global business today international business case study chapter 11
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GROUP PROJECT
Lê Thị Ngọc Ánh
Ngô Thế Đạt
Nguyễn Hoàng Hân
337646
337646
337646Chapter
11
BACKGROUNDIBM- International Business Machines Corporation
- Multinational technology and consulting corporation- 1911. Founded, Headquarters in New York, U.S.- 1914. Thomas J. Watson joined (CEO), policies have been changed
and established, leading to becoming famous with the slogan “THINK”.
- 1952. Watson Sr. (Thom’s son) took over.- Becoming dominant in one of the most notable growth industries of
the century.- 1980. IBM PC was an immediate sales hit, the company was
successful till 1991s.- From 1995s. IBM got back after a fall, and - Ranked by fortune as the 4th largest company (employees)
QUESTION I. In the 1970s and 1980s 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 kind of strategic orientation?
A classic multinational enterprise means IBM was operating in many countries abroad but managed by one host country. However, the structure seemed as country-by-country operations, working in isolation.
Organizing as a multinational enterprise gave IBM a chance to gain advantage from the products and services provided with no pressure to make a less cost structure, but reducing as many redundancies as possible.
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BACK GROUND In the 1970s and 1980s 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 kind of strategic orientation?
Advantages
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No limits to creating
more jobs
benefits of economics of
scale
profit for research and development
ensuring standards
Lower average costLower prices for
consumes
QUESTION II. By the 1990s the classic multinational strategic orientation was no longer
working well for IBM. Why not?
Due to the globalization of the world economy, the global life of many IBM regulars, and the competition from enterprises in emerging marketplaces, such as China also India.
IBM had to transform its tactic again to one that Palmisano entitled as a “globally integrated activity”.
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QUESTION II. By the 1990s the classic multinational strategic orientation was no longer
working well for IBM. Why not?
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MULTINATIONALINTERNATIONAL GLOBALLY INTERGRATED
QUESTION II. By the 1990s the classic multinational strategic orientation was no longer
working well for IBM. Why not?
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MULTINATIONALINTERNATIONAL GLOBALLY INTERGRATED
QUESTION II. By the 1990s the classic multinational strategic orientation was no longer
working well for IBM. Why not?
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MULTINATIONALINTERNATIONAL GLOBALLY INTERGRATED
QUESTION III. 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?
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Brazil
New York
IrelandVermont
India
China
semiconductor R&D and manufacturing operation
Ex & In Web sites
global procurement center
global services delivery
QUESTION III. 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?
3
Brazil
New York
IrelandVermont
India
China
semiconductor R&D and manufacturing operation
Ex & In Web sites
global procurement center
global services delivery
national markets
QUESTION III. 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?
3
Brazil
New York
IrelandVermont
India
China
semiconductor R&D and manufacturing operation
Ex & In Web sites
global procurement center
global services delivery
national markets
integrated global operations
QUESTION III. 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?
3
Brazil
New York
IrelandVermont
India
China
semiconductor R&D and manufacturing operation
Ex & In Web sites
global procurement center
global services delivery
integrated global operations
Human ResourcesCheap labor
Managerial changes Access to more global
market
Liberalizing of trade
QUESTION III. 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?
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integrated global operations
. Developing the human capital.
. Communicating openly about the strategy so that people can work together to understand and respond.. Measuring how it can differentiate itself and act to create competitive advantage.. Improving the way the organization measured, tracked, deployed and developed the workforce.. Finding the right talents for the right positions.
QUESTION IV. In terms of the strategic choice framework introduced in this chapter, what strategy do you think IBM is pursuing today?
- Global integration/ post multinational global corporation.- Location based on economies and expertise- Labor – India factors of Endowment (Porters diamond)- Global supply chain, One business asset
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