Change in the business from local to global prospect provided for great opportunity to grow and at the same time brought in more challenges in the organizational structure of the companies. This case provides for a detailed discussion about various challenges present in developing a global integration. There are various forces that narrated about the reasons for IBM’s decision to become a globally integrated enterprise (Kanter, 2009). Various requirements enabled in developing the required skills for global leaders. For developing a new integration process, more detailed analysis about the issues associated with the employees, organization directly or indirectly involved in IBM has to me made.
By analyzing the issues, it was determined that there is great difficulty in exporting all the requirements from US to other part of the world which made IBM to think about globalization. Currently the leadership of the company mainly focuses into innovation and leaders have broad spectrum to think globally. As mentioned earlier in global market regulations were unfavorable for the company because of various issues like political tension which required for more integration, collaboration, and building relationship and to be more flexible. Management of the global operations was mainly done by flying to other places and Palmisano was focused only in relationship building. On the other hand, John Iwata was concerned in dealing with the national competition and political leaders of the country (Kanter, 2009). Understanding about the requirements and changing according to the requirements enabled them to become a globally integrated company. People were sent to the respective places as and when issue arises. The main objective is to address the issue of customers faster, to have great talent, and to have some integration with the existing problem. More changes have been finally made by outsourcing jobs to foreign market and reducing the employment in US, which enabled in making the global operations more closer and experienced American executives and managers were sent abroad for training purposes.
More business opportunities and revenue were generated by IBM from outside US and more from emerging markets and European countries (Kanter, 2009). All these countries have various cultures, skill sets, government policies and requirements which demands for various management style. Growing competition and accelerated development in the developing countries, required for the integration of global resources to provide the best to customers.
Palmisano in 2006 clearly stated that multinational companies like IBM will have major effect on the global economy (Kanter, 2009). More flexibility is required as the requirement of every customer is different from others. This increases the demand for new technologies and makes the operations and functionality of the company to be more flexible. The trend in the market has changed in denoting...