Essay Analysis Macro And Micro Environment Of IBM

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Introduction (Graphics Not Available) The world has grown increasingly complex, resulting from the greater interdependence among world economies (Thompson, 2002). Successful organization is largely determined by how well the organization adjusts all its tangible and intangible properties to keep itself on track with its surrounding (Armenakes & Bedeian, 1999). Strategy was concerned to manage firm’s activities and resources to the environment in which it operates. This essay will analyse the micro and macro external environment in the part five years (2000 to 2006) of IBM Company by using PESTEL and five forces model to analyse in the first part. The second part will discuss about the advantages and disadvantages of the two possible…show more content…
Environmental factor All computer technology manufactures are the global companies, thus, they can be affected by some environmental factors that happening around the world. For example, in 2002 and 2004, there were widespread outbreaks of an illness such SARS and bird flue respectively (BBC News). These situations could adversely effect to all businesses that operate especially in China. These crises also effect to IBM in terms of ability to source and deliver products and services to its customers and customer demand since IBM has many suppliers in China and Asia countries (IBM Company) Technology factor Technology affects directly to computer technology industry because computer technology can be used as a tool to invent many technological products such as x-ray machine, aeroplanes, talking dictionary, video game and etc. Moreover, computer technology has been continuing developed in order to use in many fields such as business, design, contracture, science, manufacturer, military and etc. For instance, U.S. military deployed IBM’s speech to speech translation software to help U.S. serving in Iraq for better communication with local security forces and Iraqi citizens (Networkworld.com) 1.2. Five Forces Analysis Porter (1980) stated that the essence of formulating competitive strategy relates to a firm’s environment and companies that can adapt their strategy along changing environments may be able
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