THE EVOLVING STRATEGY AT IBM

Teacher: Marco Ríos-Pita Ruiz

Sección: S-001

Students:

CONCHS GUTIERREZ, Paula Nicole

DE AGUILAR RODRIGUES DO AMARAL FRAZ ÃO, Manuel Maria
PALOMINO PUMA, Noelia Del Carmen
VASQUEZ SORIANO, Renato Paolo
VALENCIA CASTILLO, Rosaluz

Lima, Perú

2022
CASE DISCUSSION QUESTIONS

1. In the 1970s and 1980s Sam Palmisano states that IBM was organized as a classic
multinational enterprise. What does this mean? Why do you think IBM was organized
that way? What were the advantages of this kinf of strategic orientation?

This model was adopted because IBM began to have small stores around the world, going
global.It integrated all its business operations. The meaning is that the company manages a
lot of plants in many countries, their invest is located in these countries. The reason was the
needed of grow and increase its market abroad.

The advantages of this kinf of strategic orientation:

- Reduce dependecies about goverment

- More access to resources , because the no-developed countries can access to
resources thanks to this kind of companies
- This type of company provides jobs to employees from countries with high
unemployment rates
- Access a large market for cheap, highly-skilled labor.

2. By the 1990’s the classic multinational strategic orientation was no longer working
well for IBM. Why not?

It stopped working for 3 reasons: the globalization of the world economy; the global
nature of many of IBM’s customers, who were themselves shifting towards a global
integration strategy; and the emergence of fierce competition from enterprises in
emerging markets such as China and India. It was no longer enough to have mini
IBM’s in major national markets around the world and it was necessary to move into
the globally integrated enterprise.

3. What are the strategic advantages to IBM of its globally integrated enterprise
strategy? What kind of organizational changes do you think had to be made at IBM to
make this strategy a reality?

The strategic advantages for IBM were fully applied in an appropriate manner
because they implemented their operations based on external factors of the countries
such as the economy, experience, the business environment. They adapted to the
environment of each country, managing to establish themselves internationally.

To apply this strategy, they had to carry out a complete analysis of what types of
processes could be implemented in the different countries, taking into account their
environments. They expanded their operations to other countries so they had to
delegate control of operations in other countries to people, install new laboratories
 and hire more people to manage this, training them and teaching the know-how of
the business. In addition to this, they had to set up a central office to be able to
obtain reports from the offices in the other countries and maintain fluid
communication and the ability to attend to problems that might arise.

4. In terms of the strategic choice framework introduced in this chapter, what strategy
do you think IBM is pursuing today?

The present IBM strategy is the most similar to the international approach to marks. The first
method is to locate work and operations anywhere in the world depending on economics,
skills, and the appropriate business climate. Then there's horizontal and global integration. A
worldwide supply network.
Also, treat human capital as a single global asset to manage and deploy.