In 1924 when CTR became IBM the intentions of going international was evident. You might ask, why do you think that? The name International Business machines says it all. The 1950’s and 1960’s changed how IBM’s objective was thought. Now more businesses needed computers and that’s when IBM became a multinational corporation. IBM’s decision to go international was a wise move because trade brings new innovations and a market for growth. The objective of becoming a world economic leader was now a reality and IBM was able to be globally dominant. However, when doing business on a global scale many forces can affect trade and serve as obstacles such as social cultural, financial, legal, physical, and environmental forces. This is exactly was happened to IBM. The late 1800’s and early 1990’s were difficult times for the company. I thought IBM did the right move when they appointed a new CEO in 1993 in order to examine their global strategy. Louis V. Gerstner was a CEO that understood how to perform in foreign markets and who followed tradition.
Many experiences were needed in order to be successful in this emerging global community. Many different economic, political, and cultural forces affect how an MNC conducts business in foreign markets. IBM has gone through its share of positive and negative experiences. However, in good or bad times, it is up to the leader of the organization to implement strategic changes that would benefit the organization in the long run. Samuel J. Palmisano, current IBM Chairman of the boards of directors and CEO, is a prime example of a leader that went against tradition in order to compete in this global market by utilizing different managerial strategies. Samuel J. Palmisano states, “we’re moving beyond "international" business to something that is more like ‘transnational.’ For instance, IBM has 30 software labs around the world. We have research labs in six countries, including China and India. We're global by definition and have been for a long time, which creates tremendous advantages for our customers and shareholders, and tremendous opportunities for the top talent in markets all over the world, ” according to an article in Online news week.
Many experiences were needed in order to be successful in this emerging global community. Many different economic, political, and cultural forces affect how an MNC conducts business in foreign markets. IBM has gone through its share of positive and negative experiences. However, in good or bad times, it is up to the leader of the organization to implement strategic changes that would benefit the organization in the long run. Samuel J. Palmisano, current IBM Chairman of the boards of directors and CEO, is a prime example of a leader that went against tradition in order to compete in this global market by utilizing different managerial strategies. Samuel J. Palmisano states, “we’re moving beyond "international" business to something that is more like ‘transnational.’ For instance, IBM has 30 software labs around the world. We have research labs in six countries, including China and India. We're global by definition and have been for a long time, which creates tremendous advantages for our customers and shareholders, and tremendous opportunities for the top talent in markets all over the world, ” according to an article in Online news week.
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