The Legend Group Limited (Legend), China's largest IT enterprise, has drastically reorganized its company structure.

The new organizational structure features three areas, namely, marketing, operations and R&D -- all oriented to the company's core business of PCs and related products.

It has replaced the old six-sector structure -- corporate IT, consumer IT, handheld devices, IT Service, contract manufacturing and the Internet.

Yang Yuanqing, president of Legend, revealed the company's three-fold strategy for the coming three years.

First, the company will further focus on PCs and related products, and ensure effective allocation of the company's resources to the core business.

Second, Legend will establish a customer-oriented sales model, to further penetrate the fast changing market.

Finally, it will improve operational efficiency, simplify the work flow, aim at closer customer ties and speed up market response.

The current company structure coincides with Yang's new strategic priorities for future development, said industry observers.

The six-sector structure was established when Yang took over three years ago, leading Legend into a range of new areas, including handsets, IT consulting, software for insurance products and telecommunication systems integration.

Yang's accomplishments in the past three years were affirmed by the sales results in the company's report for fiscal year 2003/ 2004's third-quarter ending December 31, 2003 released earlier this week.

Statistics show that the group's turnover increased by 17 percent year-on-year in the third quarter. Compared with three years ago, Legend's sales revenue increased by 26 percent, while its profits soared by 50 percent.

But this is far from Yang's goal, which he set in 2001, to realize a sales revenue of 60 billion yuan (US$7.2 billion) in three years.

The Internet and contract manufacturing sections are not making much money, according to the industry source.

With the restructuring, almost half of Legend's dozen or so vice-presidents (VP) have also seen their posts changed, believed to be the biggest adjustment in its senior management.

From great expansion in the last three-year plan to strategic business scope shrinkage in the current three-year plan, Legend has entered a critical stage in the company's history, said industry insiders.

(Xinhua News Agency 22, 2004)