product and market extension acquisition strategy through the lens of the resources, process and values framework.
There is a table which explains the process more specifically. 1
Human Resource Management Strategy
Product or market extension
Resources Expect few lay-offs and focus on retention
Processes
Processes can be transformed slowly if acquiring firm is experienced and much larger than acquired firm
Experience varies by country a...

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...fferent values will result in problem in communication, but TCL even made things worse because of language issue. TCL is a Chinese-spoken company while Alcatel is a French-spoken company. We know that French is not as universal as English and few French people speak English. So TCL can’t communicate to the Alcatel’s employees directly without using translators, and even with the translators, communication problem can still arise in case of the misunderstanding happened to the translators that they don’t understand what the company say and convert the wrong meaning. On the contrary, Lenovo takes English as a consistent language. Because IBM is a American company so there will not be any problem for them in communication in English.

Works Cited

Ruth V.Aguilera and John C.Dencker, The role of human resource management in cross-border mergers and acquisitions, 2004

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