Case Study of Legend Holding Company

1. Overview of the LEGEND Company:

Name : Legend Holding Company
Type : Public
Industry : Automobile
Founded : 1984
Head Quarter : China
Area Served : China and Asia
Products : Computer related products, assembled PC

2. Key Concept:
The passage explains about their innovations and how they motivate employees to make a goal to
reality.

3. Summary:
The starting history of Legend Holdings was phenomenon. They’ve created something for their own
region which helps them to grab all the heart around the nation. They utilized their labour which
also helps them to reduce the price of the computer. Other economics and manufacturing system
helped them to reach the top place of the chart and they were able to catch IBM’s eye. Servicing PC
was another good move by them. But the most significant move was “snazzy PC”. Later on,
Microsoft also merges with them to create something new. The motivation of their chairman and
the motivated group managers and employee took the company in another level. Their recruitment
process was mind blowing and any employee will try to grab those incredible opportunity. Chairman
of the company also gave lots of other advices which helped them to build “Palm-sized PC”. That PC
took them to the Europe market and after that they never looked behind. Chairman also believes
that their managers and employees are very much dedicated and they can do more and more for the
company.

4.1. Ans:
Since Liu Chuanzhi had an aggressive plan to reach 10 billion in annual sales by 2005 and see this as a
challenging goal, we can explain his motivation with goals setting theory. Goal setting theory of
motivation assumes that behaviour is a result of conscious goals and intentions. One of the most
important emerging theories of motivation is goal setting theory.

4.2. Ans:
Under equity theory, I would employees to contribute more to the organizational goals as long as
they are motivated with satisfactory rewards, pay packages and given important shares in the
company including the chairman. In this ways Legend’s workers perceive themselves treated fairly
and act accordingly. Equity theory suggest that people are motivated to seek social equity in the
rewards they receive for performance. It is an individual’s belief that the treatment he or she is
receiving is fair relative to the treatment received by others. Legends combined low labour costs,
local resources of parts, a just in time manufacturing system. It’s reducing its production costs.
4.3. Ans:
Liu Chuanzhi motivates his employees to reach specific goals such as developing a challenging
product in given time period or boosting sales to a predetermined level. This crates rapid
improvements for the company.

5. Conclusion:
In this case legend Holdings faced many problems while facing the different types of challenges.
Realising such problems Legend Holdings finally could develop a new computer accommodate
Chinese characters and made their customers satisfied. They also could improve the quality by
increasing the employee to be motivated.

6. Recommendations:
 Improved customer relationship management system.
 Increasing the quality of their computer
 Cost efficiency and effectiveness must be maintained
 Keeping balance between customers, products and employees by motivating them.