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Sample Research Proposal on The Lenovo Group based in Hong Kong

            The liability of foreignness, a concept introduced by Stephen Hymer in a thesis study (1960), claims that internationalized firms are at a disadvantage in comparison with local companies due to foreign exchange risks and unfamiliarity with the business conditions of the foreign market. With the Lenovo Group's recent $1.75 billion landmark acquisition of the IBM's Personal Computing Division in May 2005, the USA-based organization is faced with the tremendous task of managing its internationalization, with particular concern to the organization's liability of foreignness. The proposed research study will focus on the analysis of the Lenovo Group's learning engagement on overcoming their foreignness liability. The study will aim to measure the organization's effort and ability to learn how to conduct business in a foreign environment.

Lenovo is an international technology company headquartered in New York with principal operations in China and Singapore and employs more than 19,000 people worldwide. The organization's principal activity is the development, manufacturing and marketing of information technology products and services worldwide. In 2005, it reported a turnover of HK$28.5 billion, up 404% from last year. Prior to the acquisition, the Lenovo Group has changed their name from Legend Group to its current name, Lenovo, to prepare for its expansion into the overseas market ('Lenovo Company History' 2005).

HYPOTHESIS

The Lenovo Group based in Hong Kong is highly aware of their foreignness liability in the conduct of business in foreign environments.

INTRODUCTION

            The Lenovo Group is concerned with the development, manufacture and marketing of PC products worldwide. In China, Lenovo commands more than one-third of the PC market, covering all segments and has an expanding product line which currently includes mobile handsets, servers, peripherals and digital entertainment products for the Chinese market. The Lenovo Group's recent acquisition of the IBM's Personal Computing Division has raised questions on the ability of the organization to build a sufficiently rapid global reputation to retain the market's loyalty to IBM in the international marketplace (Dickie, Lau & London 2004). An interview conducted by Michael Useem and John Zhang with Lenovo's senior vice president and chief marketing officer Deepak Advani (as cited in 'How Lenovo Is Leveraging the Brand from East to West 2005), acknowledged that there are differences to be resolved in the process of leveraging the Lenovo brand in the West.

            This study will be limited to the concept of foreignness liability as applied to the Lenovo Group in light of their international expansion. This study is deemed important and timely because of the ongoing trend of internationalization of Hong Kong and Chinese firms to answer the demands of competitive globalization. With the amount of attention that business globalization has received in the past years, it is seen fit that an in-depth study be done on one of the most important facets of the process of internationalization, which is foreignness liability. For purposes of illustration, the researchers decided to take the Lenovo organization, which has recently taken the path towards globalization.

METHODOLOGY

The study plans to collect data through two sources: previously published literature on the subject of foreignness liability and a survey form. The literature will come from such sources as books, journals, magazines, researches on the same subject, the Internet and other relevant research materials. The comprehensive literature review of the proposed research will touch on previous studies that have dealt on foreignness liability from a learning perspective, particularly on its basic concepts, empirical studies done on the subject, research conducted by authorities concerning foreignness liability. From such literature review, the researchers will draw on the conceptual framework of the research, thereby providing a guide on how the whole study will be carried out.

The survey form will be distributed to thirty Lenovo employees and managers based in Hong Kong, a sample of which will be randomly selected by the researchers. The survey answers will be measured through the use of a five-point Likert scale to provide a basis for data computation and analysis. The researchers chose the survey method of gathering data, as it will be convenient for both the researchers and the respondents in that the method can be easily distributed and retrieved provided an ample amount of time and considering the time restraint. Additionally, the researchers chose the respondents to come from Lenovo, as they will provide an excellent perspective of how the organization is poised on answering their foreignness liability concerns.

PRESENTATION AND ANALYSIS OF DATA

            The data will be presented in a graphical manner to provide a better illustration and understanding of the results of the data gathered. Below each table of result, an explanation of the figures in essay form will be put to interpret the results in the way that the researchers understand it. The analysis of the data gathered would come in the form of application of the survey results to the literature reviewed, if such literature holds true for the actual business environment, and if such measurements affect how the Lenovo Group deals with the issue of foreignness liability. From these analyses, the researchers would draw on the conclusion and managerial implications of the study.

WORK PLAN SCHEDULE

            The following is the plan of how tasks are to be distributed, from weeks 5 to 9.

Time Frame

Description of Assignment

Member Responsible

 

Week 5

Accumulation of Related Literature

 

Week 5

Formulation of Survey Form

 

Week 6

Distribution of Survey Form

 

Week 7

Gathering of Survey Results

 

Week 7

Tabulation of Results

 

Week 8

Incorporation of Results in the Research

 

Week 9

Final Drafting of the Research Project

 


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