Risk Analysis of Lenovo Acquiring IBM PC Division

DOI

10.2991/isbcd-18.2018.73How to use a DOI?

Keywords

acquisition; employee risk；market risk；cultural integration risk

Abstract

On 8 December 2004, when Lenovo announced its decision to acquire IBM PC Division, the IT industry and business community were shocked. It was a smaller Chinese company from a developing country that acquired a larger American company from the most industrialized economy in the world. Most people thought that this acquisition was destined to fail, and the acquisition was compared to ‘a snake swallowing an elephant’. There are three types of risk -- employee risk, market risk and cultural integration risk associated with the acquisition. This paper analyses how Lenovo manages these risks.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jing Zhang
AU  - Wenhua Yang
PY  - 2018/10
DA  - 2018/10
TI  - Risk Analysis of Lenovo Acquiring IBM PC Division
BT  - Proceedings of the 3rd International Symposium on Asian B&R Conference on International Business Cooperation (ISBCD 2018)
PB  - Atlantis Press
SP  - 364
EP  - 367
SN  - 2352-5428
UR  - https://doi.org/10.2991/isbcd-18.2018.73
DO  - 10.2991/isbcd-18.2018.73
ID  - Zhang2018/10
ER  -