Illustration based on lenovo, Business Management

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Lenovo

a) Causes could include:

  • Provides a focal point for its staff
  • Can be used to calculate the performance of the business
  • Informs premeditated planning
  • Any other legal point

Two clearly described reasons needed for maximum marks.

b) Reasons (difficulty) could include:

  • Disagreement, e.g. "truth seeking and accuracy" might limit Lenovo's ability to earn high profits. Alternatively, shareholders might insist high dividends, but management look for to invest profits for the long term.
  • Culture conflict, e.g. compatibility of American and Chinese cultures.
  • Monetary constraints, e.g. sponsorship could damage cash outflow in the short term; any benefits are only reaped in the long run.
  • Any other valid reason that is inspected in sufficient detail.

 

 


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