Lenovo 2009 Annual Report Download - page 8

CHAIRMAN’S STATEMENT
2008/09 Annual Report Lenovo Group Limited
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In the 2008/09 fiscal year, the PC industry was hard
hit by the global economic crisis and as a result the
operating environment for Lenovo became extremely
challenging. Under the unprecedented economic
crisis, enterprise customers delayed their purchase
and cut down spending on PCs, leading to a reduction
in global commercial PC demand. At the same time,
the growth of the China PC market also slowed down
as it was affected by the macroeconomic conditions.
These unfavorable factors impacted Lenovo’s business
performance in the second half of the 2008/09 fiscal
year and also highlighted the urgency for the Group to
improve its execution and operational efficiency.
Since its acquisition of IBM’s PC business, Lenovo
has progressed smoothly in the integration of its global
operations and attained a number of achievements
through steady implementation against its strategic
directions. To meet the current economic challenges,
Lenovo will remain steadfast in pursuing the defined
strategic priorities and take decisive actions to alleviate
the impact. First, Lenovo realigned its resources and
organizational structure to boost operational efficiency
and reduce expenses. It strives to stabilize the Group’s
business performance by focusing on enhancing the
competitiveness and profitability of its core businesses.
Furthermore, Lenovo will endeavor to strengthen its
position in the China PC market by leveraging the
government’s economic stimulus package to grow its
business, accelerate its expansion into other emerging
markets and the consumer PC market and at the same
time strengthen its leading position in the worldwide
commercial market.
The Group also introduced a series of changes in
its management team to boost its ability to execute
business strategies. Yang Yuanqing returned to the
role of Chief Executive Officer in which he will apply
his extensive experience in China and the insights
that he has gained during the course of Lenovo’s
internationalization. When Lenovo acquired IBM’s
PC business in 2005, Yang Yuanqing considered
working closely with managers from diverse cultural
backgrounds and leadership styles a major challenge.
In the four years following the acquisition, he has gained
valuable experiences that laid the groundwork for him to
lead Lenovo towards success in the future. Rory Read,
our newly appointed Chief Operating Officer, is very
strong in execution and will work with Yang Yuanqing
as the core of management, overseeing day-to-day
operation of the Group.
In the twenty five years since Lenovo was founded,
I have encountered many challenges, some seemingly
insurmountable. We weathered through all the storms
with courage, faith and luck, but also insights into
corporate leadership that we have gained over
the course. The Board of Directors has entrusted
me with the chairmanship again to support the
new management team in maximizing returns to
shareholders. I am confident of living up to this
expectation. I would like to take this opportunity to
thank William Amelio for his contribution during his
tenure at Lenovo. His expertise in operations and efforts
in cultivating a global corporate culture have been
instrumental in making Lenovo one of the leaders in
the industry.
I believe the decisive actions that we have taken to combat
the economic crisis and the efforts to execute various
strategic priorities will enable Lenovo to emerge as a more
competitive company when the market recovers.”
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