Lenovo is having some trouble, to be precise, it is because of the uneasy year of Lenovo Group President and CEO Yang Yuanqing.

As an executive of a well-known domestic company, Yang Yuanqing was extremely lucky. He controlled Lenovo Group, the largest PC giant in China, in less than 40 years. His career was proud, but for him personally, it was an opportunity and a challenge. This road was destined to be uneven.

Yang Yuanqing has been a little upset recently. The three-year Lenovo plan he personally formulated ended in failure. The product research and development of huge investments has progressed slowly, and the high-profile entry into the Internet has also lost one after another. This is undoubtedly a big blow to him.

Due to this drag, Lenovo's performance growth rate in 2003 slowed down significantly, and its profit margin also shrank significantly year-on-year, and its stock price plummeted.

Yang Yuanqing knew that as early as 2000, Lenovo's domestic industrial layout had reached a bottleneck. If it wanted to achieve the revenue expectation of 10 billion US dollars, there were only two ways, either to make industrial adjustments, take the path of diversified development, or go global and expand the international market.

So far, Lenovo has only one choice left.

The reform of diversified development failed under his leadership, which had a lot of negative impact on Yang Yuanqing's leadership decision-making ability.

Entering the international market, especially the European and American markets, is definitely a lot of difficulties for an Asian brand. Acer is the lesson of the past, and Shi Zhengrong has also paid a heavy price for this. If Lian wants to go out, he will definitely not be able to follow Acer's old path.

I have to say that Yang Yuanqing is indeed an ambitious person. He is sitting at his desk, looking at the draft and implementation details of the ibm personal computer business acquisition plan that has just been approved by the board of directors.

Since taking office, Yang Yuanqing has formulated this seemingly impossible plan, but he has never received support from the board of directors. Even so, he has not chosen to give up.

In three years, three major reforms and acquisition proposals were rejected twice in succession. The seemingly impossible proposals were finally helped by the failure of diversified reforms. The board of directors of Lenovo Group finally approved the plan before the holiday.

Yang Yuanqing didn't know whether to be glad or depressed. Looking through the materials in his hand, he gradually frowned.

Since 2003, Lenovo has begun to conduct due diligence on the M&A plan, and has also hired the most well-known international management consulting company to conduct asset appraisals. What he is holding is the detailed feasibility analysis report of the M&A case.

For international mergers and acquisitions, the most important thing is to be vigilant against financial risks, which is also the issue that Yang Yuanqing is most concerned about. Looking at the payment price listed by the financial consultant, his brow frowned again.

Compared with ibm, Lenovo is undoubtedly not enough to watch today.

Yang Yuanqing knew that cash payment is definitely unrealistic for Lenovo. McKinsey's report clearly pointed out that if cash payment is implemented in mergers and acquisitions, Lenovo's asset liquidity will be reduced, affect its debt repayment ability, and its impact on the market will be negative.

In the acquisition plan made by financial adviser Goldman Sachs, a mixed payment method of stock and cash is included in the priority, which also verifies McKinsey's prediction.

Yang Yuanqing felt a little helpless. Since he took over the position of the group president, Lenovo's stock price has been falling. Until now, its market value has shrunk by more than half, and this is all the consequences of diversification attempts.

Thinking of this, Yang Yuanqing became more and more irritable. He knew that the impact of the failure of diversified reform was far from over.

If the merger and acquisition is completed, the group will acquire ibm's mature PC R&D system and researchers. In this way, the number of major product R&D laboratories built in China over the past three years will become a redundant burden, and layoffs will become a necessary choice.

Capital has always been realistic.

Yang Yuanqing knew in his heart that only by laying off domestic employees in advance can we avoid labor disputes in ibm's merger and acquisition negotiations. After all, laying off people, whoever laying off, and which country's laying off, is still a good choice for this issue. This is also one of the key points listed by the consulting agency.

Large-scale layoffs will definitely attract the attention of the media and will definitely cause fluctuations in the stock price, which makes Yang Yuanqing particularly concerned, after all, the stock price will eventually be related to Lenovo's equity payment limit.

He glanced at the real-time trend of Hong Kong stocks on his computer desktop and fell again.

Yang Yuanqing was very angry. Thinking of the hot topics that major media have hyped this morning, he picked up the phone on the table and said, "Let Wang Xueyan come."

Soon, Wang Xueyan, the assistant president and the only female executive in the president's office, entered Yang Yuanqing's office.

"Why has the fm365 matter not been resolved yet? The homepage is directed to ibm. What does this mean? I asked you to deal with it a few years ago. That's how you handled it?"

As soon as he entered the door, he taught a lesson, which made Wang Xueyan, who was two years older than Yang Yuanqing, feel a little unfair.

fm365 actually has no substantial damage to the group. With the media's speculation, market fluctuations are inevitable, but anyone with discerning eyes knows that this impact is only temporary.

"Mr. Yang, Aolong.com has already gotten it back. The domain name of fm365 is a bit troublesome. The registrar is an American agency, and the domain name holder offers a price of 300,000 US dollars. This is completely extortion, and the group naturally cannot accept it."

"Promise him."

"What?" Wang Xueyan was obviously surprised. 300,000 US dollars is not a small amount.

She knew very well that Mr. Yang’s annual salary this year is only 500,000 US dollars, which is half the price compared with previous years. Of course, there is a reason for this. Lenovo’s performance declined last year. Liu Laoshuai said that the average salary of all directors was reduced by 40% and the president was reduced by half.

It is obvious that Wang Xueyan is unable to understand that he has paid 300,000 US dollars for a domain name.

"I said I promised him to take the domain name back, and now, go and do it right now!"

Wang Xueyan was very hesitant. As an assistant president, she naturally had to obey the president's decision unconditionally, but as a conscientious Lenovo employee, she felt that she should fulfill her obligation to remind her.

"Mr. Yang, since the domain name matter has been on the news, it will be settled in a few days. The group does not need to take out this expense. And if this matter is exposed, you may be in trouble on the board of directors."

Yang Yuanqing glanced at the female subordinate in front of him and felt a little disappointed. Is this a matter of money?

The group will lay off employees on a large scale immediately, and the stock price will definitely continue to fall.

The failure to enter the Internet, coupled with the huge amount of R&D funds, will inevitably have a catastrophic impact on stock prices if the two are mixed together.

Yang Yuanqing did not explain or explained anything. He directly ordered: "Do as I said."

What should be said has been said. Wang Xueyan is a professional strong woman in the workplace. She understands the principle of stopping at the right time, and soon left the president's office with a new mission.
Chapter completed!