Dingdao: Some thoughts on Liu's visit to Chile

After 18 session of plenary, China this year December appears more lively than usual. The focus of the European dignitaries ' visit to China, led by British Prime Minister David Cameron, sparked concern almost at the same time that Lenovo's chairman, Liu, rushed to the agricultural powerhouse of Chile to inspect the layout of Lenovo Holdings's best in Chile in the plant and jungle.

These two news stories together look, we can draw a few signals: first, China will be more open to foreign investment and cooperation, open policy to restrict the admission of foreign capital into a number of areas; second, China's private enterprises have greatly improved treatment, the State encourages private enterprises to go out, absorbing foreign advanced experience and methods, and participate in international investment and competition.

Lenovo's future development of agriculture and its promotion to the height of the strategy, in May 2013 officially launched the "Jia-wo" brand. The brand of "Jia Wo" has only been in the past six months, Lenovo's agricultural strategy has begun to fall everywhere, and take root, a large number of agricultural bases in the country to cultivate, some agricultural products have even been on the shelves, this speed and executive power, but also to the industry's eyebrows, praised by the industry as "good speed."

With Lenovo over the years of accumulated experience and talent, as well as the beginning of a very expensive start-up funds, the domestic development seems to be in the imagination. It is clear that Mr Liu is not content with the domestic market, as the head of Chen, who is one of the 2007CCTV China economic figures, Lenovo's core executive, can see that the company's Chen is ready to internationalize at the outset.

Visiting Chile at the beginning of December 2013, such as Liu and Chen, may bring us some different thoughts through his visit and experience.

Why the best overseas strategy of Jia-WO is Chile

It practitioners mentioned that Jia Wo first thought of the word "Lenovo", but for ordinary consumers, the first thing to think about is the "best Blueberry" a popular consumer in China's products, where the best blueberry is a product from Chile. Chile boasts "the longest country in the world", rich in natural resources, in recent years, forestry, wine industry, fruit cultivation, fishing and other sectors of the rapid growth in production and exports, Chile has become the world's major food exporter, one of the largest exports of wine in the fifth place, fruit exports ranked fourth in the world, Fresh grapes and plum exports rank first in the world.

The strong agricultural basis is Lenovo choice in Chile to invest in the preferred factor, the country will start to select the specific cooperation of enterprises, Lenovo through years of overseas experience, pull strings on the Chilean local agricultural leading enterprises. In the case of Subsole, a joint venture farm, most of the fruit seeds used in the farm were bought out of patented varieties, and they were constantly developing new ones. Far more fertile land than China uses advanced drip irrigation technology, the growth of crops are all recorded, all parameters can be quantified management. By contrast, China's agricultural development level is still at the point of view of the day to eat, not very good combination of technology and agriculture.

After Ding Lei and Liu Agricultural plans have been stranded or postponed, Liu led the Jia-wo group after the first product appeared on our table.

The high-end product plan of Jia Wo

People familiar with Mr Liu know that Mr Liu rarely uses the strategy of "cheap price" to guide market competition, and more often "product quality" strategy to enter the market. Whether Lenovo's computer or Lenovo's real estate business, to the current Jia Wo listed several fruits, each price is higher than the market average level.

Liu in the agricultural industry, said the most words is "food safety", indeed for food industry safety always put in the first place, safety means that enterprises should give up the chemical fertilizers, pesticides and other catalysts, the cost of cultivation is undoubtedly greatly improved. And an amazing data is that each box to the consumer's hand blueberry involves 158 links, more than 300 people, resulting in 3,100 field information, this "full traceability" is one of the best group strategy. The consequences for Mr Liu are that consumer groups are locked in the middle class after the product is available, and that working-class people are excluded from the target group.

A welcome sign, of course, is that as GDP continues to rise steadily, the number of Chinese middle-class groups will rise sharply, and these users will become the core user group in China. And the future sales level will not be limited to the domestic, the global billions of the middle-class group is a potential customer.

Liu's employment and management strategy

Lenovo is a business, and Lenovo is a nameless but real school. It is understood that Lenovo held every year "into the mold" training, the training of Liu for more than 20 years has never been absent. 2013 Lenovo's "into the mold" training invited the speed of the media COO Conglong to observe, Conglong came back and we mentioned Liu in the training of some of the refined quotations: "Build a team, strategic, with the team", "there are words to say, have a good word," "listen to the views of most people, and a small number of consultation, the boss of the decision", "The matter is first, the human is heavy", "the purposeful is extremely strong". These quotations are almost the main weapon for unifying all employees ' core values and methodologies in the training of "mold", and they are the basis of what Lenovo has always done for years.

In the same way, the idea of Mr Liu's manager has also been applied to the business of the Chen, and has been passed down by the group and incorporated into the good management team. Jia Wo in Chile, the Group of foreigners in the management also received a "mold" training, so that foreigners and the Chinese team can be consistent in values, everything institutionalized to assist the operation of the company. Simply put, in Liu's management thought, not only to let employees into the collective to meet the collective strategic goals, but also to each employee development platform and space. (The author of this paper is the dean of Dingdao Institute)