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Essay / IBM: a study of the business strategies used
When IBM first declared its international expansion before the arrival of Palmisano, and it did so according to the classic international model of many companies. At that time, IBM conducted most of its business from home and sold most of its products internationally through overseas sales offices. But Palmisano joined IBM in 1972 and moved away from that model during that time. It has become a classic multinational company. A multinational organization or corporation owns or controls the production of goods and services in several countries other than its home country. It is generally registered in one country but operates in several countries. Multinational companies engage in many different activities in foreign countries. Import goods and services to foreign countries, make significant investments in foreign countries, buy and sell licenses in foreign markets, engage in contract manufacturing, and open manufacturing facilities in foreign countries. IBM wanted to use this model because many markets were still segmented from each other by highly barrier trade. There were also national differences in business that required considerable localization. I think IBM was created this way because they wanted to open their barriers to the foreign market and try to expand their operations since developing countries didn't have much of a market, they were supposed to be helped by this strategy adapted under Palmisano. . There are certain advantages for multinationals, but also certain disadvantages. IBM focused more on the advantages than the disadvantages of being a multinational company, which is another reason why they also moved in that direction. Some benefits are that it creates jobs, wealth and prosperity. Minimum standards are also applied in this particular orientation. For example, if you go to another country and visit Starbucks in that other country, you can be sure that they will offer you something familiar to what you are used to. The economy of foreign countries will do better thanks to the creation of jobs. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay In recent decades, IBM has moved away from the multinational model and toward the characteristics of Palmisano that could be referred to an integrated global company. . One way to summarize this was that they located their work and operations anywhere in the world depending on the economy, expertise and where the world was in terms of economy, expertise and appropriate business environment. They integrated these operations horizontally and globally. They had separate supply chains in separate markets. They say they now also have a global supply chain. R&D has been global for many years. Their software research and development has been carried out in numerous laboratories around the world. Their professional services firms were accustomed to thinking about human capital. In terms of countries, regions and business units, they manage and deploy them as a single global asset. A few things also pushed IBM to make this change, including the globalization of the world economy, the global nature of many of IBM's customers, and the emergence of fierce competition in the Indian and Chinese markets. India is a very good one..