IBM in Depth
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Imagine you were going to select and research an international organization with subsidiaries in several countries. Prepare research literature that examines the operations of the firm in at least two different countries. Please include:
* An outline explanation of the chosen international organization
o Mission Statement
o Product Strategy
o Distribution Strategy
o Pricing Strategy
* A description of the global business environment and the countries selected market
o Competitive Environment
o Target Market
o Communication Strategy
* An explanation of the impact of culture on their chosen business's activities around the world
* Identification of the key management issues your chosen organization faces
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Solution Summary
This solution summarizes IBM in 2010 as an example of an international organization with subsidiaries in several countries. Sections include communication strategies, key management issues, global operations, engagements by industry, product strategy and more. 1730 words.
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IBM in 2010: Global Services, Local Clients
MISSION STATEMENT:
Ten years ago, IBM claims, they saw change coming. In response, IBM changed the mix of their businesses and worked to remake the company as a globally integrated enterprise, leveraging our scale to capture new growth. As a result, IBM has been able to invest in future sources of growth and provide record return for shareholders. IBM's strategy produced steady results in core business areas and at the same time, expanded its offerings and markets. The key tenets of this strategy were:
- Deliver value to enterprise clients through integrated business and IT innovation
- Build/expand strong positions in growth initiatives
- Shift the business mix to higher-value software and services
- Become the premier globally integrated enterprise"
IN IBM's 2009 Annual Statement to Stockholders, its CEO defined IBM's corporate mission as one of capturing new growth in order to provide record return for its shareholders, and position the company for continued growth over the next decade. In order to accomplish this, IBM has changed its portfolio or mix of businesses and leveraged a globally integrated enterprise in order to make targeted growth investments. At the operational level, IBM created business value for clients and solved business problems through integrated solutions that leveraged information technology and a deep knowledge of business processes. IBM solutions create value by reducing a client's operational costs or by enabling new capabilities, which generate revenue. (http://www.ibm.com/annualreport/2009/2009_ibm_annual.pdf, p20)
PRODUCT STRATEGY
IBM's core business model supports two principal goals: help clients succeed by becoming more innovative, efficient and competitive; and provide long-term value to shareholders. IBM's global capabilities include services, software, systems, fundamental research and related financing. However, the model is not static. The business model must be flexible, and adapt to continuously changing market and economic variables. For 2010, IBM is focusing on four major growth opportunities:
- Growth markets: In both mature and growth economies, infrastructure represents a major technology and business opportunity, with more than $2 trillion in fiscal stimulus earmarked by governments
- Analytics: IBM's new analytics service line draws on 4,000 dedicated consultants, plus 200 mathematicians and advanced analytics experts in IBM Research. We have invested $10 billion in 14 acquisitions since 2005, creating seven analytics solution centers around the world
- Industry: Chemicals & Petroleum (Venezuela) 3-D seismic imaging technology helped Tricon Geophysics cut processing time by 50 percent and realize a 40-percent savings in power and cooling infrastructure, and operational costs
- Cloud and next-generation data center: These new models are enabling efficient consumption and delivery of IT-based services. More than 18 million people use LotusLive, IBM's cloud- based collaboration ...
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